When hiring a financial advisor, it’s important to know who you are getting as a manager. I sent this letter to my clients back in September to reiterate my process and to let them know what I was looking to do over the next 3-6 months. I am not your average financial advisor. Outperforming the market is extremely challenging but I believe it is possible through discipline, hard work and mental toughness. I spend the majority of my time working on these skills in order to produce superior returns for my clients. The feedback I get is that my growth strategy is a great compliment to a balanced portfolio containing other strategies (passive, fixed income, etc.). I am opening my Managed Accounts starting January 1 for two weeks. If you feel you are not getting the proper attention or representation in the stock market, please contact me: [email protected]. I hope you enjoy the letter:

Dear xxxx,

I would like to share with you a few thoughts about my personal style of money management. I can’t express enough how passionate I am about managing money and how much I appreciate the opportunity you are giving me. Assuming that we’ll be working together for a long time, please keep in mind that I will shift gears at different times depending on what I see in the market.

My number one priority is to protect the downside. There will be times when warning signs appear and I will do my absolute best to get defensive, raise cash and keep you out of harm’s way. There are very few money managers who will move to a significant cash position, but I have no problem doing so when the market is breaking down.

There will also be times when strong market conditions align and I will want to take advantage of them. The reason I say this is that right now might be one of those times. I strongly feel that the market and many of its leading stocks will take off to the upside soon. I am basing this on many reasons including technicals, fundamentals, sentiment, the election and the Fed. Most importantly, the price action of leading stocks is very compelling right now.

The purpose of this email is to let you know what you can expect over the next few months. If the conditions continue to align, there might be a little more volatility than normal. The main reason for this is we are concentrated in about 15 stocks that I feel can produce superior returns over the next 3-6 months. Keep one MAJOR FACTOR in mind: If I am wrong, I have no ego. I will reduce exposure and cut losses quickly. However, if I am right, I will be aiming for superior returns. You did not hire me to be average. I am in this business to achieve excellence and to do it consistently. Many people “say” that’s what they want but they don’t have then mental toughness to execute their plan and they are not willing to put in the work. In addition, they are incapable of making decisions, so it’s easier to leave their clients in passive funds and go to the golf course. That is something you will NEVER see from me. The other day, I saw a firm bragging about their 10 year anniversary and how much money they raised. The entire article almost made me vomit. I’d rather be bragging about the money I made for my clients instead of the assets I’ve raised.

As always, I sincerely appreciate your confidence in me. All I ask over the next few months is for you to continue to believe in me, have a little patience, and to trust my judgment. Of course, if the market proves me wrong, I will reduce our exposure. I am very pleased with our significant outperformance so far this year and I look forward to finishing the year strong. If you have any questions about this email, please let me know so we can set up a call.

Kind regards,

Joe Fahmy
Managing Director
Zor Capital, LLC

Thank you again for reading. For information about our managed accounts, I can be reached at: [email protected]