Wood Asset Management, Inc.: capital preservation with superior risk-adjusted performance.Since graduating from Harvard Business School Harvard Business School, officially named the Harvard Business School: George F. Baker Foundation, and also known as HBS, is one of the graduate schools of Harvard University. , Gary Wood Gary F. Wood (February 5, 1942 — March 2, 1994) played professional American football in the NFL from the year 1964 until the year 1969. The 5'11'' quarterback was drafted out of Cornell University in the 1964 NFL Draft by the New York Giants in the eighth round. has spent 38 years in the investment business. He was with major Wall Street firms Goldman Sachs, Morgan Stanley and Brown Brothers. In 1993 he founded Wood Asset Management (WAM WAM - Intermediate language for compiled Prolog, used by the Warren Abstract Machine. "An Abstract Prolog Instruction Set", D.H.D. Warren, TR 309, SRI 1983. ) with Patricia Woodruff, CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. , and Charlene Wolff. WAM has a 17-year performance record. Its risk-averse, capital preservation philosophy weathered the 2000-2002 bear market with a positive return. [ILLUSTRATION OMITTED] WAM has 11 investment professionals. Recent additions include Robert Stovall, CFA, who is well known due to his appearances on Louis Rukeyser's Wall Street Week and other media venues. WAM manages $1.2 billion for clients including individuals, retirement plans and foundation/endowment funds. "Many of our accounts are recommended to us by brokerage firms," explains Wood, "but our favorite referrals come from our clients." WAM's investment concept addresses the dilemma investors face today. Stocks are fairly expensive. Bonds have a low expected total return, and cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. offer modest returns. What to do? WAM believes in a conservative approach, stressing capital preservation, risk avoidance and strong sell disciplines. When the market is going up, who doesn't want to participate? When the music stops, who doesn't want to protect their assets? Approaches from recent upturns--Internet stocks, hedge funds, momentum investing, day trading--all address participation in good markets but fail to successfully address capital preservation and risk avoidance. WAM's approach starts with outlooks for interest rates, inflation, corporate profits and economic growth. This "top down" approach leads to sector weightings and finally, stock selection. The expected upside determines the "sell target." Value investing Value Investing The strategy of selecting stocks that trade for less than their intrinsic value. Value investors actively seek stocks of companies with sound financial statements that they believe the market has undervalued. is "price driven," and price disciplines apply to both purchase price and targeted sell price. Value investors do not inherently "like" a company, say IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , but they do not "dislike" IBM either. Ideally, they would like IBM at $80 but not at $120, even though it is the same old IBM at both prices. Wood Asset Management, Inc. 2 N. Tamiami Trail, Suite 1200 Sarasota, FL 34236 (941) 361-2195 Fax: (941) 906-9494 www.WoodAsset.com |
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