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3- Single-Mode Investment Management
4- Capital Partners

MW/Capital Partners

The Future of Investing The Sham of Closet Index Funds And the Monkies of Modern Portfolio Theory and Management

and LOLIPOP Portfolio Management and Retirement Planning

Turbulence

In the Modular Form Follows Function/Purpose

Income For Life: A Modular Concept

Tangible Mental Accounts: A Modular Concept

Tangible Mental Accounts: Researchers have shown that people tend to divide their money into separate mental accounts for various purposes ( think travel or dining out) and that earmarking savings to specific goals ( college savings, for instance) tends to increase savings rates.George Loewenstein, a professor of economics and psychology at Carnegie Mellon University, has proposed applying these concepts to retirement. The idea would be that retires have separate accounts for various purposes and use different investment strategies with different levels of risk for each. For policy makers, the idea would be to ask whether the retirement income strategy offers "multiple accounts to facilitate different goals, such as paying the rent or spending money on vacations."

In the Modular World the possibilities are boundless, and you are part of the process.

Evolution in Investment Management

What has worked what has not and why


ETFs vs Mutual funds - Alpha

Hedge funds vs Index funds - Alpha

Structured products vs Complexity

These things don't matter til they matter - then you get a selloff

Reverse evolution set the industry back 20 years -

Can't stand in a puddle and not get your feet wet

!0 year lead in a trillion dollar market........

50% of the problem is a culture issue and this will take a generation to evolve...case closed

Retail Mrket is trapped because they can continue to "get away with it"

Banks and Brokers are in Business the Make Money (for themselves) with Your Money

Nothing wrong with that that is their culture and their business model any way they can do that they will.....

This is a transaction and fee model not a preformance Model.

Hedge fund management is a performance model..

Modern Portfolio "Theory" - Waiting for the Tooth Fairy in the Land of Make Believe

While They Collect their Fees.......The Industry has everyone believing in and Playing Their Game......The reality is if something is hard to think about then people tend to believe it less....

Farnam Street Blog 12-11-2010

The Next Level Level

Alpha Matrix Portfolio Management

MW/AMPM - Combines and synthesizes a number of disciplines to deliver an outcome focused process, including Complexity, Evolution Theory, Game Theory, Competition and Common Sense.

IT's time for a new Model...it's Time to move on.....

The Case for a Modular Approach

Today, the investment industry is characterized by increased attention to diversification, a greater focus on risk management and broader choices. Still, many types of investments are not fully utilized by either advisors or individual investors. A full 58% of mutual funds reside outside the traditional domestic equity nine-box style grid, yet many investors have not fully explored these alternatives in their portfolio. Furthermore, individuals continue to display a limited understanding of how the different elements of a portfolio can work together to achieve a particular risk/reward profile - ultimately investing in too many funds with similar holdings, investment strategies and risk/reward profiles. The result: Mutual fund collectors and not enough Investment Strategy.

We believe individuals should consider adopting an approach in line with the investment strategies practiced by institutions. A Modular approach to portfolio construction, the use of a broader opportunity set and a more clearly defined set of investment goals - including time horizons and return requirements - are all elements of an approach used primarily by institutions. Today, individual investors can adapt these institutional-style strategies with Modular Portfolio Construction.

The Modular Approach is Often Referred to as the Endowment Model

In the world of asset management, it is widely acknowledged that among institutional investors university endowments in particular tend to enjoy better performance results over time than individuals. The 10-year average annualized return of Yale University's endowment was 17.8% (through June 30, 2007), while Harvard and Stanford each produced similarly impressive returns of 15.0% and 15.1% respectively. All of these endowments greatly outperformed the S&P 500 index total return of 7.1% and according to Dalbar, the average asset-weighted return earned by individual investors over the same period was lower still at only 6.2%.*

These results raise a critical question: Why have these institutional investors produced returns so superior to those generated by individuals? Three elements of the investment approach used by institutions have been the key drivers of their returns over time.

1. Portfolio Construction: Institutional investors generally work with consultants and investment advisors who possess a clear understanding of how to build an investment portfolio to meet their clients' tolerance for risk and their need for return.
2. Ability to Leverage Different Sources of Return: Institutional investors have access to and have utilized many non-traditional investments such as real estate, private equity and hedge strategies. They also understand the risk and return dynamics of these asset classes and how they can be used in a diversified portfolio.
3. Clearly defined Goals: Most institutions know what they want to achieve in terms of rate of return, or goals such as "growth" or "capital Preservation" and the time frame in which they want toachieve it.

*SOURCE: Yale University Office of Public Affairs, Stanford Management Company, Harvard Management Company and Dalbar.

Past performance is no guarantee of future results.

In addition, David Swenson tells us in his book, UNCONVENTIAL SUCCESS, that to a large extent the private investor has the deck stacked against him between excessive fees, conflicts of interest, and the propensity to by high and sell low by chasing yesterdays' performance.

The Alpha Matrix is a Modified Version of This Approach Developed by MAIN & WALL to Deliver the Benefits to the Private Investor

The Matrix is Goal Oriented and Outcome Driven. To add value, it incorporates a Personal Overlay Manager to orchestrate a combination of both passive and active management strategies. We work directly with investors not through a sales channel. This makes the front end more collaborative and more robust. It also eliminates a layer of fees. We call that a double Whammy for you.

The Next Stage In the Evolution of Asset Management

The tools available for portfolio construction have evolved a long way from the early days of investing. Today, the most effective methods of portfolio construction can be used by individuals as well as institutions. Investors can take advantage of both the the traditional methods of asset management as well as the new opportunities for customization and diversification presented by Modular portfolio Construction The Modular Approach provides a framework for building portfolios that moves beyond the traditional style box considerations to systematically leverage different sources of risk and return to meet specific client needs, and most important, potentially boost returns while at the same time trying to control risk.

INNOVATIONS WE HAVE MADE TO BENEFIT YOU:

• A Fee-Only ACTIVE Overlay Management Approach. That means together we invest from the buy side, find best fit solutions, can approach the world opportunistically and can capitalize on situations many retail investors cannot.
• Combined in-House tools and a team of Speciality Money managers with the expertise to deliver a performance driven model.
• A better alternative for delivering ALPHA then what we believe you will see in most hedge funds and structured products.
• An Ongoing Communication Program with Quarterly meetings and Comprehensive Reports to review strategies and performance results.