Bandon Isolated Alpha Fixed Income Fund seeks attractive risk-adjusted non-correlated returns using global fixed income exposures. It targets alternative return characteristics through isolated alpha strategies within interest rates and credit that are delivered through specialized institutional managers. The fund aims to profit from both rising and falling interest rates in a mutual fund format with daily liquidity, lower minimums, and transparency compared to traditional alternative investments.
Bandon Isolated Alpha Fixed Income Fund Seeks Attractive Non-Correlated Returns
1. Bandon Isolated Alpha Fixed Income Fund
February, 2011
For Financial Professional Use Only
Seeks
Attractive
Risk-Adjusted
Non-Correlated Returns
Using Global Fixed Income Exposures
0523-NLD-3/15/2011
2. Bandon Overview
Bandon Capital Management – Alternatives Democratization Specialist
Privately owned firm based in Portland Oregon
Registered Investment Advisor with the Securities and Exchange Commission
History of translating institutional manager research into SMA structures
Founder, has implemented hedge fund manager research for investors since 2004
Strategies delivered through strategic relationships with specialized institutional managers
The information in this presentation is for informational purposes only and is not intended as an offer to buy or sell, or
amount to a solicitation to buy or sell, any securities referred to herein. Important fee, performance and disclaimer
information is contained towards the end of this presentation and should be read in conjunction with the information
2
presented above. 0523-NLD-3/15/2011
3. Why Democratized Alternatives?
Investors have questioned traditional alternative investments structures because:
Traditional Alternative Structure vs. Bandon Alternative Mutual Funds
Limited Liquidity Daily Liquidity
High Minimum Investment As low as $10,000
Fraud Risk Regulated Transparency
K-1’s 1099
2% + 20% of profits + expenses 1.95% expense cap
The information in this presentation is for informational purposes only and is not intended as an offer to buy or sell, or
amount to a solicitation to buy or sell, any securities referred to herein. Important fee, performance and disclaimer
information is contained towards the end of this presentation and should be read in conjunction with the information
3
presented above. 0523-NLD-3/15/2011
4. Why Fixed Income Alternatives?
Low developed government bond yields
Yields have declines for nearly 30 years providing a tail wind for bonds which is likely come
to and end.
Many high quality fixed income indices are heavily exposed to government bonds
With the US gross public debt ballooning to over $12 Trillion government backed debt now
represents more than 75%* of the Barclays Aggregate Bond Index
Composition of the Barclays US Aggregate Bond Index
10-Yr Yields (1/2/1962 - 9/30/2010)
18%
1%
Government 16%
3%
14%
12%
Corporate Credit - IG
19% 10%
8%
Asset-Backed Securities /
Commercial Mortgages 6%
4%
77% Emerging Markets Debt
2%
0%
Duration: 5.05 yrs 1/2/1962 1/2/1968 1/2/1974 1/2/1980 1/2/1986 1/2/1992 1/2/1998 1/2/2004 1/2/2010
* Includes domestic and sovereign debt, quasi government, such as agency government guaranteed and agency non-government
guaranteed, municipal bonds and agency RMBS. Source: Barclays Capital as of December 31, 2010. 4
This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political
conditions and should not be construed as research or investment advice. Please see additional disclosures. 0523-NLD-3/15/2011
5. Low Yields Create Multiple Challenges
Over the last 30 years fixed income has had larger coupons offering attractive
return what has been often times enough to offset price change during
periods of rising interest rates:
35% 21%
Price Return Coupon Return 10-Year Treasury Yield
30% 18%
25% 15%
20% 12%
Yield 10-Year Treasury
Return Component2
15% 9%
10% 6%
5% 3%
0% 0%
-5% -3%
-10% -6%
-15% -9%
2007
1995
2000
2009
2001
1989
1996
1981
2006
1982
1985
2008
1992
1991
1987
2005
1983
1986
1988
2010
1980
1994
1999
2002
2003
2004
1990
1993
1997
1998
1984
YTD 2011
1980s 1990s 2000s
Avg. Calendar
Yr Return: 12.8% 7.9% 6.3%
Past performance is not indicative of future results, which may vary. Please note that you cannot invest directly in an index.
Source: Barclays Capital, Bloomberg; as of January 31, 2011
1.The above-posted illustration demonstrates a steady decline in coupon returns for the Barclays Capital US Aggregate Bond Index
and a structural drop in Treasury yields over the past 30 years. With the share of Treasuries in the Barclays Capital US Aggregate
Bond Index never falling below 20% over the past three decades and accounting for 34.0% of the index as of December 31, 2010,
we believe the index’s historical total return structure is partly correlated to the declining Treasury yields. Source: Barclays Capital.
2.The return components (i.e total return) accounts for two categories of fixed income return: income (i.e. coupon return) and price 5
return. Income includes interest paid by the fixed-income investments, whereas price return represents the change in the market
price of the fixed income security, which, depending on market conditions, can be negative. 0523-NLD-3/15/2011
6. An Alternative for Periods of Rising Interest Rates
The Fund’s interest rate strategies have no directional bias and seek to profit from
both periods of rising and falling interest rates (credit neutral)
The Fund’s credit strategies will seek to isolate credit exposure by hedging out
interest rate risks (duration neutral)
2009 Treasury Interest Rates Treasury Performance
5.0% 0.0%
4.5%
-5.0%
4.0%
-10.0%
3.5%
-15.0%
3.0%
-20.0%
2.5%
2.0% -25.0%
Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09
10-Yr 30-Yr
IEF (7-10yr) TLT (20+ Yr)
The information in this presentation is for informational purposes only and is not intended as an offer to buy or sell, or
amount to a solicitation to buy or sell, any securities referred to herein. Important fee, performance and disclaimer
information is contained towards the end of this presentation and should be read in conjunction with the information
6
presented above. 0523-NLD-3/15/2011
7. Opportunities and Risks within Fixed Income Investing
Prepayment, 8% Prepayment: Sensitivity to prepayment call feature
Credit, 23% Credit: Sensitivity to underlying company fundamentals
Interest Rate, 69% Duration: Sensitivity to changes in interest rates
We believe interest rates are the dominant risk exposure and should receive significant
attention, especially in the current low yield environment
We believe the current credit environment provides unique opportunities outside of
interest rate risk factors
Chart: Multifactor Beta Research from Investing Separately in Alpha and Beta,
CFA Institute Research Foundation, Clark, de Silva, Thorley 2009 7
0523-NLD-3/15/2011
8. Fund Overview
Goals & Objectives
Deliver exposure to multiple sources of isolated alpha that are complimentary with each
other within the two primary return drivers for fixed income: interest rates and credit
Provide attractive risk adjusted returns that are not correlated to stocks, bonds or other
alternatives
Portfolio Characteristics
Return Driver Target Allocation Methodology Strategy Type
Sovereign Active
Interest Rate 45-55% Systematized /
Duration / Credit
Fundamental
Neutral
Global Unconstrained
Credit 45-55% Bottom up /
Active Credit /
Research Driven Duration Neutral
The information in this presentation is for informational purposes only and is not intended as an offer to buy or sell, or
amount to a solicitation to buy or sell, any securities referred to herein. Important fee, performance and disclaimer
information is contained towards the end of this presentation and should be read in conjunction with the information
8
presented above. 0523-NLD-3/15/2011
9. Institutionally Oriented Sub-Advisers
Dix Hills Partners, LLC – Interest Rate Specialist
Founded in 2003 with 14 full time employees, 4 founding partners
12 years experience managing active duration investment strategies
Over $1 Billion* in assets under management from institutional clients
Strategic business partnership with Federated Investors, Inc.
Logan Circle Partners, LLC – Credit Specialist
Founded in 2007 – Delaware Investments institutional investment team transaction
Fixed Income manager dedicated solely to the institutional marketplace
Over $11 Billion* in assets under management including 4 MF Sub-Advisory mandates
62 employees, 9 portfolio managers, 14 research analysts, and 14 traders
Purchased by Fortress Investment Group, LLC in April of 2010 (FIG)
*As of December 31st, 2010. 9
0523-NLD-3/15/2011
10. Potential Interest Rate Exposure
Overall portfolio duration is actively managed without a bias to being either long or
short with a predetermined band for potential exposure for the fund:
Sovereign Futures
US 10yr Treasury
German 10yr Bund
-5 to +5 years of duration
UK 10yr Gilt
Japanese 10yr JGB
The information in this presentation is for informational purposes only and is not intended as an offer to buy or sell, or
amount to a solicitation to buy or sell, any securities referred to herein. Important fee, performance and disclaimer
information is contained towards the end of this presentation and should be read in conjunction with the information
10
presented above. 0523-NLD-3/15/2011
11. Interest Rate Decision Process
Interest rate decisions are driven by a fundamentally rooted multi-factor approach
Hard Data Multi-Factor Model Trading Signals
Macro
Monthly Economic Independent
Economic
Exposure
Data Inputs -CPI Interest Rate
Valuation to Interest Rates
Release -Non farm Technical Forecast
by Market
Payrolls -Yield curve
-Stock -Momentum
market
ic
Cy at
m
Re cle ste des
pea Sy Tra
ts
Risk Management Implementation
Stop Loss Trading Tools Sovereign
&
Debt Futures
Profit Taking
Research data of over 47 years and over 7 years of actual performance history
The information in this presentation is for informational purposes only and is not intended as an offer to buy or sell, or
amount to a solicitation to buy or sell, any securities referred to herein. Important fee, performance and disclaimer
information is contained towards the end of this presentation and should be read in conjunction with the information
11
presented above. 0523-NLD-3/15/2011
12. Potential Credit Exposure
Isolated active global credit decision making within predetermined exposure bands
expressed by strategy type unconstrained by a benchmark:
Category Strategy Characteristics Examples
Higher current yield MGM 2011 Subs
Longs Express via cash or CDS ILFC 2012s
Directional Low interest rate sensitivity Brazil 2014s
0% - 50% Special situations
Shorts expressed via CDS CDX.IG14
Shorts Single name or index FDC 5yr CDS
Directional Thematic basket trades Basket Consumer/Retail
- 50% - 0% Typically used to hedge longs
Cap Structure / Identifiable catalysts TXU Bank Loans
Directional / Industry consolidations CNH 2013s
Event Driven Long & Short positions Hasbro 5yr CDS (Short)
Relative Value Special situations
0% - 50%
Special situations Goldman/Morgan Stanley
Pairs Trades Identifiable catalysts Prudential/MetLife
Relative Value Industry consolidations GR Capital/Capital One
0% - 50% Intermediate holding period
Mispriced security Anadarko 7yr Bonds
Opportunistic Liquidity imbalance Prudential 30yr bonds
Short Term Mispricing Typically hedged w / futures WellPoint Inc. 10yr bonds
0% - 50% Very short holding period
*The examples are based on the holdings of the investment universe of Logan Circle. The Securities were not
based on performance and should not be construed as recommendations or endorsements. These examples may 12
or may not have been included in a composite at any given point in time. Ranges are subject to change. 0523-NLD-3/15/2011
13. How Does a Fixed Income Alternative fit in a Portfolio?
Alpha / Beta Separation Non-Correlated Alternative
Fixed Income
Fixed Income
Beta
or
BANIX
BANIX
Alternative Alternative
Investments Investments
The information in this presentation is for informational purposes only and is not intended as an offer to buy or sell, or
amount to a solicitation to buy or sell, any securities referred to herein. Important fee, performance and disclaimer
information is contained towards the end of this presentation and should be read in conjunction with the information
13
presented above. 0523-NLD-3/15/2011
14. Alpha / Beta Separation
By going away from traditional actively managed product where Beta and Alpha are
blurred together you gain control of your asset allocation. Giving you the choice of
either minimizing costs or reducing beta.
Actively Managed Isolated Alpha Isolated Alpha
Bond Portfolio (Cost Reduction) (Beta Reduction)
0.58% total cost 0.30% Avg cost 0.58% Avg cost
10% Cost of Alpha 10% Cost of Alpha
1.95% Cost of Alpha
Alpha 4.70% BANIX 25%
1.95%
BANIX
90% BND
90% BND
0.12% BND
Beta Exp Ratio 0.12% 75%
Beta 0.12%
Exp Ratio Exp Ratio
Beta
BND: Vanguard Total Bond Market ETF.
The portfolios are hypothetical examples created by Bandon and are provided for illustration purposes only. No
assumptions should be made that the allocations above will be profitable or provide alpha. Allocations and their
14
percentages should change based on an individual investor's needs. 0523-NLD-3/15/2011
15. Why Bandon Isolated Alpha Fixed Income?
Targets alternative return characteristics in a Mutual Fund format
Secular decline in U.S. interest rates may be over
Price changes can overwhelm passive coupon return with yields near historic lows
Potential for absolute returns regardless of interest rate environment
Seeks non-correlation to traditional and alternative markets
Seeks clean isolated alpha within both of the principal fixed income risk factors
The information in this presentation is for informational purposes only and is not intended as an offer to buy or sell, or
amount to a solicitation to buy or sell, any securities referred to herein. Important fee, performance and disclaimer
information is contained towards the end of this presentation and should be read in conjunction with the information
15
presented above. 0523-NLD-3/15/2011
16. Operational and Administrative Considerations
Available Custodians Pershing, Fidelity/NFS, Fund Custodian &
Trust Company of America. ---- Pending: TD Ameritrade
Investor Class Ticker BANIX
Minimum Investment $10,000.00
Management Fees 1.75%
12-b1 0.00%
Waivable front end load 5.75%
Expense Cap 1.95%
Tax Reporting 1099
A, C & R share classes available upon capital commitments
For more information please contact Mike Miller at 503-477-8100
or mike@bandonalts.com www.bandonalts.com 16
0523-NLD-3/15/2011
17. Portfolio Manager Bios
William F. Woodruff - Mr. Woodruff is Bandon’s Founder, Managing Principal and Chief Investment Officer. He is responsible for all investment
management activity at Bandon. Prior to founding Bandon in 2007, Mr. Woodruff spent four years with Beacon Investment Group and its subsidiaries,
ultimately serving as a portfolio manager for the firm’s various hedge funds and alternative investment products. In that role, Mr. Woodruff evaluated and
invested in a wide variety of alternative strategies. His primary focus was developing ways to democratize alternative strategies. These efforts lead to the
creation of the trading approach for the DIRS Program that is now a flagship Bandon product. Mr. Woodruff began his career working for Portland, Oregon
based Philips & Co. Securities in 2002. He holds a B.B.A. in Finance from the University of Portland.
Andrew J. Kronschnabel, CFA - Mr. Kronschnabel is a senior portfolio manager at Logan Circle Partners. As a member of the portfolio management team
he is responsible for the firms absolute return strategies with a specialization in high grade. Prior to joining Logan Circle Partners, he was a member of the
portfolio management team at Delaware Investments where he was responsible for Core-based and high grade products from 2000 to 2007. Mr.
Kronschnabel received a Bachelor of Science degree in international economics and politics from Colorado College.
Joseph A. Baggett, CFA - Mr. Baggett is a founder and Senior Portfolio Manager for Dix Hills Partners, LLC and its affiliate management company, Dix Hills
Associates, LLC. Until his departure in January 2003, Mr. Baggett served as Executive Director, Quantitative Investments Group, UBS Global Asset
Management in New York. At UBS, Joe was senior portfolio manager/research analyst for the quantitatively driven investment strategy group that managed
over $6 billion in assets. Joe served as Model Developer and Portfolio Manager for Quantitative Fixed Income Strategies and Quantitative Allocation, LLC
(“Q.A.”). Additionally, Joe was also a member of the Portfolio Management Team for UBS Tactical Allocation Fund, a $3 billion, fully flexible mutual fund that
allocated between stocks (S&P 500), bonds (intermediate-term Treasury notes) and cash on the basis of a quantitatively-driven market valuation model. He
has extensive experience in other traditional quantitative disciplines as well, including portfolio optimization, indexation, stock selection models, performance
attribution/analysis, risk management and securities and derivatives trading. At UBS, he was also actively involved in marketing these products to institutional
and individual prospects. Prior to UBS Asset Management, Joe worked as an Economist at PaineWebber, Inc., part of a three-person unit that produced the
firm's U.S. economic growth, inflation and interest rate outlooks. Prior to PaineWebber, Joe worked at the Federal Reserve Bank of New York as an Assistant
Economist, Domestic Financial Markets Division. Mr. Baggett holds a B.A. in Economics from Columbia University (Summa Cum Laude, Phi Beta Kappa). He
also attended the University of Chicago Graduate School of Business, completing the first year of a two year M.B.A. program with a 4.0 G.P.A.
The information in this presentation is for informational purposes only and is not intended as an offer to buy or sell, or
amount to a solicitation to buy or sell, any securities referred to herein. Important fee, performance and disclaimer
information is contained towards the end of this presentation and should be read in conjunction with the information
17
presented above. 0523-NLD-3/15/2011
18. Important Disclosures
The material contained in this document is for general information purposes only and is based on
information that is considered to be reliable, but Bandon makes this information available on an “as is”
basis and make no warranties, express or implied regarding the accuracy of the information contained
herein, for any particular purpose. Bandon and its independent providers are not liable for any
information errors, incompleteness, or delays, or for any actions taken in reliance on information
contained herein. Nothing contained in this material is intended to constitute legal, tax, securities,
financial or investment advice, nor an opinion regarding the appropriateness of any investment. The
information herein should not be acted upon without obtaining specific legal, tax or investment advice
from a licensed professional.
Bandon Capital Management, LLC, Dix Hills Partners, LLC and Logan Circle Partners, LLC are not
affiliated with Northern Lights Distributors, LLC
Investors should carefully consider the investment objectives, risks, charges and expenses of
the Bandon Isolated Alpha Fixed Income Fund. This and other important information about the
Fund is contained in the prospectus, which can be obtained at www.bandonfunds.com or by
calling 503-477-8100. The prospectus should be read carefully before investing. The Bandon
Isolated Alpha Fixed Income Fund is distributed by Northern Lights Distributors, LLC member
FINRA.
The information in this presentation is for informational purposes only and is not intended as an offer to buy or sell, or
amount to a solicitation to buy or sell, any securities referred to herein. Important fee, performance and disclaimer
information is contained towards the end of this presentation and should be read in conjunction with the information
18
presented above. 0523-NLD-3/15/2011
19. Important Disclosures
Mutual Funds involve risk including the possible loss of principal. Closed-end funds are subject to
investment advisory and other expenses, which will be indirectly paid by the Fund. There is a risk that
issuers and counterparties will not make payments on securities and other investments held by the
Fund, resulting in losses to the Fund. The Fund's use of derivative instruments involves risks different
from, or possibly greater than, the risks associated with investing directly in securities and other
traditional investments. Emerging market countries may have relatively unstable governments, weaker
economies, and less-developed legal systems with fewer security holder rights. The value of the Fund's
investments in fixed income securities and derivatives will fluctuate with changes in interest rates.
Currency trading risks include market risk, credit risk and country risk. Investments in foreign securities
could subject the Fund to greater risks including, currency fluctuation, economic conditions, and
different governmental and accounting standards. The Fund may invest in high yield securities, also
known as "junk bonds." High yield securities provide greater income and opportunity for gain, but entail
greater risk of loss of principal. Using derivatives to increase the Fund's combined long and short
exposure creates leverage, which can magnify the Fund's potential for gain or loss. The default rate on
underlying mortgage loans or asset loans may be higher than anticipated, potentially reducing
payments to the Fund. As a non-diversified fund, the Fund may invest more than 5% of its total assets
in the securities of one or more issuers. The Fund will incur a loss as a result of a short position if the
price of the short position instrument increases in value between the date of the short position sale and
the date on which the Fund purchases an offsetting position.
The information in this presentation is for informational purposes only and is not intended as an offer to buy or sell, or
amount to a solicitation to buy or sell, any securities referred to herein. Important fee, performance and disclaimer
information is contained towards the end of this presentation and should be read in conjunction with the information
19
presented above. 0523-NLD-3/15/2011
20. Definitions
S&P refers to the Standard and Poor's 500 Index which is a capitalization-weighted index of 500 stocks. The index is designed to
measure performance of the broad domestic equity market. This index is used for comparative purposes only.
Barclays Agg, BarCap refers to the Barclays Aggregate US Bond Index. The index is designed to measure performance of the
broad based investment-grade, fixed rate, taxable bond market. This index is used for comparative purposes only.
IEF is an Exchange Traded Fund that seeks results that correspond generally to the price and yield performance, before fees and
expenses, of the Barclays Capital U.S. 7-10 Year Treasury Bond Index.
TLT is an Exchange Traded Fund that seeks results that correspond generally to the price and yield performance, before fees
and expenses, of the Barclays Capital U.S. 20+ Year Treasury Bond Index.
Alpha is a risk-adjusted measure of the active return on an investment. It is a measure of the manager’s contribution to
performance. A positive annual Alpha indicates the portfolio outperformed the market on a risk-adjusted basis, and a negative
Alpha indicates the portfolio underperformed in relation to the market.
Beta describes how the expected return of a stock or portfolio is correlated to the return of the financial market as a whole. A
Beta greater than 1.00 indicates the portfolio is more volatile than the market, and a Beta less than 1.00 indicates the portfolio is
less volatile than the market.
Duration is a measure of a bonds price sensitivity to yield. It can also be described as the percentage change in price for a
parallel shift in yield.
The information in this presentation is for informational purposes only and is not intended as an offer to buy or sell, or
amount to a solicitation to buy or sell, any securities referred to herein. Important fee, performance and disclaimer
information is contained towards the end of this presentation and should be read in conjunction with the information
20
presented above. 0523-NLD-3/15/2011
21. Broker Dealer Availability
Abshier, Webb, Donnelly & Baker First Financial Equity McNally Financial Services Corp. Stockcross Financial Services Inc.
Mesirow
Allstate Financial Services First Heartland Capital Sunbelt Securities
Mid Atlantic Corp.
American Portfolios First Republic Securities Synergy Investment Group LLC
Minnesota Valley Investments
Ameritas First Southwest Company The Investment Center Inc.
Newbridge Securities Corp.
Avisen Securities Inc. Foothil Securities Trade PMR Inc.
NFP (National Financial Partners)
Biondo Asset Management Founders Financial Securities LLC Trade Station
Northeast Securities Inc
Calton & Associates Freedom Investors Corp. Trust Company of America
NRP Financial
Cambridge Legacy Securities Fulcrum Securities United Equity Securities LLC
Options Xpress
Capital Analysts Girard Securities VSR Financial Services Inc.
Pacific West Securities
Capital Guardian LLC Gunn Allen Financial Wedbush Securities Inc
Petersen Investments Inc.
Capital Investment Brokerage HBW Securities Western International Securties Inc.
Regional Investment
Capital Investment Group Herbert J Sims@ Company Inc. Westport Resouces Investment Services
Robert W. Baird and Co. Inc.
Citi Securities Corporation Hewitt Financial Services Wiley Bros. - Aintree Capital LLC
Sammons Securities
Commonwealth Investment Centers of America Inc William Blair and Company
SCF Securities Inc.
Crowell and Weedon and Company Investors capital Corp Wilmington Trust Company
Scottrade
DA Davidson and Company J.J.B. Hilliard W.L. Lyons Inc. Winslow, Evans & Crocker Inc.
Shareholders Sevices Group Inc
Delta Equity Services Corporation J.K.R. & Company Workman Securities Corp
Sigma Financil Corp
Dewaay Finacial Network JK Financial Services Inc World Equity Group
Southwest Securities
EDI Financial Inc. Lincoln Fiancial Advisors Corp Wunderlich Securities
Spencer Clarke LLC
Ensemble Fiancial Services Lincoln Financial Securties Corp
Stephens Inc.
FBT Investments Loring Ward Securities Inc.
Sterne, Agee & Leech Inc.
Fintegra LLC. Lowell & Company
The information in this presentation is for informational purposes only and is not intended as an offer to buy or sell, or
amount to a solicitation to buy or sell, any securities referred to herein. Important fee, performance and disclaimer
information is contained towards the end of this presentation and should be read in conjunction with the information
21
presented above. 0523-NLD-3/15/2011
22. Appendix 1: Logan Circle - Investment Team
High Grade EM / Non-Dollar Structured Product
High Yield
PORTFOLIO & RISK Andy Kronschnabel, CFA Scott Moses, CFA Al Leone, CFA
MANAGEMENT Tim Rabe, CFA
Stephen Mullin, CFA Kevin Hendrickson, CFA
Jude Driscoll, CIO
Risk Measurement and Analytics
Paul Polichino
High Grade High Yield Structured Product
TRADING / Matt Buchanan Tom McClintic EM / Non-Dollar Joseph Watkins
TECHNICAL ANALYSIS Dana Cottrell Spencer Tullo Todd Howard, CFA John Palphreyman, CFA
Lou Petriello Kyle Gallagher Jason Iannuzzi
Credit Research Team
FUNDAMENTAL Michael Borowske Michael Frey Matt Higgins, CFA
RESEACH Brian Funk, CFA, Lee Rubenstein
Director Ian Bowman Ximena Galvez Chris Moon, CFA
Greg Zappin, CFA
Zach Bauer, CFA Evan Driedger, CFA Brent Garrels Michael Recchiuti
The information in this presentation is for informational purposes only and is not intended as an offer to buy or sell, or
amount to a solicitation to buy or sell, any securities referred to herein. Important fee, performance and disclaimer
information is contained towards the end of this presentation and should be read in conjunction with the information
22
presented above. 0523-NLD-3/15/2011
23. Appendix 2: Logan Circle – Investment Process
Idea Generation• Research
• Portfolio Management
1 • Trading
Risk Management/ Research
Portfolio Review Proprietary Research
5 2 • Examination of critical industry trends.
• Forward Looking Risk Identification • Identification of potential relative value opportunities.
• Position Sizing • 5 Senior Analysts/Group Leaders closely monitoring
• Portfolio Level Assessments 20-25 companies.
• Gross / Net Exposure • Industry Specialists Monitoring 50-75 Companies
• Strategy Allocation %’s Portfolio
Trading
Management
Sell Discipline 4 3
Portfolio Construction
• Research identifies negative change in
fundamentals • Directional (Long & Short)
• Securities reach price targets or stop losses • Event Driven / Cap Structure
• Better opportunities arise (relative value) • Pairs Trades
• Opportunistic
The information in this presentation is for informational purposes only and is not intended as an offer to buy or sell, or
amount to a solicitation to buy or sell, any securities referred to herein. Important fee, performance and disclaimer
information is contained towards the end of this presentation and should be read in conjunction with the information
23
presented above.