The New Power Fund

The New Power Fund
By Sam Jones
Exclusively for InvestorIdeas.com
February 01, 2007

Let me introduce myself. My name is Sam Jones. I am a professional money manager and president of our firm, All Season Financial Advisors, Inc., a registered Investment Advisor in Denver Colorado WWW.ALLSEASONFUNDS.COM. We have been managing private accounts since the mid 80’s on a discretionary basis. We are a niche management firm offering investors risk managed investment strategies through 8 unique models. My personal favorite is our 2 year old “New Power” strategy that focuses entirely on the renewable energy sector. We are putting up some nice double digit returns in our portfolio but more importantly doing it with a fraction of the risk inherent to the sector. Am I an expert in the sector? Not yet but I bet I know more than most.

Renewable energy is not a new thing. Solar panels and water heaters from the late 70’s can still be found in landfills across the country. Investors from the same era are still wondering why this obvious solution to our global energy demand has yet to pay any sustainable returns? Good question. And I’ve found a lot answers in my exploration into renewable energy stocks. Frankly, I’ve learned a lot of these lessons the hard way so pay attention and don’t make the same mistakes I have.

Pep Rally

I have been invited to write a monthly column for investors interested in putting some money to work in the renewable energy sector. I applaud your interest and your commitment because I too am a believer. This won’t be the 70’s fad that didn’t happen. As far as I’m concerned, this is the BIG ONE and is akin to the early innovation phase of technology and the internet in the 80’s. Renewable energy is the solution to many of our global issues including war in the Middle East, global warming, depleting natural resources, and shear efficiency. Just now, this moment in history, the cost/ benefit lines are beginning to cross making alternative power generation a better solution to traditional sources of energy (oil). Politically the climate is right for the first time in decades. We the people have had enough of the oil regime of the last 50 years. It is time for a change and our leaders are providing some outstanding lip service in support. I am a capitalist and I believe that economic incentives will be the catalyst for change, not policy. Politics tends to the follow innovation and will take credit whenever possible. I ignore them whenever possible. So let’s get ready to plug into this promising new investment opportunity. But before we put our money to work, it’s important to understand the nature and character of how these stocks trade. In other words, should we invest in these companies or trade them, when do we typically see strength in this sector and how does it correlate to the rest of the US stock market? How much volatility should you expect in your own New Power portfolio (fund)? And can we stay diversified within the renewable energy sector? I have a lot of answers and I intend to divulge my secrets in this column over time but first a little house keeping.

Changing My Mind

We have a little rule in my office that says: I reserve the right to change my mind at any time for any reason. In other words, investing is a bit of an art and we need to stay flexible with our assumptions about the future as well as our commitment to certain investments. This column is not intended to be direct advice for anyone and does not account for individual circumstances, goals or objectives. You are in charge of your money (unless you want me to do it for you) and you will need to take my advice as high level input, not actionable investment recommendations. Along those lines, please refrain from contacting me directly to discuss this stock or that stock. If you have some observations of your own regarding the sector at large, trends or breakthroughs, we would all love to learn from your insight and I will, with your permission, post your comments. And finally, I don’t get paid for this but I like to write and help if I can. I will attempt to write “The New Power Fund” commentary as often as I can but it looks like a monthly at this point.

Now I’m tired of writing so I will begin next week with my first overview of what you should expect from investing in the renewable energy world. Stay tuned.

Sam Jones
sam@allseasonfunds.com

Disclaimer
Content found in the New Power Fund is subject to the terms found in the InvestorIdeas.com disclaimer at : http://www.investorideas.com/About/Disclaimer.asp .Our featured columnists are freelance writers and may or may not hold positions in the companies discussed. Please read individual disclaimers. Nothing in the articles should be construed as an offer or solicitation or recommendation to buy or sell any specific products or securities. Past performance does not guarantee future results.

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