Investment Management Strategies

In the world of stock market analysis, there are two prime philosophies:

• Fundamental analysis – used by most investment advisors, this approach looks at balance sheet, income statements and other data of each investment.
• Technical analysis – analyzes historical security dynamics to increase the probability of determining future price trends, based on time-tested mathematical formulas.

At Luthman Financial Management (LFM), we use fundamental analysis to determine the “basic suitability” of each particular investment… but our technical analysis is what sets us apart from just about everyone else!

Our primary focus is mostly on price and time trend charts, using proven mathematical calculations, that serve as indicators as to when to buy or sell a stock or other security.

Charting the advantages of technical analysis.
(Clicking on links below will launch a pop-up window.)


Black & Decker market fluctuations over a 10 year span.

Result: +9.6% annual compound equals 150% in 10 years.	Result: +9.6% annual compound equals 150% in 10 years.	Result: +16.2% annual compound equals 348% in 10 years.

Click here to view animation

What makes LFM uniquely qualified?

• Active Asset Allocation: 85% of performance is directly tied to asset allocation. In “up” markets, LFM's active allocation range for stocks is 70%-100% (depending on market and client goals/personality)… in “down” markets, only 10%-20%.
• A blend of fundamental and technical analysis, incorporating 19 technical indicators, applied to stocks that have been pre-screened by independent fundamental services.
• Efficient: Trades are executed through the block trading desk for efficiency of price execution.
• Lean and agile : We're operationally agile… assuring prompt action on execution of your orders. We act collectively for the benefit of all, ensuring fair and equal treatment without playing favorites.
• Simple fee: No front-front-loaded fees, no back-loaded fees. Our management fee is simply 1/4 of 1% per quarter (3 months) of the assets under management for that quarter. There are no special year-end fees either for working with your tax advisor on year-end tax selling. There are no hidden charges ....period! Furthermore, the fee graduates down for accounts over $3 million.
• Open communication: You get written quarterly reports, periodic newsletters, a face-to-face meeting at least once a year (more if requested)… and ability to communicate via phone or email anytime