Turner capital Overview
Growing and Protecting Client Capital
Turner Capital Investments, LLC (TCI) is a registered investment advisory, founded in 2008 by Mike Turner, who holds the position of company president and Chief Trading Strategist. The company is located in Austin, Texas and serves clients throughout the US with multiple investment strategies that are a disciplined application of well-defined rules pertaining to market trend, equity fundamentals and equity technicals.
Clients hire TCI for two primary reasons: 1) To generate them a reasonable profit in bull-trending markets, and 2) To keep them from significant losses in bear-trending markets.
We take a disciplined, long-term approach to investing, one week at a time. We prefer a week-over-week analysis of the market to help remove noise and temporary market anomalies from our analysis. We rely on mathematically derived assessments of whether the market is in a bull-trend, neutral-trend or bear-trend. We adjust our investment bias to match the market and always have an exit strategy in place each client holding, just in case the market (or a single equity) reverses unexpectedly.
We have rules for every market condition and do not rely upon analyst opinions or specialist forecasts. We rely on where the market is and do not attempt to guess where the market might be in the future. We change our investment bias when the market changes so that our clients remain in sync with the market.
Mike Turner’s background is engineering, computer science and finance. He is the primary architect of the science, algorithms and math behind the analytical software systems used at TCI. He is a disciplined and formulaic trader who relies heavily upon these software systems.
He is the creator of the Bloomberg time-cycle forecasting system that is available to more than 330,000 Bloomberg terminals world-wide. Some of the most prestigious institutions in the world use this proprietary trade-timing technology.
Mike is the author of the very popular book, “10-The Essential Rules for Beating the Market”, and is a frequent guest speaker and lecturer to large financial groups.
TCI utilizes a rules-based, disciplined approach to asset management. Decisions are based on the mathematical analysis of the market and individual securities.
Our client portfolios tend to be fully invested in long equity positions in bull-trending markets; in cash in neutral-trending markets; and either partially or completely invested in inverse ETFs and/or short major indexes in bear-trending markets.
TCI has a large, sophisticated, proprietary software system that performs the bulk of the analysis of markets and individual equities and rates, ranks and scores equities based on pre-set fundamental and technical criteria. This system does the bulk of the ‘heavy-lifting’ when it comes to trend analysis, fundamental analysis, market analysis and equity selection.
Although none of our strategies are considered “diversified” in the traditional sense, we do monitor sector and industry percentage allocations.
A 3-step process governs our approach to trading:
- We match the trend of the market with our investment bias. Our investment bias can be bullish, neutral or bearish.
- We select the universe of equities from which to trade based on each stock’s fundamentals.
- The timing of when to buy or sell is based on a technical analysis of the pricing trend of each equity when compared to multiple moving averages and volatility-based standard deviations.
Entry decisions are predicated on week-ending data analysis. Exit decisions are primarily a function of stop loss events. Stops are a function of pricing trends and standard deviations of normal volatility. In addition to stops, profit-taking events can occur when the market or equity gets overheated or weakens significantly.
TCI sets the rules and mathematical algorithms, but the rules set the trades.
The system that enables us to do what we do best:
- A scoring structure to list all equities from best to worst, based on an assessment of key fundamental and technical criteria, and
- The highest probability of a successful timing of a trade, and
- The best exit price for each trade based on how much a trade can move against us before it has reversed trend.
The TCI technology is considered to be among the most advanced and sophisticated software in the world. From time-cycle forecasting to volatility-based standard deviation analysis, our software finds the best equities to own, the best time to own them, and most importantly, the best time to exit those equities.
Although our technological advancements never cease, the current system is approaching 20 years in development at a cost of several million dollars.
TCI technology, coupled with a disciplined application of rules for every market condition, helps produce a reliable, consistent set of results desired by our clients and their portfolios.
We believe the key to long-term positive returns for clients is having the right investment strategy that is always in sync with the market. Our goal is to generate net positive returns for clients in bull markets, move them to cash in neutral markets and invoke a bearish strategy (inverse ETFs, shorting, cash) in bear markets.
The chart on the right is an example 10-year representation of how the TCI methodology can be applied to trading the SPY. The SPY is an ETF (Exchange Traded Fund) that mimics and represents the entire S&P 500.
The black line (bottom) is the SPY over a 10-year period. The yellow band is the TCI Neutral Zone (NZ). The blue (middle) line shows an investment in the SPY if we moved to cash when the SPY is inside or below the NZ. The orange (top line) shows an investment in the SPY if 100% of capital is invested in the inverse of the SPY when the SPY is below the NZ. This chart does not represent actual trading, trading fees or management fees. Market nuances would impact the returns.
The difference in these theoretical returns is significant and typifies our approach in determining when to be in or out of the market.
THE ABOVE CHART DOES NOT REFLECT ACTUAL TRADES, TRADING FEES OR MANAGEMENT FEES. THE CHART IS A THEORETICAL ANALYSIS OF THE MARKET AND THE TURNER CAPITAL TRADING METHODOLOGY. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RETURNS. INVESTING IN THE STOCK MARKET IS RISKY. MANY STOCK MARKET INVESTORS CAN AND DO LOSE SUBSTANTIAL SUMS THROUGHT THE BUYING AND SELLING OF STOCKS.
9442 Capital of Texas Highway N
Arboretum Plaza One, Suite 500
Austin, TX 78759