By Steve Blumenthal, CEO, CMG Capital Management Group
“Anyone in investments should know that when you add together a number of uncorrelating returns, something magical happens.” – David Harding of Winton Capital Management
I was in Northwest Arkansas last Wednesday to speak at the Mach 1 Client Event hosted by David Lee and Kyle Alexander. David is a retired Air Force pilot and served in Iraq. I’ve watched their advisory business grow from $5 million in AUM to $20m to $65m in three short years. These two men are locked in.
What I believe they are doing really well is captured in the quote I shared above. They build portfolios by combining together a number of uncorrelating strategies in a way whereas Harding says, “something magical happens.” It is unique, requires skill and they communicate it in a way that their clients get it.
Like many advisors, David and Kyle outsource their money management to third party money managers so that they can focus on their high income activities. Execution of money management is time-consuming and requires focus and discipline.