Our Guiding Principals

  1. Add value
    • Provide unique products, services, and strategies that are well researched and that have a history of yielding superior returns.
  2. Be unbiased and objective
    • Align company goals with client goals.
    • Provide services on a fee only basis. We are not a broker and do not get compensated for trading activity in your account.
  3. Minimize trading costs
    • Includes brokerage commissions and execution related costs.
    • Aggregate security sales and purchases via block trading whenever possible to further reduce costs.
  4. Use an independent Custodian to safeguard client funds
    • Your funds and assets are held on deposit by our independent Custodian,  Interactive Brokers.
    • You control deposits and withdrawals.
    • Vetta Investments directs and executes the investment of your funds, consistent with our account agreement.
  5. Treat clients with courtesy and confidentiality
    • Never share client information with anyone, except as required by law.

At Vetta Investments, we firmly believe that success in the financial markets is largely dependent on the following factors:

  • Having an investment strategy which is capable of superior performance. While past performance can never be a guarantee of future results, we believe that an investment strategy which has performed well in the past, through many market cycles, has the best likelihood of performing well in the future.
  • Minimizing investment related expenses, including brokerage commissions and the very high costs associated with poor trade execution.
  • Having time on your side when necessary. Your investment horizon should be at least 5 years or more for a growth portfolio.

It seems that nearly every month, we read another article in some financial publication which states that about 85% of all mutual funds do not beat the market averages. This is certainly a sobering fact and is the primary reason why “Index” investing has become so popular with large funds. There is considerable speculation that many funds, after years of below average performance, are quietly becoming “Closet Index Funds.” Click here to read a Business Week article about this. Such behavior is akin to “throwing in the towel” and admitting that you have no ability to put together a superior strategy. So if a fund’s management team has no special stock picking ability, and if you add up the front end loads, back end loads, management fees, trading fees, marketing fees, miscellaneous fees, and the potentially high costs of inefficient trade execution, what you get is BELOW AVERAGE PERFORMANCE. In fact it is our opinion that the vast majority of funds suffer from this very problem. Once again:

Average stock picking ability + high fees = POOR PERFORMANCE

So you may be wondering at this point if it is at all possible to put together a strategy that beats the averages over the long term – certainly a valid question considering that 85% of mutual funds do not seem to be able to do it. We believe the answer to this question is an emphatic yes! We can certainly point to our own flagship V-Rank-A portfolio, which has outperformed the averages in both our 30 year historical back test and in our published Model Portfolio Performance since March, 2005. We can also point to the Value Line #1 ranked stocks, which have been published weekly and have outperformed the market averages since 1965! This is some pretty compelling evidence that it can indeed be done!

So if you are looking to move beyond mutual funds, contact us about our private money management services.