In a month marked by the unpredictable whims of the market, Abundance Asset Management stands out for its fortitude and strategic prowess. While the QQQ, a benchmark of many of the world’s most innovative companies, took a hit with a decline of 1.48% in August, our strategy remained unyielding with a mere 0.05%# change.
# This is a trading result, not a final return. These percentages do not include management fees or administrative costs and are unaudited.
This performance is more than just a statistic—it’s a testament. As Chris Perkins, our CEO and Chief Trading Officer, so aptly puts it, “We don’t change our strategy when the market gets volatile. We hedge, but our main focus is on risk mitigation. That’s where our success stems from.” It highlights that our journey isn’t solely about chasing positive returns but ensuring stability and consistency amidst market turbulence.
Our Unique Strategy
When Chris was asked about our distinctiveness, he remarked, “It’s not just about building ‘Alpha’ over assets. It’s about how we consistently profit from stock options. This builds a financial buffer for our investors, something many firms struggle to provide.” Our primary asset focus—the QQQ—is a clear nod to innovative tech companies. Chris’s faith in technology and its continued potential drives our focus, but he also hints at the future, saying, “We have exciting plans to diversify, looking at indices like the S&P 500 and the Dow.”
A Relationship-Centric Approach
For Abundance Asset Management, it’s about growth in relationships as much as assets. Chris emphasizes, “Our primary goal is to grow the assets we manage, but more importantly, it’s to build relationships with our investors.” Our fee structure mirrors our commitment to this relationship. As Chris points out, “We’re transparent. There’s a 2% management fee, and we give an 8% preferred return. Beyond that, we split profits 80/20, always prioritizing our investors.”
Sustainable Investing and ESG
In today’s investment landscape, ESG is crucial. Chris acknowledges the complexities, noting, “There’s room for improvement in the ESG rating system, but it’s worth noting that 99% of companies in the QQQ are rated ESG triple B or higher.”
Inviting Potential Investors
To those contemplating an investment, Chris’s message is clear: “Let’s have a conversation. It’s vital for us to understand our investors’ goals and dreams.” Relationship-building isn’t just strategy—it’s our core philosophy.
In wrapping up, the trials of asset management come aplenty, but our resilience in August underscores our robust strategy, dedication to our investors, and vision for sustainable growth. As we reflect on our recent triumphs at Abundance Asset Management, we also gaze ahead with unyielding optimism and ambition.