Profit Investment Management
Encyclopedia
Profit Investment Management, LLC is a SEC registered investment advisory firm based in metropolitan Washington, DC with approximately $2 billion under management. The firm offers a variety of investment management services and products for retail, institutional, and high net worth clients.
It was founded in 1996 by Eugene Profit
, the current president
, CEO, and portfolio manager
of the firm. The firm is currently one of the largest African-American owned money-management companies in the United States.
as Investor Resources Group. The firm began with $300,000 of capital under management. After taking over the position of portfolio manager on November 1, 1997 and Eugene launched the Profit Fund, the firm’s flagship retail mutual fund. Under Profit’s management, the Profit Fund rose 62% from late 1997 to 1999, compared with 51% for the S&P 500.
On July 9, 1999, the Profit Fund was given a 5 star rating from Mutual Funds Magazine, and from then on has consistently provided rates of returns surpassing those of the S&P 500
, Russell 1000
, and Russell 2000
.
On June 30, 2000, the Profit Fund was ranked Number 2 among 232 large-cap value funds with a three-year average annual return of 23.22%.
In June 2008, Profit Investment Management was named one of the nation’s largest black-owned businesses by Black Enterprise
Magazine, ranking 14th in the Asset Manager category. The firm had $1.358 billion under management at the time.
As of December 31, 2009, the firm’s asset under management reached approximately $1.7 billion.
and growth investing
. Over the firm's 14-year history, the strategy has evolved from a "value strategy with a growth overlay" to a "valuation-sensitive growth strategy," which selects growth stocks deemed as mispriced relative to their peers and their own price history. The expectation of the strategy is that a catalyst will eventually incite investors to re-evaluate such stocks, thereby causing prices of these equities to rise.
, Black Enterprise
, Pension & Investments, Investor's Business Daily
, Dow Jones Newswires, The Wall Street Transcript
, Wall Street Week, Money Line
, CNBC
, CNN
and Bloomberg
.
It was founded in 1996 by Eugene Profit
Eugene Profit
Eugene A. Profit is an American investor, entrepreneur, philanthropist and former American football cornerback for the New England Patriots and Washington Redskins...
, the current president
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
, CEO, and portfolio manager
Portfolio manager
A portfolio manager is either a person who makes investment decisions using money other people have placed under his or her control or a person who manages a financial institution's asset and liability portfolios....
of the firm. The firm is currently one of the largest African-American owned money-management companies in the United States.
History
Profit Investment Management was originally founded in 1996 by Eugene ProfitEugene Profit
Eugene A. Profit is an American investor, entrepreneur, philanthropist and former American football cornerback for the New England Patriots and Washington Redskins...
as Investor Resources Group. The firm began with $300,000 of capital under management. After taking over the position of portfolio manager on November 1, 1997 and Eugene launched the Profit Fund, the firm’s flagship retail mutual fund. Under Profit’s management, the Profit Fund rose 62% from late 1997 to 1999, compared with 51% for the S&P 500.
On July 9, 1999, the Profit Fund was given a 5 star rating from Mutual Funds Magazine, and from then on has consistently provided rates of returns surpassing those of the S&P 500
S&P 500
The S&P 500 is a free-float capitalization-weighted index published since 1957 of the prices of 500 large-cap common stocks actively traded in the United States. The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two largest American stock...
, Russell 1000
Russell 1000
The Russell 1000 Index is a stock market index that represents the highest-ranking 1,000 stocks in the Russell 3000 Index, which represents about 90% of the total market capitalization of that index. The Russell 1000 Index has a weighted average market capitalization of $81 billion; the median...
, and Russell 2000
Russell 2000
The Russell 2000 Index is a small-cap stock market index of the bottom 2,000 stocks in the Russell 3000 Index.The Russell 2000 is by far the most common benchmarkfor mutual funds that identify themselves as "small-cap",...
.
On June 30, 2000, the Profit Fund was ranked Number 2 among 232 large-cap value funds with a three-year average annual return of 23.22%.
In June 2008, Profit Investment Management was named one of the nation’s largest black-owned businesses by Black Enterprise
Black Enterprise
Black Enterprise is a monthly U.S. magazine which describes itself as "the premier business news and investment resource for African Americans" and claims a readership of 3.7 million. It was founded in 1970 by Earl G. Graves, Sr.. The publication is known for its annual listing of the largest...
Magazine, ranking 14th in the Asset Manager category. The firm had $1.358 billion under management at the time.
As of December 31, 2009, the firm’s asset under management reached approximately $1.7 billion.
Investment Style
Profit is often cited for its unique investment strategy which combines elements of valueValue investing
Value investing is an investment paradigm that derives from the ideas on investment and speculation that Ben Graham and David Dodd began teaching at Columbia Business School in 1928 and subsequently developed in their 1934 text Security Analysis...
and growth investing
Growth investing
Growth investing is a style of investment strategy. Those who follow this style, known as growth investors, invest in companies that exhibit signs of above-average growth, even if the share price appears expensive in terms of metrics such as price-to-earnings or price-to-book ratios...
. Over the firm's 14-year history, the strategy has evolved from a "value strategy with a growth overlay" to a "valuation-sensitive growth strategy," which selects growth stocks deemed as mispriced relative to their peers and their own price history. The expectation of the strategy is that a catalyst will eventually incite investors to re-evaluate such stocks, thereby causing prices of these equities to rise.
Profit in the Media
Profit Investment Management has appeared on several financial media sources. The firm’s CEO and several of its employees have provided financial commentary on prominent financial news networks including Business Week, Smart MoneySmart Money
Smart Money is a 1931 film starring Edward G. Robinson and James Cagney, the only time Robinson and Cagney made a movie together, despite being the two leading gangster actors at Warner Brothers studios all through the 1930s...
, Black Enterprise
Black Enterprise
Black Enterprise is a monthly U.S. magazine which describes itself as "the premier business news and investment resource for African Americans" and claims a readership of 3.7 million. It was founded in 1970 by Earl G. Graves, Sr.. The publication is known for its annual listing of the largest...
, Pension & Investments, Investor's Business Daily
Investor's Business Daily
Investor's Business Daily is a national newspaper in the United States, published Monday through Friday, that covers international business, finance, and the global economy...
, Dow Jones Newswires, The Wall Street Transcript
The Wall Street Transcript
The Wall Street Transcript is a paid subscription publication and Web site that publishes bi-weekly industry reports that feature equity analyst, money manager and CEO interviews...
, Wall Street Week, Money Line
Lou Dobbs Tonight
Lou Dobbs Tonight is an American editorial commentary and discussion program hosted by Lou Dobbs, previously broadcast on CNN and currently on Fox Business Network. The hour-long show aired live on evenings every weekday, and was replayed in the overnight/early morning hours. It covered the major...
, CNBC
CNBC
CNBC is a satellite and cable television business news channel in the U.S., owned and operated by NBCUniversal. The network and its international spinoffs cover business headlines and provide live coverage of financial markets. The combined reach of CNBC and its siblings is 390 million viewers...
, CNN
CNN
Cable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...
and Bloomberg
Bloomberg L.P.
Bloomberg L.P. is an American privately held financial software, media, and data company. Bloomberg makes up one third of the $16 billion global financial data market with estimated revenue of $6.9 billion. Bloomberg L.P...
.