SignalPoint Asset Management, LLC: Enhancing Portfolio Performance

SignalPoint Asset Management, LLC: Enhancing Portfolio Performance

CIO VendorJay Handy, CEO
Amidst a slew of technological innovations, asset management firms are flexing up to offer the best investment opportunities for their clients. The challenge is in seeking to outperform multiple market indexes and benchmarks and striving for sound investment performance, while the need to manage risk remains front and center. “Our disciplined process helps our clients achieve their investment goals while providing a transparent approach to asset management,” says Jay Handy, CEO of SignalPoint Asset Management.

Springfield, MO-based SignalPoint Asset Management utilizes the time, efforts and resources of many professionals to leverage the latest technological innovations and meet all the regulatory requirements necessary in today’s environment. “Our sophisticated investment platform uses a proprietary algorithm which is matched with numerous capital market instruments to attempt to improve portfolio performance, increase the yield, and lessen investors’ stress,”says Handy.

According to Handy, one of the biggest challenges investors face, is the abundance of information and opinions they are exposed to. SignalPoint’s disciplined, logical approach to managing risk is a key ingredient in helping clients with a process that eliminates the need for them to decide when to buy and when to sell. SignalPoint’s investment platform is designed as an “emotion-free investment model” since its investment process eliminates the anxiety about market risks. Contrary to the instincts of many investors, who tend to sell into weakness and buy into strength, the firm’s approach is structured to do just the opposite.

“At the heart of our sell into strength and buy on weakness discipline is our Market Risk Indicator,” says Handy. The company incorporates four variables in its Risk Assessment Model–Relative Valuation, Divergence, Speculation and IPO Zeal to measure risk in the market.

Our investment platform uses a proprietary algorithm which seeks to improve portfolio performance

The company’s investment process measures these variables along with other market data to gauge cash reserve requirements and functions as a filter to make smart investment decisions.

“With interest rates at low levels, finding a sound process for managing income investments is an enormous challenge for investors,” says Handy. The firm’s Stable Income portfolio is an excellent example of how the firm assists clients in managing their assets. The Stable Income portfolio provides a variety of carefully selected and thoughtfully managed securities with the primary function of the portfolio being to generate a steady income stream, while managing the risk in the markets. “Our discipline has us trimming positions when prices are high and yields are low, and buying back in incrementally as prices pull back and yields are rising,” states Handy.

SignalPoint uses a methodical approach of selling incrementally into rising markets, and steadily adding to positions in declining markets, when prices are more favorable. This thoughtful approach appeals to many clients. For instance, a non-profit agency in a mid-western city was striving to efficiently manage the funds of its donors and was incurring losses in the investments. SignalPoint’s disciplined approach enabled the agency to raise cash as markets rose and insulate the funds during pullbacks. “Our personalized portfolio management approach efficiently managed the risks and provided transparent access to manage the funds thus increasing the comfort of the board of directors,” says Handy.

SignalPoint works with Schwab, Eqis, Envestnet, First Trust, and many others to provide separately managed account portfolios and meet the customized goals of its clients by fostering real time investment decisions. “We will work towards strengthening our alliances and strive to be more successful in managing the portfolios in the days to come,” concludes Handy.