Adam Bain and the Price Momentum Strategy - 5066 Words

ADAM BAIN AND THE PRICE MOMENTUM STRATEGY In February 1995, Adam Bain, investment advisor in the London, Ontario branch of RBC Dominion Securities Inc. (RBC DS), was considering whether or not to implement a price momentum strategy for his clients. Trend and Cycle, DS’s technical research department, had recently circulated a copy of a study which described a simple price momentum model and referred to its â€Å"startling results† based on back testing the strategy over a 15 year period. The Trend and Cycle group had long promoted the importance of price momentum and relative strength to potential clients. Bain needs to determine whether the proposed model was â€Å"too good to be true† or, if it did not look promising, how he would go about†¦show more content†¦His client base had grown primarily due to referrals, often from Royal Bank branch managers. His primary source of income was through commissions charged on products sold. For example, typical stock commissions ranged from 1.5 to 2.5 per cent depending on the size of the transaction. Bain’s clients’ portfolios included equities (both common and preferred) as well as fixed income securities and small amounts of cash (typically â€Å"parked† on a short term basis before being allocated to fixed income or equities). Typical portfolios were approximately 60% equities and 40% fixed income, 70% domestic and 30% international. Approximately one third of equity investments were through mutual funds. Approximately 25% of client assets were included in tax sheltered Registered Retirement Savings Plans (RRSPs). As of 1991, Bain’s clients were primarily over age 70. As of 1995, his client base had evolved to become much younger, with a median age of around 50. his clients were dominated by professionals. Bain summed up his investment philosophy as follows: I strive to provide my clients with the best possible investment advice and service by employing proven investment strategies and techniques in order to achieve superior investment returns over the long term. I keep my business simple and straightforward in order to ensure that clients understand and easily participate in our ongoingShow MoreRelatedComputer Engineer13541 Words   |  55 Pageswith a net worth of more than $14 billion, Michael Dell stepped down as CEO, handed day-to-day operations of the company to his hand-picked successor, and became chairman. In subsequent years, Dell Inc. largely continued to follow its traditional strategy, but its growth stalled, its net margins dropped sharply, and Hewlett-Packard (HP) eclipsed Dell’s global market share in PCs. In January 2007, with the value of Dell’s common stock off by 40% since the management shift, Michael Dell returnedRead MoreSales and Marketing for Financial Institutions80443 Words   |  322 Pagessales strategy Acquiring customers Making the most of channels Managing customer relationships Legal compliance and ethics in marketing and sales The bottom line — measuring the effectiveness of marketing and sales Introduction Subject aims In a competitive, demand-driven financial services environment, an understanding of sales and marketing is crucial to success. This subject provides an understanding of the key elements of sales and marketing, with a focus on market evaluation, strategy, customerRead MoreMarketing Mistakes and Successes175322 Words   |  702 Pages Harley-Davidson, Vanguard, Starbucks, Kmart/Sears, Hewlett-Packard, Dell Promotion Nike, Coke/Pepsi, Maytag, Vanguard, Merck, Boston Beer, Kmart/Sears, Harley-Davidson, Borden, MetLife, HewlettPackard, Southwest Air, Google, Starbucks Price Continental, Southwest, Vanguard, Starbucks, Boston Beer, Dell, Euro Disney, Newell Rubbermaid, Boeing/Airbus, McDonald’s Non-product Google, United Way, Disney, Southwest, Continental International Euro Disney, Boeing/Airbus, Harley-DavidsonRead MoreKraft Annual Report99993 Words   |  400 Pagescheck mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes  ¨ No x The aggregate market value of the shares of Class A Common Stock held by non-affiliates of the registrant, computed by reference to the closing price of such stock on June 30, 2010, was $49 billion. At January 31, 2011, there were 1,748,927,248 shares of the registrant s Class A Common Stock outstanding. Documents Incorporated by Reference Portions of the registrant s definitive proxy statementRead MoreStrategic Marketing Management337596 Words   |  1351 Pages| www.bookaid.org | www.sabre.org Contents Preface Overview of the book’s structure 1 Introduction 1.1 1.2 1.3 1.4 1.5 1.6 Learning objectives The nature of marketing The management process Strategic decisions and the nature of strategy The marketing/strategy interface Summary xi xiii 1 3 3 7 11 19 37 41 43 45 45 50 53 70 71 75 77 79 79 80 81 86 88 89 101 102 104 107 109 Stage One: Where are we now? Strategic and marketing analysis 2 Marketing auditing and the analysis of capability 2Read MoreInnovators Dna84615 Words   |  339 Pages(Continued from front flap) is the Horace Beesley Professor of Strategy at the Marriott School, Brigham Young University. He is widely published in strategy and business journals and was the fourth most cited management scholar from 1996–2006. is a professor of leadership at INSEAD. He consults to organizations around the world on innovation, globalization, and transformation and has published extensively in leading academic and business journals. is the Robert and Jane CizikRead MoreExploring Corporate Strategy - Case164366 Words   |  658 Pagesstrategic choices and strategy in action covered later in the book, it will normally be a prerequisite that some type of analysis of the strategic position is undertaken, using the case material. When planning the use of these cases within programmes, care needs to be taken to balance the time taken on such strategic analysis so as to allow the time required to analyse the main issues for which the case has been chosen. Where the text and cases are being used as the framework for a strategy programme (asRead MoreHbr When Your Core Business Is Dying74686 Words   |  299 Pages. . . . . . . . . . . . . 100 Xerox . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 A U T H O R A F F I L I AT I O N S AlliedSignal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Bain Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66, 124 Board Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Eaton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Read MoreContemporary Issues in Management Accounting211377 Words   |  846 Pages Gordon, Martin P. Loeb, and Chih-Yang Tseng 8. Accounting and strategy: towards understanding the historical genesis of modern business and military strategy Keith Hoskin, Richard Macve, and John Stone 9. Modernizing government: the calculating self, hybridization, and performance measurement Liisa Kurunmaki and Peter Miller  ¨ 10. Analytics of costing system design Eva Labro 11. Understanding management control systems and strategy Kim Langfield-Smith v vii xi 1 20 42 69 92 117 146 166 Read MoreManagement Course: Mba−10 General Management215330 Words   |  862 PagesOur work in helping to increase the profitability of many of the world’s major companies (as well as our database surveys of many other companies) has made it clear that all this complexity has been changing the fundamental dimensions of business strategy and the meaning of its implementation. These changes affect a broad range of decisions, including the following: ââ€"  ââ€"  ââ€"  ââ€"  ââ€"  ââ€"  ââ€"  How to invest in technology How to lead meaningful human resources initiatives How to maintain alliances successfully