Steven Connell

About Steven Connell

QualificationsOverseas experience: Lived 11 years in Japan; 5 years in London; 2 years in Hong KongSeries 65 Registered Investment AdviserGlobal Semiconductor Industry ExpertLondon Business School MBA, Concentration in Advanced Corporate Finance, 1992-4Harvard College, Concentration in Government, cum laude, 1981Graduate of GE Financial Management Program (FMP)Achievements• Number one ranked analyst at the Capital Group Companies, Mentored PM team into the information age• Managed $5 billion in global technology fund benchmarked against MSCI EAFE and US • Based in Japan 11 years, pioneered Taiwan-based analysis of Silicon Valley• Promoted to Capital Group partner in five years• Best global small-cap performer over 5 year period in Japan• Achieved 10-fold returns for billions invested in Samsung Electronics, TSMC, KLAC, Ibiden, ASML.• Pioneered Capital\'s entry into Emerging Markets technology companies like TSMC, Samsung Elec• Partnered with Samsung Electronics management team to restructure company in 1998• Recommended first outside director to Samsung Electronics board• Spearheaded Capital’s early entry into Indian IT market• Recruited and mentored analyst to head up Indian IT research effort• Founded Diamond Head Financial Advisors in 2009, a vertically integrated RIA in Hawaii• Total Return Fund’s largest client averaged 11% return after fees for past 5 years• 2017 Total Return has gained 14% year-to-date, double the S&P with beta Pimco Total Return, DoubleLine• Broadcast weekly “Financial Minute” on ESPN radio, Hawaii, 2015-16• Introduced hybrid research + client meetings to solve “absentee PM” problem• Published in Financial Times, Wall St Journal Letters to Editor, Newsmax, Seeking Alpha

Experience

1. CEO

   Diamond Head Financial Advisors

   Oct 2008 — Present · Honolulu, HI, US

   Founder and CEO, Diamond Head Financial Advisors, a boutique investment advisory offering managed accounts in pursuit of two investment strategies. One is the Total Return Strategy, for investors looking to beat the market with less volatility. The other is the Early Retirement Strategy, seeking high income and stability of principal through preferred equities, a largely uncorrelated asset class, combined with select blue-chip dividend-paying common equities.Investment Philosophy, Common EquitiesAccelerating change in the marketplace today provides opportunities to buy companies with high revenue growth yet whose stock prices exhibit low betas like value stocks. We make long-term investments in stocks with both these characteristics. The goal is to outperform the market with lower volatility. Portfolio companies must sustain their competitive advantage through consistently achieving an above-market ROA. Disruptors early in their lifecycle are always welcome but in small doses. To mitigate portfolio risk, we seek highly repeatable revenue streams, low industry correlations across holdings, minimal inventory exposure, inversely correlated convictions, and 5% initial position-size limits.Investment Philosophy, Preferred EquitiesInvestors looking for high yield today are often disappointed. Either they buy too much risk for the yield achieved or they avoid risk but achieve little yield. There is a reason for this: The cost of risk-free money today is zero and is likely to remain that way. Buying further out on the capital structure of quality companies by buying their preferred offerings offers a better risk-return equation today than junk bonds (too much credit risk), Master Limited Partnerships (too much energy exposure at a time of collapsing energy prices), and money markets, CDs, and savings accounts, whose yields are paltry. We look for A rated preferred securities selling close to par or, if they are above par, have call dates 2-3 years hence.

Education

• London Business School

  Master of Business Administration - MBA

  1992 — 1994

• Harvard University

  Bachelor's degree

  1977 — 1981

Skills

• Asset Management
• Management
• New Business Development
• Valuation
• Portfolio Management
• Contract Negotiation
• Start-Ups
• Wealth Management
• Financial Modeling
• Mergers & Acquisitions
• Sales
• Entrepreneurship
• Marketing Strategy
• Private Equity
• Customer Service
• Strategic Planning
• Due Diligence
• Venture Capital
• Marketing
• Business Strategy
• Investments
• Strategy
• Real Estate
• Real Estate Development
• Social Media
• Web Applications
• Equities