Nassau, Bahamas (PressExposure) October 20, 2009 -- The founders of Blue Chip Capital Management would like to announce the launch of the Blue Chip Value Averaging Fund.
The Blue Chip Value Averaging Fund is the first mutual fund in the world that is based on the value averaging technique developed by Michael Edleson (former Chief Economist of NASDAQ and finance professor at Harvard Business School). The Blue Chip Value Averaging Fund's objective is to preserve capital and seek consistent above average returns by using the value averaging method to make its buy and sell decisions.
The power of the Value Averaging method derives from its marriage of two proven but separate techniques: Dollar Cost Averaging and Portfolio Rebalancing. Using Exchange Traded Funds (ETF's) as the underlying investment asset, the fund utilizes a proprietary software program, to indicate the buy and sell points.
Bruce Ramsey, portfolio manager of the fund says that "Given the stock market volatility that investors have experienced in the last few years, the Value Averaging fund helps investors to achieve higher investment returns without having to worry about stock market volatility, market timing or direction. The VA fund will inherently reduce an investor's risk level and enhance their investment returns".
The concept of Value Averaging is not new, Michael Edleson first wrote about it back in 1988. In 1993, Mr. Edleson published a book dedicated to the topic of Value Averaging. His book provided significant detail on Value Averaging and specifically the research that supports the fact that Value Averaging can produce higher investment returns as compared to other investment approaches. There have also been detailed independent validation studies completed by Professor Paul S. Marshall (Journal of Financial and Strategic Decisions, 2000) and by Professors Leggio and Lien (Journal of Financial Planning, 2003) statistically proving that value averaging outperforms other investment methods, especially in periods of high market volatility.
The Value Averaging software technology is also available for licensing to brokerage firms who would like to offer a Systematic Investment Program to their clients.