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Gann Management Ltd- Celebrating 28 years of
continued success!
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Telephone 0161 285 4488 | Fax 0161 494 6432 | Email
info@gann.co.uk |
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Gann Managements Investment
Approach
Don't focus on making money; Focus on protecting what you have
…… Play great defence, Not great offence …. The the profits will
follow’ ‘PAUL TUDOR JONES ‘
Our general management philosophy
concentrates firstly on defense and only go on the offensive when risks are
low, generally after shake-outs or significant breakouts. We are one of the few
advisers who cover all world markets on a weekly basis to ensure that our
clients are unaffected by unexpected events which often result in serious
meltdowns. We are also aware that markets in general only move 15% of the time
which points to a cash stance often being necessary. We disapprove of asset
allocation management where large cash holdings are conspicuous by their
absence. This belief is influenced by our experiences in the 1972/1975 bear
market where every investment area suffered. Consequently we do not allow any
holdings to fall unduly but liquidate positions early in their demise.
Over the decades we have been extremely successful by cutting
out unnecessary risk and when appropriate reverting into a 100% cash position.
We allow the market to dictate where we should be and attempt at all
times not to tell the market where it should be. We are quite prepared to
abandon quickly any positions held when our price and time stop losses so
pronounce. We endeavor to limit any losses on ungeared portfolios to 1% of the
total portfolio value on any individual losing trade. This would not be the
case where high risk portfolios are geared; minimum losses being limited to 1%
times the amount of gearing. Exit points for areas with low volatility such as
gilts, currencies etc would be subject to much tighter exit points. Where
humanly possible we attempt to invest identical amounts in all our trades.
However, we often have to stretch this rule when taking into account the size
of the funds under management.
When lack of liquidity exists this could
affect our ability to extract ourselves from positions in danger this often
dictating that the amounts invested being below the norm.
We do not use
set asset allocation practices where it is assumed that by spreading
investments, risks are automatically reduced. Our experience is that in times
of panic all investments often collapse at the same time. Spreading does not
necessarily ensure safety.
We are fully aware that moving high volume
has at times inherent difficulties and necessitates closing positions when the
market allows you to get out rather than when you want to get out.
We
are mindful of Lord Rothschild’s reply to a question on how he achieved
his success was ‘By selling far too early’ In consequence, investors
should be fully aware that we could under perform the market at their peaks as
we would expect to have withdrawn before tops to ensure that there are still
buyers around before any serious fall.
In order to achieve a great
defense it is our policy to daily check that all our positions are secure. This
is achieved by assuming our open positions were a mistake and then assuring
ourselves that this is not the case. This ensures that losses are not allowed
to get out of hand and that profits are not eroded unnecessarily. We follow
rock hard disciplines in order to achieve high returns when allowable by the
markets without taking undue risks. When risk is considered unacceptable we are
happy to revert to highly liquid positions and wait for the next
opportunity.
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© 2008 Gann Managament Ltd.
All Rights Reserved. Gann Management Limited is authorised and Regulated by the
Financial Services Authority.
GML Company Reg Number: 2069317 GML VAT
number: 616003878
All information on this website - www.gann.co.uk are
subject to the terms of this:-
DISCLAIMER. |
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