EXECUTIVE SUMMARY
This is our proof document for The BFlex Curve™ an investment strategy managed by Winning Points Advisors, LLC [3] an SEC Registered Investment Advisory firm[2] (What is an SEC Registered Advisory (RIA) Firm)[1] ?http://www.investopedia.com/terms/r/ria.asp
This executive summary will act as a summary and an index to the supporting documents and evidence that together become OUR proof of The BFlex Curve™.
This presentation method will allow those that want to drill down in certain topics of interest to do so, while allowing others to skip certain details. For more information on any subject click on the www.bluehyperlinksample.com
In this document we will answer 5 questions, that are the essential elements of the strategy.
1) Who we are and why we think we are the appropriate managers of this strategy,
2) Where the various parts of the strategy came from and source documentation to help prove that each part of the strategy is individually accepted in the current investment world.
3) How the strategy is actually performing using audited results from public companies and unaudited reports based on actual clients’ accounts.
4) What are the benefits to our Clients’ ,along with the special risks that our program has that are supplemental to those of normal investment strategies. These differences make all the difference.
5) What are the special benefits when the process is used using Mutual Funds that internally use our strategy.
This concept is not covered is the videos that you may have seen. This is a way to turn up and down the intended results of the process, especially used for those that want more returns or are convinced that the markets will suddenly crash again. Like in 9/11.
To the best of our knowledge our strategy is unique in that it’s a businessman’s approach to risk and returns. The process is designed to generate an additional 7% (+/-) in cash flow to our managed accounts. In addition, assist those accounts to go up more when the markets go up, and have some protection against a sudden market crash,. The type of crash that changes our world dramatically for the worst, like 9/11. However, there is no free lunch so when the markets go down but doesn’t crash, we will underperform the market. A
There are no guarantees. Past performance is no guarantee of future results.
These are not guaranteed or warranted results nor is The BFlex Curve™ an investment product.
Question 1
Who is Winning Points Advisors, LLC and why we think we are the appropriate managers for this strategy?
As we discussed in the video, The BFlex Curve™ is a combination of existing strategies that are accepted and used by some of the biggest firms and smartest people in the investment business, below we will illustrate and link to evidence of this.
Winning Points Advisors, LLC [3– (Charlie to supply PDF)
is an SEC Registered Investment advisory Firm[2 (Charlie to supply PDF located in Boca Raton FL, it is owned by its co-founder Charles S. Stoll a Florida CPA and who has been in the advisory securities business since 1979.
[4]https://www.linkedin.com/in/charliestoll/ Please see the company website for more information (5)-http://www.thewinningpoints.com/ Winning Points Advisors manages as of 8/31/2017 $210,000,000. The average client dollar has been with the firm for ___ years. The average client tenure (post 2 years) is ____ years. There have been no Client complaints against Winning Points Advisors, LLC https://brokercheck.finra.org/individual/summary/704129
[6} file:///C:/Users/DavidCampenilli/Downloads/ADV%20March%202017%20(1).pdf
[7]
We developed the process that combines the existing strategies, the Process we refer to as The BFlex Curve™. We believe this process is new to the markets ( we started in ___) and is now available due to lower commission costs and regulatory improvements (no Broker dealer), cheaper technology and access to data allowing us to test and trade efficiently.
Ten years ago the costs of executing this strategy would have been prohibitive. (David, can you find an article or source that validates this perhaps,15 years is better? (lower commissions, higher trading volume, better software)http:
We believe we are the only RIA firm that is offering this strategy to small individual accounts, and mutual funds. Many other RIA firms offer strategies designed to reduce the volatility of such accounts, however we find that they also tend to reduce the ability of the accounts to profit from the opportunities in the markets.
There is always a trade-off. Our process is designed to deliver higher profits than underlying indexes when they stay the same or go up, while attempting to protect the accounts from some or all the damage of a sudden and sever market decline.
We feel it’s those type of market declines that cause changes in our society (and fear levels) the ripples of which are felt for years. Our design goal was to deliver a strategy that helped during most times (flat or up markets) and helped when the really bad things happened, and also generated significant positive cash flow. The BFlex Curve doesn’t do as well as other strategies when the markets fall but don’t crash. Our Clients have shown a ability to handle those markets.
Being the developer of the process and having built the software that managed it, makes Winning Points Advisors, a likely best source for the potential benefits it offers
Question 2
Where the various parts of the strategy came from and source documentation to help prove that each part of the strategy is individually accepted in the current investment world?
Consider The BFlex Curve™ is like a seasoning that you put in to of your existing investments to change how they act as the market moves. It can work when you own mutual funds, highly appreciated securities, an account with company stock in it, or some combination of underlying securities, including Treasury or debt securities. It’s an add-on. One of the advantages of this program is you do not likely need to change your current portfolio positions.
The BFlex Curve™ “seasoning’ needs monitoring and management. It has a few components:
- Covered call writing: This strategy sells in the option exchanges call options, that approximately represent the appreciation of the underlying securities, we collect about 1% annually in cash flow by doing this. As well as everywhere else in this document click on the hyperlink at the end of this sentence to learn more about Covered call writing. [8]
- Selling Puts for Income and Profits: This strategy is popular all over the investment community but it’s most famous user is Warren Buffett at Berkshire Hathaway. We sell puts to bring in a lot of cash, we estimate 7% a year, (we invest that money) and then let time go by to let the puts go down in value. Once a month we roll the puts out to raise more cash. Nothing is guaranteed of course but as Mr. Buffett, suggests more volatility can be good if it results in greater gains. [9] Link (9a) this link will discuss Mr. Buffets uses aspecifically.
- Buying protective puts This strategy helps protect the account in the event of a sudden dramatic market crash. This process is not as common as the other two because it uses cash. Whereas, the first two strategies are designed to generate cash each the puts are to potentially offset a sudden catastrophic market crash. While like everything else this is not guaranteed, the math and modeling done by us and others suggest that it will work.
So we have discussed covered calls, selling puts and buying protective puts, it’s our combination of these three things that when applied and maintained on changes how your portfolio will react when the market changes.
So, we put this mixture on your stocks or mutual funds and it’s designed to produce 7% additional cash flow, makes it go up more than the market when the market goes up, and if the market suddenly and dramatically falls, is designed to help our portfolio not go down as much or perhaps not at all.
Question 3
How the strategy is actually performing using audited results from public companies and unaudited reports based on actual clients’ accounts.
In the recent time periods accounts with The BFlex Curve™ have tended to perform better that the “markets” as a whole, this is in line with its design (past performance is no guarantee of future performance)
For our most representative Audited account, the BFlex Curve™ has performed 87%, 8% and 30% better than the market over the 1 year 6 month and 3 month time period, respectfully. (link to page 11)
The unaudited accounts have a more varied returns due to slightly different makeups, but they mostly did a lot better to the markets as represented by the S&P500. (link to page 12)
Past performance is no guarantee of future performance
Question 4
What are the special risks that our program has that are supplemental to those of normal investment strategies. These differences make all the difference.
The BFlex Curve™ involves two special risks apart from normal risks of investing and options. All investing involves risks, here are a few special ones that this process takes:
- a) The client forcing us to close the option positions early. This process needs “time” to pass to function properly.
- b) The stocks or the markets go up or down very fast in a short period of time. This could be due to a takeover of the stocks in the Account, and could potentially result in the client missing some of the profits from such a takeover. Also this might be caused by normal market corrections or activity.
- c) The market declines suddenly and the custodian will not allow us to adjust the Account, or the markets fall and close and the options we bought to insure against such an event expire without value.
Question 5
What are the special benefits when the process is used using Mutual Funds that internally use our strategy.
As mentioned, the BFlex Curve™ strategy is a process that will work within your current portfolio.
However, there is a special benefits that might accrue when the process is used using Mutual Funds that internally use our strategy.
This concept is not covered is the videos that you may have seen. This is a way to turn up and down the intended results of the process, especially used for those that want more returns or are convinced that the markets will suddenly crash again. Like in 9/11.
Some Clients allow us to use The BFlex Curve™ using mutual funds that are themselves using the BFlex Curve in them. Doing so increase the volatility in the short run but is designed to amplify returns both on the positive side when the markets go up, and if the markets collapse.
On either end of the spectrum these accounts are designed to do much better. So for people who are very bullish and those who are very bearish (and who understand the kind of market fall necessary to make the downside work) this seems a good idea.
A representative account that uses this strategy was up 25.5% in 2016 compared to a market return of ___. The proof of our volatility promise is shown during the January 2016 correction when this account was down ____ compared to the market of ____. (link) Subsequent to that correction the account recovered can came in at the end of the year at the 25.5% –
DAVID: Ask John for the math- the file folders has copies of the statement in it, should be put them on the site.
[Link13 to math and statements]
Conclusion
Thanks for looking at our PROOF document that is designed to support show evidence (most of it from independent parties regarding the source design and results of The BFlex Curve™
We hope you came to the conclusion that the BFlex Curve™ comes from good theory and industry participation and that Winning Points Advisors, LLC is the firm you can use and trust to do it for you.