MCM Mayer Capital ManagementPresentation Transcript
M ayer C apital M anagement
Full Liquidity Total Transparency Excellent Past Performance
Investment philosophy: Macro-global.
a. The measure of the Fund’s exposure to bonds including capital notes of any kind, that are traded in Israel and abroad, will not, at any time, be less than 75% of the net value of the Fund’s assets.
b. In calculating the measure of exposure mentioned in paragraph “a” above, bonds and/or capital notes creating exposure to equity instruments, will not be taken into account.
2) Unless otherwise notified by the Fund Manager, the measure of exposure will not, at any time, exceed, in absolute terms, 30% equity comprised in the net value of the Fund’s assets and 200% foreign currency of the net value of the Fund’s assets. 3) Any change in the investment policy will be reported by the Fund Manager on the Fund’s website, and written notice sent to the holders of the units.
Legal framework: Limited Partnership. Registration: Registered with the Register of Partnerships, the Ministry of Justice - Israel. Launch date: 1 st Q 2010. Minimum investment: $500,000. Annual management fees: 2% (+ V.A.T). Trust fees: 0.1% Incentive fee: None. Entry fee: 0.5%. Entry/exit from the Fund: Daily (T+3). Unit price of the Fund: Published daily on the Company’s website + Bloomberg (ISIN: IL0011159899) . The Fund Manager will publish on its site at the beginning of each month, the composition of the Fund’s assets at the level of individual securities, as at the end of the preceding month.
Fund Trustee: Union Bank Trust Company Ltd. Fund assets: The Fund’s assets are deposited with Bank Hapoalim Ltd, in an account in the name “Union Bank Trust Company Ltd”. Transparency: Unit holders in the Fund will receive a secret code enabling access to and viewing of the Fund’s bank account. Fund administrator: Union Bank Trust Company Ltd. Auditors: Freidkes & Co. - CPA. Legal advisor: “Yigal Shapira” Law Company. Taxation: According to a ruling received from the income tax authorities: - An Israeli - resident limited partner is liable to tax at the rate of 25% on the Fund’s income. - Foreign - resident limited partner is exempt from tax on the Fund’s income.
By means of electronic code via the internet --- Authorization to view the Fund account $ 500,000 $ 500,000 Minimum investment --- 20% above benchmark Incentive Fee 2% (+ V.A.T) 2% Annual management fees Daily (T+3). Quarterly Buy / sell Daily on the Fund Manager’s website + On the Bloomberg system (ISIN: IL0011159899) . Quarterly Rate published MCM Fund Regular Hedge Fund
Simodan bonds investments ( 2E)(!) – Mutual Fund The fund's assets composition for the end of March 2010
SMD - Agach *** The data is updated monthly. Last update - 30/11/2009
Currency-Linked, Government Bonds (Gilboa) Currency-Linked, Non-Government Bonds
Fund Manager: Roy Mayer. Roy Mayer is the founder and owner of the Simodan Group. The Simodan Group was founded in 1990 and is active in two main areas: Mutual Funds management and Hedge Funds management. The Company’s customers include institutions, public and private corporations, nonprofit societies, business corporations and private clients. Roy Mayer, B.A Economics, former CEO of fix income division at Leumi PIA Mutual Fund Management Ltd and prior to that, was executive representative of the Union Bank of Israel on the TASE (from 1982 onwards).
Nahum Hirsch Loeb The Baron Rothschild’s Stockbroker in Frankfurt 1881-1930 (Perished in Theresienstadt 1861-1942) Edith nee Loeb Josef Mayer Stockbroker in Frankfurt 1922-1934 (1893-1974) (1896-1969) Accreditation was given to Josef Mayer -18/4/1922 as a Stockbroker on behalf of the German Republic 150 Years of Experience
Hedge fund General A hedge fund is an investment fund that adopts a strategy purporting to create profit, whatever the market situation may be. Legal structure Most hedge funds are established as limited partnerships, where the fund manager is the general partner and the investors, the limited partners. This legal structure has tax advantages as each investor in the fund (limited partner) has a different tax regime (foreign resident, Israeli resident, corporation, private client, etc.)
Macro-Global This strategy is perhaps the most well known in the field of hedge funds. The strategy manager in macro-global funds attempts to take advantage of changes in policy and macro-economic developments and their impact on the various markets. This was done by many managers during the emerging period of the European Union, when interest rates of the currencies of the various countries of the Union converged to a single status. The fund managers that estimated that unification would go forward, bought Italian and Spanish denominated bonds bearing high yields, and against this sold short German and French bonds, on which the yields were relatively low. As the date of the unification approached, and on its completion, the managers reaped profits irrespective of the level at which the yield on the common European currency was fixed, namely the Euro.
Investment advantages of hedge funds The main advantage is lack of dependence on market behavior. The most popular investments are equity instruments and debt instruments. Equity instruments yield profit when the market rises, and lose when the market goes down. In equity instruments, profit depends mainly on changes in the yields: a drop in the yields will cause a rise in the bond rates and growth in profits, and a rise in yields may cause profit to go down below normal interest rates, and even lead to a loss. However, investing in hedge funds is not necessarily connected with the behavior of the markets. Regardless of whether the market is going up or down, or interest rates are rising or falling - the fund manager may earn a profit as well as a loss.
In contrast to investing in funds and bonds where the investor wants to beat the market, the investment manager in the hedge fund will wish to meet a pre-determined profit target - that is generally higher than the benchmark. In those circumstances, investing in hedge funds produces results having a low correlation with those of the market or of ordinary investments. This is one of the important requirements of an investment portfolio: to invest in assets having a low or negative correlation, thereby reducing the risk. For those reasons, investing in hedge funds enables a profit to be made whatever the market situation may be, and also benefit from a drop in the asset prices, exploit changes in the market in both directions, diversify investments and vary the assets. Hedge strategies are very wide and invest in equity instruments, debt instruments, currencies, commodities, interest rates and the like - in Israel and throughout the world. Risk management, that is the basis of the hedge-fund industry, allows risks to be limited and profits to be maximized.