Mr. Sethi: Douglas C. Lane & Associates is a registered investment advisory firm located in Manhattan, New York. We manage common stock and bond portfolios primarily for high net worth individuals and families, but also for some pension plans, foundations and endowments. We manage approximately 1 billion of assets. Our only business is investment management. We are not involved in any other business activity, do not sell any financial 'products' (insurance annuities, etc.) and thus avoid any conflicts of interest. Our clients are located throughout the United States and in a few foreign countries. I am one of four owners of the firm, and my responsibilities include portfolio management, economic analysis and company research. In fact, every portfolio manager in our firm conducts research along with our research analysts. We feel that it is important for every portfolio manager to engage in research to ensure that they understand the fundamentals of the companies owned by our clients.
TWST: What is the overall investment style of your portfolio
investing?
Mr. Sethi: We think of ourselves as core investors. We do not fit
into a style box such as growth or value, nor do we find those
labels very helpful or particularly accurate in describing
investment approaches. We are also long-term investors and do not
try to time the market. We assess long-term economic and
industrial trends and make investments that leverage or avoid
these trends while trying not to subject our clients to undue
risk. The basic tenet of our firm is that successful investment
results are derived from the growth of the corporations whose
common stocks are owned, not from attempts on our part to
manipulate capital in the stock market to take advantage of near-
term emotional or momentum trends. We diversify our clients'
portfolios by having them own 50-60 companies in many different
industries and sectors. We invest directly in common stocks and
bonds and do not invest in any types of options, derivatives,
mutual funds, or structured financial products. While dividend
income return has been and in the future will be even more of an
important consideration, we have and will invest in companies
that offer little or no current income because they are expanding
rapidly and need their cash to finance growth. In this respect,
we are very mindful of the new tax law and its implications.
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