WITTER & WESTLAKE INVESTMENTS offers investment advisory services through unique, low-risk investment programs designed to address the needs of our clients in today’s market environment.
The firm is always prepared and willing to answer questions/concerns of our clients or prospective clients. We are committed to plan an investing approach that will match your investing objectives. Helping our investors achieve their financial goals is the exclusive purpose of our existence. Witter & Westlake Investments is an independent firm, controlled by the people who run it day-to-day. We are not affiliated with any brokerage or other securities firm. This independence allows us the flexibility to serve our clients and keeps our focus on managing your portfolio.
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PRINCIPALS
LON L WITTER, CEO, Witter & Westlake Investments; BA, Duke University, 1967; MS, Indiana University, 1970; JD, University of Texas Law School, 1974; Trust Investment Officer, First Alabama Bank of Huntsville (now Regions); 1978-1988. President and Treasurer, Witter & Lester, Inc., Huntsville, Alabama, 1988-2005. RODNEY S WESTLAKE, President, Witter & Westlake Investments; BA, University of Michigan, 1995; ND, Bastyr University School of Medicine, 2003; Research Assistant, Witter & Lester, Inc., Huntsville, Alabama, 2004-2005.
Lon L Witter
Rodney S Westlake
FROM THE END OF WORLD WAR II until 2008 the United States and the World in general was experiencing credit and leverage expansion in all facets of the economy from governments to banks, businesses to consumers. In 2008, world economies and financial markets began a period of credit contraction and deleveraging that will last several years in order to purge the system of the excesses built over the past half century. All financial and economic roadmaps are obsolete because there are no rules for investing in a world experiencing credit contraction. Investors must learn that it is far more important to control losses than to maximize gains. Investment programs based on market volatility will be more successful than investment programs dependent on market direction. Portfolios must be diversified by investing in non-correlated assets; this is quite different from what investment managers believed were non-correlating assets in 2008. Lack of truly understanding diversification cost their clients between 30-50% of their account values.
Witter & Westlake Investments believes that “true” diversity is the answer to the changing market environment. True diversity means that your assets will build money in all types of market conditions. This is in contrast to most funds that make money only in a down market or only make money in an up market. Witter and Westlake’s philosophy is to make money in all market conditions with minimum risk to the client. The firm uses “Daily Mean Reversion” (see Strategies) to achieve this goal. Daily Mean Reversion significantly reduces the risk of investing and improves returns.
Witter & Westlake Investments applies “daily mean reversion” to its core program and its individualized programs. In simple terms, daily mean reversion means buying low and selling high every day. This means that anytime a fund or index has a daily appreciation, the firm will sell some of the fund or index; conversely, anytime a fund or index has a daily decline, the firm will buy some of the fund or index.
The firm cannot scale into positions as stated above if we do not have a cash allotment. This, in affect, significantly reduces the risk involved in a volatile market. Unlike many funds or commodities, there is no charge to the investor for these daily exchanges.
The firm cannot scale into positions as stated above if we do not have a cash allotment. This, in affect, significantly reduces the risk involved in a volatile market. Unlike many funds or commodities, there is no charge to the investor for these daily exchanges.
All transactions are implemented on an equal percentage basis. This means that all clients have the same percentage invested in the components of the program each and every day. Therefore the larger your portfolio, the larger the dollar amount invested.
Witter & Westlake Investments practices daily mean reversion in all of its programs. Daily mean reversion will increase the return of the index or fund over time and substantially reduce the risk.
It is more important to keep losses to a minimum than to focus exclusively on gains. For example, if an investor loses 50% in a market downturn, he/she must earn 100% to return the loss. Simple math shows you why. If an investor invests $1,000.00 in the market that loses 50%, they will have $500.00 remaining. It would take a 100% gain ($500.00) to return their investment to their original investment of $1,000.00. If daily mean reversion holds the loss to 8%, the investor needs to make only 9% in the rally to return to break even.
Witter & Westlake Investments practices daily mean reversion in all of its programs. Daily mean reversion will increase the return of the index or fund over time and substantially reduce the risk.
It is more important to keep losses to a minimum than to focus exclusively on gains. For example, if an investor loses 50% in a market downturn, he/she must earn 100% to return the loss. Simple math shows you why. If an investor invests $1,000.00 in the market that loses 50%, they will have $500.00 remaining. It would take a 100% gain ($500.00) to return their investment to their original investment of $1,000.00. If daily mean reversion holds the loss to 8%, the investor needs to make only 9% in the rally to return to break even.
OUR PROMISE TO YOU . . .
TO HAVE your interests come first at all times and develop an investment strategy to meet your needs.
TO PROVIDE clear, candid communication and advice
TO HELP our clients become better informed and more successful.
TO PROVIDE 100% transparency of your account at all times.
TO INVEST the majority of our personal assets alongside yours.
TO HAVE all transactions implemented on an equal percentage basis.
TO CONTINOUSLY ADAPT our programs to meet the financial times.
TO ADHERE to the highest standards of ethical behavior and fiduciary responsibility.
The power of daily mean reversion
Significantly increases the return of a fund or index over a market cycle
Cut the risk of the index or fund by 15%-80%
Rarely, if ever, employ all available cash
Significantly increases the return of a fund or index over a market cycle
Cut the risk of the index or fund by 15%-80%
Rarely, if ever, employ all available cash
Witter & Westlake Original Program. The Witter & Westlake Original Program, the “Core” program, presently consists of the funds to the right. These funds may change periodically depending on Mr. Witter’s research. Lon Witter, CEO, does extensive research to find the funds that he believes will be exceptionally volatile in the coming year. Therefore, over time, these funds may move out of the core fund and other funds may replace them. However, all the above funds will continue to operate as long as our clients own any of the funds.
Witter & Westlake Gold Program. The Witter & Westlake Gold Program trades under the ProFunds precious metals fund (symbol PMPIX) with the application of daily mean reversion. The Gold Program is an example of an individualized program consisting of only one fund.
Witter & Westlake Gold Program. The Witter & Westlake Gold Program trades under the ProFunds precious metals fund (symbol PMPIX) with the application of daily mean reversion. The Gold Program is an example of an individualized program consisting of only one fund.
Individualized Programs. For investors that would like to set up an individual program, Witter & Westlake Investments will practice daily mean reversion on any one fund or combination of funds as requested by the client. If you are interested in an investment program with an individual fund or a blending of funds, the advisors at Witter and Westlake Investments will gladly create a program for you. Individual funds will be more volatile compared to the Witter & Westlake Original Program. However, daily mean reversion will significantly reduce the risk. Many of our programs/funds are IRA and retirement account eligible.
NOTE: Gold programs are generally considered defensive funds. Therefore, over time, the gold program with the best defense will have superior gains. Daily mean reversion provides the best defensive strategy. Investors who want to be long Gold need to practice daily mean reversion to get the best return with the least risk.
NOTE: Gold programs are generally considered defensive funds. Therefore, over time, the gold program with the best defense will have superior gains. Daily mean reversion provides the best defensive strategy. Investors who want to be long Gold need to practice daily mean reversion to get the best return with the least risk.
Diversified Portfolio Program
inception date 12.29.2006
since inception 7.95% gain
Gold Program
Short China Program
Long China Program
Rising Dollor Program
Oil and Gas Program
Short Real Estate Program
Short International Program
Long Financials Program
Basic Materials Program
Long Emerging Markets Program
Short Emerging Markets Program
Ultra Bull Program
Ultra Bear Program
Long Biotechnology Program
OUR PROGRAMS are designed for the investor who wants an alternative to the “buy-and-hold” strategy. We feel strongly that the buy-and-hold strategy will not be successful with market volatility continuing for several more years. The buy-and-hold strategy has lost money over the past five years. Our programs will greatly reduce your risk during a volatile market. If you believe the market or a specific asset class will experience average or above average volatility during a certain period of time, our programs are highly recommended for you.
Daily mean reversion requires time to see and understand its benefits. For this reason, we do not recommend daily mean reversion for short-term traders and market timers because their holding period for an index is most likely too short. It generally takes at least four months of high volatility and a year or more during non-volatile periods to see and appreciate the value of daily mean reversion.
2009 RESULTS. The W&W original program lost 1.04% after fees; the S&P 500 gained 23.45% during the same period. The W&W Gold program gained 32.04% after fees in 2009; the XAU gold index gained 35.85% during the same period. Since inception 3 years ago, the W&W long gold program has substantially outperformed the XAU gold index (55.24% to to 18.28%) with half of the risk.
2008 RESULTS. The Witter & Westlake Original Program earned 19.97% after fees; the S&P 500 cash index lost 38.5% during the same time period. The Witter and Westlake Gold Program lost 2.20% after fees in 2008. ProFunds Precious Metals Fund lost 54.2% and the XAU gold index lost 28.54%. By practicing daily mean reversion on the ProFunds Precious Metals Fund, we were able to reduce our loss by 96%.
Results are net of advisory fees; returns calculated by Theta.
Rally to Continue 10.2011 When the S&P 500 cash index closed above 1268, it signaled that the stock market had moved from a trading range to an uptrend. We expect the S&P 500 to challenge the April highs (1363) by year’s end.
We do not expect the market to close below 1240 on any pullback; if the S&P 500 cash index closes below 1240 then the uptrend is in doubt and we will turn more bearish.
European and U.S. problems have not been solved, just kicked down the road. We will become more bearish after the New Year. We have adjusted our Diversified portfolio and individual portfolios to reflect a more bullish mix.
READ MORE
"Investors who once bought and held stocks or pieces of index funds and rode them higher will need to devise different investment strategies."
NY Times 07/01/2009
NY Times 07/01/2009
2012 OUTLOOK & STRATEGY. 12.31.2011 Witter & Westlake expects one major rally based on hope and stimulus and one major decline based on a sovereign default or major European bank insolvency in 2012. The U.S. will fall into a recession if any of the following occur:
1. The United States raises taxes or cuts spending, both are anti-growth in the short term.
2. A major European bank becomes insolvent or a sovereign default occurs.
3. Oil prices spike as tensions with Iran increase.
<read more>
ARCHIVED News. . .
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If you experience problems with your download, please save the file rather than open it. Thank you.
After you have opened a ProFunds account, you may access your account 24/7. You will need to set up a userID and password in order to log into your account. The steps for doing this are listed in the column at the right>
If you have any questions feel free to call us at 502.339.8840 or ProFunds Shareholders Service toll free number at 1.888.776.3637.
1. go to https://accounts.profunds.com
2. Account Access Page: Just right of the box click “New user Registration”
3. Check “I am an individual shareholder” and click “Continue”
4. Fill in Shareholder Registration Form and click “Continue” Have the primary account holder’s Social Security Number, ProFunds Account Number and Account statement mailing zip code handy. It is important to write down and save the user ID and password you create
5. Fill in Step 2 (an email address is required) and click “Continue”
6. Fill in Step 3 which is about receiving documents via email. You can click “I consent” if you would like to receive documents this way or click “I do not consent” if you would rather not.
7. Fill in Step 4 of 4. You must accept the terms of the privacy notice and certify that you own the account listed there by checking the boxes. Then click “Complete Registration”
8. Finally, you sign into the account access page (bookmark this page) and begin using your Login and Password that you created.
2. Account Access Page: Just right of the box click “New user Registration”
3. Check “I am an individual shareholder” and click “Continue”
4. Fill in Shareholder Registration Form and click “Continue” Have the primary account holder’s Social Security Number, ProFunds Account Number and Account statement mailing zip code handy. It is important to write down and save the user ID and password you create
5. Fill in Step 2 (an email address is required) and click “Continue”
6. Fill in Step 3 which is about receiving documents via email. You can click “I consent” if you would like to receive documents this way or click “I do not consent” if you would rather not.
7. Fill in Step 4 of 4. You must accept the terms of the privacy notice and certify that you own the account listed there by checking the boxes. Then click “Complete Registration”
8. Finally, you sign into the account access page (bookmark this page) and begin using your Login and Password that you created.
THETA RESEARCH
Theta Investment Research is now monitoring Witter & Westlake’s Original and Gold Programs. Theta Investment Research independently verifies the returns of investment managers by monitoring the daily returns of an actual traded account. Theta is recognized as a leader in the active investment management community and provides services to institutions and individual investors who are looking for money managers to help meet their investment objectives.
If you would like to research our programs on Theta Investment Research site, please contact our office at anytime to obtain the appropriate login information.
http://www.thetaresearch.com
voice 610.495.0180
Theta Investment Research is now monitoring Witter & Westlake’s Original and Gold Programs. Theta Investment Research independently verifies the returns of investment managers by monitoring the daily returns of an actual traded account. Theta is recognized as a leader in the active investment management community and provides services to institutions and individual investors who are looking for money managers to help meet their investment objectives.
If you would like to research our programs on Theta Investment Research site, please contact our office at anytime to obtain the appropriate login information.
http://www.thetaresearch.com
voice 610.495.0180
Theta Investment Research started collecting data on December 31st of 1999 as part of an experiment designed to statistically verify the viability of alternative investment management as an approach to increasing gains and limiting risk in portfolios. Spun off as a stand-alone entity in late 2001, Theta began developing software and protocols for the automated collection of investment account data and the generation of portfolio performance and risk characteristics for alternative managed accounts. Today, Theta is recognized as a leader in the alternative investment management community and provides services to institutions and individual investors who are looking for money managers to help meet their investment objectives.
Witter & Westlake Investments believes that research is the lifeblood of a money management firm. It is unremitting, never ceasing until the management firm no longer exists. Our investment ideas are tested over many years to determine how they will perform in a range of market conditions. The investment programs that demonstrate promise after extensive testing are then funded by the principals of the firm. They will then go through a one to three-year pilot program. If an investment program successfully completes the pilot program, it is subsequently offered to the public. No program is offered to the public unless the principals are willing to make a substantial personal investment in the program. Before the principals withdraw from a program, clients in the program are notified so they may leave the program simultaneously or before.
"The economic trends that smoothed our ride are behind us." Money Magazine 6.2010
"The economic trends that smoothed our ride are behind us." Money Magazine 6.2010