Turner Capital Portfolio Strategies
Turner Capital has multiple investment strategies (see brief overviews below). Clients can, depending on the total amount of their investment and risk profile, follow one or more of these strategies in a managed account structure.
The required total combined minimum account size is $100,000. The minimum account size per portfolio strategy is $50,000.
We use a "Managed Account" structure where every client maintains 100% control of their capital at all times. Capital is never commingled with other accounts that do not belong to the client. Turner Capital is ONLY permitted to make trading decisions in client accounts and to deduct pre-authorized management fees. Clients can terminate Turner Capital's management of their accounts at any time with a simple phone call to either Turner Capital or the brokerage firm where the client accounts are custodied.
Funds are custodied at TD Ameritrade.
MANAGEMENT FEES (We aggregate family accounts to determine the total account size for Fee setting):
2.0% for aggregated accounts that are less than $250,000.
1.5% for aggregated accounts that are from $250,000 to $1,000,000.
1.25% for aggregated accounts that are from $1,000,000 to $3,000,000
1.0% for aggregated accounts that are $3,000,000 and above
TRADE TRANSACTION FEES: NONE
OBJECTIVE: Outperform the S&P 500 index in bull market cycles and generate a positive return in bear market cycles.
Management Approach - This is a conservative investment strategy that focuses on fundamentally strong, up-trending, stocks in bull markets; raises cash in neutral or transition markets; and, invests up to 100% of capital in inverse ETFs in bear markets. 20 maximum holdings with an equal distribution of capital per holding. No more than 30% in any one Sector and no more than 20% in any one Industry in bullish markets in bullish markets.
OBJECTIVE: Match the return of the SSO (a 2x S&P 500 ETF) in bullish cycles; move to cash in transition cycles; and, match the return of the SDS (a 2x S&P 500 inverse ETF) in bearish cycles.
Management Approach - Hold 100% of capital in the SSO when the market is bullish and above the SSO Transition Zone and trending higher; remain 100% in cash when the SSO and the SDS are inside their Transition Zones; and, hold 100% of capital in the SDS when the market is bearish and above the SDS Transition Zone.
DIVERSIFIED INCOME STRATEGY: (Start Date: 11/2019)
OBJECTIVE: Generate up to 9% +/- annual income from dividend-paying ETFs, CEFs (Closed End Funds), stocks and covered call trades.
Management Approach - Hold a diversified mixture of ETFs, CEFs and/or stocks that exhibit a consistent to growing dividend yield from 4% to well over 10%, depending on the equity. The goal is income and NOT growth. Generally, 20% of the portfolio will be invested in short-term covered call trades. Each holding is monitored regarding 'normal' price volatility. The goal is to stay invested in the equity until receiving the dividend payout as long as the holding does not move lower than its 'normal' price volatility range. Income is used to purchase more shares of the same holding that generated the income. If no high-yielding equity meets the minimum requirement to be in the portfolio strategy, the strategy will focus on the highest-yielding safe money market funds available at the time.
OBJECTIVE: 50/50 split of capital in SSO and QLD in bull markets, along with one or more high momentum stocks; 50/50 split of capital in SDS and QID in bear markets; and in cash in transition markets.
MANAGEMENT APPROACH - This is a very risk tolerant strategy that is both aggressive and opportunistic. Draw-downs can be significantly higher in this strategy than the other Turner Capital investment portfolios. The goal is to take advantage of strong bull or bear market trends and to be fully invested when possible.
TOTAL MARKET: (Start Date: 04/2016)
OBJECTIVE: Match the performance of the US stock market via investments in the 1x ETFs of the S&P 500, the Nasdaq, the Dow Jones Industrial Average and the Russell 2000 in bull cycles; go to cash in transition cycles; and, invest in the inverse of the same indexes in bear cycles.
MANAGEMENT APPROACH - Goal of being fully invested in the SPY (S&P 500 index ETF), QQQ (Nasdaq index ETF), DIA (Dow Jones Industrial Average index ETF) and IWM (Russell 2000 index ETF) in bull trending markets. In transition markets, the model tends to hold cash in money markets. In bear trending markets, the model invests in the inverse ETFs of these same four indexes.
** PAST PERFORMANCE IS NOT ALWAYS INDICATIVE OF FUTURE RETURNS. YOU SHOULD NOT BASE YOUR DECISION TO FOLLOW ANY TURNER CAPITAL PORTFOLIO STRATEGY BASED ONLY ON HISTORICAL RETURNS. YOU CAN LOSE CAPITAL FOLLOWING THIS OR ANY INVESTMENT STRATEGY THAT RELIES ON THE STOCK MARKET FOR POTENTIAL GAIN. PERFORMANCE NUMBERS ASSUME NO COST FOR TRADING AND DO NOT INCLUDE THE COST OF MANAGEMENT FEES, WHICH VARY, DEPENDING ON THE TOTAL AMOUNT UNDER MANAGEMENT OF CLIENT.
IMPORTANT: THE PERFORMANCE-RELATED INFORMATION PROVIDED HEREIN IS NOT REPRESENTATIVE OF PERFORMANCE IN ANY CLIENT ACCOUNT DUE TO VARIOUS FACTORS SUCH AS WHEN THE CLIENT ACCOUNT WAS OPENED, THE FEE CHARGED, AND ANY CLIENT RESTRICTIONS.