Nova jul2011 ytd

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NOVA is a multi-manager multi-strategy managed asset program looking for seed capital. This presentation represents simulated returns comprised of actual manager trading results.

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Nova jul2011 ytd

  1. 1. Golden Globe Asset Management, Inc.<br />Presents:<br />Nova<br />The information contained herein does not constitute an offer or solicitation to any person in any state or in any jurisdiction in which such an offer or solicitation is unlawful or is not authorized.<br />
  2. 2. An Introduction<br />From January 1990 to March 1998, the hedge fund industry's assets grew twenty fold, from $20 billion to over $400 billion. Over the same period, the number of hedge funds increased from 200 to over 3,000. Many of us have read periodic reports in the press about hedge funds that generate outsized returns and influence global markets. <br /> Assets are flowing to hedge funds at an increasing rate because institutions and individuals alike see hedge funds as an integral part of their overall investment approach. By providing exposures that investors may not have, hedge funds allow these investors to further diversify their investment portfolios, protect against risks inherent in traditional stock market approaches, and realize excess returns. The specialized strategies that hedge fund managers employ provide access to markets around the globe. But, they do not all pursue the same investment approach or provide the same exposures. <br />
  3. 3. Real-time information and technological progress have allowed numerous small money management operations to use hedge fund strategies to take advantage of opportunities created by the changing global economy. Alternative investment strategies allow managers to capitalize on market inefficiencies created by rapid global economic change in a way that traditional long term investment strategies cannot. <br /> Most hedge fund managers are specialized. They attract investors by exhibiting a high level of expertise in that strategy. Today, the majority of hedge funds are run by managers who succeed by creating informational, statistical, or strategic advantages that allow them to turn market inefficiencies into profits.<br /> Golden Globe Asset Management, Inc. structures and manages hedge funds with a unique concept in managed assets; we put the clients’ needs first. Our most important priority is maintaining clients’ capital. Through diversification of trading strategies in alternative investments, we have been successful in comprising hedge style portfolios with exceptionally low volatility and exceptionally high returns.<br />
  4. 4. Golden Globe Asset Management is dedicated to preserving investors’ capital. This commitment is our foremost objective. Our investment programs were uniquely designed to preserve capital and provide a goal driven return tailored to the needs of institutional sized investors.<br /> The Starburst program is designed to return 10% to 15% annually with volatility of less than 5%. Starburst has been successful in meeting its objectives in simulated returns averaging 15% annually with its largest peek-to-valley draw down of 3.24% and a 3 month recovery period.<br /> The Nova program is designed to optimize economic conditions and find synergy in trading strategies to outperform its peers and maintain a volatility of less than 5%. Nova’s simulated returns averaged 43% since 2003 with its largest peek-to-valley draw down of 5.84%.<br />
  5. 5. The MAP<br />Nova is designed as a Managed Asset Program (MAP). The MAP offers clients more flexibility and transparency. It combines the talents of highly skilled portfolio managers in the industry to provide investors with exceptional returns in a diversified <br />investment vehicle.<br />Nova focuses on the alternative investment arena. Participation in Nova is for family offices, institutions, corporations and sophisticated investors.<br />
  6. 6. The Golden Globe Advantage:<br /> Professional Expertise<br /> 20+ years of trading and investment experience in global markets;<br /> Discipline<br /> strict money management and capital preservation principles;<br /> Diversification<br /> trading a wide range of trading strategies offers opportunities in non-correlated <br /> investment sectors;<br /> Money Management<br /> proper capitalization to allow diversification.<br />
  7. 7. The Nova Approach<br />Ms. Harding-Smith utilizes her years of experience of discretionary trading in stocks, futures, and currency markets together with her experience in the examination of other traders during due diligence interviews to synchronize this unique approach to market profitability. The strategy of combining skilled traders with diversified trading strategies and differing alternative markets in an active allocation procedure is shown to synergize the Nova returns in the testing of the portfolio mix over the past four years.<br />Each trader in the portfolio was specifically selected for their expertise, their trading strategies and knowledge of the markets that they trade. Their individual trading strategies were specifically selected to outperform their peers and their markets were selected to outperform other alternative markets given the economic projections.<br />
  8. 8. Purpose:<br />Decrease Portfolio Risk<br />and<br />Increase Portfolio Return<br />
  9. 9. Investment Objective<br /><ul><li>Achieve positive returns on a 12 month rolling</li></ul> basis in any market environment<br /><ul><li> Achieve returns uncorrelated to the global</li></ul> stock and bond markets<br /><ul><li> Specific Targets:</li></ul>maximize returns, minimize volatility<br />maximum draw downs of 5% peak to valley<br />
  10. 10. Allocation Strategy<br />Nova is tailored to the requirements of the sophisticated investor. It adheres to the following guidelines:<br /> Seek true diversification across distinctly different trading strategies;<br /> Select professionals who thoroughly understand the markets and <br /> strategies they employ;<br /> Separate managed accounts for maximum flexibility, liquidity, and <br /> transparency to monitor position risk;<br /> Maximum allocation to a single strategy limited to thirty <br /> percent of AUM.<br />
  11. 11. Key People<br />Executive Manager and Trader<br />Christy Harding-Smith, R.I.A.<br />Ms. Harding-Smith has an extensive background in alternative investments with over twenty years of experience in US securities and alternative investments. She has held senior positions in operations, administration, trading, fund development and management. Prior to establishing Golden Globe Asset Management, Ms. Harding-Smith developed and headed the inception of the Fund Management Division of Montague Asset Management, her primary responsibilities included overseeing the implementation of the company’s strategic initiatives including manager research and due diligence, investment program structuring, product distribution and international business development.<br />Ms. Harding-Smith also served as Managing Director and Principal of WBC Dominion Group, a futures brokerage firm and President of Wilton Billings & Company, an investment & business consulting firm.<br />Ms. Harding-Smith has been registered with the Securities and Exchange Commission and passed numerous qualifying exams with NASD (Series 7, 63, & 65) and NFA (Series 3), as well as numerous other investment industry exams. She holds the designation of R.I.A..<br />
  12. 12. The Manager Selection Process:<br />With almost 15 years of performing due diligence interviews with trading firms globally, Ms. Harding-Smith has learned that it is not how a program performed in the past that matters; it is how it will perform in the projected economic environmental conditions that will make it successful. The interviews involve more than one-face-to-face interview; at least one of which must be in the trader’s office. The questions are customized to suit the strategy that the trader employs and is honed to develop a thorough understanding of the systems and processes that the trader goes through before making the trade; what is the system of valuation, how is leverage used, what are the position cut-loss levels?<br />The information derived from this series of questioning is compared to Ms. Harding-Smith’s economic forecasts. How will the trader’s market sector perform overall? Will the strategy employed outperform its peers? <br />Information is also gathered pertaining to the trader’s corporate structure, regardless of size. Does the firm have adequate support staff? Is the trader’s time spent having to train staff? What is the turn-over? In the case that the trader may be incapable of completing his duties due to health or vacation, who makes the trading decisions and what is their credentials?<br />After an account is opened, periodic discussions are imperative to stay abreast of changes in the methodology, corporate structure or even health issues of key decision makers which play an important factor in the stability of every investment firm.<br />
  13. 13. Program Summary<br />Investment Style Discretionary<br />Minimum Investment US $ 1,000,000<br />Avg. Annual Return 42.62%<br />12 Month Rolling Return 81.16%<br />Avg. Monthly Return 3.59% <br />Largest Monthly Loss 3.98% <br />Largest Peak to Valley Loss 5.84%<br />
  14. 14. Objective:<br /><ul><li>Preservation of capital;
  15. 15. Achieve consistently positive annual returns with low volatility;
  16. 16. Select highly skilled managers with diverse trading styles that when </li></ul> unified create synergy making Nova leader in the alternative<br /> investment arena.<br />
  17. 17. Program’s Portfolio vs. Indices<br />Histogram of Simulated Monthly Returns<br />NovaBarclayHFR<br />Number of losing months 9 29 31<br />Number of winning months 94 7472<br />Highest monthly return 26.27 5.573.35<br />Largest monthly loss 3.98 6.99 6.19<br />Number of Months<br /><ul><li> Low Volatility
  18. 18. Rapid Recovery</li></ul>The histogram of monthly return's purpose is to identify the number of months the program or index achieved a particular range of returns. This is to distinguish the volatility of the program vs. the index and its potential for synergized returns.<br />
  19. 19. Program’s Portfolio vs. Indices<br />Simulated Annual Returns<br />Simulated annual returns refer to the total annual return of the program’s portfolio allocation. Since Nova is not yet trading the term simulated is used instead of actual returns. The simulation is comprised of actual results of the program’s sub-managers.<br />
  20. 20. Simulated Monthly Returns vs Indices 2004 -YTD 2011<br />Simulated monthly returns refer to the total monthly return of the program’s allocation. Since Nova is not yet trading the term simulated is used instead of actual returns. The simulation is comprised of actual trading results achieved by the program's sub-managers.<br />NovaMonthly Performance<br />Avg. Annual Return 42.62%<br />
  21. 21. DepthLengthRecoveryPeakValley<br />3.98 2 3 1/11 3/11<br /> 3.08 1 2 9/02 10/02<br /> 3.04 1 2 5/10 6/10<br /> 2.30 1 n/a 6/08 7/08<br />Simulated Draw Down Analysis <br />The draw down analysis chart relates negative <br />returns in the portfolio to their respective recovery periods. The Depth column refers to the largest cumulative loss. The "Length" column refers to the number of months it took the draw down to reach its maximum negative point. The "Recovery" column refers to the number of months it took to recover to the peak level. "Peak" refers to the month the draw down initiated. "Valley" refers to the month of the draw down's lowest return.<br /><ul><li> Low Volatility
  22. 22. Rapid Recovery</li></li></ul><li>VAMI Comparison <br />
  23. 23. Like most investment decisions, investing in hedge funds is a rational process that begins with an investment goal and results in making one or more investment selections.<br />The process enables the selection of investments with a reasonable expectation of achieving the investment objectives.<br />An investment of $15 million made in January 2003, would have produced <br />$511,301,999 in profits as of July 2011.<br />
  24. 24. Composite of Annual Returns<br />
  25. 25. Portfolio Assumptions<br />Actual trading results were utilized to structure the Nova portfolio’s simulated returns;<br />Nova is an active allocation portfolio; actual portfolio allocation percentages may vary monthly within the selected traders or strategies employed;<br />Portfolio re-balancing monthly, intra-month if required.<br />
  26. 26. About the databases:<br />The Barclay Database serves as the basis for research reports and performance rankings that appear in Barclay’s three publications, the Barclay Managed Funds Report, the Barclay Institutional Report — Interactive Managed Futures Edition and the Barclay Institutional Report — Interactive Hedge Funds Edition. The Barclay Group is one of the foremost sources for proprietary research in the field of alternative investments. Much of the managed futures research is summarized in the quarterly Barclay Managed Funds Report. The Global Hedge Fund Index serves as a composite of all of the Barclay's Hedge Fund Indices.<br />The HFRI Fund of Funds Index invests with multiple managers through funds or managed accounts. The strategy designs a diversified portfolio of managers with the objective of significantly lowering the risk (volatility) of investing with an individual manager. The Fund of Funds manager has discretion in choosing which strategies to invest in for the portfolio. A manager may allocate funds to numerous managers within a single strategy, or with numerous managers in multiple strategies. The minimum investment in a Fund of Funds may be lower than an investment in an individual hedge fund or managed account. The investor has the advantage of diversification among managers and styles with significantly less capital than investing with separate managers.<br />
  27. 27. Appendix of Terms and Conditions<br />The histogram of monthly return'spurpose is to identify the number of months the fund or index reached a particular range of returns. This is to distinguish the volatility of the fund vs. the index and its potential for synergized returns.<br />Simulated annual returnsrefers to the total annual return of the proposed portfolio mix. Since the fund is not yet trading the term simulated is used instead of actual returns. The simulation is comprised of actual annual returns of the program’s sub-managers allocated according to the program’s strategic parameters.<br />Simulated monthly returnsrefers to the total monthly return of the proposed portfolio mix. Since the fund is not yet trading the term simulated is used instead of actual returns. The simulation is comprised of actual monthly returns of the program’s sub-managers allocated according to the program’s strategic parameters.<br />The draw down analysis chartrelates negative returns in the portfolio to their respective recovery periods. The Depth column refers to the largest cumulative loss. The "Length" column refers to the number of months it took the draw down to reach its maximum negative point. The "Recovery" column refers to the number of months it took to recover to the peak level. "Peak" refers to the month the draw down initiated. "Valley" refers to the point of the draw down's lowest return.<br />
  28. 28. Statistics<br />Simulated average annual return: 4.63%<br />Simulated largest monthly draw down: 3.98% <br />Minimum Investment: US $ 1,000,000<br />Sales Fee: 1.0%<br />Management Fee: 1.5%<br />Incentive Fee: 20%<br />
  29. 29. Contact Information<br />Christy Harding-Smith<br />(616) 309-7140<br />For Inquiries:<br />
  30. 30. Golden Globe Asset Management, Inc.<br />

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