Can 2007 already be half over? Time moves quickly, months and years go by, and events that once seemed far into the future — retirement, college for our kids, long term care for aging parents — suddenly just happen. The key is to be ready financially for events, both planned and unplanned alike. Being ready means taking control of our financial lives when we have the chance not just when a large expense or changing circumstances are already upon us. Arrival Capital Management is focused on the type of long term investment management that can allow our clients to face the future with confidence that they are getting the most for their investment dollar.

Our aim is to deliver market beating returns with less than market volatility by adhering to a value-based investment strategy that balances potential reward vs. risk. Moreover, we create individually tailored portfolios based on the age, risk-tolerance and overall goals of our clients. This type of personalized investment management is increasingly rare in today’s financial world, where cookie-cutter solutions dominate. We are proud to be our clients’ eyes and ears in the financial markets and respond in real time to client needs and market conditions.

2007 has been a challenging yet rewarding year for investors thus far. Every few months a spasm of fear-induced selling hits the financial markets. In both February and June, markets retreated from record highs. The June cause was a combination of concerns over declining housing prices and the fate of bonds backed by subprime mortgages. This has fed into a generalized fear of higher inflation and U.S. financial imbalances causing a pronounced and longer term market downturn. Of course, in February, markets bounced back strongly because the economic backdrop, without adding in the fears, featured sound domestic employment and, most importantly, strong international growth. The June swoon in the market also took place with otherwise strong economic fundamentals in place. For this reason, we remain positive that great investments are out there and can be bought and held for long term benefit to our clients.

Of course, the recent financial jitters have impacted some core financial holdings. Some healthcare and retail investments have also underperformed lately. But the continued strength in the energy, materials and industrials areas have more than made up for the slack and led to strong returns for most client portfolios.

Arrival Capital continues to search for the type of investments that can stand on their own in any market environment. We search for unappreciated, undervalued and sometimes unknown companies that are good values today based on financial fundamentals and great values going forward based on expected changes within the companies, or with the prevailing conventional wisdom keeping values unnecessarily low. Each undervalued company that meets our criteria is then again evaluated for how well it fits into an existing client portfolio. The result is a portfolio of diverse, promising investments that is managed, as best as possible, to limit risk and maximize long term potential gain.

We thank you for your confidence and welcome your questions and comments, as well as your inquiries into how Arrival Capital Management can handle your investment management needs, or those of any friends, relatives, and colleagues that could benefit from our individualized approach.