Meyer Capital Management, Inc. Global Investment Management


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Meyer Capital Management, Inc. Global Investment Management

  1. 1. Meyer Capital Management, Inc. Global Investment Management
  2. 2. Committed to Success
  3. 3. Company Profile Meyer Capital Management, Inc. (MCM) is a leading alternative asset manager specializing in managed futures. MCM serves those investors seeking to diversify their current equity and fixed income portfolios. Utilizing global markets in foreign exchange, financial futures, and commodities, our fundamental objective is to strategically participate in both rising and falling price movements that result from various economic supply and demand imbalances. With access to a vast array of markets and financial instruments, and combined with a strict risk management policy, MCM offers an attractive risk-adjusted investment program. Managed Futures - The Ability to Profit in Virtually Any Economic Environment Academic research has shown that the returns generated by a managed futures program are not necessarily dependent upon the same economic factors that benefit a typical stock and bond portfolio. Most traditional managers are restricted by govern- ment regulation from participating in the unique opportunities which exist by holding both long and short investment positions in a wide variety of global financial instruments. A volatile economic environment, which can cause stress to most equity and fixed income investments is often the optimal setting for our investment program. During inflationary times, hard commodities such as foreign currencies, energies, and gold tend to appreciate in value. During deflationary times, we have the same potential to profit by selling into a declining market with the expectation of buying back the position at a lower price. The flexibility that a managed futures investment can offer allows the investor to be better positioned for a greater number of market environments and can lead to a smoother return stream for the investor's overall portfolio.
  4. 4. Our Investment Philosophy The foundation of our investment strategy is based on the research we have done in economic, statistical, and behavioral theory. Through the use of quantitative analysis, our well-researched investment process uses a consistent approach whose fundamental goal is to find market tendencies and characteristics that do not change significantly over time. Our computer systems examine market data, searching for relationships among movements in prices with the single objective of detecting patterns of repetitive behavior. We do not subscribe to the traditional "buy and hold" philosophy which is prevalent in most stock and bond portfolios. Since there is no exit strategy inherent to such a mindset, adhering to such a plan can lead to staggering losses which can take years for the investor The overall goal is to quickly to recover. Instead, Meyer Capital Management’s approach eliminate those positions that is to limit the portfolio’s exposure by allocating no more prove to be incorrect and main- than 1% of risk capital to each position. Although the tain those that are profitable. percentage allocated to each individual market can be influenced by the sector and portfolio weightings, the objective is to quickly eliminate those positions that prove to be incorrect and main- tain those that are profitable. Although there can be no guarantee that losses will be limited to these predetermined levels, historical perfor- mance returns have reflected that policy. It is our belief that the success of an investment strategy is highly depen- dent on the discipline of the manager to adhere to its requirements in the face of market adversity. Although slight modifications are periodi- cally made to portfolio weightings, position size, and trade execution, the underlying philosophy of our approach is to extract market ineffi- ciencies that we believe will not change significantly over time. This philosophy requires a disciplined and systematic process. Unlike discre- tionary traders, whose decisions may be subject to behavioral biases, Meyer Capital Management follows a strict investment process that through rigorous research has shown to have a positive expectation.
  5. 5. Global Portfolio Diversification MCM has great flexibility in how and where we invest. The ability to participate in a vast array of global markets is one of the primary reasons our investment program is able to exploit the many opportunities that lead to consistent positive returns for our clients. In doing so, we partici- pate in only the most liquid markets throughout the world. This global approach allows us to spread our risk across many different sectors, including global interest rates, currencies, stock indices, energies, precious metals, grains and other agricultural commodities. Although the idea of global participation is not new to the astute investor, most portfolios are highly correlated due to the long-only investment strategies employed by the majority of equity and The only way to avoid the one fixed income managers. In today’s global economy, dimensional approach that is the price movement of stocks and bonds are becoming ever more correlated from one country to the next. common in long-only investment Consequently, the diversification that the investor strategies is to implement an hopes to achieve by investing in other countries is unbiased dynamic investment becoming more elusive than ever before. The only strategy that can profit from both way to avoid the one dimensional approach that is rising and falling markets. common in long-only investment strategies is to implement an unbiased dynamic investment strategy that can profit from both rising and falling markets. It is this potential, the ability to participate and profit regardless of market direction that makes our investment pro- gram particularly appealing to the sophisticated investor.
  6. 6. Exchanges and Other Markets Traded MCM trades in only those futures and forward markets that offer sufficient liquidity to minimize execution costs. Chicago Board of Trade March a Terme International Sydney Futures Exchange de France Chicago Mercantile Exchange Tokyo Commodity Exchange Meff Renta Fija Coffee, Sugar & Cocoa Exchange Tokyo International Financial Montreal Exchange Futures Exchange Eurex Deutschland New York Cotton Exchange Tokyo Stock Exchange International Petroleum Exchange of London Ltd. New York Futures Exchange Over-The-Counter-Foreign Exchange London Commodity Exchange New York Mercantile Exchange Over-The-Counter-Cash London International Financial Osaka Securities Exchange Market Futures Exchange Singapore International London Metals Exchange Monetary Exchange At its discretion, MCM may add or change those markets that are currently part of the MCM portfolio without prior notice.
  7. 7. Benefits of Managed Futures Managed futures are increasingly becoming an important asset class to include in a well managed portfolio due to a number of appealing characteristics. Non-correlation The returns generated by a managed futures program are not necessarily dependent upon the same economic factors that benefit a traditional stock and bond portfolio. A volatile economic environment, which can cause stress to most equity and fixed income investments, is often the optimal setting for our investment program. This non-correlated behavior suggests that a percentage of assets committed to MCM can often lead to a smoother return stream for the investor's overall portfolio. Cash Efficient Alpha Unlike traditional investments, a commitment to a managed futures program does not necessarily require a cash deposit. Instead, the investor may choose to use an existing stock or bond portfolio as collateral to implement the manager’s program. Thus, any profit (or loss) arising from the managed futures product, is true alpha (value), since it is not generated at the expense of the risk-free interest rate. Thus, any profit (or loss) arising For those who fund the account with cash, interest can generally be earned from the managed futures product, on the liquidating value of the account. is true alpha (value) since it is not Transparency generated at the expense of the risk Transparency is particularly vital to free interest rate. investors in alternative products such as ours. Those who open an individual account with Meyer Capital Management, Inc., will receive an account statement each time we make a portfolio change. In addition, most brokerage firms offer investors daily e-mailed or faxed state- ments as well as 24-hour online account access. For those who prefer to participate in our fund, you will receive a monthly performance update from an independent certified public accountant. This timely, convenient account information makes monitoring your account very simple.
  8. 8. Committed to Success Performance Goals Since its founding, MCM’s primary goal has been to achieve superior risk-adjusted returns for its clients. Although there have been periods when our clients have incurred losses, over the long run, an investment into our program has produced attractive returns with reasonable levels of risk. Although there can be no guarantee that our program will produce the same levels of return in the future, our research suggests that a reasonable allocation to our investment program can lead to superior risk-adjusted returns for the client’s overall portfolio. Research Maintaining superior performance requires a commitment from the investment firm to allocate the capital and effort necessary to improve upon our existing investment strategies. At MCM, we are constantly reviewing investment models and searching for modifi- cations that have the potential to improve customer performance. After these new models have been rigorously researched and tested, they are then applied to proprietary funds for a reasonable amount of time before being implemented amongst customer funds. Client Relationships MCM is dedicated to meeting the needs of each client we serve. We continuously strive to improve our communication with clients whether it be via phone, website, or printed material. Up-to-the- minute performance information, including portfolio exposure, is made readily available. Furthermore, unlike some investment programs, we do not have a minimum commitment period. Although we strongly emphasize that investors view our product as a long-term investment, they can choose to close the account at any time. Upon notice to Meyer Capital Management, Inc., full access to funds can generally be made available within a 24-hour period. (For those who invest in the MGS II fund, additions can be made monthly and withdrawals quarterly.)
  9. 9. Make us your choice Contact Information Meyer Capital Management, Inc. 303 East Main Street Suite 205 Barrington, IL 60010 Telephone: 847-277-0857 Fax: 847-277-0495 Accountant Futures Accounting & Compliance Counsel Tressler, Soderstrom, Maloney & Priess Registrations Commodity Trading Advisor (CTA) Commodity Pool Operator (CPO) Introducing Broker (IB) Memberships / Affiliations National Futures Association Managed Funds Association Futures Industry Association An investment in any fund or program offered by Meyer Capital Management, Inc. can only be made pursuant to a qualifying private offering memorandum or CFTC disclosure document, the delivery of which has been authorized by Meyer Capital Management, Inc. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. FUTURES TRADING IS SPECULATIVE, INVOLVES SUBSTANTIAL RISK, AND IS NOT SUITABLE FOR ALL INVESTORS.