Ted Ong and Lee Anke
In response to the need we found in the fiduciary community, we studied and became versed in fiduciary investment law and Lee began developing a structured investment methodology suitable under that law. Though Lee had considerable success in his efforts using spreadsheets and other traditional software, in 2001, a developer of institutional investment software learned of our specialized risk management style and contacted us regarding a piece of software used, up until that point, only by large institutions. What set the software apart was its unique ability to measure the actual, historical risk of loss of a portfolio, not just the volatility of returns (the traditional measure of “risk”). This was precisely the tool we had been looking for in our investment research.
By year-end 2001, we had developed our first portfolio using the software and began investing client accounts therein. It showed promise of exposing investment accounts to about two-thirds less risk of loss than the broad stock market (about equivalent to that of intermediate- to long-term bonds), yet with substantially higher returns than the equity or bond markets. Our efforts bore fruit in the ensuing years as we honed our abilities and gained expertise in tracking and managing risk. We also became experts on the Uniform Prudent Investor Act and Prudent Investors Network was recognized as the first Premiere Expert of the National Guardianship Association. Today, we continue servicing the needs of public and private fiduciaries and all other investors to whom avoidance of loss is crucial.