Stansberry Asset Management is a recently registered investment advisor that is based on Stansberry Research. This firm is a Delaware Limited Liability Company, legally known as STANSBERRY ASSET MANAGEMENT, LLC. As of this writing, the firm has 16 employees, 2 advisory roles, and an unspecified number of clients. Last reported, its status is “Approved.”
Invests in exchange traded securities
Stansberry Asset Management is a financial advisory firm that invests in exchange traded securities. The firm’s Capital Portfolio consists of twenty Stanberry ideas. Some are equities, while others are exchange traded funds. The goal of the portfolio is to outperform the market, and in 2017, it outperformed the S&P 500 by 27%. The firm also releases a monthly investment research advisory, called True Wealth. Its recommendations are based on factors such as the influence of economic drivers, including the potential for inflation.
Stansberry Research provides market commentary and company recommendations. Its flagship newsletter is published every first Friday of the month and focuses on one to twenty stocks. Each of the newsletters recommends a holding period of a year, with a minimum investment of $1,000. There are 19 different newsletters, including an income focused newsletter. Using a newsletter to stay current with market news is not free, but it is worth it if you want to receive regular updates.
Stansberry Asset Management invests in various types of bonds. Exchange traded securities (ETS) comprise 54% of its AUM. Cash equivalents account for 24%. Government bonds make up 17% of its total invested assets. The firm charges fees based on a percentage of assets under management. These fees are not inclusive of brokerage commissions, interest, taxes, or account expenses. Hence, it’s possible to invest in government bonds without paying a fee for managing your assets.
One of Stansberry’s most impressive features is its research team. Porter has over thirty analysts and produces world-class investment and financial research. He is also the head of Stansberry Portfolio Solutions, an investment advisory. Before joining Stansberry, he was the editor of Fleet Street Letter, the oldest English-language financial newsletter. His controversial work in the financial advisory field has largely earned him a reputation for helping investors avoid a financial catastrophe and make incredible gains.
Merger arbitrage investing
The focus of merger arbitrage strategies is to profit from the uncertainty surrounding a proposed acquisition. For example, if Company A is set to acquire Company B on Jan. 1, 2020, and Company B announces its intention to buy back its shares a year later, the investor may benefit from a short position on the latter company’s shares. Short-selling allows investors to profit on these transactions as their target shares rise in price.
The S&P 500 dropped more than 50% during the last bear market. The HFRX Merger Arbitrage Index, a basket of merger opportunities, gained 3% during that time. This allows investors to quickly recycle their capital and buy high-quality stocks and trophy assets at discounted prices. However, be aware that this strategy can lead to large losses if not managed correctly. By following the investment process of a reputable investment firm, you can benefit from the low volatility of merger arbitrage investments.