Money Management

Cloak and Company, LLC is a unique money management firm. We specialize in creating separately managed investment portfolios. What we offer cannot be duplicated at traditional investment houses. Opportunity comes in many forms, small companies and large, fast growing or downsizing, real estate trusts or emerging markets, mature industries with outsized dividends or the startup biotech awaiting FDA approval. The well-designed investment account will encompass them all. The key to diversification is not risk avoidance but balance.

Our stock selection process starts at the bottom, where we look for companies and situations that stand out. We look very closely at the company’s management, valuation, business model, growth prospects and other variables. We believe that some companies are superior to their peer groups and will outperform regardless of industry or economic circumstances.

Complementing this strategy is the opportunity in special situations. These are stocks that have an unusual profit potential due to non-recurring circumstances, such as recent performance disappointments, management changes, company mergers and acquisitions, or the release of a new product or technology. We do not rely on market timing; however, economic and macro circumstances are incorporated with investment decisions.

Both fundamental (company valuation and prospects) and technical analysis (stock action, momentum, instinct, incite, etc.) are brought together in generating investment ideas. Portfolios are fully invested, and some positions may be held for several years. Many sources of outside research complement our in-house process. Investment parameters are not limited to traditional stocks and bonds. Exchange-traded funds (ETF’s); real estate trusts (REITS), master limited partnerships (MLP’s) and preferred stocks that offer both income and appreciation potential will often represent large portions of a balanced account.

In summary, our approach is to minimize risk, know what we own, use patience and foresight and let the market come to us.