Alexander Randolph, Inc.
   1902 Campus Commons Drive
   Suite 410
   Reston, VA 20191

   Phone: 703-734-1507
   Fax: 703-556-9264
   Email: info@alexrand.com


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Investment Management Services

Alexander Randolph Advisory, Inc. provides investment management services for both individuals and institutions with approximately $250 million currently under management. Investment management services are provided by five members of our professional staff who average 17 years of experience in the financial services industry. Four of our five investment professionals hold either a Chartered Financial Analyst® (CFA)®, Certified Public Accountant® (CPA)® or Certified Financial Planner® (CFP)® designation. In addition, four of our five investment professionals hold either an MBA or an MS degree in business or finance.

We place strong emphasis on conducting thorough proprietary research on every security considered for investment and limit the investments we make to those which we believe offer a superior risk/reward profile. As with most investment management firms, our primary objective is to generate superior investment performance for the level of risk assumed. Unlike many of our peers, however, we refuse to chase the "hottest and most popular" investments simply because they are rising in value when our proprietary research indicates the investment's downside risk greatly outweighs its potential returns. Conversely, we are equally disciplined in having the conviction to purchase assets which offer a superior risk/reward profile regardless of the performance of such assets in the recent past. In fact, many of the most attractive investment opportunities are presented by securities which have recently experienced a significant decline in value. Our emphasis on thorough proprietary research and disciplined decision making are the attributes which separate Alexander Randolph from most investment management firms.

What Clients Should Expect of Alexander Randolph:

We spend a considerable amount of time educating clients about both the risks and potential returns offered by their investments in order to establish realistic expectations for investment results. From our experience, unrealistic expectations eventually lead to disappointments that cause clients to prematurely abandon investment strategies. It is important for clients to understand that most investments have risks and that such risks not only may result in investment losses, but periodically will cause losses to occur. For instance, while the stock market has historically provided a higher average annual return than investment grade bonds, stocks have on average declined in three out of every ten years. As a result, we encourage clients to expect the following financial market results during the next ten to twenty years:

  1. The stock market will provide a higher return than investment grade bonds.

  2. The stock market will decline during a number of individual years.

After educating each client about the potential risks and returns offered by different types of investments, we work with the client to develop risk constraints for their personal portfolio. These risk constraints are then used to establish a target asset allocation which defines the percentages of the portfolio to be invested in the stock market for growth vs. the bond market for income. For each client, it is critically important to establish a target asset allocation which is consistent with the level of risk the client can afford to assume and is comfortable assuming.

Finally, we construct a diversified investment portfolio which is consistent with the target asset allocation and risk constraints that are most appropriate for the individual client. In addition, the client's personal income tax situation is taken into consideration in order to make optimal use of tax advantaged investments with the objective of maximizing after-tax, risk adjusted returns.

Once an initial portfolio is constructed, it is regularly monitored and managed by Alexander Randolph with changes periodically being made for one or both of the following reasons:

  1. To rebalance the portfolio back to its target asset allocation. Such rebalancing is typically required after a period when the performance of the stock and bond markets diverge significantly. For instance, after a significant rise in stock prices, the stock market portion of a client's portfolio will typically become a larger percentage of the total portfolio than is appropriate. At such times, it is most often appropriate to reduce the amount invested in the stock market and increase the amount invested in bonds to bring the portfolio back to its target asset allocation . Conversely, after a significant decline in stock prices it is most often appropriate to increase the amount invested in the stock market and reduce the amount invested in bonds.

  2. To liquidate or reduce the amount invested in securities whose risk/reward profile has become less attractive and purchase or add to the amount invested in securities whose risk/reward profile has become more attractive. Most often such changes in the attractiveness of an individual security are caused by a change in the security's price. With the difference between the 52 week high and low prices for most stocks often being 30% - 50%, an individual company's stock price will typically change far more frequently and to a much greater extent (in the short term) than the fundamental economic characteristics of the company's business(es). When such price changes cause a company's stock price to fall significantly below a level which is appropriate in view of the company's business prospects, the company's stock is attractive and should be purchased. When the price rises significantly above an appropriate level in view of the company's business prospects, the stock is unattractive and should be sold.

While monitoring security price movements is relatively easy, conducting research to develop an opinion of a company's business and financial prospects requires far more time, experience and expertise. As a result, we place strong emphasis on conducting thorough proprietary research on every security considered for investment. In addition, we constantly scrutinize changes in the economic and financial market landscape to continually update and enhance our knowledge of the risks and potential returns of every security held in client accounts. In this endeavor, we believe our talent, dedication and discipline enable us to excel.

For more information on our services, please contact us by e-mail at info@alexrand.com or call us at 703-734-1507.