01 Jul Quarterly Letter to Clients – June 2018
Next year, Connors Investor Services will celebrate 50 years in business. In this letter, I would like to highlight some of the major changes we have made over the years.
First, a bit of history. The firm was founded in 1969 to fill what we perceived to be a void on Wall Street: in-depth research on promising small company stocks. To find candidates, we checked many sources and traveled the country to visit the best of them, to inspect their facilities and then discuss results and prospects with management. Selected companies were featured in our published service, The Connors Report. Several regional brokerage firms noticed our work and asked us to provide a similar publication with their names on the cover as well as ours. Thus was born a second small company research service, Connors In-Depth Growth Studies.
Early on, we also saw the value of hedging techniques to dampen the volatility of portfolio stocks and often add to cash income. This led to the start-up of another publication, Connors Option Service, which we felt would help regional brokerage firms take advantage in 1973 of the newly-formed Chicago Board Options Exchange. Around that time, we were also approached by a number of investors who asked us to manage their portfolios, emphasizing the small company stocks and hedging techniques featured in the published research services. We took on these assignments and developed extensive computer software and systems to do so.
In 1975, we critically evaluated the business and concluded that we were providing too many different services. As a result, we decided to discontinue publication of research reports to concentrate solely on portfolio management. In the years since, we have maintained this focus and have grown steadily, to the point today where we have more than 400 client relationships in 42 states, plus 3 overseas. In addition, we have nearly 300 relationships in specialized partnerships. In total, all client relationships represent more than $800 million in assets under management.
While we have employed small company stocks and hedging techniques in many client portfolios, other strategies have been added selectively, including large- and mid-cap stocks without option hedges, fixed income securities and international stocks. Our aim is to provide personalized, customized management service to our clients – not a cookie cutter, one-strategy-fits-all approach, but one which takes into account each client’s needs, goals and risk tolerance. This makes the management task more difficult but is a process which we believe is in the best interest of clients.
We are fortunate to have experienced and effective individuals for this work. Of the 19 associates of the firm, 12 have been with us for more than 10 years, and 6 for more than 20 years. Their experience in the investment field, including time with brokerage firms, banks or other investment advisors, averages 27 years. Their educational backgrounds are also impressive and include 7 master’s degrees, mostly MBAs; 5 Chartered Financial Analyst designations; and 2 Certified Financial Planner designations. In the past 5 years, growth in our client base has led us to add 5 new members to our team. All have quickly become strong contributors.
A major tenet of our firm’s Mission Statement, adopted many years ago, is to place client interests first, ahead of our own. This aim impacts our daily actions and decision-making and will continue to do so as we enter the next 50 years. Your continued confidence is greatly appreciated.
James M. Connors
Important Disclosure Information
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Connors Investor Services, Inc. (“Connors”), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from Connors. Please remember to contact Connors, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Connors is neither a law firm nor a certified public accounting firm and no portion of the commentary content should be construed as legal or accounting advice. A copy of the Connors’ current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request.