Investment Philosophy

Actively monitored individual stock portfolios

This segment consists of the equity we monitor on a day-to-day, minute-to-minute basis. The information/research we use to determine what companies are bought and sold usually comes from professional money managers. These are hedge fund traders and money managers that work at major firms. These traders get paid for one thing, performance, so there is a vested interest in the services they provide. We recommend and actively monitor our stock portfolios in a similar fashion, and believe that investors should be charged based on performance. This is a bit different than the typical wirehouse firm whose research may or may not be motivated by investment banking deals and mergers and acquisitions potential. Many times the big name firms don’t have a vested interest in how your portfolios perform and the investment results show it.

Our view of the present market environment is not one of “buy and hold” and therefore we have exit strategies on both the upside and the downside, before we enter into a position. The bull market that most of us have experienced, started in 1982 and ended in 2000. We feel, based on history, the next 2 decades will be a consolidation period of little or no growth. In the decade just concluded, December 31st, 1999 to December 31st, 2009, the S&P 500 saw a decline of 24% even though new highs were reached in 2007. It is therefore our opinion that an actively monitored individual stock portfolio is the path to superior performance, and at The Bridgehampton Equity Group we strive to achieve just that.

Wedbush Opportunity Partners (WOP)

For our accredited clients who seek the structure of a hedge fund, a relationship has been developed with Wedbush Opportunity Partners, a private hedge fund that is an affiliate of the Wedbush Securities broker/dealer. With over 80 years of combined investment experience, the managing directors of WOP provide a great complement to the actively managed individual stock portfolios that The Bridgehampton Equity group offers. The WOP fund gives our clients access to global equity and debt securities, including common and preferred stocks, derivatives, and debt of small companies, at a discount to their intrinsic value. A performance report can be provided upon request.

All returns are purely historical, are no indication of future performance, and are subject to adjustment. Changes in markets, interest and exchange rates, economic and/or political conditions and other factors may influence the future performance of the Fund. The Fund may also from time to time change its investment strategies and objectives and allocate Fund assets differently than in prior periods. An investment in the Fund involves significant risk, including the potential risk of loss of a substantial portion (or all)of the amount invested. The offering documents relating to the Fund contain brief descriptions of certain of the risks associated with investing in the Fund.

Bond portfolios offered through PIMCO

Bonds have always been an intricate part of every investment portfolio, no matter how well managed the stock portion is. Since it is very difficult and capital intensive to build a properly managed, globally diversified bond portfolio by picking out and investing in individual bonds, The Bridgehampton Equity Group places its fixed income allocation into the hands of “The Bond King” and his team in Newport Beach, Ca. Bill Gross has been managing his bond portfolios since the ‘70’s and in many of those years his bond portfolios have outperformed most top equity managers.

Instead of you, the investor, or us the investment professionals, trying to time whether your bond dollars should be in Latin American bonds or U.S. Treasury inflation-weighted TIPS, we let the best bond managers in the world handle those decisions. With over $800bil in assets under management, we view PIMCO as the premier firm to invest in bonds.

Investors should consider the investment objectives, risks, charges and expenses of any mutual fund carefully before investing. This and other information is contained in the fund´s prospectus and summary prospectus, if available, which may be obtained by contacting your financial advisor. Click here for a complete list of the PIMCO Funds and Allianz Funds prospectuses and summary prospectuses. Please read them carefully before you invest or send money.

Variable annuities offered through Allianz

For our clients who are looking for principal protection and a dependable rate of return but would also like the upside of what the markets can provide, we direct those funds to the parent company of PIMCO and the largest financial institution in the world, Allianz. Allianz variable annuities offer our clients the option of building a tax-deferred, diversified mutual fund portfolio with over 55 investment choices from 12 top fund companies like AIM, Davis Advisors, Dreyfus, Franklin Templeton, Legg Mason, Oppenheimer Funds, Salomon Brothers, PIMCO, Jennison Associates, PEA Capital and Van Kampen.

These investment choices, when placed inside of an annuity contract, offer all of the upside potential the market has to offer while providing protection to the downside. In addition, these assets grow on a tax-deferred basis. Some annuity contracts provide a minimum rate of return while others offer principal or income protection. Determining which product to use is based on each individual clients’ specific needs. Inside of a annuity is the only time we recommend our clients invest in traditional equity mutual funds and Allianz is the only company we use for such products.

For more complete information about Allianz variable annuities and variable investment options, call your financial professional or Allianz Life Financial Services, LLC at 800.624.0197 for a prospectus. The prospectuses contain details on investment objectives, risks, fees, and expenses, as well as other information about the variable annuity and variable investment options, which you should carefully consider. Please read the prospectuses thoroughly before sending money. Not FDIC insured. May lose value. No bank or credit union guarantee. Not a deposit. Not insured by any Federal government agency or NCUA/NCUSIF. Guarantees are backed by the financial strength and claims paying ability of Allianz Life Insurance Company of North America and do not apply to the performance of the variable subaccounts which will fluctuate with market conditions.