New York, NY -- (SBWIRE) -- 04/22/2011 -- Do excellent whilst earning profits: A guidebook to socially accountable investing

What is socially accountable investing?
Socially accountable investing (SRI) describes an investment strategy that brings together the intentions to increase both equally fiscal return and social excellent. Generally, socially responsible traders favor company practices that happen to be environmentally accountable, help workplace diversity and grow products security and excellent.

Harris James Associates New York, ensures that our clients possess the best info on which to base intelligent business and financial decisions in pursuit of superior investment performance. In order to achieve and maintain that standard of information and timely advice, management and staff are committed to a level of excellence in research, market intelligence, trade executions, and client service that is both demanding and rewarding. We judge our success in maintaining that high level of excellence by the one true measurement; the satisfaction and investment performance of our growing clientele. At Harris James Associates, the Client's success is our primary objective. Investment success in these volatile times can be fleeting for many, which is why our commitment to excellence in everything we do will be a constant regardless of the often turbulent world around us.

RI tactics supply investors using the opportunity to produce beneficial modify on the planet by their personal decisions whilst remaining concentrated on their long-term investment strategy.
Investing funds in a socially aware method has gained reputation given that the 1970s, while the origins of your idea is often traced again for the 17th century. The idea grew for any number of good reasons, including concerns with regards to the setting, purchaser and employee rights, and army actions.

Lots of individuals who had been civil rights and anti-war protestors in the 1960s grew to become traders inside 1970s and 1980s and had been searching for a way to express their convictions via their investment portfolios. The 1st mutual fund to display investments dependant on social criteria was established in 1971.

Right now, greater than 200 mutual money give investors a way to entry a social investment system. Some money are broad in nature, even though other individuals focus on a distinct bring about.

According to your Social Investment Forum, in 2007, just about one from each and every 9 dollars below qualified management within the U.s. (in excess of $2.71 trillion) was associated with socially accountable investing, outpacing the overall marketplace. Curiosity within this investment method has grown greatly given that the mid-1990s.

Alongside money and other professionally managed portfolios that specialize in socially accountable types, the Social Investment Forum studies that mainstream funds managers are also incorporating social and environmental screens into their investment choice processes. The strategy has also taken on world wide dimensions, as far more investors throughout the entire world find to promote specific leads to by way of their investment dollars.

Final results might be favorable
An indication from the aggressive performance of SRI funds will be the functionality of SRI indexes. The longest-running SRI index, the Domini 400, was started in 1990 and continues to carry out competitively. When benchmarking this index versus the S&P 500, the Domini 400 showed a 10.83% return vs. 10.33% total returns using the S&P 500.

Implementing social awareness in different ways
How can socially accountable investing be applied? This is something that can transform from investor to investor, dependant upon each individual's views. Generally, there are three ways that investors can try to effect alter by way of their investment decisions:

• Social screening. Eliminating companies from consideration for inclusion within a portfolio as a consequence of particular practices or styles of business it pursues. Several social investors avoid companies whose products and solutions and business practices are harmful to people today, communities or the environment.

• Shareholder activism. In some cases, traders or groups of traders (this can involve mutual fund managers) will try to influence the behavior of a firm or selections by its board of directors. When this often is centered on improving financial overall performance, activism may also be a strategy to adjust a company's business practices that might be considered detrimental to society.

This can involve filing shareholder resolutions on topics like as company governance, political contributions, gender/racial discrimination, pollution and problem labor practices, among other problems.

• Community investing. Institutions use investor capital to finance or guarantee loans to individuals or organizations to improve their own communities. Community investing projects are small and local and normally target on affordable housing, small business startups, improving community facilities and empowering minorities.

Mutual funds vs. individual investing
For most traders, mutual money offer an easy approach to gain entry towards the world of individual investing. Traders have a huge array of options available and the ability to select funds to invest in large-cap, mid-cap and small-cap stocks, and even in bond funds with a socially aware angle.

Those who invest in individual securities or use a professionally managed account have the ability to get a lot more selective in screening investments. This tactic may be most appropriate for investors whose screening criteria are extra unique than would occur with a mutual fund.

Themes arise with the times
Major social problems can usually drive the interests of investors in terms in the social screens they favor. Inside 1970s and 1980s, there was a terrific deal of pressure on investment managers to avoid investments in companies doing business in South Africa, at a time when the country maintained a policy of apartheid. From the 1990s, tobacco companies took center stage. Tobacco currently represents the most popular social display employed in socially accountable mutual funds.

Currently, there is increasing focus on the setting, as worldwide warming has turn out to be a headline issue. Consumers have taken a larger curiosity in environmentally friendly goods like hybrid cars and energy-efficient lightbulbs.

That same interest extends to investing, as far more people seek out "green" money. These portfolios could screen stocks of companies with poor pollution records and might look for to invest in technologies like as solar and wind power development.

Investing in your priorities
A socially accountable strategy allows people today to invest within a way that is consistent with their own priorities. As indicated by overall performance in recent years, choosing to invest in this method does not mean sacrificing potential return. Having said that, not all investments will execute within the same way.

If this strategy of investing interests you, work with your economical advisor to learn more about how SRI options can work in conjunction with your over-all investment strategy. There are several mutual funds to choose from that can be incorporated into an existing or proposed asset allocation tactic. Alternatively, you can select unique investments that fit far more particular standards or apply your own social screens for your managed portfolio. Be sure to consider how any investment you choose matches your risk profile and your return expectations.

The most effective tactic to socially responsible investing is to make sure that the execution from the system is consistent with your general economic plan. Your monetary advisor can assistance you review your current asset allocation and enable you consider whether social investing is correct for you.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

New York City, NY -- (SBWIRE) -- 04/11/2011 -- Harris James Associates is a market leader in the Financial Services category. Here is a guide to Initial Public Offerings (IPO's) intended to simplify the jargon and remove the fear that IPO's involve higher risk as compared to usual investments.

Harris James Associates ensures that our clients possess the best info on which to base intelligent business and financial decisions in pursuit of superior investment performance. In order to achieve and maintain that standard of information and timely advice, management and staff are committed to a level of excellence in research, market intelligence, trade executions, and client service that is both demanding and rewarding. We judge our success in maintaining that high level of excellence by the one true measurement; the satisfaction and investment performance of our growing clientele. At Harris James Associates, the Client's success is our primary objective. Investment success in these volatile times can be fleeting for many, which is why our commitment to excellence in everything we do will be a constant regardless of the often turbulent world around us.

You might be wondering how you can increase the profits you make from your market investing strategies. If you're searching for the most profitable forms of investing that are available today, you should definitely investigate the possibilities of using Initial Public Offering (IPO) investments.

A simple description of an IPO includes the fact that you're buying a business that is just entering the open marketplace. The moment the IPO is released to the public is the first time anyone has the ability to buy the company openly, and this will surely give you a good idea on where the stock itself resides when it comes to the value of the offering. You can wage it is preparing for a large rise in its value because they are just releasing their stock to the public.

Though most of the Initial Public Offering stocks skyrocket after they are first released, you must keep in mind that they are hardly a definite investment. Because of this, there are several factors you must definitely examine before you place your capital into this type of investment.

One of the first factors you must take into consideration before investing into the stock you are interested in is the basic fact that once the stock is available on the market you can't guess if there will be a great deal demand or a total lack.

Because of this, you must do your best to ascertain every bit of information available about the company before making a purchase.

As you comb the market for the best IPOs available today, you must consider the fact that IPOs are usually offered only to the market when a company plans on expansion. There are other instances where companies only want to increase their ability to borrow capital, but IPOs are mostly released to increase the amount of funds they have available for expansion plans.

It may look like a company which is preparing to expand is a sure bet on the stock market. However, that is not really the case. IPO stocks are usually considered as high-risk investments. That is why if you want to secure your investments to a degree, you must explore the overall performance of the company's operations in the long run.

When you have analyzed the essentials of the company you are interested on, you must also try to guess where the capital generated from the IPO will be used by the company. If you think the company's only choice is to put their capital into expansion activities, you can be sure that the stock value will increase over time because of the expanding capabilities of the business operation. As you examine the essentials of the company and estimate where the capital will be going once the IPO is sold to the public, you can make a reasonable evaluation of how the stocks are going to fare in the future.

Being one of the top tax and advisory firms in the industry, we gain the confidence of our clients by acting with integrity on all our business decisions. Our skilled staff will gather the needed resources and skill to serve your IPO Prospectus demands.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

New York City, NY -- (SBWIRE) -- 04/04/2011 -- Harris James Associates, a market leader in Financial Services aims to dispel the fear that Initial Public Offerings (IPO's) are riskier than normal investments. For potential investors to understand more about IPO's, here is a guide that could hopefully eliminate the jargon.

HJA New York is committed in offering access to most up-to-date and widest range of financial services to clients. We are aware that deciding on the right investment, right product and right strategy is not that easy to do especially nowadays. So whether you need financial or investments planning, or advice we're here to lend you a hand in your financial needs – and we're always ready to answer your questions.

Harris James Associates ensures that our clients possess the best info on which to base intelligent business and financial decisions in pursuit of superior investment performance. In order to achieve and maintain that standard of information and timely advice, management and staff are committed to a level of excellence in research, market intelligence, trade executions, and client service that is both demanding and rewarding. We judge our success in maintaining that high level of excellence by the one true measurement; the satisfaction and investment performance of our growing clientele. At Harris James Associates, the Client's success is our primary objective. Investment success in these volatile times can be fleeting for many, which is why our commitment to excellence in everything we do will be a constant regardless of the often turbulent world around us.

Most companies attempt to raise capital for expansion by a method called Initial Public Offering (IPO). Investing in those IPOs can bring you great profits in just a short time; they are great tools to create wealth. On the other hand, they can also wipe out your investments just as quickly. That's why IPOs are high-risk, high-return avenues of investment. When investing in an IPO, there are things the investor should always consider to make them less risky.

Why do Companies launch IPOs?
In the development trajectory of any firm, there will come a time when it will need huge investment to get to the next level. And whenever a company gets to that point, it has to consider two options, one of which is to raise debt through bonds where it can get the investment money (but they will have to pay that debt, plus interest, eventually). The other alternative is to go for an IPO where they will share the company's profits in the future. Understanding this is very crucial when investing in IPOs – after all, you will then become a part of the company's losses and profits.

Understanding the Company Performance
First, you must check the company's value in absolute terms and its value as per the IPO issue rates. The absolute company value can be determined by the difference between its asset value and debt. Usually, the asset value should be higher than the debt to indicate that the company is healthy in terms of finance. Also, the IPO value should be less than its absolute value so you can have decent listing gains.

Besides the company's value, its yearly performance is also a good indicator. Other new companies may not have a big absolute value but they have good growth numbers in the past, and show great potential for a favorable growth in the future. As such, you can still opt to invest with a long term view and its value is bound to increase.

As a warning, though, you should check if there's any legal problem the company is currently facing. If there are many legal concerns, it is very risky to enter the IPO. You would be better off avoiding it until the issues are cleared off and you can enter the share in secondary market.

Lastly, you have to check the market position of the company. A big player or a market leader is somehow safer to bet on compared to someone at the bottom of the chain. That doesn't mean unknown companies will not make profit or expand, but higher risk is generally associated with them. If your goal is to cut down risks, it would be best to avoid such companies.

Aside from these, you can also have IPO prospectus, economic situation, current news, etc which could affect the stock listing and potential gains on your part. It is always good to look at these on a case to case basis than just follow a general rule.

Therefore, if you're looking to reduce risk in IPOs, you should choose items to consider when investing. These are only simple guidelines that can protect your money. IPOs are risky investments but if you get it right, the rewards will outweigh that risk!

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

New York City, NY -- (SBWIRE) -- 04/04/2011 -- Harris James Associates, New York is one of the market leader in Financial Services. The following serves as a guide to Initial Public Offering (IPOs) made to eliminate the fear (and simplify the jargon) that IPO's are more risky than ordinary investments.

At HJA New York, we offer our clients with the most recent and widest choices of financial products and services. These days, we know that choosing the right investment, the right product and the right strategy is not a walk in the park. So whether it concerns investments, financial planning or advice, we are here to answer all your questions and assist in your financial needs.

Harris James Associates ensures that our clients possess the best info on which to base intelligent business and financial decisions in pursuit of superior investment performance. In order to achieve and maintain that standard of information and timely advice, management and staff are committed to a level of excellence in research, market intelligence, trade executions, and client service that is both demanding and rewarding. We judge our success in maintaining that high level of excellence by the one true measurement; the satisfaction and investment performance of our growing clientele. At Harris James Associates, the Client's success is our primary objective. Investment success in these volatile times can be fleeting for many, which is why our commitment to excellence in everything we do will be a constant regardless of the often turbulent world around us.

Harris James Associates will also seek to provide expertise to investee companies not commonly available from institutional investors. In return, HJA expects to earn strategic investment grade entry prices by creating or securing investment opportunities that might not otherwise be available.

Making a private company public is done through an Initial Public Offering (IPO). This phase is definitely one of the most crucial moments in a company's timeline. The company issues a certain number of share certificates at a fixed price. Each share can be bought or sold on the stock market where the company is listed, and each stockholder in turn becomes part owner of the company.

It's a particularly complex process with a maze of compliance and regulatory requirements. But the financial benefits are just as great. A well-subscribed and successful IPO can turn a small company into an international corporate heavyweight at once.

The greatest advantage of a public offering is undeniably the massive capital infusion to fund the ongoing operations and planned expansion of the company. It can reduce the company's debt and significantly improves its liquidity position. Also, there's a big uptick in brand recognition and trust in the company's services and products.

First, a prospectus for the IPO and a registration statement are filed with the SEC. It details everything an investor would like to know about the company and its plans in the future. This is where the underwriters come into the picture.

Underwriters not only assist with the filing requirements but also alter the company's structure, meaning, they help in the transition of the company into a private enterprise into a public one (with stockholders and a Board). However, their primary job is to aid in deciding on the specifics of the IPO like the number of shares, the pricing and the market.

When the public offering pass, the company has specific new responsibilities that include making public the quarterly financial results, filing statements with the SEC for anything major the affects the company and its operations, and the AGM. At a stockholders' meeting, essential concerns are discussed and voted upon, including the composition of top-level management and the Board. This is why after an IPO, most companies hire new managers: to deal with certain issues of public companies.

The success of an IPO primarily depends on the growth potential of the company and the sector where it belongs, and if the business has fine basics and revenue model. However, many IPO's failed despite of having all that. Maybe, it is because they did not select the right price or the right market, or simply pick the wrong time to go public.

Take Canada for example, where an IPO won't be able to get to the price or size that an offering in the US markets can fetch. The market in Canada has a lower risk threshold. And in Europe, there are more concerns that need to be addressed, such as the condition of the economy in each member's state of the EU that affect every market in Europe.

Back when dotcoms were still in trend, practically anyone with a website could file for an IPO, and watch the millions pile up as the markets steadily rise. But now, what investors want is a safe company with long term growth prospects and lots of assets to its name. For any business that can pass through this long road to IPO success, there's a great prize on the other end.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

New York City, NY -- (SBWIRE) -- 03/25/2011 -- We believe strongly in the concept of economic and market-led research. This "top down" approach is aimed at identifying the most vibrant and promising market sectors in which to direct its considerable industry and company research capabilities. We believe in the long term growth and development of the global economy as the world's people strive for a healthier and higher standard of living, particularly in those emerging economies that account for fully half of the global population. While there are many and varied stumbling blocks on the path of global economic and social progress, Harris James Associates recognizes that there are always sectors that exhibit superior potential in the dynamics of global development. We believe that selectivity is the key to long term investment success in the stock market......

Portfolio Balancing
Rebalancing a person's investment decision profile can become a vital need due to private lifestyle adjustments for instance age, earnings, pension, inheritances, or even purchase or sale of a property or another significant property such as property, brand new assets requirements, as well as an modification in private associated risk threshold, and so on. As well, rebalancing is often required as a result of changes in asset allocation due to altered investment expectations, or to realign portfolio weightings in line with target allocations due to changing values of individual portfolio holdings.

As part of the HJA commitment to excellence, and our focus on unparalleled client service, your HJA Account Executive will routinely monitor, and provide assistance when portfolio rebalancing is advised.

Timely Advice
Whether one is a seasoned investor or a newcomer to the world of private investing, your HJA representative is prepared to assist in any way practical. Advice regarding any or all aspects of your personal investment program, its overall wealth building strategy and tactical recommendations in light of changing market circumstances is yours for the asking. When Harris James Associates research discovers a compelling stock investment that meets with your overall objectives, you will be advised in a timely manner so that you may consider it for your portfolio without undue delay. Or when changing circumstances suggest a liquidation of a given investment, and because you are the ultimate decision maker, we will advise you of such changes with all practical haste.

MERGERS and ACQUISITIONS - Maximizing Your Value
Harris James Associates offers a comprehensive range of Merger and Acquisition services to help you identify strategic opportunities and develop and execute integration plans, including:

Business due diligence

Integration strategy check

Post-merger integration plan management

Harris James Associates have worked with a lot of businesses in all key industries on national and cross-border merger and acquisition projects. With our extensive consulting, technology and outsourcing expertise, clients can expect a smooth and efficient integration that yields positive results. Discover what we can do for your business.

Business due diligence

The reputation, integrity and ultimately the success of your business increasingly depends upon developing and maintaining the confidence and trust of your domestic and international clients, investors and regulators. Conducting proper due diligence is essential in eliminating fraud, managing risk and maintaining compliance with regulations.

International Due Diligence process is vital to virtually all types of engagement including:

* Sales Agents or Consultants

* Joint Ventures

* Strategic Partners

* Mergers & Acquisitions

* Risk Assessment

* Distributors

* Senior Level Personnel Decisions

* Vendor Verification

* Customer Acquisition

* Conflict of Interest Investigations

Post-merger Integration

Harris James Associates has supported hundreds of post-merger integration projects.

HJA consultants draw on functional and business process expertise to manage each major milestone, from the initial merger announcement to the operational launch of the combined entity.

Our core strengths include strategic advice during the pre-deal phase, growth strategy reviews, target evaluations, strategic due diligence and post-merger integration planning and implementation.

The acquisition and integration of another business requires top management to rethink the organization's strategic vision. Integration involves re-shaping the organization to achieve this new vision and realize merger synergies.

Harris James Associates plan management services increase merger success through open communication and stakeholder involvement.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

India Economic Growth - Harris James Associates Economy, A Closer Look

New York City, NY -- (SBWIRE) -- 03/09/2011 -- The central government budget which set the tone for reducing fiscal deficit and an unexpected increase in the policy rate to rein in inflation has convinced the markets and economists that India is on its way to having a robust economic growth. Industrial output also continued to grow at a fast pace in January as companies produced more cars and cement. In the fiscal year 2011 that ends in March 2011, GDP growth of 8.5% is achievable. Long-term predictions for the southwest monsoons are expected to be normal, giving a boost to agricultural production and domestic demand.

Harris James Associates believe strongly in the concept of economic and market-led research. This "top down" approach is aimed at identifying the most vibrant and promising market sectors in which to direct its considerable industry and company research capabilities. We believe in the long term growth and development of the global economy as the world's people strive for a healthier and higher standard of living, particularly in those emerging economies that account for fully half of the global population. While there are many and varied stumbling blocks on the path of global economic and social progress, Harris James Associates recognizes that there are always sectors that exhibit superior potential in the dynamics of global development.

India Inflation
Inflation in India has been surging, driven by a low base and high food prices as the weakest monsoon rains in 37 years last year hurt farm output. Inflation running at 8.5% may have peaked and it is expected to ease by April as the winter-sown crop comes to market. The year-on-year inflation rate for food articles was 16.22% in the week ending March 13, far above the comfortable zone for the central bank and the government. In order to manage the inflationary expectations, the central bank increased overnight lending and borrowing rates by 0.25 percentages point each, making it one of the first major central banks to raise rates. The central bank further announced that it would continue to roll back its loose monetary policy to manage prices, as the country can't have sustained strong growth with high inflation.

We expect a 0.25-percentage-point rate hike in mid-April and another increase of one percentage point through March 2011.

The rebound in industrial activity also saw a surge in India's exports for the third month running in January. Exports in January rose 11.5% from a year earlier to $14.34 billion, after having increased 9.3% to $14.61 billion in December. Imports increased 35.5% in January to $24.70 billion while oil imports rose by 56% to $7.05 billion. Non-oil imports, a barometer of investment activity, grew 28.8% to $17.65 billion.

On the back of robust economic numbers and policy pronouncements, the rating agency Standard & Poor's raised its rating outlook to stable, expecting the fiscal situation to recover and growth to remain strong in the coming years. The government's commitment to follow the recommendations of the 13th Finance Commission, as well as its move to reduce fertilizer subsidies and raise domestic fuel prices were taken as positive indicators. The country's external position continues to be in a comfortable zone.

It is unlikely that India will benefit from the Google-China spat as the Indian government will not provide the kind of benefits China extends to the manufacturing sector in China. But some relocation is likely to emerge. For example, American companies GoDaddy and Dell have threatened to pull out of China and relocate themselves in India.

Harris James Associates ensures that our clients possess the best info on which to base intelligent business and financial decisions in pursuit of superior investment performance. In order to achieve and maintain that standard of information and timely advice, management and staff are committed to a level of excellence in research, market intelligence, trade executions, and client service that is both demanding and rewarding. We judge our success in maintaining that high level of excellence by the one true measurement; the satisfaction and investment performance of our growing clientele. At Harris James Associates, the Client's success is our primary objective. Investment success in these volatile times can be fleeting for many, which is why our commitment to excellence in everything we do will be a constant regardless of the often turbulent world around us.

Harris James Associates will also seek to provide expertise to investee companies not commonly available from institutional investors. In return, HJA expects to earn strategic investment grade entry prices by creating or securing investment opportunities that might not otherwise be available.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

New York City, NY -- (SBWIRE) -- 02/25/2011 -- In finance, diversification means reducing risk by investing in a variety of assets. If the asset values do not move up and down in perfect synchrony, a diversified portfolio will have less risk than the weighted average risk of its constituent assets, and often less risk than the least risky of its constituents. Therefore, any risk-averse investor will diversify to at least some extent, with more risk-averse investors diversifying more completely than less risk-averse investors.

Harris James Associates ensures that our clients possess the best info on which to base intelligent business and financial decisions in pursuit of superior investment performance. In order to achieve and maintain that standard of information and timely advice, management and staff are committed to a level of excellence in research, market intelligence, trade executions, and client service that is both demanding and rewarding. We judge our success in maintaining that high level of excellence by the one true measurement; the satisfaction and investment performance of our growing clientele. At Harris James Associates, the Client's success is our primary objective. Investment success in these volatile times can be fleeting for many, which is why our commitment to excellence in everything we do will be a constant regardless of the often turbulent world around us.

Diversification is one of two general techniques for reducing investment risk. The other is hedging. Diversification relies on the lack of a tight positive relationship among the assets' returns, and works even when correlations are near zero or somewhat positive. Hedging relies on negative correlation among assets, or shorting assets with positive correlation.

Diversification can lower the volatility (risk) of a portfolio because not all asset categories, industries, or stock, move together. Holding a variety of non-correlated assets can nearly eliminate unsystematic risk. In other words, by owning a large number of investments in different industries and companies, industry and company specific risk is minimized by diversification. In addition, diversification can reduce portfolio losses in bear markets, preserving capital for investment in bull markets.

Diversification advantages include reducing portfolio risk and simultaneously increasing portfolio returns through portfolio optimization. Holding a variety of assets enables the portfolio manager to invest in more aggressive assets without increasing the risk of the overall portfolio. Optimization can be achieved because proper diversification lowers portfolio risk, allowing an investment manager to invest in higher risk, higher reward assets, and still maintain a desired target amount of total portfolio risk.

Diversifying Investment
The essence of diversifying a portfolio is to diversify the profit drivers within it. Naturally, this approach relies on the corollary that earnings drive prices. The difficult part lies in identifying the profit drivers. The following method is a process based on that taken by the founder of Sony, Akio Morita in Made in Japan: Akio Morita and Sony. The investor discovers the individual profit drivers, he can then seek to diversify them within a portfolio.

Strategic Investments
What are the strategic end drivers of their business? This is usually the most important part. Industries like miners and many energy companies are strategically exposed to the prices of the commodities that they deal in. Indeed, most companies are exposed to an over- riding macro factor. For example, consumer goods companies are exposed to consumer spending cycles.
A simplistic view of this approach would be to define companies in terms of having cyclical or defensive qualities. However, in reality, economies and, individual company prospects are far more complex. Defining a strategic profit driver may appear to be a science but in fact it is more of an art.

Harris James Associates, New York Portfolio Management
Once this process is completed and the investor has defined the key drivers, he can thing bring about diversifying the portfolio. For example, a properly diversified portfolio will not be overweight in one sector or theme. So if an investor finds that he is overweight in stocks benefiting from rising oil prices, then he should look to buy companies that are positively exposed to falling oil prices. For example, plastics manufacturers or data centre operators.

This hedging process will not necessarily result in flat performance because the companies involved will have other growth kickers. In this example, the oil companies may discover significant new reserves and the data centre could see significantly increased demand for its centres. However, the exposure to rising oil price movements will be limited via diversification.

This process is particularly applicable to portfolio that has been constructed through a bottom up process because a bottom up portfolio could be manifesting an unintentional style or sector bias.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm