Main Street Wisdom, Not Wall Street Rules
I first got my start in investing sitting with my dad for (mostly) compulsory lessons in 6th grade. As a kid I can remember being fascinated by owning these tickers that would somehow
(magically?) make you money. My dad taught me the value of finding good companies, buying
them when they were not expensive, and being patient.
One of my first jobs in my investing career was running an options strategy. Options were cool.
It was during this time that I can remember a formative lesson. I was speaking with a “Derivatives Strategist” at one of the largest investment banks in the world. At the time, I was
thrilled to speak with another options trader who would understand the risks and opportunities in our market.
I started to pepper this expert with questions about event driven volatility and opportunities
with unique characteristics.
He quickly stopped me.
I was surprised.
Here I was ready to talk with one of the experts of my industry and he did not seem as passionate about the options markets as I was. He told me: You are trading with a smaller sum of money so you can pursue these kinds of opportunities. Our portfolio size limits our opportunity set. It was the first time I saw in action one of the great disadvantages an investor can have by partnering with one of the big guys.
Behind the flashy marketing, big firms often carry substantial limitations when it comes to individualized strategy and niche opportunities. Their immense scale can actually hinder their ability to act on certain high-value ideas. While they are highly advertised on your TVs and phones as trustworthy and respectable, they may not tell you that they are often constrained by rules, internal mandates, and sheer operational bureaucracy, which limits their agility and forces them to prioritize moves that affect big numbers rather than nuanced, specialized investments.
This is the vision I have for Enhancing Capital, a smaller investment shop that puts good advice over assets under management. This allows investors to gain the advantage of a team that looks for opportunities in every nook and cranny of the market for opportunities that can meet their personalized goals.
We invest alongside our friends portfolios here in Harrisburg, PA - away from the noise of Wall Street. Akin to the early lessons I learned from my dad, we utilize a value investing philosophy with an emphasis on enduring business quality. We believe that stocks are fractions of an underlying business with good management that will grow and reward their investors in the
long term, not pieces of paper to trade often.
When you choose to work with us, you’re not just another client. You’re a valued partner in a process that’s crafted specifically for your needs and goals, backed by people who are as
invested in your success as you are.
