Islamorada Investment Management 2010 Annual Meeting

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Portfolio Manager Cale Smith's presentation at the 2010 Islamorada Investment Management investor meeting in the Florida Keys.

Portfolio Manager Cale Smith's presentation at the 2010 Islamorada Investment Management investor meeting in the Florida Keys.

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  • 1. Lawyer Todd Says Hi! This presentation is for educational and informational purposes only. Nothing contained here should be construed by anyone as an invitation or solicitation to buy or sell any security. This presentation does not contain personalized legal, tax, investment, or financial advice. Viewers should consult with a qualified adviser to obtain advice suited to their personal circumstances. The performance discussed here is highly unusual and cannot be sustained. Because the portfolios contains a limited number of companies, their returns will be more volatile than a portfolio investing in a higher number of stocks. Tarpon Folio inception date 11/20/2008. Gecko Folio inception date 1/26/09. Returns are through the dates as indicated in the presentation. Positive returns are not guaranteed. Individual results will vary depending on market conditions and investing may cause capital loss. The performance data is “net of all fees” reflecting the deduction of advisory fees, brokerage commissions and any other client paid expenses and includes the reinvestment of capital gains. The publication of this performance data is in no way a solicitation or offer to sell securities.
  • 2. 91% + Tarpon Folio + 70% Gecko Folio
  • 3. Warren Buffett: “Be fearful when others are greedy, and be greedy when others are fearful.”
  • 4. $6.56 million AUM 68 investors, 83 accounts 12 states 1 Oath 1 Option
  • 5. Mutual Funds ??? A good idea gone wrong.
  • 6. Spoke Funds We’re all in it together.
  • 7. Why Islamorada?
  • 8. Reason #1,432…
  • 9. Once in a Decade
  • 10. Value Investing Moat? Cheap? Margin of Safety? Ne t worth $50B
  • 11. Gecko Folio ‘09 A high-yield fund for income investors.
  • 12. Tarpon Folio ‘09 A long-term growth fund.
  • 13. Biggest 1st Year Gainers 200% 194% 160% 154% 153% 144% 126% 120% 107% 105% 98% 81% 80% 67% 40% 0% ACL BLKB CCOI DISCA GOOG IGT JBT KMX PZN TGT
  • 14. Top 5 Holdings Today Contango Oil & Gas Paychex Berkshire Hathaway Lowe’s Companies Atwood Oceanics
  • 15. Heat Map: Tarpon Degree of Undervaluation 1.00 0.80 0.60 0.40 0.20 0.00 Entire Core Midterm Opportunistic Portfolio Holdings Holdings Holdings
  • 16. Peter Lynch: “If you spend 13 minutes per year trying to predict the economy, you have wasted 10 minutes.”
  • 17. 3 Minutes: -  3.5% to 4.0% growth in ‘10 -  3.0% inflation -  Unemployment will peak in Q1 -  Jobful (vs jobless) recovery -  S&P near 1,400 in four years*?*
  • 18. The Big Variable in ’10 DC vs Manhattan
  • 19. Bottom Line “You need to worry about where the company and the stock will be in three to five years. If you can buy something today with little chance of permanent impairment and a high likelihood that you'll double your money over the next five years, you should go ahead and do it.” - Seth Klarman