Disclosures

Please note: Changes to this legal statement will be documented here. Check back periodically for the latest updates.

Graham Investment Management, Inc. (GIM) is a California registered investment advisor. GIM may only transact business or render personalized investment advice in those states and international jurisdictions where we are registered or have filed notice or are otherwise excluded or exempted from registration requirements. The purpose of this web site is for information distribution on products and services. Any communications with prospective clients residing in states or international jurisdictions where GIM and its registered representatives are not registered or licensed shall be limited so as not to trigger registration or licensing requirements.

Ian Lucas is the President and Co-Portfolio Manager of GIM, which is an investment advisory firm with operations in multiple states. Ian Lucas is an investment advisor representative of GIM. Chris Mendoza is the Vice-President and Co-Portfolio Manager of GIM, which is an investment advisory firm with operations in multiple states. Chris Mendoza is an investment advisor representative of GIM.

All material presented herein is believed to be reliable but we cannot attest to its accuracy. Investment recommendations may change and readers are urged to check with their financial counselors before making any investment decisions. Opinions expressed on this site may change without prior notice.

This web site may links to other agencies and organizations. When you go to another site through the links, you are no longer on our site and are subject to the terms and conditions of the new sites.

Please review the privacy policies on those web sites to understand their personal information handling practices. We make no representations concerning the privacy policies of these third party Websites.

Unauthorized attempts to upload information and/or change information on any portion of this site are strictly prohibited and are subject to prosecution under the Computer Fraud and Abuse Act of 1986 and the National Information and Infrastructure Protection Act of 1996 (see Title 18 U.S.C. §§ 1001 and 1030).

Research summaries are published for illustrative purposes only. We cannot guarantee the accuracy, completeness, or results presented. Investment processes incorporating these factors will not necessarily perform as indicated by past performance. This is not an offer to buy or sell any security.

Backtesting involves simulation of a quantitative investment model by applying all rules, thresholds and strategies of the current model to a hypothetical portfolio during a specific market period and measuring the changes in value based on the actual market prices of portfolio securities during the period covered. Investors should be aware of the following: 1) Backtested performance does not represent actual trading in an account and should not be interpreted as such, 2) backtested performance does not reflect the impact that material economic and market factors might have had on Graham’s decision-making process if Graham were actually managing clients’ assets with the investment process described here, 3) the investment strategy that the backtested results are based on can be changed at any time in order to reflect better backtested results, and the strategy can continue to be tested and adjusted until the desired results are achieved, 4) there is no guarantee that the backtested performance would have been achieved by Graham had the program been activated during the years presented above.

Graham derived the synthetic returns using financial statement data from both the Morningstar Fundamental Database of U.S. companies and the American Association of Individual Investors. The period tested began on January 1st, 2001, and ran through June 30th, 2009. The companies selected for testing were the largest 1,000 by market capitalization to ensure adequate volume and liquidity. Constituent companies were equally weighted and returns represent share price changes over one-year holding periods. Using as-reported financial data for the 12 months ended in December of each year, a three month lag was used prior to portfolio formation on April 1st of each year to ensure prior calendar year financial results would have been known at the time of purchase. Returns do not reflect the impact of dividends or frictional costs such as commissions, slippage, advisory fees, or taxes. Comparison of the strategies to any benchmark is for illustrative purposes only and the volatility of benchmarks used for comparison may be materially different from the volatility of these strategies due to varying degrees of diversification and/or other factors. Vanguard S&P 500 Index Fund (VFINX) data is from Yahoo Finance, courtesy of Hemscott Americas. Indexes are capitalization weighted and are calculated on a total return basis with dividends reinvested.

Our firm is not affiliated with the family of Benjamin Graham.