1. How would you describe the investment philosophy at Lycos Asset Management?
CL: We are discretionary portfolio managers and financial advisors. We design investment portfolios and retirement strategies that are tailored to the specific needs and goals of our clients. Our clients seek wealth management professionals that have three core qualities. First, they are fiduciary advisors; second, they place all client interests ahead of theirs; and third, they listen attentively. We work to deliver on all three. Our fiduciary role is the long-term roadmap for each client. A fiduciary is a person who holds a relationship of trust and prudently manages money matters for other people.
Our distinctive philosophy provides peace of mind and fosters lasting client relationships. We also write about our beliefs. We are independent and “fee-only.” We are not affiliated with institutions. We do not sell products. We are paid only by our clients. We give advice that is objective and unbiased, consistent with client goals, time horizons and risk tolerances. Our counsel is without conflicts of interest. Our integrity of counsel is paramount.
We are not compensated by commissions or trailers to buy or sell investments. For many clients, this objectivity alone is the most attractive feature for choosing us. Client portfolios managed by Lycos Asset Management are held by separate custodian. This ensures safety of client assets and professional implementation of transactions. Clients receive transaction confirmations and statements of accounts from the custodian. These are traditional qualities that clients value.
2. Who else is on the Lycos team, and what are their roles?
Steve Nyvik, BBA, MBA, CIM, CFP, R.F.P., Steve is senior portfolio manager. He has been a financial professional for 32 years. He primarily looks after older clients that are seeking income from their portfolio, and he specializes on blue chip Canadian common and preferred equities.
Rob Bisbicis, BA, BSc, MA, JD, CFP, CIM, Rob is associate investment advisor at Lycos Asset Management and a practising lawyer at Bisbicis Law. Rob, being the youngest of the three investment advisors at Lycos, specializes in analyzing growth, companies such as his current favorite “Fantastic Five”, AAPL, MSFT, GOOGL, AMZN and META. He does not offer legal advice through Lycos.
3. You earned a master's degree in Mathematical Finance from Oxford, arguably the top university on the planet; how does your prowess in mathematics translate to value for your clients?
The study of advanced mathematics and statistics, I believe, turns students into philosophers in a way. The constant search for objective truth done through the construction of mathematical and statistical models that attempt to approximate reality and are subsequently verified or disproved by empirical evidence is what this field of study is about. Prognosticating is fascinating. No one knows the future; no one can predict the future accurately, but by making a lot of predictions and being right just a little more often than being wrong is enough to do quite well!
4. You also served in the Greek military. Was discipline an innate trait or was it drilled into you in your military training?
One thing that was “drilled” into me was to respect your fellow soldier by saluting your superiors first, then your peers, and then your subordinates. Civilian life seems far less civil. I see too often people that think that are better than others refusing to greet and talk to those they regard as inferior to them.
Due to my mathematics background, I was selected to serve in signals and was responsible for encrypting/decrypting messages over what were then private wireless telecommunications networks (it was 30 years ago). I had top-secret clearance. Greece was and still is a NATO member. I cannot talk about anything specific, but let’s say that in my experience – and I am going to try to be very diplomatic here – not everything that is reported in the news regarding geopolitical events is what intelligence services know to be true. Also, when truth is revealed to the public, it is not usually the whole truth, and it is usually delayed. So, a good strategy would be to question everything you hear and rely more on independent, non-government-funded media outlets. Even independent media outlets that reach a mass audience are likely to be compromised.
5. I have seen you playing volleyball at Vancouver's Kitsilano Beach. Is that an effective release after a long day of crunching numbers?
I find playing is good for my mental as well as physical health, especially during the COVID hysteria when even gyms were closed! It’s also fun. Some people stop playing because they age, and some people age because they stop playing – hopefully I’m not in either category yet!
6. What is your #1 piece of advice in terms of general investment strategy?
Own productive assets.
Productive assets are assets that help create new wealth: businesses (i.e. stocks), income-producing real estate, farm land. Like in the parable of the talents, being afraid and burying your savings/gold in your backyard won’t cut it.
Additionally these days, since 1971 when the gold standard was abandoned, there is another hurdle we need to exceed; inflation. Governments around the world through their central banks control the money supply and the price of money (interest rates). Contrary to what we are being told by our government about freedom, we do not have free markets. Governments (whether conservative or liberal, it doesn’t seem to matter) typically spend more than they collect from taxes and make up the difference by borrowing money from the public by issuing bonds. Sometimes (usually in times of crisis) central banks create money out of thin air and buy the bonds they issue. This process devalues currencies. To maintain one’s standard of living, one’s savings need to keep up with inflation.
Investing in businesses (buying stocks) helps new ideas, products and services come to market, helps create jobs, helps improve everyone’s standard of living. Business ownership is risky, so for a less-risky investment, lending money to businesses (buying corporate bonds) indirectly helps all of the above but with a lower expected return and risk. Lastly, owing government bonds, other than in war times, I would not recommend as the yields are not usually good, the interest income is taxable, and governments are very good at wasting money.
7. What would you say are stocks that you see as undervalued and poised for strong growth ... and why?
As central banks raised rates aggressively in the last two years, I would expect some sort of slowdown in economic growth due to lower consumer spending, especially for things that are financed like homes and cars. During slowdowns and especially recessions (negative economic growth), it is important to own large-capitalization, quality stocks that pay a dividend that is sustainable through a recession. Two such stocks today are BCE (TSX:BCE) and TC Energy (TSX:TRP)