Page 19
Winston-Salem Chronicle
MINORITY
SECTION
Highlighting the new
members of Minority
Businesses in
Winston-Salem
We are pleased to support the
Chamber of Commerce
IVI in orityji us in ess In itiative
Hie I -aw Firm of /
WOMBLE CARLYLE
SANDRIDOE & PLICE
Atlanta
A Professional Limited Liability Company
Charlotte Raleigh
Winston-Salem,
ECONOMIC VIEWS
In Pursuit of Portfolio Diversification with
Managed Futures >
( Michael J. Robinson , associate vice president, Invest-)
ments Dean Witter Reynolds, Inc.) :
I Part Two of Three Part Series
Potential Reward With Com
mensurate Risk
Investors should note that
while the futures market can offer
potential reward, with eommensu
rate risk, they are also very lever
aged markets that often have
extreme price volatility. However,
for those qualified investors who
seek to position their portfolios in
a diversified, disciplined manner,
inclusion of a managed futures
component as part of a total portfo
Mike Robinson
lio approach may be appropriate. Academic studies have
concluded that, historically, an allocation to managed
futures investments can lower the volatility of a traditional
portfolio and potentially smooth its total return, with com
mensurate risk. The following table illustrates returns over
the last twelve years of recognized indices in traditional
investment categories a,s well as a managed futures index.
The strongest performing category has been asterisked for
bach year. Performance results lor U.S. stocks. U.S. bonds,
international stocks ana international bonds are from CD A
( I'cucnt Return Unum I ihrougK MUlMlA 'M l
t S St?xL> -
Itomls
1 ni 1 Si, i .
Int I tion?K
MaiuncJ I mufes I .'?> I'
! I (.
4: *?
in
1 1 >>
i?< - .
^ >
24 6"
4"1 '
: 1 1
Mi I
<6 -?
IN 6
14 H
M >>?
? ? 4
4 "
ill >i
:4 >?
4 :
v >?
19V) i IWI
IM2
lIVi. .11 H.n.m l?n.,..iv I lhr.wit.h ,1.
I S SKK k ,
I S lUituls
16 *
t|
l\ I .
H K
>0 4*
I > 4.
?J 4*
l(M>
I <
Inlcin4liiMi.tr NTik V?
International I i* wd ,
Wjniued I utiirc*
-2 g
:o i
i4 <1
: i
i7* ;r
>4 ?
:i h*
.rp,;
rrt
O
0
: i ^
10 \
Investment Technologies. Rockville.MD. U.S. stocks repre
sented by the S&P 500 Index; U.S. bonds are represented by
the Salomon Corporate Bond Index; international stocks are
represented by the Morgan Stanley EAFE Index; interna
tional bonds are represented by the Salomon Non-U. S. Bond
Index. Managed Futures are represented by the Barclay
CTA Index. New York. N.Y. While these sources are con
sidered reliable. Dean Wetter cannot guarantee their accuracy.
Diversification Is The Key
For investors who are considering managed futures,
diversification is the key element to think about. As illus
trated in the accompanying table, each assets class, includ
ing U.S. stocks and bonds, international stocks and bonds,
and managed futures, has experienced both difficult and
positive performance. The only certainty is that one can pre
dict which asset class or investment will prove to be prof
itable in any given year. For qualified investors, managed
futures investments can help fill the need to diversify and
add a potentially non-correlated component to a traditional
portfolio of stocks and bonds as shown in the table.
How And Why Managed Futures Investments Work In
A Portfolio
A good illustration of how managed futures invest
ments can work in a portfolio was provided during the Per
sian Gulf War. When Iraq invaded Kuwait in August of
1990, conventional investments (stocks and bonds)
declined. At the same time, foreign currencies moved sub
stantially higher, and the price of oil almost doubled
overnight. Managed futures investments can participate in.
and potentially profit from, rising or declining moves in the
currency and energy markets, as well as trends in the agri
cultural. precious and industrial metak. and stock index
markets.
Recommend Asset Allocation
All alh>cation of no more than 5 - 10 percent investor's
portfolio to managed futures investments has the potential to
"informally hedge"' a traditional portfolio against the "air
pockets'1" that can affect stock and bogsd investments. While
the approach can provide qualified inijfcstors with additional
diversification, investors should be "aware that managed
futures investments are volatile and can tnove quickly
between highs and lows. Some qualified investors have lim
ited tolerance for the volatility that this asset call often expe
riences. The answer for an investor, after carefully consider
ing suitability and potential risks and rewards, may be to
allocate a small portion (5% -10%) of portfolio assets typi
cally set aside for aggressive growth vehicles to a managed
futures investment.
At aa age when most young people want to dis
tance themselves from their parents, L. Tannon Hardy
has come horrje to join the family business.
-* The 23-year-old is the newest agent for Mundy ?
Realty where his mother. Carolyn Hardy, is the chief
executive officer. ? . J - :
"Actually. Ijwas waffling between rea^ estate and
engineering." said Hardy, who graduated from N.C.
~~ Slate UnivefsTTy~witn a degree in mechanical engi
neering. "But this job has more independence and
responsibility than any other entry-level position you
could find." .
Lobated a{ 2001 New Walkertown Road. Mundy
i Realty h^s served the Winston-Salem metropolitan
area for 19 years.
"We know just as much as thfc big companies,"
he s^id. "We have the same technology and resources,
just with more personalized serv ices, and we're will-,
ing to go that extra mile."
Carolyn Hardy .got her start in a class for per
spective home buyers-. Several classes later, she was ?
showing houses part time when neighbors asked her
to sell their house. She has been in business for her
self ever since. '
Daughter Leslie joined the company as a clerical
assistant this months
? Both mother and son >ay that balance and hard
Carolyn , Leslie and Tantton Hardy
work are keys to a successful t'amil\ business. The two more Agents, and eventually expand their
Hardvs are hoping to expand their services by hiring facilities.
CHAMBER BUSINESS NEWS
It's Happening Here In 1994
* Siecor . Corporation, the
workJ's leading manufacturer of fiber
optic cables foK land-based applica
tions, is constructing a new state-of
art fiber optic cable manufacturing
pbant in the Centre 31 1" Industrial Park
in Winston-Salem. Manufacturing
operations at the new 2T5.(KX> square
foot facility are expected to be under
way in August. The plant initially will
have 75 employees. Siecor. which is
headquartered in Hickory, is a joint
venture company, owned equally by ^
Corning incorporated and Siemene
Corporation.
* Standard Commercial Tobac
co will be the first company to locate
a facility in the newly opened 1(K) acre
Big Oaks Industrial Park, the compa
ny has leased a 100.000 square foot
building m the park, investing v mil
lion in its tobacco processing- operat
ing and creating 60 new jobs.
* A $7.5 million shopping center
? - Stratford Place - will open next
. year near the intersection of Stratford
Road and Business 40.
* A S3. 7 million Chopping center
- Towers - is scheduled to open this
summer on South Stratford Road .
across from Thurway Shopping Cen
ter. in Rural Hall. The new 100,000
square foot facility, scheduled toNopen
next spring, represents an investment
of $2 million.
* Construction began in May on
Twin Cit> Warehouses' new ware
housing and packaging facility near
the Forum 53 shopping center in Rural
Hall. The new 100.000 square foot
facility, scheduled to open next spring,
represents an investment of $2 mil
lion.
* USAir ha.< added 142 part-time
employees in Winston-Salem to help
handle the heavy workload in its fre
quent-flier program.
* Wachovia began construction
on its new 28-story. 600.000 square
foot North Carolina corporate head;
quarter building in downtown
Winston-Salem. ? ? - .
Ernest Pitt Elected New Chairman/CEO of API
At its annual meeting in April, the board of directors of
Amalgamated Publishers, Inc.. elected Ernest H. Pitt chairman
and chief executive officer. Pitt, publisher of the Winston-Salem
Ernest H. Pitt
Chronicle and Black Col
lege _ Sports Review ,
replaces retiring Chair
man Garth C. Reeves Sr.,
publisher-emeritus of the
Miami Times."
API is the nation's
premier advertising rep
firm for black
newspapers,
representing
more than 150
African-Amer
ican newspa
pers through
out the coun
try. % "We
intend to make
our presence
felt in this industry." Pitt said. "I believe corporate
advertisers and advertising agencies want greater
credibility and accountability from African-American
newspapers and part of our corporate strategy is to
make sure that they get what they pay us for."
Pitt, a 1974 journalism graduate of the Universi
ty of North Carolina at Chapel Hill, said he will use
his 20-plus years experience as a journalist and pub
lisher to try to bring the black press to the forefront of
American's black movement by reestablishing the
links between major civil rights organizations and the
black press. Pitt said it is also important for black
newspapers to understand that they can no longer
demand advertising without producing results for
clients. "I will be meeting with corporate heads and
agency people to try to get their support for this
effort. The bottom line should be business for those
who produce rather than on a first come first serve
basis." ? ?
API was founded 33 years ago by John H. Sen
' I,
gstacke, publisher of the Chicago Daily Defender . arid has had
only two chairmen prior to Pitt assuming his duties on April 31.
With corporate headquarters in New York, headed by Michael
A. Housd, sales offices in Chicago and Los Angeles, API is by
far the largest firm representing African-American newspapers
in the United Suites for national advertising. It boasts gross rev
enues of close of $10 million per year, placing ads for such cor
porate giants as Ford. GM. Philip Morris. AT&T, and US Air
through maior advertising agencies such as Burrell Advertising.
The Minco Group,- UniWorld. BBDO. and Leo Burnett
Advertising.
Portrait h y Harden Richard s
/'rr/ , J/ \ . ^/Vti /<
? Wedding & AnntvtnMtv Portrait* ? Children's Portraits
Black & White Publicity Photos 24 f Ir Turnaround
Also Custom Framing
213 VV. Fourth St. ? 748-9797
Conveniently located downtown next to Hines Shoes
"" Someone Who Cares... .
Lewis &
DAGGETT
ATTORNEYS AT LAW, P. A.
' ? ?
765-7777 ?
Prat tier ttm ited it) accidents, injuries A wrongful death
CD!
6-Mo
4
Annual Percentage Yield
1 -800-730-2265
*$l OOOmimwum deposit $9^ (XX) nttiximuni
deposit 6-njonth APY is accural ?' as of 6A>AM
and is awi table for a limited time Saltan tial
I fvnaltu for Mrly withdrawal Other r,srnition<
man apply Memhr KDIC