Mr. Kimmel: Following 10 years in the brokerage business with the bigger firms, I established The Magnet Investment Group to manage all equities portfolios based upon a stock selection process that was developed over many years of research. I am proud to say, after 12 years in the asset management business, The Magnet Investment Group remains focused on finding the best companies in each sector and market cap. We do not get caught up in politics and have less of an interest in market timing than most other managers, understanding that in every market cycle, there are always a small, select group of companies dominating their niche industry - we call them "Magnets." For several years we functioned as a subadviser to some larger firms. I have recently finalized a relationship with one of the oldest and largest independent broker/dealer firms in the country, National Securities Corp. In this relationship, I will integrate the Magnet Stock Selection Process into their asset management division and work with both institutions and high net worth individuals.
TWST: So you are still finding superlatives even in this market turmoil?
Mr. Kimmel: Yes, what you have to realize in the market is that when you look at
average returns over years, almost no given years actually show those average
returns. The market is full of cycles of over or underperformance. I believe the
key to an investor is to have an edge, understand the edge, and not to become a
growth investor one day and a value investor the next day. You must recognize
that processes need to work over market cycles. So while almost nobody was
spared in the 2008 bear market, we have already seen a dramatic recovery in the
highest ranked companies according to the Magnet model, bringing us back faster
than a broadly diversified strategy could do.
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