TAM’s investment objective is to make significant tax free profits for investors regardless of market conditions, whilst doing everything possible to minimise risk. We know of no fund management business with a similar code of operation. Nor have we read of any with such a constant record of profitability. We conclude that, on past performance, TAM is likely to do a better job of making money for investors than most other fund managers.

• It is generally accepted in the investment industry that, at any given time, around 75% of active fund managers are unable to outperform a benchmark index such as the UK 100 All Share index. Trendwatch’s performance record indicates that it has been able to beat its benchmark consistently over many years, despite several self-imposed constraints (such as buying three shares per fortnight regardless of market conditions).



• Spread betting companies warn that clients can lose more than they put in. That does not apply to TAM. This is because TAM seeks to minimise risk. Perhaps the most important factor in that regard is that TAM places all share trades on a guaranteed stop’ basis (a facility that conventional stockbrokers do not offer). Thanks to guaranteed stops, the most a TAM investor can lose on any single trade on average will be around 20%.



• A characteristic of spread betting is that an investor only has to put up typically one-fifth of his or her exposure to an investment. For example, if we place an up-bet on the equivalent of £1,000-worth of Vodafone shares, TAM only has to put up around £200, known as the margin. It follows that if Vodafone rises by 10% to £1,100, this generates a £100 profit on the £200 investment, equivalent to a 50% gain.



• If the price goes the wrong way, this can generate an equivalent loss – which is why TAM uses gearing not to increase your exposure to any given trade, but to invest in more open trades (diversification). This does increase your overall exposure to the market, However, if anything goes wrong with any given trade, we minimise the nominal loss on that trade; and we therefore minimise the impact on the overall trading portfolio. So long as the investment managers get more of their investment decisions right than wrong, the geared gains should easily outweigh the geared losses, especially as losses are minimised through the use of guaranteed stops.



• TAM evolved from the investment newsletter called Trendwatch, which was first published in 2000. The share recommendations in Trendwatch were, in turn, based upon unique trend analysis software, written in-house. Trendwatch built an impressive performance record based upon a combination of trend analysis and fundamental analysis. TAM will use the same proven analytical techniques.