Why Alternative Investments

The Philosophy

Alternative investments have played an important role in institutional portfolios for at least the past three decades, but have only recently become a part of the mainstream individual investor vocabulary.

The basic premise is simple: Create the potential to increase an investment portfolio’s return while reducing its volatility. Two general principles are at work: Rather than competing against a benchmark or peer group, alternative investment managers have both the mandate and the flexibility to strictly pursue positive returns; and investments are structured to have low correlations with traditional asset classes.

Alternative investments encompass numerous asset categories, including commodities, tactical multi-manager strategies, hedge funds, real estate (commercial, office and multi-family), collectibles (e.g., fine art), precious metals, farmland and timber. Historically, these investments have not been readily accessible to individual investors, due to high minimum investment requirements and liquidity restrictions; additionally, individual investors often do not possess the knowledge or investment sophistication to employ the advanced strategies and tools of alternative investing. But accessibility is increasing, particularly in the equity and fixed-income markets, and this evolution presents a timely opportunity.

Investors face challenges today that are very different than those of the past several decades – extremely difficult equity markets, troubling economic conditions, and an unprecedented low interest rate environment. Consequently, the distinctions of growth vs. value, small cap vs. large cap, etc. have become far less important than focusing on one's tolerance for volatility and positive return expectations.

These uncertain – and unsettling – economic conditions eventually led to the formation of Willowbrook Capital Advisors LLC, a registered investment advisory that seeks to identify tactical investment solutions for individual investors and smaller institutions that provide “a seat at the table" of the alternative investment universe.

The Opportunity

On occasion, a business evolves out of a personal pursuit that was not originally intended to have implications beyond meeting one’s own needs. Such is the case of the relationship between Willowbrook Capital Advisors, LLC and Capital Management Group, Inc. (CMG), headquartered in Radnor, Pennsylvania.

Mr. McClary first learned of CMG in early 2009 while seeking additional alternative investment opportunities for family assets. Following two due diligence meetings in Pennsylvania, along with further analysis, it was concluded that CMG was both appropriate for a family investment and worthy of creating a business to introduce other investors to CMG.

Capital Management Group, Inc. is a registered investment advisory firm that offers tactical investment strategies to both individual and institutional investors via a multi-manager platform of low-correlated quantitative equity and fixed-income investment strategies, using a single, consolidated account for each client custodied at Trust Company of America. Unlike a fund of hedge funds, the platform offers daily liquidity, transparency, and a more favorable fee structure for investors. The CMG investment process demonstrated its ability to perform by delivering positive returns in 2008, the same year that the S&P 500 declined by -38.49%.

The CMG tactical blend investment strategies seek annual returns ranging from 5% to 15% (Returns are NOT guaranteed, and investors risk the loss of capital at all times). The significant benefit of the CMG structure is the offering of thoroughly due-diligenced, low-correlated, blended investment strategies designed to seek positive returns over time in all economic and market environments. The next several years will present significant challenges to investors, and challenging times call for creative, intelligent alternatives to the simple “buy and hold” investment philosophy of old.

To learn more about the Capital Management Group investment strategies, go to www.cmgfunds.net . Investment accounts can be established with a minimum of fifty thousand dollars ($50,000). Willowbrook Capital Advisors, LLC has a formal solicitation agreement with CMG, and the investor fee structure is identical to that incurred with a direct CMG relationship.

Please contact David McClary at (615) 599-7370 or by email at dmcclary@willowbrookadv.com if you would like to discuss alternative investment strategies in detail.