Douglas Chadwick, now in his late mid-70’s, made his fortune in flat pack furniture after many years nearly a decade in the Merchant Navy as a young man. He then went on to do a degree in theoretical physics at Sussex University.
His life-long passion for the sea is reflected in the Saltydog Investor language.
10 years ago Douglas called his financial adviser and was horrified to discover that his portfolio had gone nowhere – it had stagnated. And this after many years. Furious, he went about finding out what had gone wrong and in so doing, with the help of algorithm expert Richard Webb, devised a simple method for ordinary folk to make money investing in funds.
Douglas’s argument is that of his hero Jessie Livermore who was the father of trend or momentum investing. Buy and hold does not work in their view. Much better to be active and monitor your investments once a week and switch from underperforming funds into those that are trending upwards on a regular basis.
Douglas believes the man or woman in the street has never been able to do this on their own because the world of finance has been closed and opaque to those outside it. Plus there has never been a simple way to know what funds are out there and how they are performing.
Saltydog Investor is the solution. Each week Richard Webb’s algorithms sift through and sort funds into sectors and then these are grouped according to volatility and therefore risk level. These are:
Safe Haven: Very low risk, low returns
Slow Ahead: Normally low risk, often adequate returns
Steady as She Goes: Low to medium risk, potentially higher returns
Full Steam Ahead Developed: Higher risk, potentially higher returns
Full Steam Ahead Emerging: Higher risk, potentially high returns
To prove to themselves that the Saltydog system works, and to demonstrate the system to others, the Saltydog team set up two demo portfolios with their own money: The Tugboat and The Ocean Liner – The Tugboat being lower risk and The Ocean Liner being more adventurous.
Since The Tugboat fund started back in 2010, it has enjoyed an average annual return of 6.8% and has consistently beaten the FTSE 100. Since The Ocean Liner started in 2013, it has enjoyed an average return of an impressive 8.2%.
Ordinary folk need to sign up to a trading platform such as Interactive Investor or Hargreaves Lansdowne, then move their fund allocations on a weekly basis, to benefit from the rising trends, or simply mirror their favourite Saltydog demo portfolio. Then for £25 per month they subscribed to Saltydog Investor to receive a weekly online fund data feed, which also lists what changes the Saltydog team have made to their two demo portfolios (sold this fund, bought that fund et al) plus a monthly hard newsletter.
At the end of the day, Douglas’ passion is to demystify investing in funds and educate the young about sensible investing in funds to actually create wealth over the long term.
For a free trial subscription, go to www.saltydoginvestor.com or call Alex on 020 7352 3144