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We're often asked, "What, exactly, does an
investment adivsor do?"
Our clients give us discretionary
authority to make buy and sell decisions for them in their
investment accounts. We manage money for individuals, corporations and not-for-profits. We
invest primarily in individual securities: stocks, bonds, REITs,
T.I.P.S and cash instruments. Giving an advisor discretionary
authority to place trades in your account
assumes there is a high degree of trust between the client and the investment
manager. When selecting an investment manager, your comfort level with the firm, the
manager and their investing style is imperative.
What we don't do...
We don't sell a "stock of the day" or "fund of the moment." We do
not "push a product" for which we will receive a commission. We
do not invest in proprietary mutual funds managed for the benefit of the fund and not
you, the
individual investor. We do not sell insurance or annuities. We do not invest in limited
partnerships, penny stocks, IPOs, puts or options, or other exotic investments. We are not
brokers selling a product.
What you receive...
We provide a professional investment service. A portfolio is constructed for you
based on a thorough assessment of your financial situation: your age, your income
requirements, your long-term goals and your risk tolerance. We help you establish an
appropriate balance between stocks and bonds. We buy and sell securities for you and
provide a semi-annual account of your assets and their performance.
You receive confirmations of all trades executed in your account and
a monthly account statement from a large nationally recognized
custodian (usually Charles Schwab & Company). We also provide
individual stock reports that describe the
companies we buy and why we buy them. You have access to your
funds at any time. You can terminate your relationship with us
at any time. You can view your account, securely,
on the internet if you so choose. With certain types of
investment accounts you can have check writing and debit card
services. You can move money between investment accounts with
a simple phone call to us or by executing a transaction on-line.
In addition we often act as a liaison between you and your accountant at tax time or you
and your attorney as you plan for your future. Essentially we are the investment
component of your professional financial team. It is this value-added service,
backed by our strong qualifications and a high degree of integrity, that gives you a leg up in
the complex financial world. (Click here to
read more about our qualifications.)
Our investing style...
Lyon Capital Management's equity
investment style is best described as "value-contrarian." That is,
we buy stocks that are undervalued and out of favor (and often
overlooked). When we buy a stock, we do so with the idea of holding
the stock for several years. We are long-term investors. (Click here to read
more about our investment style.)
Over time this investment style has been shown to produce higher
returns with less risk than other styles.
Who holds the assets?
We use a third party, nationally known financial institution (called a
"custodian") to hold assets. Our clients pay no additional fees for this
service, unlike other investment firms that use custodians who assess annual account fees,
fees for reports or checks, or for opening or closing an account. And, we do not
direct clients to use a custodian in which we have an ownership interest.
How we are compensated...
We are compensated by a fee based on
a percent of the assets in your account. If we make
sound investment decisions, your account values increases, as does our fee. It's incentive for
performance! Lyon Capital Management clients pay only our competitive fee and low
trade commissions when we buy or sell a security. This trade commission is paid to
a broker, usually the custodian, and not Lyon Capital Management; therefore we have no incentive to make
unnecessary trades. In fact, portfolio trading (or turnover) is very
low once an account has been established and initial investments
have been made. (Click here to read more about fees.)
Special qualifications
Doug Lyon, our investment manager, is specially trained to select high quality
investments and to assist clients in determining how assets should be allocated between
stocks and bonds. He holds an M.B.A. from Wake Forest University and has earned the Chartered Financial Analysts designation (CFA) from the CFA Institute (formerly the Association for
Investment Management and Research). He is a member of the CFA Institute and
is also a member of the CFA Society of Rochester.
Ask yourself:
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Do
you have a trained professional managing your money? |
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Do
you have an investment strategy in place? |
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Do
you know the percent gain (or loss) of your portfolio each year? |
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Does your advisor have an incentive
to work for you, or is he/she compensated based on trades or by
placing you into "proprietary" funds that assess high fees? |
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Have
your investments consistently generated strong returns? |
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Do
you get a high level of service at a reasonable price? |
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Do
you receive regular, easy-to-read performance reports? |
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When
your investment professional buys or sells a security, do you know why? |
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Do
you hear from your advisor regularly? |
If you answered," no," to any of
these questions, then you deserve to see what Lyon Capital Management, a professional
money manager can offer. We manage your investments so you can focus
on what it is you do best or enjoy most.
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