When I worked for other companies, I was told, “Sell the relationship, not the returns.” But the fact is, the very reason any of us invest is because we WANT returns. And by the way, we do have long-term relationships with many of our clients.

They’re based on our untiring efforts to achieve superior results (and of course, our great service).

I was an undergrad math major, and I trust math. I use my knowledge of it to help create wealth.

Over the 34 years I have been in the securities business there have been many who claimed to have a system or strategy to do better than their benchmark (in our case the S&P 500 TR) but seldom do they post actual client returns. Studies have shown that missing just a few of the best trading days over a decade can cut returns to half of what they might have been. So we are fully invested and we were fully invested through the Great Recession. As you can see from the graphs our clients fully recovered and have gone on to new highs. I am a stock picker and at times is out of sync with the market. Over the longer-run that has proven to be a winning strategy. We do have to say that past performance is no guarantee of future performance.

ACTUAL COMPOSITE RETURNS FOR ADAMS FINANCIAL CONCEPTS MANAGED GROWTH ACCOUNTS

While Mike Adams has been managing client accounts for over 34 years, he launched Adams Financial Concepts in January 2005 as an Investment Advisor through Mid-Atlantic Capital Inc. In May 2005 Adams Financial Concepts became a Registered Investment Advisor. So actual returns shown below date to inception in 2005. Results achieved prior to that cannot be verified since he was employed by Wachovia and Dain Rauscher.

2020 Q3 Growth Accounts Performance

This is the composite average for all accounts. Studies have shown top performing funds will at times trail their benchmark but often then catch up and surpass. (RW Baird, FundX).

Current quarter  (3/31/2009 through 9/30/2020 the AFC composite of all accounts has grown at 19.26% annually net of all fees compared to 15.70% for the S&P 500 TR . In dollar terms, from the bottom $100,000 grew to $757,020 . Now is, in our opinion a great time to put money to work at Adams Financial Concepts, LLC. Past performance is no guarantee of future performance. Check AFC blogs to view Adams’ outlook going forward.

ACTUAL COMPOSITE RETURNS FOR OUR NEW PROFIT-SHARING ACCOUNTS

In the seven months from February 2020 through September 30, 2020 $1,000,000 invested in Incentive Profit Sharing Accounts has grown to $2,286,284. During those same seven months $1,000,000 invested the S&P 500 total return has grown  $1,142,836. We recognize this has been an unusual time and do not expect the same rate of growth will continue, but our goal to deliver superior returns while minimizing risk.

This is a new offering from AFC and has just a short track record. Minimum account size set by regulators is $1,000,000 with a net worth of $2.1 million excluding home. The benefits to you are simple:

  • Customized to you -unique to you and your specific needs and risk tolerance
  • 15-year track record of high performance on long-market accounts
  • Minimizing Risk
  • Tax efficient
  • No fee – just profit sharing on the $ 1 million account
  • Classified as a Conservative, not High Risk, Account
2020 Q3 Profit Sharing

The Incentive Fee Program offers the opportunity for accredited investors who only want to share profits. There is no assets under management fee or management fee. Adams Financial Concepts only earns money if you do. If the account value goes down you pay nothing. Profits are calculated as cumulative and on a yearly basis.

Incentive Profit Sharing values are shown net of sharing. Accounts at equilibrium are 150% long and 70% short but may be all long at times. There are 8 to 12 positions both long and short. AFC does not believe there is reversion to the mean. AFC believes stock picking is both skill and luck in the shorter term but heavily weighted to skill in the longer-term. Past performance is no guarantee of future returns.

“Luck versus Skill in the Cross-Section of Mutual Fund Returns” published in The Journal of Finance, October 2010 by Eugene Fama and Kenneth French.

FOR OUR 15 YEAR HISTORY OF THE GROWTH ACCOUNT. EACH AND EVERY CLIENT ACCOUNT IS CUSTOMIZED TO THEIR OBJECTIVES AND RISK TOLERANCES. THE QUARTERLY RESULTS ARE CALCULATED BY MORNINGSTAR.

WE OFFER TWO TYPES OF ACCOUNTS – FOR ACCOUNTS OF $1,000,000 OR MORE WE OFFER A STRICTLY AN INCENTIVE PROFIT SHARING NO FEE TYPE ACCOUNT. FOR ACCOUNTS OF $100,000 TO $999,999 WE OFFER A GROWTH LONG ONLY FEE BASED ACCOUNT. ACTUAL RETURNS FOR THESE MANAGED ACCOUNTS SINCE THE BOTTOM IN 2009 (10 ½  YEARS).

GROWTH ACCOUNT RETURNS SINCE INCEPTION 2005

2020 Q3 Growth Accounts Performance Since Inception

Annual Returns

2020 Q3 Annual Returns1
2020 Q3 Annual Returns2

Annual Standardized Deviation

2020 Q3 Standardized Deviation1
2020 Q3 Standardized Deviation2

Trailing Returns

2020 Q3 Trailing Returns1
2020 Q3 Trailing Returns2

Every year Dalbar and Associates study mutual fund investors and how well their investments do. Their most recent survey covers the last 30 years (January 1, 1985 to December 31, 2014). The average stock mutual fund investor who began with $100,000 on January 1, 1985 would have seen the investment grow to $294,110. On the other hand, invested in the S&P500, that $100,000 would have grown to $2,094,944!

Eugene Fama shared the Noble Prize in 2013 for his work showing fewer than 7% of professional money managers actually do better than their benchmark12. He is not alone in his findings. Charles Ellis and Burton Makiel found fewer

 

 

Note:

  • Adams Financial Concepts (AFC) Managed Accounts results are net of all fees and expenses. The results are net, net, net.
  • AFC Managed Accounts returns include all active accounts as well as all closed accounts with the same objective: to beat the S&P 500 over the longer-term (10 years).
  • AFC Managed Accounts information in the charts and tables does not include AFC balanced accounts or AFC fixed income accounts which have performance objectives (or benchmarks) different from the growth accounts.
  • The objective for all AFC Managed Accounts in these tabulations have a common objective: “Beat the S&P 500 over the longer-term (10 years).
  • AFC Managed Accounts are concentrated in 8 to 12 securities as opposed to the S&P 500 which is a diversified index. (For further discussion see AFC Investment Philosophy).
  • AFC Managed Accounts include capital gains and losses, both realized and unrealized, but do not include the impact of taxes on capital gains.
  • AFC Managed Accounts tend to have greater volatility than the S&P 500 Index.
  • Minimum Account Size as of 1/1/2008 is $100,000; Prior to 1/1/2008, the minimum account size was $50,000. Several long-term clients of A Michael Adams were allowed to join the Custom Portfolio Wrap program even with less than $50,000 during 2005 and 2006.
  • Past performance is no guarantee of future returns.
  • S&P 500 Index includes dividends reinvested.
  • This summary does not constitute an offer to sell or a solicitation of an offer to buy any securities or to enter into any investment advisory relationship and may not be relied upon in connection with any offer or sale of securities.
  • “Luck versus Skill in the Cross-Section of Mutual Fund Returns” published in The Journal of Finance, October 2010 by Eugene Fama and Kenneth French.