How the pros invest their money

Black Enterprise, April, 1995 by Rhonda Reynolds

Francis considers himself to be a contrarian investor, with a growth approach designed to minimize downside risk while seeking aggressive long-term returns. It must be working. "I don't even open my statements," quips Francis.

PORTFOLIO PARTNERS

Glinda Bridgforth Bridgforth Financial Management Group; Marjorie Grace Grace Financial Management

For Glinda Bridgforth, president of Bridgforth Financial Management, and Marjorie Grace, president of Grace Financial Management, it's the old story of one hand washing the other. For the last four years, hundreds of salary-squandering professionals have been relying on the financial guidance and debt management services of Glinda Bridgforth. They have come to the right place since she was once one of them.

After she helps her clients dig their way out of debt and establish prudent money management practices, Bridgforth usually passes the ball to Grace. Her partner then takes them into the future with sound investment advice.

Grace's specialty is focusing on the equity market. Timing the market's ebbs and flows, Grace says her personal portfolio snagged returns varying from 8% to 25% last year. She says 1993 was one of her better years because her portfolio delivered more than 30% in total returns. "Prior to last year, my dog could have picked [winners]," jokes Grace. "The three years after Desert Storm were fantastic."

Grace's stockpile includes Mirage Resorts (NYSE symbol: MIR), down 14.1%; Robert Half International (NYSE symbol: RHI), up 82.9%; Wall Data (NASDAQ symbol: WALL), down 0.9%; Lancit (NASDAQ symbol: LNCT), down 5.4%; and Airtouch Communi-cations (NYSE symbol: ATI), up 17.1.

This year's mutual fund pickings will be slimmer, but Grace is standing by her portfolio, which is chockful of funds like FPA Capital; it had a total return of 10.37% last year and 19.28% over the last three years. Two other funds in Grace's "plus" column are Putnam New Opportunity, which inched up 3.25% in 1994 and has returned 24.21% in three years, and Templeton Foreign, which rose just 0.3% last year and offered an 11.18% three-year total return.

Grace plays the stock market according to the following mantra: "Get in. Take your profit. Get out." In other words, as she puts it, "It's all about market timing."

With 90% of her portfolio squirreled away in mutual funds and 10% backing stocks, Grace admits she will never invest in low-return U.S. savings bonds, and fears for those who use nonspecific life insurance policies as an investment vehicle. Right now, Grace is steering toward socially responsible instruments such as the Calvert and Parnassus fund families, and steering clear of ones that invest in alcohol, tobacco, gambling or nuclear power companies. In addition, the funds she favors cater to firms with strong environmental ties, like recycling programs.

Currently, Grace is looking at Lancit Corp. (NASDAQ symbol: LNCT). "It's sitting on $11 million in assets, has no debt and already has millions in vendor commitments," she comments.