Bradley Associates: Due Diligence

Before anyone at Bradley Associates can make recommendations to our clients, we need to carry out our due diligence on the components of prospective portfolios.

Bradley Associates cannot recommend a particular stock, corporate bond or IPO without first assessing the security at the deepest possible level.

Due diligence is absolutely vital to making a sound investment. Due diligence carried out by Bradley Associates verifies any business opportunities that survives our initial screening stage. For capital investments, as few as 10-15% of proposals presented to Bradley Associates make it past our initial screening stage to the full due-diligence process, and only 10% of those will go on to receive funding.

Technical Analysis

To use plain English terms, the technical analysis carried out at Bradley Associates looks for the following in the price action of a security:

Order
Rhythm
Patterns

We will assume that the price of the security at any one time is based on the market’s perception of it.

We strive to look at all information pertinent to such as:

Annual results
Profit margins
Earnings
Rumors of merger or acquisition

Just like other markets (like real estate or supply and demand of commodities or services) patterns in the financial markets can be identified and studied.

History has shown us that these types of strategy have earned some very profitable results. Hindsight is never wrong. You may see a pattern as clear as day, but the problem with this is that it may be one pattern within hundreds of different products. Spotting these different patterns on a daily chart can take years of study to spot. For the average investor without the tools available that we at Bradley Associates can access, this can amount to the proverbial ‘looking for a needle in a haystack’.

Fundamental Analysis

It is important that our analysis of a product takes into account complex fundamentals. Our analysts at Bradley Associates implement complex fundamental analysis. These complex fundamentals drive markets in both the short and long term.

At Bradley Associates our interest is in the long term so we focus on information like the company’s sales, its debt, it’s earning and so on.

This is what we call the Complex Forensic Analysis (CFA) of the process. CFA is where our analysts delve into the inner workings of the organization. We carry out a thorough assessment of their management team and how the business is run from top to bottom.

Bradley Associates carefully look at the industry sector involved as a whole. We will try to build a full and complete picture of the prospective company operating within the sector in question.

Continued Portfolio Maintenance

Such is the importance of asset allocation to a client’s overall wealth management strategy that, in addition to our periodical reviews, we continually reconcile a client’s plan against their risk profile. In doing this we are, in effect, double-checking our clients’ positions based on our extensive experience and their tolerance for risk.

This is a buy low, sell high approach, this is the target that every investor aims to achieve. By re-investing in your portfolio you can maximize its potential. This process is called rebalancing and it can be instrumental in ensuring that your portfolio and overall plan achieves the goal originally set down at the outset.

Your involvement in and understanding of Bradley Associates rebalancing process is critical. It reinforces our commitment to you and your financial health, as a result, you go away better informed, educated and secure in the knowledge your future is in safe hands.

Balancing Your Portfolio

Balancing your portfolio is a feature of your plan that keeps it up to date and in line with your goals. At Bradley Associates we completely understand your need to keep on top of your investments. These are in effect your very own family jewels. However over zealous handling of any portfolio can often result in less than optimal results.

It takes discipline to see past this desire, allowing us to sell off any asset that has performed well and at the right time. This must be done with a view to re-investing the profits into a part of the portfolio that has performed less well.