Author Archives: Kathryn

A New Kind of Hedge Fund – Born in Pawleys Island, South Carolina

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There is a new kind of hedge fund being managed right here at the beach along the South Carolina Coast.  One day I was thinking about my advisory business, and I wondered how I could feasibly pool the money that my clients had for the stock portion of their portfolios.  It would reduce the overall costs to the investors, and hence increase their returns.  As I started to run the numbers and build out the structure, I realized there was also a huge pending change to the hedge fund industry mandated by Congress to the Securities and Exchange Commission as a part of the Jobs Act – Hedge Funds would now be able to advertise.  I had a solid two year track record from which to build for a dividend stock fund and a growth stock fund.  Beautiful!  The icing on the cake – during a portfolio review one of my clients was wowed by the performance of my stock recommendations and he said: “With these numbers, you need to start a hedge fund!”  Then I really knew the idea was on its way to being something great for clients.

Managers of domestic equity funds and pooled accounts face a problem – fund flows impair performance.  Typically, huge assets flow in as the stock market is peaking, and conversely the money supply dries up when the market enters bear territory.  Managers are forced to buy high and sell low, the reverse of the desired strategy.  Hedge funds constrict the flow of funds to address this problem, but the restrictions are inconvenient to clients.  The high fees of a typical hedge fund (2% of assets annually plus 20% of all gains) also hamper performance.  So why not combine the best of both worlds?  The Pawleys Dividend Fund and the Pawleys Growth Fund solve these problems.  These South Carolina hedge funds were formed with the low cost structure of a typical mutual fund or unit investment trust, combined with a reasonable lock-up period and structure which systematizes the flow of funds into the portfolios.  The initial minimum is $100,000 for each fund, which also minimizes the impact of expenses on performance.  Investors who do not yet meet the minimums or requirements can invest in the portfolis as an advisory client, and also enjoy enhanced financial planning.

The funds are new, innovative and exciting.  Stay tuned to see more about the performance results, or give me a call in the meantime to learn more!

© 2013 Pawleys Investment Advisors, LLC. All rights reserved.

Risks and Disclosures:

This information regarding our services is not an offer of securities or investment advice and is provided solely for prospective clients to contact us. Past performance does not indicate future results and you may incur losses.

The Limited Partnership Interests offered hereby have not been registered under the United States Securities Act of 1933, as amended (the “Securities Act”) or any applicable state or foreign securities laws. The Interest have not been approved or disapproved by the United States Securities and Exchange Commission (“SEC”) or any state or foreign regulatory authority nor has the SEC or any state or foreign regulatory authority passed upon the accuracy or adequacy of this private placement memorandum or endorsed the merits of this Offering. Any representation to the contrary is unlawful. Please contact Pawleys Capital Management, LLC to obtain a Private Placement Memorandum. An investment in one of the Pawleys Funds presents risks which are outlined in the Memorandum. You must qualify as an accredited investor according to the Securities Act of 1933 (“the Act”). Banks, insurance companies, registered investment companies, business development companies and small business investment companies meet the definition of accredited investor. Natural persons must have an individual (or joint if married) net worth that exceeds $1 million excluding the primary residence, OR income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year. Business entities qualify if all equity owners are accredited investors. Trusts must have assets in excess of $5 million, and may not have been specifically formed to acquire the securities offered. Charitable organizations, corporations or partnerships must have assets exceeding $5 million. Please consult with your tax or legal counsel if you have any questions regarding Rule 506 of Regulation D of the Act. Resale restrictions apply.

If you do not qualify as an Accredited Investor, please contact us regarding our Advisory Services which are available with no minimum financial requirements. Advisory clients enjoy enhanced customization of portfolio management and financial planning services. Pawleys Investment Advisors, LLC is a Registered Investment Advisory Company – SEC Firm CRD #155199.

Pawleys Investment Advisors Featured by CNBC

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It is with excitement and humility that I’d like to share Maggie Overfelt’s story on CNBC featuring Pawleys Investment Advisors.  Maggie is a consummate professional and I appreciate her taking the time to highlight Pawleys – especially the baby Loggerhead turtles!

http://www.cnbc.com/id/100754877

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What the Kiawah Half Marathon Teaches About Investment Goals

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Preparing for a half-marathon isn’t nearly as daunting as preparing a lifetime investment plan. Over the years, I have completed oodles of half-marathon races, and was crazy enough to run the Cape Cod full Marathon in 1998. I followed Hal Higdon’s training program, and was religious about completing the scheduled training runs in preparation for each event. I never broke any records, but I had a lot of fun, and was healthy and in good shape. In the past five years, however, I have completed just two half marathons, one in San Francisco and one in Myrtle Beach. Might I add I was grossly unprepared for both. The runs were not much fun, and borderline torturous. Luckily I didn’t get injured, because as those of you who are runners know, it is highly likely you will get hurt if you are untrained and go run 13.1 miles.  One good thing that came out of the Myrtle Beach race was that my dog, Camper, got her picture in the Myrtle Beach Sun Newspaper:

Happy Camper the dog waiting...and waiting... and waiting...to see her owner run by in the Myrtle Beach 1/2 Marathon

Camper waiting…and waiting… and waiting…to see me run by in the Myrtle Beach 1/2 Marathon

This year, I am signed up for the Kiawah Island Half Marathon in December, and I am determined to enter the race well-prepared. I want to get back into a good level of fitness to improve my overall health. This means running 5 times a week instead of the 2-3 times I have been able to fit in over the past few years. What I have noticed over the past few weeks, is that the most important thing I can do is get out the door and complete my short runs. Five years ago, my shortest runs were 4-5 miles, and now they are about 2. Five years ago I could easily finish a 10-12 mile run at a solid pace, with plenty of energy to spare. Now my longest runs are 4-5 miles, and I am ready to hit the couch for the rest of the day when I am done.

Whether you are in your 30-40’s and worried about saving for retirement, or in your 60-70’s and unsure if you will have enough money for your lifetime, take heart! There is a plethora of historical data from which to build a reasonably accurate plan for any investment goal. It might seem daunting, but if you put a pencil to paper, you really can map out the small, incremental things to do so that you reach your goals with comfort and confidence. When you map out a written plan that breaks a large goal into smaller, incremental pieces, you know exactly what you need to be doing on a weekly and monthly basis. Hal Higdon’s program tells me how many miles I need to run each week (broken out into daily short-medium runs and one long run on the weekend) for the last 12 weeks prior to the Kiawah 1/2 Marathon. The mileage increases very incrementally each week so that by the time December 14th rolls around, I will feel both comfortable and confident about doing the race. And for the first time in 5 years, I will have fun doing it! Investing in the stock market and planning for retirement is fun if you have the right plan in place. Instead of obsessing with the onerous goal, focus on the baby steps so you can have fun and relax.

© 2013 Pawleys Investment Advisors, LLC. All rights reserved.