Anthony M. Cherniawski is a principal of
TPI. He has a Bachelor of Communication Arts degree from Michigan State University (1972). His business experience is as follows: Tony Cherniawski’s early success in the investment business came from a chance meeting with Sir John Templeton ...
more Anthony M. Cherniawski is a principal of
TPI. He has a Bachelor of Communication Arts degree from Michigan State University (1972). His business experience is as follows: Tony Cherniawski’s early success in the investment business came from a chance meeting with Sir John Templeton and John Galbraith, two of the most dynamic investors during the 1970s and 80s. These encounters gave Tony an appreciation for the discipline of value investing, much of which he has maintained to this day. Tony’s initial philosophy of money management was in agreement with classic asset allocation methodologies, which were used to reduce risk in his clients’ accounts. He quickly realized, however, that a significant flaw existed with this approach, as investors had to accept the lower returns from under performing asset classes that were part-and-parcel of the risk reduction techniques in asset allocation. A key element of Tony’s current success lies in his combination of relative strength with various fund analysis tools to identify funds that have not only performed better than their peers, but those that have maintained consistency in their historical performance. Additionally, through his study of market seasonality, Tony found that periods of greater volatility correlated with the tendency for falling markets in the unfavorable season, while periods of lower volatility had the tendency to be related to rising markets. Using this information to his advantage, Tony’s methodology "lightens up" on stocks during the unfavorable seasons and becomes more fully invested in the favorable seasons. Finally, technical market indicators are used to identify the beginning and ending points of the seasonal periods and to fine turn market exposure. This allows
TPI to be long, neutral or even short, through the use of inverse mutual funds. Using such funds
TPI was able to avoid the 2001 bear market and prosper.
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