Ditch Your Bond Funds and Buy Income and Growth Oriented MLPs: A Wall Street Transcript Interview with Bradley J. Rathe, Chief Investment Officer of Strategic Financial Group, LLC

Wall Street Transcript

67 WALL STREET, New York - October 30, 2013 - The Wall Street Transcript has just published its Investing Strategies Report . This special feature contains in-depth interviews with highly experienced Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Value Oriented Strategy - Exposure to MLPs for Income - Long-Term ETF Investing - Large-Cap, Deep-Value

Companies include: SPiDR S&P 500 Index ETF (SPY), ALPS Alerian MLP ETF (AMLP) and many others.

In the following excerpt from the current Investing Strategies Report, an experienced portfolio manager discusses the best investing strategy for value and income oriented investors:

TWST: As a registered investment adviser, do you manage funds or do you manage individual accounts?

Mr. Rathe: I manage both funds and individual accounts. I have a platform in place where I manage funds, and then I manage particular SMA type of accounts as well. I have an ETF strategy, and I have what I call an alternative income strategy that I run. So I handle both types of accounts.

TWST: What is your overall investment philosophy?

Mr. Rathe: I grew up in the hedge fund business, which is a little bit different than the background of a lot of people in the business. So I am very much aware of risk when I am putting together a portfolio. My view toward risk is that if you take care of risk, income will take care of itself. I have a value approach, but it is very much grounded in the idea of not losing money, not losing capital. People talk about risk being volatility; I can handle volatility, but what I want to is minimize risk. Volatility is not risk. To me, risk is losing money. I can handle as much volatility as you can give me as long as you don't lose money.

TWST: With risk being so important to your philosophy, what are some of the things you do to mitigate risk?

Mr. Rathe: Most of it depends on scenario testing, developing portfolios and instruments that have a good mix of correlation, different income streams and different risk factors. It is fairly difficult to manage risk with mainstream types for asset allocation, but certainly we still try to mitigate risk. But risk is individual, so much of what we try to evaluate the risk factors in each individual position and take steps to mitigate it.

TWST: You mentioned the ETF strategy and the alternative strategy. Why did you pick those two areas?

Mr. Rathe: I see those two areas as having the greatest need. In my opinion, an investor is not going to make any money for the next three to five years being in straight-up Treasury-type exposure. Everyone should be vacating from that type of portfolio and moving toward active alternative types of strategy...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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