Atlas Advisors, LLC Returns 86.8% for the 3rd quarter of 2007. For the quarter ending September 30, 2007, the Dow Jones Industrial Averages returned 3.6%, the S&P 500 was up 1.6%, and the NASDAQ popped 3.8% .
Our percentage gains for the same quarter was an eye popping, 86.8% net after fees. During the third quarter of 2007, we saw the bubble definitively burst in the housing market, which led to a liquidity crisis not seen since the stock market crash of 1987. The liquidity crisis that arose in the mortgage market happened after a sharp increase in mortgage foreclosures, mainly subprime, bankrupting numerous mortgage lenders and hedge funds. Due to the seizing up of the liquidity in the financial markets, and remember liquidity is what drives the markets, the Federal Reserve aggressively lowered interest rates in September 2007, for the first time since 2003. The lowering of interest rates did the trick, as seen in the averages positive return for the quarter after being down almost 10% at the nadir in the month of August.
Our paradigm is to research emerging growth companies, find the best of breed, and then invest in them for the long term. Our focus is and will continue to be stock selection and not on the markets as a whole. This is what has led to the outsized gain for this quarter and will continue to be the cornerstone of our wealth building strategy in future quarters
Interesting quote on investing principles to live by: “Rule number 1: Never lose money. Rule number 2: Never forget rule number 1.” -Warren Buffett