ECM Private Client Group

Investment Objectives & Strategies

Growth & Value Equity Account Objective

For clients seeking capital appreciation, ECM believes that successful results can best be achieved by the timely selection of quality companies that are experiencing above-average earnings growth. Our Growth & Value Equity accounts typically hold twenty to thirty carefully selected investment positions we believe offer exceptional growth potential without unusually high risk.

We attempt to mitigate risk by selecting established, quality companies available at valuations we believe are attractive. We continuously monitor our investment positions to detect any fundamental or technical changes, and take decisive action as we work to protect principal. During extended periods of expected market weakness, we strive to hold substantial cash or cash-equivalent positions; and when conditions dictate, we have invested in bonds to maximize returns for short periods. This is true even in our Growth & Value Equity accounts, which typically are invested solely in equities.

Balanced Account Objective

When modest capital appreciation with higher current income is preferred, ECM invests in a combination of more conservative growth equities and fixed income instruments; such as corporate bonds, government bonds & notes, and money market funds.

Historically, accounts in this objective have often been invested in 60% equities and 40% fixed income instruments. Investments in equities carry a higher risk of short-term volatility, but also provide the potential for greater returns than fixed income investments. Our Balanced Accounts have generally produced more stable returns than our Equity Accounts, with the goal of balancing current income with capital appreciation.

Strategies

ECM's investment philosophies and strategies are time-tested, and have been proven successful through more than three decades of bull and bear markets.

Most portfolio managers and mutual funds are required to be 95-100% invested most of the time. We strongly believe investment success is a matter of not only being in the right investment, but being invested at the right time. We do not believe in a "buy and hold" strategy while suffering during a bear market. We utilize defensive strategies in an effort to protect assets during adverse times, and employ rigorous investment selection in an effort to maximize returns during favorable investment periods. Strategy, in conjunction with sound fundamental research, is essential.

We apply proprietary technical analytical measures to determine when and at what price level securities should be purchased. Investments are made when we believe that all fundamental criteria for selection have been met, and when the investor psychology and technical price movement of the particular security confirms our judgment.

We Strive To Preserve Your Capital

Unlike many investment managers and mutual funds, ECM takes decisive action in an attempt to preserve assets during extended periods of economic weakness and market decline. We have proven through the years that we are willing to hold very high cash balances when we believe investment conditions warrant. We believe this is key to preservation of capital and long-term investment success. The decision of when to own a security is just as important as which security to own.