Editor's Note: There is no need to read today’s E-Letter unless you are interested in an investment opportunity that delivered the following:
A 2013 calendar-year gain of over 43%, net of all fees and expenses;
An annualized return since inception that beat most equity benchmarks;
Would have turned a $100,000 investment at its inception in September 1996
into a nest egg of over $577,000 by the end of 2013;
The flexibility to move to cash should we encounter a bear market or major downward correction; and
The minimum investment is only $50,000.
If you can say all of that about your portfolio, then you probably don’t need the opportunity I’ll be discussing today. Otherwise, please read on. As always, past performance is not necessarily indicative of future results.
Last October, I wrote about how Niemann Capital Management’s “Risk Managed Program” was outperforming the S&P 500 Index by a significant margin. This was no small feat, since the S&P had a year-to-date gain of almost 20% as of the end of September.
Now fast forward to the end of 2013 when Risk Managed finished the year with a whopping 43.79% gain, net of fees – more than 11 percentage points higher than the S&P 500’s excellent gain of 32.39% (including dividends). This difference in performance is known as “alpha,” which is often defined as the added value that a portfolio manager brings over and above a given benchmark, in this case the S&P 500 Index.
Today I want to revisit Niemann's Risk Managed Program and discuss how it managed to significantly outperform the S&P 500 in 2013 and for the last 17 years on an annualized basis. You don't find many professional money managers who can say that!
If you have not looked at Niemann, I highly encourage you to consider their Risk Managed Program for part of your portfolio. If you read today's E-Letter, you'll understand why.