Money Management

Let the market come to us...

Securities Experts

Individuals, Businesses, Institutions, Retirement, Trusts, Portfolio Management

Cloak and Company, LLC. Is a unique money management firm. What we offer cannot be duplicated at traditional investment houses. Opportunity comes in many forms, small companies and large, fast growing or downsizing, real estate trusts or emerging markets, mature industries with outsized dividends or the startup biotech awaiting FDA approval. The well designed investment account will encompass them all. The key to diversification is not risk avoidance but balance.

Our stock selection process starts at the bottom, where we look for companies and situations that stand out. We look very closely at the company’s management, valuation, business model, growth prospects and other variables. We believe that some companies are superior to their peer groups and will outperform regardless of industry or economic circumstances.

Complementing this strategy is the opportunity in special situations. These are stocks that have an unusual profit potential due to non-recurring circumstances, such as recent performance disappointments, management changes, company mergers and acquisitions, or the release of a new product or technology. We do not rely on market timing; however, economic and macro circumstances are incorporated with investment decisions.

Both fundamental (company valuation and prospects) and technical analysis (stock action, momentum, instinct, incite, etc.) are brought together in generating investment ideas. Portfolios are fully invested, and some positions may be held for several years. Many sources of outside research complement our in-house process. Investment parameters are not limited to traditional stocks and bonds. Exchange-traded funds (ETF’s); real estate trusts (REITS), master limited partnerships (MLP’s) and preferred stocks that offer both income and appreciation potential will often represent large portions of a balanced account.

In summary, our approach is to minimize risk, know what we own, use patience and foresight and let the market come to us.

sail boat with a setting sun

Latest Commentary

April 4th, 2024

This report is for the first quarter ending March 31st, 2024. The Standard and Poor’s 500 rose 10% and the broad stock market saw gains of roughly 7% during the three-month period. Interest rates rose, the ten-year Treasury now pays 4.3% compared to 3.9% at the end of December. Oil remains near $80/barrel and gas prices have been falling. Plentiful natural gas is extraordinary cheap at $1.8/MMbtu. Gold is at record levels, up 7%. Residential Real Estate prices are showing some weakness. Commercial Real Estate is confusing as big city office space occupancy remains low and very large debt maturities are on the near horizon. Bitcoin surged higher by 60% and trades at $70k +/-. Inflation remains under the spotlight at 3-4%/year. The most recent GDP number is a robust 3.4% annualized.

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Past Commentary

July 5th, 2023

This report is for the second quarter ending June 30th, 2023. Stock index returns were varied during the three months. The Russell 2000 was flat, the Dow Jones Industrials rose 5%, the Nasdaq Composite gained 17% and the S&P 500 added 13%. For the year we estimate an overall advance of approximately 15% for the broad Market. Interest rates are higher, short Treasuries now pay 5-5.5% and the benchmark ten-year yields 3.9%. The price oil is down 12%. Precious metals are down slightly but remain higher for the year. Bitcoin rose to over $30k, that’s a 30% increase for the quarter and 90% year to date. Homes are not getting any cheaper while commercial real estate is now a wait and see prognosis. The economy is growing at an annual rate of 2-2.5% as measured by the GDP.

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January 1st, 2023

This report is for the fourth quarter and year ending December 31st 2022. Stock measures were mixed for the past three months, the Nasdaq declined 6.5% while the Russell 2000 rose 6%. Year to date Equity Index losses averaged approximately 28%. Short term interest rates were sharply higher for the quarter, the yield on the three month Treasury Bill climbed to 4.4% from 2.9%. One year ago the ten year Treasury Bond returned 1.5%, todays yield is 3.9%. Oil and natural gas prices have declined to $80/barrel and $4 ng/f respectively but remain higher for the year. Bitcoin is now below $17000 versus $45000 last year. Residential real estate prices have softened and inventories are improving. Commercial real estate seems stable but dependent upon the slow return of remote employees. Inflation measures are slowing but hot spots remain, especially food. The U.S. dollar is retreating against major currencies, Gold and Silver prices are firm. Third quarter GDP increased 3.2% and unemployment is at near record lows of 3.5%.

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January 3rd, 2021

This report is for the quarter and year ending December 31st 2020. Stock Market indexes rose 20% on average during the three and twelve month period. Interest rates remain very low, the thirty year mortgage now costs 2.66% , an all-time low. Third quarter GDP grew at an annualized rate of 33%, a record. Oil prices have risen slightly and Gold prices are constant at $1900/ounce. The U.S. Dollar has fallen to a two and a half year low against other major Currencies as budget and trade surpluses increase. As Global economics anticipate recovery, the USA becomes less of a safe haven. Bitcoins are now trading at almost $33,000, triple last quarter. Residential Real Estate continues to appreciate. Commercial properties are varied depending on the region and industry.

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Independent Account Protection

Accounts are carried by Interactive Brokers LLC.

Interactive Brokers LLC is a member NYSE - FINRA - SIPC and regulated by the US Securities and Exchange Commission and the Commodity Futures Trading Commission.

Headquarters: One Pickwick Plaza, Greenwich, CT 06830 USA