Case

important Management Company In early January 1991, Sarah Wolfe was in her business office considering new goals and directions for her company forth coming year. Ms. Wolfe was the founder and chief operating officer fo the Beta Management Group, a small investment finances management company lower-rankingd in a capital of Massachusetts suburb. She dealt with a growing number of high-net-worth individual clients and had $25 one thousand million in assets under management. Betas investment achiever during the past year had brought in a steady menstruation of new clients and additional funds from existing clients. At the very(prenominal) time, Ms. Wolfe had inquiries from some small institutions, and was hoping to expand her business in 1991. Beta Management Company was founded in 1988. A wealthy partner off had become fed up with their investment losses stemming from the October 1987 doss down and had asked their friend, Ms. Wolfe, to manage a portion of their money. While business was late at first, she gradually developed a client base through good performance and word of mouth. She considered herself a mart place strategist, and Beta Managements stated goals were to enhance returns unless reduce risks for clients via market timing. Given the small size of her accounts, the easiest port for her to maintain and adjust equity market exposure was to mightiness.

She would keep a majority of Betas funds in no-load, low-expense great power funds (with the remainder in money market instruments), adjusting the level of market exposure between 50% and 99% of Betas funds in an strain to time the market. She had toyed with using a few different index funds at first, but soon settled on exclusive use of Vanguards Index ergocalciferol Trust due to its extremely low expense proportionality and its success at closely matching the return on the S&P 500 Index. While Betas performance had lagged market returns in 1989, Ms. Wolfe had been quite successful in 1990. She had reduced Betas equity position to 50% in June, partially missing a large two-month market decline (see Table 1). After nervously... If you want to get a full essay, order it on our website: Ordercustompaper.com

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