| Type | Limited Liability Company |
|---|---|
| Industry | Asset Management Financial Services |
| Founded | 1996 |
| Founder(s) | Eugene Profit |
| Headquarters | Silver Spring, MD, United States |
| Area served | Worldwide |
| Key people | Eugene Profit (President, CEO & Portfolio manager) |
| Website | ProfitFunds.com |
Profit Investment Management, LLC is a SEC registered investment advisory firm based in metropolitan Washington, DC with approximately $2 billion under management.[1] 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.[2]
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Profit Investment Management was originally founded in 1996 by Eugene Profit 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.[3] Under Profit’s management, the Profit Fund rose 62% from late 1997 to 1999, compared with 51% for the S&P 500.[4]
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.[5]
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%.[6]
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.[7]
As of December 31, 2009, the firm’s asset under management reached approximately $1.7 billion.[8]
Profit is often cited for its unique investment strategy which combines elements of value 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,"[9] 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.[10]
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,[11] Smart Money, Black Enterprise,[12] Pension & Investments,[13] Investor's Business Daily,[14] Dow Jones Newswires,[15] The Wall Street Transcript,[16] Wall Street Week, Money Line, CNBC,[17] CNN[18] and Bloomberg.[19]