National Presence: Henry H. Armstrong Associates is an investment adviser based in Pittsburgh, but with national reach. The firm had $798 million under management as of December 31, 2019, and has clients in 25 states and 2 other countries. Henry Armstrong has been a SEC registered* investment adviser for more than 25 years.
Tax and cost efficiency: Henry Armstrong is extremely tax-efficient, having an average annual turnover below 10%. Thus, clients of the average manager are paying taxes every quarter at ordinary income tax rates, whereas Henry Armstrong clients are deferring taxes for an average of 5-8 years, and then are taxed at the lower capital gains rates. The tax headwind that the rapid traders are fighting is very difficult to overcome. The low turnover within Henry Armstrong portfolios also reduces transaction costs.
Discriminating analysis: The firm invests for quality, clarity and safety whereas the indexes remain heavily weighted in companies with poor asset value that no long-term investor should touch. Based on investing principles derived from more than 25 years of thoughtful investing, Henry Armstrong invests only in companies we believe to be strong, stable, and that can prosper despite competition, recession, inflation and other hazards of the marketplace. The firm’s meticulous and discriminating analysis of fundamentals, combined with its disciplined approach, are major points of differentiation.
Independence and Objectivity: Since its inception, Henry Armstrong has warned of the conflicts of interests besetting Wall Street and many high-profile investment companies. These conflicts have become front-page news. Henry Armstrong, on the other hand, sells no products, accepts no commissions and is completely independent of mutual funds, brokerage firms, banks and insurance companies. Because the firm is compensated only for its asset management by an annual fee, Henry Armstrong’s only incentive is to increase the value of its client’s portfolio. The interests of the firm and its clients are therefore well aligned.
Client Service: Henry Armstrong delivers substantive investment results, not frivolous salesmanship. Unlike many large institutions, Henry Armstrong has no sales team, it does almost no advertising, and its focus is not compromised by a sales culture. Armstrong has relatively few, relatively large, clients. This allows us to focus intensely on client service, delivering portfolios and advice carefully tailored to the specific needs of each client.
*Registration of an investment adviser does not imply a certain level of skill or training.