CastlePoint Investment Group manages a large cap equity product. They have an investment philosophy based on rigorous analytical research and sound financial theory. Their investment returns have been strong, outperforming benchmarks like the S&P 500 Index and Russell 1000 Value Index over 1, 3, 5 years and since inception in 2001. Their process and long-term results demonstrate consistent outperformance of major market indices.
The document summarizes Yum! Brands' strategy and performance. It discusses Yum!'s global portfolio and growth opportunities in China, the U.S., and YRI. Yum! has achieved consistent double-digit EPS growth and significant share buybacks and dividend commitments. The company's four key strategies are to build leading brands globally, aggressively expand internationally, dramatically improve U.S. brands, and drive industry-leading value and returns. Yum! aims to continue delivering at least 10% EPS growth and leading shareholder payouts to invest in international and emerging markets.
- The document is the transcript from a financial forum presentation by the CEO of AGA Financial, the largest pure-gas distribution company in the nation.
- It discusses AGA's strategy of growing through acquisitions while maximizing earnings from regulated gas distribution operations in 12 states and select nonregulated operations.
- Key metrics like diluted EPS, annual dividend, return on invested capital, and debt ratios have steadily improved over time due to this strategy.
Tech M&A Outlook - presented by Mgi research bloomberg l.p. march 2012 conf...MGI_Research
This document discusses tech M&A trends and outlook. It finds that large buyers like IBM, Oracle, and Google are looking to acquire companies to boost topline growth, especially in cloud computing, big data, and mobile. Potential sellers include smaller SaaS and cloud tech companies. The document also notes sectors and companies that may see deals, including healthcare IT and fallen tech giants trying to reinvent themselves. It concludes with contact information for the research firm.
This document is the presentation for Robert Best, Chairman and CEO of Lehman Brothers, at an energy and power conference on September 2, 2008. It provides an overview of Lehman Brothers, including that it is the largest pure gas distribution company operating in 12 states, and its nonregulated operations primarily in the Midwest and Southeast. Financial metrics like diluted EPS, annual dividend, return on invested capital, times interest earned ratios, weighted average cost of debt, and debt capitalization ratio continue to improve and show steady growth. The presentation also contains forward-looking statements and language regarding risks and uncertainties.
This document summarizes the background, research question, theoretical considerations, empirical model, and proposed analysis of a study investigating whether financial globalization decreases welfare. The study aims to empirically examine how the rising importance of valuation effects (changes in asset prices) impacts economic performance, specifically consumption volatility, which is a proxy for welfare. While the theoretical relationship between valuation effects and consumption is unclear, the researcher hypothesizes that consumption volatility may increase with greater valuation effect volatility, representing a welfare loss. An empirical model is proposed to test this relationship conditional on currency composition and risk sharing ability.
Southwest Airlines reported its 31st consecutive year of profitability in 2003, while the airline industry as a whole reported over $5 billion in losses. Southwest expanded its fleet by 13 aircraft and available seat miles by 4.2%, while many competitors reduced capacity. Southwest has one of the lowest operating cost structures in the industry due to its focus on point-to-point, single aircraft type operations and high employee productivity. While external challenges remain, Southwest is well positioned for continued growth and cost leadership.
Goldman Sachs Global Industrials Conference - Presentationfinance13
United Airlines presented financial information at the Goldman Sachs Global Industrials Conference in November 2007. The presentation included:
1) United showed improving unit earnings compared to peers, with mainline unit earnings excluding fuel costs up 13% from the previous year.
2) Free cash flow metrics for United were better than peers, with $11.08 of free cash flow per 1,000 available seat miles over the past 12 months.
3) Going forward, United planned to focus on generating value for stakeholders through strengthening operations, unlocking value from business units, and considering consolidation opportunities.
public serviceenterprise group 3Q 2007 slides3finance20
The document provides details on PSEG's third quarter 2007 earnings conference call, highlighting that operating earnings exceeded expectations. It summarizes financial results for various subsidiaries including PSE&G and PSEG Power. Additionally, it discusses PSEG Power's strong operating performance at its nuclear plants and benefits seen from PJM's capacity auction pricing model.
The document summarizes Yum! Brands' strategy and performance. It discusses Yum!'s global portfolio and growth opportunities in China, the U.S., and YRI. Yum! has achieved consistent double-digit EPS growth and significant share buybacks and dividend commitments. The company's four key strategies are to build leading brands globally, aggressively expand internationally, dramatically improve U.S. brands, and drive industry-leading value and returns. Yum! aims to continue delivering at least 10% EPS growth and leading shareholder payouts to invest in international and emerging markets.
- The document is the transcript from a financial forum presentation by the CEO of AGA Financial, the largest pure-gas distribution company in the nation.
- It discusses AGA's strategy of growing through acquisitions while maximizing earnings from regulated gas distribution operations in 12 states and select nonregulated operations.
- Key metrics like diluted EPS, annual dividend, return on invested capital, and debt ratios have steadily improved over time due to this strategy.
Tech M&A Outlook - presented by Mgi research bloomberg l.p. march 2012 conf...MGI_Research
This document discusses tech M&A trends and outlook. It finds that large buyers like IBM, Oracle, and Google are looking to acquire companies to boost topline growth, especially in cloud computing, big data, and mobile. Potential sellers include smaller SaaS and cloud tech companies. The document also notes sectors and companies that may see deals, including healthcare IT and fallen tech giants trying to reinvent themselves. It concludes with contact information for the research firm.
This document is the presentation for Robert Best, Chairman and CEO of Lehman Brothers, at an energy and power conference on September 2, 2008. It provides an overview of Lehman Brothers, including that it is the largest pure gas distribution company operating in 12 states, and its nonregulated operations primarily in the Midwest and Southeast. Financial metrics like diluted EPS, annual dividend, return on invested capital, times interest earned ratios, weighted average cost of debt, and debt capitalization ratio continue to improve and show steady growth. The presentation also contains forward-looking statements and language regarding risks and uncertainties.
This document summarizes the background, research question, theoretical considerations, empirical model, and proposed analysis of a study investigating whether financial globalization decreases welfare. The study aims to empirically examine how the rising importance of valuation effects (changes in asset prices) impacts economic performance, specifically consumption volatility, which is a proxy for welfare. While the theoretical relationship between valuation effects and consumption is unclear, the researcher hypothesizes that consumption volatility may increase with greater valuation effect volatility, representing a welfare loss. An empirical model is proposed to test this relationship conditional on currency composition and risk sharing ability.
Southwest Airlines reported its 31st consecutive year of profitability in 2003, while the airline industry as a whole reported over $5 billion in losses. Southwest expanded its fleet by 13 aircraft and available seat miles by 4.2%, while many competitors reduced capacity. Southwest has one of the lowest operating cost structures in the industry due to its focus on point-to-point, single aircraft type operations and high employee productivity. While external challenges remain, Southwest is well positioned for continued growth and cost leadership.
Goldman Sachs Global Industrials Conference - Presentationfinance13
United Airlines presented financial information at the Goldman Sachs Global Industrials Conference in November 2007. The presentation included:
1) United showed improving unit earnings compared to peers, with mainline unit earnings excluding fuel costs up 13% from the previous year.
2) Free cash flow metrics for United were better than peers, with $11.08 of free cash flow per 1,000 available seat miles over the past 12 months.
3) Going forward, United planned to focus on generating value for stakeholders through strengthening operations, unlocking value from business units, and considering consolidation opportunities.
public serviceenterprise group 3Q 2007 slides3finance20
The document provides details on PSEG's third quarter 2007 earnings conference call, highlighting that operating earnings exceeded expectations. It summarizes financial results for various subsidiaries including PSE&G and PSEG Power. Additionally, it discusses PSEG Power's strong operating performance at its nuclear plants and benefits seen from PJM's capacity auction pricing model.
Starbucks Corporation's 2009 Annual Report summarizes the company's financial performance and transformation efforts during fiscal year 2009. Key highlights include generating $10.4 billion in net revenues, opening over 1,000 new stores internationally and in the United States, and implementing a transformation agenda focused on improving operations, renewing the customer experience, and realigning the organization for long-term growth. As part of the transformation, Starbucks reduced costs by $580 million, improved employee training and store operations, increased customer satisfaction scores by 10 percentage points, and launched new products and value offerings to attract customers during the economic downturn.
The document provides an overview of AES Corporation's financial results for 2004 and outlook for 2005. Some key highlights include revenues for 2004 increasing 13% over 2003 to $9.4 billion, with adjusted earnings per share growing 32% year-over-year. For the fourth quarter of 2004, revenues were up 11% and adjusted earnings per share increased 91% compared to the same period last year. The company also discusses cash flow results for 2004 and reconciliation of adjusted earnings per share.
pilgrim's pride Final%20Slideshow%20Q2%20FY2008finance30
Pilgrim's Pride Corporation reported financial results for the 2008 fiscal year second quarter. Net loss was $1.67 per share compared to a net loss of $0.60 per share in the previous year's second quarter. Results included restructuring charges related to plant and distribution center closings. Feed costs, the largest expense, increased $200 million from the prior year due to higher corn and soybean meal prices. The company also sold its turkey business. Industrywide production cutbacks and declining egg sets were expected to improve pricing in the second half of the fiscal year as unused capacity is reduced and seasonal demand increases.
The document provides a summary of a company's fourth quarter 2007 earnings release. Key points include:
- Revenues increased 19.5% to $11.026 billion compared to the fourth quarter of 2006.
- Adjusted earnings per share increased 19% to $3.83 from $3.20 in the prior year.
- Operating margins declined 200 basis points to 15.8% due to acquisition impacts and a factory fire.
- Cash flow from operations increased 11% to $1.699 billion.
Constellation Energy Group saw a difficult year in 2001 due to factors like the decline in power prices and collapse of Enron. The company cancelled plans to separate, terminated its relationship with Goldman Sachs, brought on a new CEO, cut costs, streamlined operations, and intensified risk management. While 2001 was tough, the company emerged stronger and is well positioned for growth going forward due to its generation assets, marketing expertise, and strong balance sheet. Financial highlights show earnings per share declined significantly year-over-year due to special costs recognized in the fourth quarter as the company monetized non-core assets and improved its balance sheet.
Colliers International is pleased to release the latest quarterly report: RESIDENTIAL PROPERTY MARKET OVERVIEW, INDIA - FEB 2012.
During 4Q 2011, the rental pegged up in almost all the major markets across India except Bengaluru and Chennai, this could attributed to the demand supply gap. Looking forward, demand is likely to witness moderate growth amid a weaker global economic outlook.
For feedback on this report please contact:
Surabhi Arora MRICS
Associate Director, Research
surabhi.arora@colliers.com
Sachin Sharma
Assistant Manager, Research
Sachin.sharma@colliers.com
The document summarizes The Arbitrage Fund mutual fund. It has a 9+ year track record pursuing a merger arbitrage strategy. This strategy seeks to profit from the successful completion of mergers and acquisitions while limiting downside risk. The fund provides the advantages of hedge fund investing through a regulated mutual fund with lower fees. It has outperformed stock and bond market indexes with lower volatility since its inception in 2000.
This document summarizes Hormel Foods Corporation's strong financial performance in fiscal year 1999. Net earnings rose 17.3% to $163.4 million and earnings per share increased to $2.22. All core operating units contributed to sales growth of 3.0% to $3.357 billion. The company invested in expanding production capacities and new product lines that contributed to volume growth, including Always Tender pork products, fully cooked bacon, and Jennie-O turkey products. Hormel Foods adopted economic value added to further optimize performance and increase shareholder value.
EAS Genesis Fund Fact Sheet - January 2010jackfgonzalez
The document summarizes the EAS Genesis Fund, a flexible allocation mutual fund that aims to generate positive returns over 3-year periods while capturing less downside than the market. It allocates across conservative, moderate, and aggressive sub-strategies and uses tactical overlays to hedge and potentially generate alpha. As of January 2010, it has outperformed the S&P 500 since inception in 2008 with less volatility, while its current asset allocation is 36% in a conservative hybrid strategy and 14% in cash.
Sunoco Analyst Meeting Monday, December 15, 2008 8:30 a.m. ETfinance6
The document provides an overview of an investor meeting held by Sunoco on December 15, 2008. It includes a safe harbor statement noting that any forward-looking statements are based on assumptions that may prove to be inaccurate. It also includes non-GAAP financial measures with reconciliations provided in an appendix. The strategic framework focuses on market conditions, safe and reliable operations, optimization, and portfolio management. Key takeaways are that refining market weakness is expected to persist, while non-refining businesses should provide a solid earnings base. Sunoco will reduce expenses, exercise capital discipline, and pursue value creation opportunities across all businesses.
This document provides information about the Azuma, LP fund, including its objective, investment managers, and monthly performance from 2007 to 2011. The fund uses a statistical arbitrage strategy to profit from short-term movements in Asian stock markets by predicting patterns between Asian and US markets. Its objective is to outperform US and Asian equity markets with lower volatility and no correlation to traditional assets.
Deutsche Börse achieved growth across all business segments in 2011, with net revenue increasing 5% and EBIT rising 13%. Total costs decreased 5% despite cost savings initiatives. Net income grew 15% and Deutsche Börse maintained its position as a top global exchange based on market capitalization and revenue. A regular dividend of €2.30 per share and special dividend of €1.00 per share was proposed for shareholders.
Swiss Re held an analysts' meeting on April 26, 2001 in Zurich, Switzerland. The document discusses Swiss Re's 2000 investment results, including that the investment result exceeded expectations at CHF 9.1 billion. It also discusses Swiss Re's more conservative asset allocation in 2000 with a reduction in equity exposure and increase in fixed income investments. Additionally, it notes that Swiss Re earned a substantial return in excess of market indices in 2000 while taking limited risk.
This document contains a disclaimer and forward-looking statements regarding a company's presentation. It discusses the company's 2007 financial results including:
- Net income increased 11.6% and consolidated EBITDA reached R$1,123 million, a 4.6% growth. EBITDA growth excluding non-recurring items would have been 16.3%.
- Generation segment's EBITDA grew 62.1% to R$442 million contributing 38% of consolidated EBITDA.
- Commercialization grew 7.2% in volume and 25.7% in margin. Distribution grew 9.6% in net operating revenue but EBITDA declined 18.1% due to an extraordinary reduction in
Exelon Corporation at Lehman Brothers CEO Energy Conferencefinance14
This document provides an overview of Exelon Corporation and its competitive position in the energy industry. Exelon has a large, low-cost nuclear fleet that provides over half of its generating capacity. It also has a diverse fossil and hydro fleet. Exelon has delivered strong financial performance and shareholder returns. It aims to protect existing value while pursuing growth opportunities through competitive operations, supporting markets, financial discipline, and evaluating new projects. Key challenges include addressing climate change and supporting various energy policies.
This document provides an overview of Exelon Corporation and its competitive position in the energy industry. Exelon has a large, low-cost nuclear fleet that provides over half of its generating capacity. It has a presence in competitive power markets in the Midwest, Mid-Atlantic, and Northeast. Exelon has delivered strong financial performance through disciplined management and expects earnings growth driven by its nuclear assets and the recovery of its utility ComEd. It aims to protect existing value while exploring new growth opportunities through competitive operations, supporting markets, and evaluating impacts of carbon regulation and nuclear incentives.
Kellogg Company delivered strong performance in 2005, meeting or exceeding its long-term targets for revenue, operating profit, earnings per share, and total shareholder return. Net sales increased 6% to over $10 billion due to brand building campaigns and new product innovations. Operating profit grew 5% despite higher input costs across the industry. Earnings per share increased 10% for the fourth consecutive year of double-digit growth. Cash flow was $769 million including $400 million in benefit plan contributions. For the fifth year, Kellogg outperformed the S&P Packaged Foods Index in total shareholder return.
Atlas Capital Advisors LLC is an investment firm founded in 2003 managing $125 million in assets. The firm uses a value and momentum-based strategy investing in U.S. and international equities using ETFs and individual stocks. The strategy aims to outperform the S&P 500 index over the long run through a low cost approach. Performance since 2004 has exceeded the S&P 500 in most years with a maximum dispersion of 8.6% between client portfolios.
Atmos Energy Corporation held an analyst conference on February 26, 2009 to discuss forward-looking statements and projections. The company operates regulated natural gas distribution and transmission operations across 12 states as well as nonregulated midstream businesses. It has achieved steady earnings growth per share of over 5% annually through successful rate case strategies and capital investment programs. Management outlined continued growth opportunities in both regulated and nonregulated operations.
public serviceenterprise group 1Q2007Slidesfinance20
This document provides a summary of PSEG's earnings conference call for the first quarter of 2007. Key highlights include:
1) PSEG reported operating earnings of $335 million or $1.32 per share for Q1 2007, an increase from $213 million or $0.85 per share in Q1 2006.
2) PSEG Power delivered strong results driven by the roll-off of below-market contracts and sustained top quartile nuclear performance.
3) PSE&G saw improved earnings from rate relief received in Q4 2006 and more normal weather compared to unusually warm conditions in 2006.
4) Cash flow and liquidity remain strong, allowing PSEG to reduce parent debt
public serviceenterprise group 1Q 2007 Slidesfinance20
This document provides a summary of PSEG's earnings conference call for the first quarter of 2007. Key highlights include:
1) PSEG reported operating earnings of $335 million or $1.32 per share for Q1 2007, an increase from $213 million or $0.85 per share in Q1 2006.
2) PSEG Power delivered strong results driven by the roll-off of below-market contracts and sustained top quartile nuclear performance.
3) PSE&G saw earnings growth from rate relief received in late 2006 and more normal weather compared to unusually warm conditions in 2006.
4) Cash flow and liquidity remain strong, allowing PSEG to reduce parent debt levels
Outlook for Tech M&A - presented by MGI ResearchMGI_Research
presentation by MGI Research at Bloomberg TMT event in NYC. Perspective on tech growth and valuation trends, likely buyers, likely sellers, and fallen heroes and unlikely deals.
Starbucks Corporation's 2009 Annual Report summarizes the company's financial performance and transformation efforts during fiscal year 2009. Key highlights include generating $10.4 billion in net revenues, opening over 1,000 new stores internationally and in the United States, and implementing a transformation agenda focused on improving operations, renewing the customer experience, and realigning the organization for long-term growth. As part of the transformation, Starbucks reduced costs by $580 million, improved employee training and store operations, increased customer satisfaction scores by 10 percentage points, and launched new products and value offerings to attract customers during the economic downturn.
The document provides an overview of AES Corporation's financial results for 2004 and outlook for 2005. Some key highlights include revenues for 2004 increasing 13% over 2003 to $9.4 billion, with adjusted earnings per share growing 32% year-over-year. For the fourth quarter of 2004, revenues were up 11% and adjusted earnings per share increased 91% compared to the same period last year. The company also discusses cash flow results for 2004 and reconciliation of adjusted earnings per share.
pilgrim's pride Final%20Slideshow%20Q2%20FY2008finance30
Pilgrim's Pride Corporation reported financial results for the 2008 fiscal year second quarter. Net loss was $1.67 per share compared to a net loss of $0.60 per share in the previous year's second quarter. Results included restructuring charges related to plant and distribution center closings. Feed costs, the largest expense, increased $200 million from the prior year due to higher corn and soybean meal prices. The company also sold its turkey business. Industrywide production cutbacks and declining egg sets were expected to improve pricing in the second half of the fiscal year as unused capacity is reduced and seasonal demand increases.
The document provides a summary of a company's fourth quarter 2007 earnings release. Key points include:
- Revenues increased 19.5% to $11.026 billion compared to the fourth quarter of 2006.
- Adjusted earnings per share increased 19% to $3.83 from $3.20 in the prior year.
- Operating margins declined 200 basis points to 15.8% due to acquisition impacts and a factory fire.
- Cash flow from operations increased 11% to $1.699 billion.
Constellation Energy Group saw a difficult year in 2001 due to factors like the decline in power prices and collapse of Enron. The company cancelled plans to separate, terminated its relationship with Goldman Sachs, brought on a new CEO, cut costs, streamlined operations, and intensified risk management. While 2001 was tough, the company emerged stronger and is well positioned for growth going forward due to its generation assets, marketing expertise, and strong balance sheet. Financial highlights show earnings per share declined significantly year-over-year due to special costs recognized in the fourth quarter as the company monetized non-core assets and improved its balance sheet.
Colliers International is pleased to release the latest quarterly report: RESIDENTIAL PROPERTY MARKET OVERVIEW, INDIA - FEB 2012.
During 4Q 2011, the rental pegged up in almost all the major markets across India except Bengaluru and Chennai, this could attributed to the demand supply gap. Looking forward, demand is likely to witness moderate growth amid a weaker global economic outlook.
For feedback on this report please contact:
Surabhi Arora MRICS
Associate Director, Research
surabhi.arora@colliers.com
Sachin Sharma
Assistant Manager, Research
Sachin.sharma@colliers.com
The document summarizes The Arbitrage Fund mutual fund. It has a 9+ year track record pursuing a merger arbitrage strategy. This strategy seeks to profit from the successful completion of mergers and acquisitions while limiting downside risk. The fund provides the advantages of hedge fund investing through a regulated mutual fund with lower fees. It has outperformed stock and bond market indexes with lower volatility since its inception in 2000.
This document summarizes Hormel Foods Corporation's strong financial performance in fiscal year 1999. Net earnings rose 17.3% to $163.4 million and earnings per share increased to $2.22. All core operating units contributed to sales growth of 3.0% to $3.357 billion. The company invested in expanding production capacities and new product lines that contributed to volume growth, including Always Tender pork products, fully cooked bacon, and Jennie-O turkey products. Hormel Foods adopted economic value added to further optimize performance and increase shareholder value.
EAS Genesis Fund Fact Sheet - January 2010jackfgonzalez
The document summarizes the EAS Genesis Fund, a flexible allocation mutual fund that aims to generate positive returns over 3-year periods while capturing less downside than the market. It allocates across conservative, moderate, and aggressive sub-strategies and uses tactical overlays to hedge and potentially generate alpha. As of January 2010, it has outperformed the S&P 500 since inception in 2008 with less volatility, while its current asset allocation is 36% in a conservative hybrid strategy and 14% in cash.
Sunoco Analyst Meeting Monday, December 15, 2008 8:30 a.m. ETfinance6
The document provides an overview of an investor meeting held by Sunoco on December 15, 2008. It includes a safe harbor statement noting that any forward-looking statements are based on assumptions that may prove to be inaccurate. It also includes non-GAAP financial measures with reconciliations provided in an appendix. The strategic framework focuses on market conditions, safe and reliable operations, optimization, and portfolio management. Key takeaways are that refining market weakness is expected to persist, while non-refining businesses should provide a solid earnings base. Sunoco will reduce expenses, exercise capital discipline, and pursue value creation opportunities across all businesses.
This document provides information about the Azuma, LP fund, including its objective, investment managers, and monthly performance from 2007 to 2011. The fund uses a statistical arbitrage strategy to profit from short-term movements in Asian stock markets by predicting patterns between Asian and US markets. Its objective is to outperform US and Asian equity markets with lower volatility and no correlation to traditional assets.
Deutsche Börse achieved growth across all business segments in 2011, with net revenue increasing 5% and EBIT rising 13%. Total costs decreased 5% despite cost savings initiatives. Net income grew 15% and Deutsche Börse maintained its position as a top global exchange based on market capitalization and revenue. A regular dividend of €2.30 per share and special dividend of €1.00 per share was proposed for shareholders.
Swiss Re held an analysts' meeting on April 26, 2001 in Zurich, Switzerland. The document discusses Swiss Re's 2000 investment results, including that the investment result exceeded expectations at CHF 9.1 billion. It also discusses Swiss Re's more conservative asset allocation in 2000 with a reduction in equity exposure and increase in fixed income investments. Additionally, it notes that Swiss Re earned a substantial return in excess of market indices in 2000 while taking limited risk.
This document contains a disclaimer and forward-looking statements regarding a company's presentation. It discusses the company's 2007 financial results including:
- Net income increased 11.6% and consolidated EBITDA reached R$1,123 million, a 4.6% growth. EBITDA growth excluding non-recurring items would have been 16.3%.
- Generation segment's EBITDA grew 62.1% to R$442 million contributing 38% of consolidated EBITDA.
- Commercialization grew 7.2% in volume and 25.7% in margin. Distribution grew 9.6% in net operating revenue but EBITDA declined 18.1% due to an extraordinary reduction in
Exelon Corporation at Lehman Brothers CEO Energy Conferencefinance14
This document provides an overview of Exelon Corporation and its competitive position in the energy industry. Exelon has a large, low-cost nuclear fleet that provides over half of its generating capacity. It also has a diverse fossil and hydro fleet. Exelon has delivered strong financial performance and shareholder returns. It aims to protect existing value while pursuing growth opportunities through competitive operations, supporting markets, financial discipline, and evaluating new projects. Key challenges include addressing climate change and supporting various energy policies.
This document provides an overview of Exelon Corporation and its competitive position in the energy industry. Exelon has a large, low-cost nuclear fleet that provides over half of its generating capacity. It has a presence in competitive power markets in the Midwest, Mid-Atlantic, and Northeast. Exelon has delivered strong financial performance through disciplined management and expects earnings growth driven by its nuclear assets and the recovery of its utility ComEd. It aims to protect existing value while exploring new growth opportunities through competitive operations, supporting markets, and evaluating impacts of carbon regulation and nuclear incentives.
Kellogg Company delivered strong performance in 2005, meeting or exceeding its long-term targets for revenue, operating profit, earnings per share, and total shareholder return. Net sales increased 6% to over $10 billion due to brand building campaigns and new product innovations. Operating profit grew 5% despite higher input costs across the industry. Earnings per share increased 10% for the fourth consecutive year of double-digit growth. Cash flow was $769 million including $400 million in benefit plan contributions. For the fifth year, Kellogg outperformed the S&P Packaged Foods Index in total shareholder return.
Atlas Capital Advisors LLC is an investment firm founded in 2003 managing $125 million in assets. The firm uses a value and momentum-based strategy investing in U.S. and international equities using ETFs and individual stocks. The strategy aims to outperform the S&P 500 index over the long run through a low cost approach. Performance since 2004 has exceeded the S&P 500 in most years with a maximum dispersion of 8.6% between client portfolios.
Atmos Energy Corporation held an analyst conference on February 26, 2009 to discuss forward-looking statements and projections. The company operates regulated natural gas distribution and transmission operations across 12 states as well as nonregulated midstream businesses. It has achieved steady earnings growth per share of over 5% annually through successful rate case strategies and capital investment programs. Management outlined continued growth opportunities in both regulated and nonregulated operations.
public serviceenterprise group 1Q2007Slidesfinance20
This document provides a summary of PSEG's earnings conference call for the first quarter of 2007. Key highlights include:
1) PSEG reported operating earnings of $335 million or $1.32 per share for Q1 2007, an increase from $213 million or $0.85 per share in Q1 2006.
2) PSEG Power delivered strong results driven by the roll-off of below-market contracts and sustained top quartile nuclear performance.
3) PSE&G saw improved earnings from rate relief received in Q4 2006 and more normal weather compared to unusually warm conditions in 2006.
4) Cash flow and liquidity remain strong, allowing PSEG to reduce parent debt
public serviceenterprise group 1Q 2007 Slidesfinance20
This document provides a summary of PSEG's earnings conference call for the first quarter of 2007. Key highlights include:
1) PSEG reported operating earnings of $335 million or $1.32 per share for Q1 2007, an increase from $213 million or $0.85 per share in Q1 2006.
2) PSEG Power delivered strong results driven by the roll-off of below-market contracts and sustained top quartile nuclear performance.
3) PSE&G saw earnings growth from rate relief received in late 2006 and more normal weather compared to unusually warm conditions in 2006.
4) Cash flow and liquidity remain strong, allowing PSEG to reduce parent debt levels
Outlook for Tech M&A - presented by MGI ResearchMGI_Research
presentation by MGI Research at Bloomberg TMT event in NYC. Perspective on tech growth and valuation trends, likely buyers, likely sellers, and fallen heroes and unlikely deals.
http://www.youtube.com/watch?v=yJVgJ5kPb70 is one of the world's foremost brokers advising on global medical insurance policies. We work with all the major worldwide medical insurance coverage firms and have places of work in Europe and Asia. Worldwide we have above +120,000 clients, the greater part of our customers are people but we also work with some of the world's leading organizations such as L<apos>Oreal and Unilever. Our skills is in supplying tips and support to individuals seeking for comprehensive international medical insurance policy, notably people living in developing nations around the world or overseas from their home country.
The Korea Fund underperformed its benchmark, the MSCI Korea Index, in the fourth quarter of 2012 by 39 basis points. Within sectors, stock picks in consumer discretionary hurt performance while selections in industrials and an underweight in financials helped. Growth stocks strongly outperformed value stocks last quarter, contrasting the third quarter. The Fund initiated positions in selected IT and consumer names and exited a credit card company due to regulatory changes.
The document discusses forward-looking statements and risks associated with them. It provides an overview of Atmos Energy, including its scope of operations across 12 states in the utility segment and 22 states in the nonutility segment. It also summarizes Atmos Energy's financial and operational performance over time, including earnings growth, dividend increases, and acquisition history such as the purchase of TXU Gas.
The document provides performance metrics for the Buddha Yoga Strategy from August 1994 to August 2011 compared to the S&P 500 benchmark. Key metrics include an annualized return of 14.01% for the strategy versus 7.90% for the S&P 500, and a cumulative excess return versus the benchmark of 572.80%. The strategy has an average annualized excess return of 6.11% over the period. Charts show the strategy outperforming the S&P 500 benchmark on a cumulative, annual, and calendar year basis over the 17-year period.
Honeywell Gabelli & Company 12th Annual Aircraft Supplier Symposium Presentationfinance8
Dave Anderson, Senior VP and CFO of Honeywell, presented at the Gabelli Asset Management Aircraft Supplier Conference on September 7, 2006. Honeywell has built a strong track record through 5-10% organic sales growth, margin expansion, double digit EPS growth, and 100% cash conversion. Its portfolio includes Aerospace (35% of sales), Automation and Control (35%), Transportation (15%), and Specialty Materials (15%). Honeywell is on track for record performance in 2006 and is well positioned for long term growth across its segments.
PPG Industries reported financial results for Q4 and full year 2008. Q4 sales declined 18% to $3.1 billion due to a severe drop in global demand. However, full year sales increased 30% to $15.8 billion due to growth in coatings segments and acquisitions. Earnings per share were $0.41 for Q4 and $4.59 for the full year after adjustments. PPG expects global demand and currency rates to impact Q1 2009 results. The company generated strong cash flow in 2008 and repaid debt ahead of schedule.
The document summarizes the performance of the Aquamarine Fund from 1997 to 2012. Over this period, the fund outperformed the S&P 500 and other indices, achieving an annualized return of 9.2% compared to 4.7% for the S&P 500. More recent investments since 2008 have also seen strong returns, with some investments appreciating over 150%. The document reviews the fund's portfolio and strategy, and outlines the manager's expectations for continued outperformance of the market indices in the long run. It concludes with a Q&A session to discuss any questions.
The document provides an overview of Loews Corporation's 2008 investor meeting. It summarizes CNA Financial Corporation's solid financial performance including improved operating earnings, a strong balance sheet, and steady core securities income. It also discusses CNA's property and casualty operations which drive the company's results, and how its controlled, orderly run-off operations mitigate earnings risks. Additionally, it outlines CNA's highly diversified insurance portfolio, market leadership in specialty businesses, and disciplined underwriting approach.
Expeditors International of Washington, 4th06qer-revisedfinance39
Expeditors International of Washington reported financial results for Q4 2006 and full year 2006. For Q4, revenues increased 13% to $1.24 billion while net income decreased 16% to $62.6 million due to a one-time tax benefit in 2005. For the full year, revenues rose 19% to $4.63 billion and net income increased 23% to $235.1 million. The company opened new offices in Pakistan, China and saw strong growth in air and ocean freight volumes.
The document summarizes a multiple ETF dynamic rebalanced strategy presented by Brian J Crone from 2006-2012. The strategy aims to outperform major market indices while controlling risk and volatility by dynamically rebalancing a portfolio of the most liquid ETFs. Backtested results show annual returns outperforming the S&P 500 with lower volatility and drawdowns, demonstrated strong performance even during the market downturn of 2008.
The document summarizes a multiple ETF dynamic rebalanced strategy presented by Brian J Crone from 2006-2012. The strategy aims to outperform major market indices while controlling risk and volatility by dynamically rebalancing a portfolio of the most liquid ETFs. Backtested results show annual returns outperforming the S&P 500 with lower volatility and drawdowns, demonstrated strong performance even during the market downturn of 2008.
The document summarizes the results of a multiple ETF dynamic rebalanced strategy from 2006 to 2012. It achieved annual returns ranging from -0.2% to 47.5% and had an average annual Sharpe ratio of 2.54. The strategy combines technical analysis with statistical distribution theory to identify trends and reversals in ETFs to outperform markets with less volatility. It uses monthly rebalancing and focuses on controlling risk, volatility, and drawdowns.
Similar to CastlePoint Overview & Investment Results (20)
1. C A S T L E P O I N T
Investment
Group, LLC
LARGE CAP EQUITY PRODUCT
CastlePoint Investment Group Profile
Investment Philosophy, Process and Results
January 31, 2012
2. “CastlePoint’s enviable investment returns stem from a clearly-defined and consistently applied
investment process that is analytically-rigorous, artfully-implemented, and based on a combination of
proprietary research and sound financial theory.”
INVESTMENT PERFORMANCE
3. CASTLEPOINT LARGE CAP EQUITY PERFORMANCE
Investment Returns Snapshot through January 31, 2012 Cumulative Investment Returns through January 31, 2012
Inception (Unlike indices, surpassed
YTD* 1 Year 3 Year 5 Year (Sept. 2001) prior peak in 4Q07) $201.1
Cumulative returns reflect
200
reinvestment of dividends and
CastlePoint Large Cap Equity 23.2% are presented gross of fees
S&P 500 Index Total Return 175
19.2%
Russell 1000 Value Total 17.6%
Return Index 150 $151.7
$141.8
125
8.5% 100
6.9%
4.5% 4.2% 4.2% 4.1% 75
3.8% 3.3% 3.4%
1.9%
0.3% 50
Aug-01
Aug-02
Aug-03
Aug-04
Aug-05
Aug-06
Aug-07
Aug-08
Aug-09
Aug-10
Aug-11
Feb-02
Feb-03
Feb-04
Feb-05
Feb-06
Feb-07
Feb-08
Feb-09
Feb-10
Feb-11
02
03
04
05
06
07
08
09
10
11
01
02
03
04
05
06
07
08
09
10
11
-2.2%
*All results through period ending January 31, 2012 CastlePoint Large Cap S&P 500 Index Russell 1000 Value
Frequency CastlePoint Outperforms Index Over Time Periods Annual CastlePoint and Index Returns
Rolling, overlapping 1 Year 3 Year 5 Year
periods based on 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD
month-end returns 3% 0% 40%
over track record
Periods CastlePoint
30% Outperformed Indices
29%
20%
S&P 500 100%
Index 71% 10%
97%
0%
-10%
CastlePoint Investment Returns
18% -20% S&P 500 Index Total Return
Russell 1000 40% 34% Russell 1000 Value TR Index
Value Total -30%
Return 60% 66%
82% -40%
Investment returns for both the composite (the “Composite”) and the indices presented above are gross of fees and include
the reinvestment of interest and dividend income. Returns exclude investment advisory fees but include transaction costs and
calculations foreign withholding taxes. Composite portfolios are valued monthly and use time-weighted, geometrically-linked rates of
based on: 114 observations 90 observations 66 observations return adjusted for daily-weighted cash flows. Results are based on fully-discretionary accounts under management. 3
4. PEER GROUP RANKING, EFFICIENCY & RISK ANALYTICS
Large Cap Value Peer Group Ranking
1 Year 3 Year 5 Year through January 31, 2012
YTD 1 Year 3 Year 5 Year 10 Year
1st 2nd
0% 4th 4th
8.48% 3.26%
23.23% 6.20%
10%
20th 20th
Large Cap Value Mutual Fund Universe
20% 22nd 22nd
25th 25th 19.24% 0.33%
25th 25th 25th
5.21% 3.66% 4.20% 4.21% 18.87% -0.15% 4.87%
30% 37th
Percentile Rankings
41st 41st
40% 1.88%
4.48% 48th 47th 4.36%
50th 52nd
50% 4.27% 1.23% 56th
17.06% -1.46%
3.87%
60% 65th 63rd 66th
42nd
-2.16%
70% 3.78%
17.63%
3.52%
75th 75th 75th 75th 75th
3.37% -1.45% 15.77% -2.68% 3.15%
80%
90%
314 funds 291 funds 276 funds 256 funds 190 funds
100%
CastlePoint Large Cap Equity Russell 1000 Value Index S&P 500 Index Morningstar Large Value Avg Fund
source: Morningstar
Index-Relative Analytics: Efficiency and Risk-Adjusted Returns Risk & Regression Analysis
source: eVestment Alliance
4
Investment returns for both the composite (the “Composite”) and the indices presented above are gross of fees and include the reinvestment of interest and dividend income. Returns exclude investment advisory fees but include transaction costs. Composite portfolios are valued monthly and use time-weighted, geometrically-
linked rates of return adjusted for daily-weighted cash flows. Results are based on fully-discretionary accounts under management. Although great care was taken in the preparation of this document, its completeness and accuracy cannot be guaranteed. Monthly statements that substantiate these investment returns are
available for verification or auditing purposes. Past performance is no guarantee of future favorable results. The investment philosophy, process, and discipline used to generate these returns were continuously applied over all time periods. 4
5. LARGE CAP VALUE EQUITY: HISTORY OF TRACK RECORD
John G. Alexander, CFA: Portfolio Management Career Summary History of CastlePoint Composite
The CastlePoint track record comprises two distinct periods:
Sept. 2005 – present
CastlePoint Investment Group, LLC
John G. Alexander, CFA, presently serves as the only
1 portfoliois an example text. Gomanages the
This manager at CastlePoint; he ahead
composite and other equity-only andtext.
and replace it with your own balanced
separate accounts for firm, from inception to present.
CASTLE POINT
Managing Partner, Sept. 2001 – Aug. 2005
Cornerstone Investment Partners, LLC
CORNERSTONE Portfolio Manager
6 years, 6 months
Managing Partner, 2005 to present Additional part- and full-time investment professionals
Portfolio Manager
Portfolio Manager 4 Years, 1 month 2 first joined the firm in 2003; Alexander served as the sole
3 Years, 3 months 2001 to 2005 full-time, dedicated portfolio manager for the composite
from inception through his departure in 2005.
Annual Portfolio Turnover (LTM) Percentage of Periods CastlePoint Outperforms Indices
rolling, overlapping periods
40%
81.3%
35%
60-months 100.0%
30%
93.8%
25% 25.2%
20% 66.3%
15% 36-months 96.6%
88.8%
10%
5%
60.2%
0%
12-months 70.8%
Jan-08
Jan-09
Jan-10
Jan-11
Jul-08
Jul-09
Jul-10
Jul-11
Oct-08
Oct-09
Oct-10
Apr-08
Apr-09
Apr-10
Apr-11
68.1%
Annual portfolio turnover since inception Russell 1000 Value TR S&P 500 TR Index Russell 1000 Growth TR
source: CastlePoint Analysis, Russell Investments, Standard & Poor’s
5
6. “CastlePoint's approach to equity investing is based on the fundamental belief that markets are inefficient
and mispriced securities can be systematically identified and opportunistically acquired
using a time-tested, rigorous, and highly disciplined investment process.”
INVESTMENT APPROACH
7. INVESTMENT APPROACH
Investment Approach
CastlePoint's approach to equity investing is based on the fundamental belief that markets are inefficient and mispriced
securities can be systematically identified and opportunistically acquired using a time-tested, rigorous, and highly disciplined
investment process. CastlePoint's proprietary investment model, independent-minded portfolio management team, and
partnership culture of investing alongside our clients, are each important and differentiating aspects of our proven and
historically successful approach to investing.
As a result of our exhaustive, proprietary research on each stock before reaching a purchase decision, the investment team is
confident current portfolio holdings possess substantial capital appreciation potential and limited downside risk. Evidence of
this is the investment team manages their personal assets alongside those of our clients. This approach succeeds because the
team operates in an environment that takes a long-term view to investments, encourages an intense focus on securities
research and analysis, and insures team members hold a substantial, financial interest in the success of the portfolio. In short,
"we eat what we cook.“
"You cannot beat the benchmark, if you are the benchmark." CastlePoint takes a focused approach to investing, which affords
the investment team the opportunity to better understand portfolio holdings and, equally important, the fortitude and
conviction to stay the course when it's most difficult (and important) to do so. It's realistic and possible to achieve this level of
confidence with a portfolio comprised of a more manageable level of 30 to 35 holdings. Our goal is to construct portfolios in
which security selection is the largest contributor to index-relative outperformance.
It's fair to characterize CastlePoint's approach as largely "style-agnostic," though historically portfolio characteristics tend to
exhibit a value bias. It's also appropriate to view the approach as being predominately "benchmark agnostic" in the sense the
presence or absence a security (or its weight in a benchmark) is irrelevant in the security selection process. This also holds true
when looking at portfolio sector allocations relative to a benchmark.
Finally, CastlePoint's investment approach reflects our belief we are simply not smart enough to pick the trough when buying
or the peak when selling a stock; as such, we employ a "time diversification" approach to buying and selling securities.
Practically speaking, this typically entails moving gradually into or out of portfolio positions at 50 bps to 150 bps per
transaction.
7
8. “CastlePoint's investment philosophy is based on thoroughly researched and widely accepted financial
concepts thoughtfully chosen and uniquely woven together. The end result is a well crafted,
time tested process that systematically exploits enduring market anomalies.”
INVESTMENT PHILOSOPHY
9. PHILOSOPHY – BEHAVIORAL FINANCE
Investment Philosophy
CastlePoint's investment philosophy is based on thoroughly researched, well established, and widely accepted financial
theories and concepts thoughtfully chosen and uniquely woven together. The result is a uniquely crafted, time tested
investment process that systematically exploits enduring market anomalies - outperforming market indices over the most
tumultuous and challenging market environment in recent history.
Briefly, there are three elements of our investment philosophy:
Market Overreaction to Dramatic Unexpected News Events
Fallacies of Company and Market Forecasting
Patience and Long-term Investment Horizon
Market Overreaction Fallacies of Forecasting Long-term Investment Horizon
Based upon thoroughly documented and widely accepted academic research, equity market participants systematically
“overreact” with knee-jerk responses to unexpected and dramatic news events, pushing stock prices to unsustainably high and
low levels. The natural tendency for many investors is to overweight recent headline news, regardless of its actual relevance or
significance for a particular company, and underweight prior data that is wider and deeper in scope. This includes the
implications, if any, on the embedded characteristics of an individual company (e.g., pricing power, strength of brand name,
presence of significant barriers to entry) that are slow to change.
These information surges frequently lead less disciplined, short-term oriented investors into reacting to potentially irrelevant or
largely immaterial headline news and subsequently making cognitive errors and emotion driven mistakes. The result is stock
prices change more rapidly than the intrinsic value of the underlying companies, creating an exploitable dislocation or
divergence between the price for and the value of a company's shares.
Consequently, CastlePoint uses its proprietary Valuation, Screening & Investment Model (VSIM™), which evaluates and
calculates intrinsic values based on growth rates using a company's historical financial record for each company in the investable
universe. VSIM™ evaluates and relies upon a company's proven historical ability to generate cash flow; not on a forecast of what
it may be able to generate. CastlePoint's investment team uses this critical tool to determine an overreaction from an
appropriate one.
9
10. PHILOSOPHY – FORECASTING & LONG-TERM HORIZON
Market Overreaction Fallacies of Forecasting Long-term Investment Horizon
Relying on the ability to make forecasts is a precarious basis for any investment process. The ability to accurately forecast
market trends, economic variables, or the earnings of a company with any degree of consistency is extremely rare. The
examples of expert forecasts being incorrect by orders of magnitude are too numerous to detail here. Furthermore for a
forecast to hold value, it must overcome three, almost insurmountable hurdles:
Accurate: The most obvious quality a forecast must possess is that it must be accurate.
Timely: A forecast ultimately proves accurate must be made on a timely basis in order for it to have value and there to be
sufficient time upon which to act.
Different from Consensus: Finally, in addition to being accurate and timely, a forecast must be different from the consensus.
A forecast consistent with the consensus estimate is, in all likelihood, already reflected in a company's stock price and
generally of limited value.
Market Overreaction Fallacies of Forecasting Long-term Investment Horizon
&L
Forecasting how long it will take for the market price of a stock to converge with its intrinsic value is extraordinarily difficult, if
not impossible. As detailed previously, the field of forecasting is fraught with danger. As result, CastlePoint takes a long-term
perspective when evaluating and acquiring securities for the portfolio and generally expects to hold them for at least a three- to
five-year period.
Aside from the obvious benefits of enhancing returns through lower transaction costs and more favorable tax treatment (when
applicable), long-term investing does not create the compulsion to “do something” in periods of short term volatility.
10
11. “CastlePoint’s enviable investment returns stem from a clearly-defined and consistently applied
investment process that is analytically-rigorous, artfully-implemented, and based on a combination of
proprietary research and sound financial theory.”
INVESTMENT PROCESS
12. INVESTMENT PROCESS – RESEARCH PRIORITIZATION
Investment Process
CastlePoint maintains long-term investment success is the reward earned for consistently applying a clearly-defined,
thoughtfully-constructed, and intellectually-honest investment process and, importantly, adhering to that process when the
pressure to abandon it is greatest. The firm's investment process is comprised of three parts:
I. Research Prioritization
II. Investment Research and Analysis
III. Portfolio Construction and Risk Discipline
I. Research Prioritization
The investment process begins with CastlePoint's internally-developed Valuation, Screening & Investment Model (VSIM™) to
identify those securities with the highest probability of outperforming the market. VSIM™ is grounded in widely accepted and
well established academic research. Although many of the concepts and formulas upon which the model is based are widely-
known, the process by which they are consistently and successfully implemented is highly-proprietary.
On a weekly basis, at a minimum, explicit intrinsic values are calculated for the companies in the 1,000 stock universe. The
universe is comprised of constituents from the S&P 500 and Russell 1000 Value & Growth indices (excluding overlapping
securities, results in 985 companies) with remaining securities selected by the portfolio manager. These additional companies
must meet high standards of financial transparency, sufficient liquidity, and at least minimal sell-side analyst coverage.
VSIM™ generates explicit intrinsic value estimates based on a company's operating performance, financial condition, and
management policies regarding capital allocation. The intrinsic value estimate encompasses every fundamental and operating
aspect of a company we believe is relevant, including effectiveness of asset turnover, degree of financial leverage, and level
and sustainability of net profit margins. It also incorporates and evaluates the management team's capital allocation policies
and decisions.
Importantly, the model adapts effectively and efficiently within the context of the whatever the current market environment
(e.g., interest rates and impact on market-level P/E ratios), giving it a critical dynamic component to succeed in a diverse range
of market environments.
12
13. INVESTMENT PROCESS – RESEARCH & ANALYSIS
Research Prioritization (continued)
The calculated intrinsic values are compared to the observed market price of the shares for these companies. Securities trading
at the largest discount to intrinsic value - theoretically providing the highest margin of safety and greatest price appreciation
potential - become the focus of additional research and analysis.
II. Investment Research and Analysis
At this point, fundamental research is focused on the completeness and accuracy of a company's reported data as it serves as
the primary basis for calculating intrinsic value. Off-balance sheet liabilities, such a debt guarantees by minority-owned
subsidiaries, synthetic leases, and special-purpose entities (none of which appear on financial statements), are added back to
accurately reflect a company's financial leverage and operating performance. In short, this insures the integrity and accuracy of
key model inputs for intrinsic value estimates for shares of companies in the investable universe.
The top quintile or 200 most attractively ranked securities in the investable universe serve as the pool of potential purchase
candidates. Securities that reach this point of the investment process as a group tend to outperform significantly the
benchmark and are generally out of favor, ignored, or misunderstood by the marketplace. As such, research is focused on
obtaining a deeper understanding of the sustainability of a company's embedded characteristics (e.g., pricing power, durable
franchises, enduring competitive advantages, favorable demographic trends and shareholder-oriented management) that
fueled historical earnings growth and the factors expected to drive it in the future.
The objective of CastlePoint's investment research and analysis at this phase of the process is to convert a mosaic of
accounting and empirical data as well as independent research and analysis into an accurate portrayal of the economic reality
of a company's operations - with an emphasis on conservative, very achievable growth assumptions. Assuming a security
passes the scrutiny of this portion of the process, the next step involves running a sensitivity analysis for select securities. This
involves constructing financial scenarios using varying assumptions which in turn generate a range of potential valuation
outcomes.
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14. INVESTMENT PROCESS – PORTFOLIO CONSTRUCTION
Investment Research and Analysis (continued)
The most important of these outcomes is the worst case scenario. Understanding the downside risk of a prospective
investment, a key element of preservation of capital, is of paramount importance. This entails gaining conviction on the
probability of its occurrence, the magnitude of the downside risk should that improbable but not impossible scenario occur,
and the potential signposts to look for if the company were to begin to head down this road.
III. Portfolio Construction & Risk Management
Portfolio Construction
During the final phase of this dynamic process, the objective of portfolio construction is to acquire securities with significant
upside potential and a high margin of safety (based on the results from the worst case scenario analysis), while staying within
CastlePoint's risk control parameters.
Industry exposures and the sector allocation of the portfolio holdings are an outgrowth or a residual of an intense focus on
security selection. There is no mandate to own a security in any sector regardless of the weight in a benchmark. Recall the
investment team holds a direct and substantial financial interest in the success of the portfolio and CastlePoint's primary
emphasis is on absolute capital preservation. Therefore, a loss of capital but "losing less than the index" (a benchmark-relative
destruction of capital) is never viewed as an acceptable outcome.
Consistently purchasing a security at its trough price or selling a position at the peak is nearly impossible. CastlePoint's
investment team recognizes it is simply not capable of doing so and to mitigate buying too soon or selling too early employs a
"time diversification" approach to building and eliminating stock holdings.
New positions in the portfolio are initiated at very model increments, regardless of the enthusiasm and conviction in the price
appreciation potential of the holding. Inevitably, unanticipated market events that result in little or no impact on the
company's earnings or growth potential take place as the position is being built, providing the option to increase positions for
the patient, opportunistic investor. As time passes and conviction on the initial investment thesis grows and the risk/reward
trade-off becomes increasingly attractive, the portfolio weight is increased typically in very modest increments of 50 bps to 150
bps per transaction. This continues until the stock is purchased up to 4% of the total portfolio.
14
15. INVESTMENT PROCESS – RISK MANAGEMENT
Portfolio Construction (continued)
In the alternative case, when trimming or eliminating a position entirely, the same time-diversified approach usually holds true.
Existing positions are gradually sold into market rallies. However, if the investment team finds fundamental deterioration in a
holding's growth prospects, unanticipated changes in key personnel or operating strategy, or perhaps changes in a company's
operating environment (e.g., new, stronger competitors or changes in the regulatory environment) the position may be sold
more expeditiously than usual.
Risk Management
The central tenant of CastlePoint's risk management approach is risk is controlled first and foremost at the security level. The
most fundamental risk is not knowing or fully appreciating the operational, financial and valuation risk characteristics of a
company in the portfolio.
The investment team constructs portfolios comprised of stocks believed to be significantly undervalued and possessing a
significant margin of safety. Thoughtful consideration is given to an investment's upside potential; however, greater emphasis
M
is placed on assessing the potential for and magnitude of an investment's prospective downside level. Stocks are purchased up
to 4% of the total portfolio value and are allowed to appreciate to 6%. Once surpassing that threshold, the investment
discipline mandates trimming the position to avoid excessive idiosyncratic risk from a single holding.
CastlePoint also employs a sector risk overlay to manage risk at the portfolio level as well. Sector weights are limited to the
greater of the benchmark weight or 30% of the portfolio, whichever is greater. However, the industries that comprise a given
sector are diversified to avoid overconcentration in a specific market segment.
15
16. “CastlePoint believes a strict adherence to its sell discipline is a critical factor
in adding value, curtailing investment risk, and
preserving client capital.”
SELL DISCIPLINE
17. SELL DISCIPLINE
Sell Discipline
CastlePoint believes a strict adherence to its sell discipline is a critical factor in adding value, curtailing investment risk, and
preserving client capital. The dynamic risk/reward trade-off that develops as stock prices change and new information is
received and synthesized is constantly monitored and evaluated.
Our sell discipline is multi-faceted and possesses both a quantitative and qualitative components.
In summary, portfolio holdings are sold for one or more of the following reasons:
The price of the security and its intrinsic value converge;
The investment thesis forming the basis for originally acquiring the security is invalidated or is no longer intact (e.g.,
material change in the competitive landscape, unanticipated deterioration in fundamentals, departure of key management
personnel);
A more compelling investment opportunity with greater upside potential is identified and vetted by the investment team
subsequently crowds out an existing holding; or
A security appreciates to the degree our risk controls mandate trimming the position.
CastlePoint's internally-developed Valuation, Screening & Investment Model (VSIM™) plays an important role in successful
execution of the sell discipline since it generates explicit intrinsic value estimates for portfolio companies. As the price of a
security in the portfolio converges with the VSIM™ generated intrinsic value, the position is trimmed. CastlePoint does not
speculate as to how much or to what degree a stock price will be carried beyond its warranted value. Once the intrinsic value
of a company's shares and its observed market price converge, the position is eliminated.
Consistent with our long-term investment philosophy, a stock will not be sold solely because of a near-term earnings
disappointment. The factors that contributed to the shortfall and whether they are a sign of a systemic problem with the
company are of far greater importance and the focus of additional research. A position will be trimmed and ultimately sold if
this further research reveals the original investment thesis is no longer intact.
17