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"No one can consistently predict investment price movements. Therefore, we do not make predictions, we react."

-Kenneth M. Holeski, CIO and Founder

STRATEGY

The fundamental foundation of Newport's strategies is to be fully invested in the market when indications are positive and to sell or hedge when indications become negative. Controlling risk and downside protection are key components of the strategy. For more than 35 years, we've seen many crises and investment cycles. There is no substitute for experience.

 

One basic misunderstanding of most investment managers and personal investors strategies, is that somehow you must buy at the bottom and sell at the top to be successful in the market. That’s simply not likely on a consistent basis. The idea is to buy when the probability is greatest that the market is going to advance and step aside to cash or hedge when the probability is greatest that the market is going to decline. These are the core principles that Newport Investment Advisors, Inc. stands by, which has resulted in positive net of 1% fees historical returns 30 out of 34 calendar years (88%) or 115 out of 141 quarters (82%) as of 09/30/2023.

INVESTMENT OBJECTIVES

"There are two rules to investing;

            #1 Don't lose money.

            #2 Don't forget Rule #1"                     

 

Warren Buffett

 

Newport's Primary Investment Objectives:

  • Preservation of capital

  • Reduced risk and volatility

  • Outperform benchmarks and peers

 

The importance of avoiding major price declines becomes especially relevant during years such as 1987, 1990, 2000-2002, 2008, 2020, and 2022. These are the times when the average investor incurs severe losses and is forced to re-evaluate their investment strategies. 

INVESTMENT PROGRAMS

Newport Investment Advisors offers several investment strategies that meet the needs of a diverse client base. Please call us for additional details on these or any of our other strategies.

 

Flexible Bond

 

The Flexible Bond strategy is our longest established and most popular. It is designed to preserve capital while outperforming market indices and other bond fund managers. It is an excellent choice to balance a more aggressive portfolio. This program is also very popular for retirement plans, investors nearing retirement, and for more risk averse investors. The primary objective is preservation of capital and income. The secondary objective is capital appreciation. The results of this strategy consistently rank Newport among the top performing fixed income managers in the United States.

 

Flexible Equity

 

Similar to our Flexible Bond strategy, the Flexible Equity strategy incorporates a reactive allocation methodology. Utilizing top performing funds allows us to realize above market returns when invested. This strategy is appropriate for a slightly more aggressive investor who also considers preservation of capital an important component of a discipline. The primary objective is capital appreciation and above average returns. The secondary objective is preservation of capital.

Advisory fees are discussed in Part II of Form ADV. A copy of Newport Investment Advisors Part II of Form ADV filed with the SEC is available upon request at no charge. Investment advisory fees are described in Part II of the advisers Form ADV and is available upon request. Fees are negotiable. Past performance is no guarantee of future results. Actual results will differ from those indicated.

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