The document describes Emerald Asset Advisors, an investment management firm that offers alternative portfolio strategies using mutual funds and ETFs. It summarizes three core investment disciplines:
1) A hybrid strategy seeking absolute returns regardless of market conditions.
2) A concentrated equity strategy generating "alpha" through funds with limited holdings.
3) A global cycle strategy identifying long-term global investment themes over decades.
The firm develops diversified portfolios blending these disciplines for different risk/return profiles and pursuing returns with low correlations to markets.
The document provides an overview of the Lazard Emerging Markets Long/Short Equity Strategy. Key points include:
- The strategy aims to generate absolute returns by taking long and short positions in emerging market equities based on divergences in sector performance at different phases of the economic growth cycle.
- It employs modest leverage of 100-150% and maintains a low net exposure of -20% to 20% across 10-12 industry ideas.
- The investment process involves analyzing the phase of the emerging market growth cycle, conducting fundamental industry research, and constructing a portfolio with targeted industry exposures and minimal country/currency risk.
- Since inception in October 2016, the strategy has achieved annualized
Revolution Asset Management offers a hedged equity strategy that seeks to mirror benchmarks like the CBOE Put Index. The strategy maintains a long position in equities and carefully selected hedges, adjusting the hedge monthly. It aims to outperform the market with significantly less risk through consistent hedging. The portfolio managers have extensive experience in equities, derivatives, and risk management. They employ strategies like put writing, buy writes, and volatility spreads to generate premiums and lower portfolio risk.
This document defines absolute return investing in fixed income strategies. It discusses that absolute return strategies aim to provide low correlation to traditional asset classes and positive returns regardless of market direction. For fixed income specifically, absolute return strategies aim to diversify fixed income exposure and add an alternative style to complement traditional fixed income. The document outlines key characteristics of absolute return fixed income strategies, including not eliminating interest rate and credit risk but being tactical in exposure, accessing returns uncorrelated to broader markets, employing risk management focused on potential losses, constructing portfolios that can perform in various scenarios, taking a systematic hedging approach, and being managed by experienced teams.
The document summarizes an investment fund called the EAS Genesis Fund, which uses a flexible allocation strategy across various mutual funds and ETFs. It aims to provide absolute returns, low market correlation, and low volatility compared to the stock market. The fund combines three sub-strategies - Hybrid, Concentrated Equity, and Global Cycle - each with a different risk profile and time horizon. It is actively managed by Emerald Asset Advisors using a top-down macroeconomic assessment to identify investment themes and a bottom-up analysis to select specific funds and strategies.
The document outlines the five key concepts of structured investing:
1) Accept market efficiency and focus on low-cost institutional asset classes rather than active management.
2) Take risks worth taking like investing in global stocks across large and small cap sizes and value factors.
3) Customize portfolios for individual goals through one of 270 model portfolios.
4) Effectively diversify across asset classes, geographies, securities, and styles to reduce risk.
5) Exercise patience and discipline by maintaining a long-term perspective and rebalancing periodically.
This document discusses hedge fund investment philosophy and manager selection. It makes the following key points:
1) Hedge fund returns come from systematic risk premiums, liquidity premiums, and alpha, which are amplified by leverage. True alpha is rare and hard to achieve consistently.
2) Successful manager selection focuses on those with a sustainable competitive edge investing in less crowded strategies, and an understanding of how to reduce risk in stressful times.
3) The selection process profiles managers' investment beliefs, alpha generation process, and risk philosophy to construct an expected return distribution for each manager.
The document discusses key concepts for investment analysis and project selection, including:
1) Projects should yield a return greater than the minimum hurdle rate, which is higher for riskier projects. Returns should consider cash flows, timing, and side effects.
2) The optimal financing mix minimizes the hurdle rate and matches the assets financed.
3) If not enough high-returning investments exist, excess cash should be returned to stockholders.
Delivered this presentation in my office with an objective to disseminate the domain knowledge of Hedge Funds to our India as well as US team and higher management. It helped them in gearing up better as consultants to better deal with our clients hailing from Hedge Funds Industry.
I hope it helps you too.
The document provides an overview of the Lazard Emerging Markets Long/Short Equity Strategy. Key points include:
- The strategy aims to generate absolute returns by taking long and short positions in emerging market equities based on divergences in sector performance at different phases of the economic growth cycle.
- It employs modest leverage of 100-150% and maintains a low net exposure of -20% to 20% across 10-12 industry ideas.
- The investment process involves analyzing the phase of the emerging market growth cycle, conducting fundamental industry research, and constructing a portfolio with targeted industry exposures and minimal country/currency risk.
- Since inception in October 2016, the strategy has achieved annualized
Revolution Asset Management offers a hedged equity strategy that seeks to mirror benchmarks like the CBOE Put Index. The strategy maintains a long position in equities and carefully selected hedges, adjusting the hedge monthly. It aims to outperform the market with significantly less risk through consistent hedging. The portfolio managers have extensive experience in equities, derivatives, and risk management. They employ strategies like put writing, buy writes, and volatility spreads to generate premiums and lower portfolio risk.
This document defines absolute return investing in fixed income strategies. It discusses that absolute return strategies aim to provide low correlation to traditional asset classes and positive returns regardless of market direction. For fixed income specifically, absolute return strategies aim to diversify fixed income exposure and add an alternative style to complement traditional fixed income. The document outlines key characteristics of absolute return fixed income strategies, including not eliminating interest rate and credit risk but being tactical in exposure, accessing returns uncorrelated to broader markets, employing risk management focused on potential losses, constructing portfolios that can perform in various scenarios, taking a systematic hedging approach, and being managed by experienced teams.
The document summarizes an investment fund called the EAS Genesis Fund, which uses a flexible allocation strategy across various mutual funds and ETFs. It aims to provide absolute returns, low market correlation, and low volatility compared to the stock market. The fund combines three sub-strategies - Hybrid, Concentrated Equity, and Global Cycle - each with a different risk profile and time horizon. It is actively managed by Emerald Asset Advisors using a top-down macroeconomic assessment to identify investment themes and a bottom-up analysis to select specific funds and strategies.
The document outlines the five key concepts of structured investing:
1) Accept market efficiency and focus on low-cost institutional asset classes rather than active management.
2) Take risks worth taking like investing in global stocks across large and small cap sizes and value factors.
3) Customize portfolios for individual goals through one of 270 model portfolios.
4) Effectively diversify across asset classes, geographies, securities, and styles to reduce risk.
5) Exercise patience and discipline by maintaining a long-term perspective and rebalancing periodically.
This document discusses hedge fund investment philosophy and manager selection. It makes the following key points:
1) Hedge fund returns come from systematic risk premiums, liquidity premiums, and alpha, which are amplified by leverage. True alpha is rare and hard to achieve consistently.
2) Successful manager selection focuses on those with a sustainable competitive edge investing in less crowded strategies, and an understanding of how to reduce risk in stressful times.
3) The selection process profiles managers' investment beliefs, alpha generation process, and risk philosophy to construct an expected return distribution for each manager.
The document discusses key concepts for investment analysis and project selection, including:
1) Projects should yield a return greater than the minimum hurdle rate, which is higher for riskier projects. Returns should consider cash flows, timing, and side effects.
2) The optimal financing mix minimizes the hurdle rate and matches the assets financed.
3) If not enough high-returning investments exist, excess cash should be returned to stockholders.
Delivered this presentation in my office with an objective to disseminate the domain knowledge of Hedge Funds to our India as well as US team and higher management. It helped them in gearing up better as consultants to better deal with our clients hailing from Hedge Funds Industry.
I hope it helps you too.
USA Market Stability Marketing Brochure
Ty McGuire Ocean Capital Sample Marketing Brochure European Exchange Traded Product ETN / ETP / ETF
Beacon VP Capital
Ocean Quant
Ty McGuire
Hedge funds are private investment vehicles that invest in publicly traded securities to hedge risk for investors. They are structured as limited partnerships with high net worth individuals and institutions as investors. Hedge funds aim to produce absolute returns regardless of market performance through various strategies like arbitrage, emerging markets, short selling, and macroeconomic analysis. Successful hedge funds have generated high returns compared to mutual funds, leading to rapid growth in assets under management since the 1990s.
The document discusses the principles of structured investing based on decades of financial market data and Nobel Prize-winning research. It advocates taking a structured approach that does not try to beat the market through timing but rather captures market returns through broad diversification. The approach focuses on investing in stocks, emphasizing small companies and value stocks, as academic research has found these risks are worth taking for higher expected returns over the long term. While these risks may increase short-term volatility, long-term data demonstrates that stocks have significantly outperformed other asset classes like bonds.
The document discusses strategies for constructing investment portfolios that balance risk and returns, including defining core objectives, understanding basic concepts like the efficient frontier and beta/alpha returns, and using a core and satellite approach where the core portfolio focuses on meeting financial goals and the satellite portfolio takes on higher risk for potential higher returns. It also covers factors like vision, risk, consistency, taxes, and transferring wealth that are important considerations in developing an effective wealth strategy.
Investment portfolio of risky security and efficient frontierRavi kumar
The document discusses investment portfolios containing risky securities and the efficient frontier. It defines key investment terms like portfolio and outlines the main investment options. Factors that influence investment selection are discussed like risk appetite and investment horizon. The performance of investment portfolios depends on decisions by portfolio managers regarding investment policies, stock selection, and market timing. The efficient frontier shows the optimal portfolios that offer the highest expected return for a given level of risk or lowest risk for a given return. It is found by calculating the standard deviation and mean return of individual stocks.
The document is a letter from Guy Lerner, founder of ARL Advisers LLC, seeking investment from the recipient. It summarizes Lerner's investment approach which focuses on strategic asset allocation across a diverse set of assets using quantitative models, with an emphasis on risk management. It highlights backtested portfolio examples demonstrating competitive returns with reduced risk relative to benchmarks. Lerner invites the recipient to review additional presentation materials outlining ARL's strategies and credentials in more detail.
1. Portfolio management is a process of optimizing investment funds through activities like security analysis, portfolio construction, selection, revision and evaluation.
2. It involves choosing securities to create portfolios that balance risk and expected return. The optimal portfolio lies on the efficient frontier which shows maximum return for each risk level.
3. Risk is measured by variability of returns. The CAPM model relates expected return and systematic risk measured by beta for efficient portfolios on the SML and all securities.
The document discusses concepts related to investment including definitions of investment, speculation, and gambling. It defines investment as the employment of funds on assets with the aim of earning income or capital appreciation over time while accepting risk. Speculation is described as short-term trading of securities in hopes of profiting from price changes, while gambling relies solely on chance. The document also outlines the investment process, constraints that impact investment decisions, and different investment strategies such as active versus passive portfolio strategies.
This document discusses portfolio analysis and security analysis. It defines portfolio analysis as determining the future risk and return of holding various combinations of individual securities. Portfolio analysis involves diversifying investments across different assets, industries, and companies to reduce non-systematic risk. The document contrasts traditional portfolio analysis, which focuses on lowest risk securities, with modern portfolio theory, which emphasizes combining high and low risk securities to maximize returns at a given level of risk. Key aspects of portfolio analysis include calculating expected returns, variance, and the standard deviation and beta of a portfolio to measure risk. Diversification is presented as an important tool to reduce unsystematic risk.
The document summarizes the key topics covered in a textbook on portfolio management. It discusses the six steps of portfolio management: learning principles of finance, setting objectives, formulating an investment strategy, having a plan for revisions, evaluating performance, and protecting the portfolio. It also outlines the four parts of the textbook: background/principles, portfolio construction, portfolio management, and protection/contemporary issues. Key concepts discussed include risk management, diversification, security analysis, and active vs. passive management.
The document summarizes the key topics covered in a textbook on portfolio management. It discusses the six steps of portfolio management: learning principles of finance, setting objectives, formulating an investment strategy, having a plan for revisions, evaluating performance, and protecting the portfolio. It also outlines the four parts of the textbook: background/principles, portfolio construction, portfolio management, and protection/contemporary issues. Key concepts discussed include risk management, diversification, and balancing return with risk.
The document outlines the process of portfolio management in 4 parts:
Part 1 discusses background principles like risk tolerance and investment policy.
Part 2 covers portfolio construction including diversification and asset allocation.
Part 3 is about portfolio maintenance through active or passive management and performance evaluation.
Part 4 addresses portfolio protection strategies and contemporary issues such as derivatives.
The document outlines the process of portfolio management in 4 parts:
Part 1 discusses background principles like risk tolerance and investment policy.
Part 2 covers portfolio construction including diversification and asset allocation.
Part 3 is about portfolio maintenance through active or passive management and performance evaluation.
Part 4 addresses portfolio protection strategies and contemporary issues such as derivatives.
Modern portfolio concepts ppt @ bec domsBabasab Patil
This document discusses modern portfolio concepts including portfolio objectives, return and risk measures, diversification through correlation, international diversification, components of risk, beta as a risk measure, the capital asset pricing model, and traditional versus modern approaches to portfolio construction. Key concepts covered include the efficient frontier, portfolio betas, and reconciling risk-return tradeoffs. Tables and figures are included to illustrate concepts such as correlation, efficient portfolios, security market lines, and portfolio risk-return relationships.
The document discusses volatility arbitrage hedge funds and their performance relative to other hedge funds during the market downturn of 2008-2009. It notes that volatility arbitrage funds returned 7.3% through August 2008 while most other hedge fund strategies struggled. A number of reasons for the strong performance are provided, including high volatility, opportunities from illiquid market conditions, and avoidance of exposure to sub-prime credit. The document proposes a new volatility arbitrage fund that will utilize flexible strategies tailored to changing market conditions in order to generate positive returns across different market environments. Brief biographies of the proposed fund's trading team are also included.
The document provides an overview of security analysis and different analytical techniques used, including fundamental analysis and technical analysis.
Fundamental analysis involves analyzing the economy, industry, and company to determine a company's intrinsic value. Technical analysis uses historical price and volume data to identify trends and patterns that can predict future price movements. Key techniques include chart analysis and identifying support/resistance levels and patterns like head and shoulders. The efficient market hypothesis suggests stock prices already reflect all available public information and it is difficult to outperform the overall market through analysis alone.
Investment strategies of famous investment gurusHarish Manchala
This document summarizes the investment strategies of several famous investors including Benjamin Graham, Peter Lynch, Warren Buffett, David Dreman, John Neff, Kenneth Fisher, Martin Zweig, Joel Greenblatt, Joseph Piotroski, and James O'Shaughnessy. It describes the key aspects of each of their strategies such as focusing on value, price/earnings ratios, earnings growth rates, contrarian approaches, and blending growth and value styles.
1) Portfolio construction involves blending different asset classes like stocks, bonds, and cash to obtain returns while minimizing risk through diversification.
2) There are two main approaches - the traditional approach selects securities to meet an investor's needs, while the Markowitz efficient frontier approach constructs portfolios that maximize expected return for a given level of risk.
3) The Markowitz model helps investors reduce risk by choosing securities whose returns do not move together, identifying the efficient frontier of portfolio options, and allowing investors to select the portfolio with the highest return for a given risk level.
1) The document discusses investment strategies for advisors in today's challenging market landscape characterized by a secular stock bear market, inflation threats, and low bond returns.
2) It introduces Emerald's alternative asset allocation approaches across three strategies - Hybrid, Concentrated Equity, and Global Cycle - that aim to preserve capital, provide growth, and avoid style-box thinking.
3) The strategies utilize various mutual funds and investment styles, including hedged funds, theme-based funds, and short positions, to capture upside while limiting downside in different market environments over timeframes of 3+ years.
ILIM discusses incorporating factor investing as a means of building effective portfolios positioned for growth.
Leading experts discuss ILIM’s award winning strategies which are designed to help investors build equity portfolios which are protected against extreme draw down events.
USA Market Stability Marketing Brochure
Ty McGuire Ocean Capital Sample Marketing Brochure European Exchange Traded Product ETN / ETP / ETF
Beacon VP Capital
Ocean Quant
Ty McGuire
Hedge funds are private investment vehicles that invest in publicly traded securities to hedge risk for investors. They are structured as limited partnerships with high net worth individuals and institutions as investors. Hedge funds aim to produce absolute returns regardless of market performance through various strategies like arbitrage, emerging markets, short selling, and macroeconomic analysis. Successful hedge funds have generated high returns compared to mutual funds, leading to rapid growth in assets under management since the 1990s.
The document discusses the principles of structured investing based on decades of financial market data and Nobel Prize-winning research. It advocates taking a structured approach that does not try to beat the market through timing but rather captures market returns through broad diversification. The approach focuses on investing in stocks, emphasizing small companies and value stocks, as academic research has found these risks are worth taking for higher expected returns over the long term. While these risks may increase short-term volatility, long-term data demonstrates that stocks have significantly outperformed other asset classes like bonds.
The document discusses strategies for constructing investment portfolios that balance risk and returns, including defining core objectives, understanding basic concepts like the efficient frontier and beta/alpha returns, and using a core and satellite approach where the core portfolio focuses on meeting financial goals and the satellite portfolio takes on higher risk for potential higher returns. It also covers factors like vision, risk, consistency, taxes, and transferring wealth that are important considerations in developing an effective wealth strategy.
Investment portfolio of risky security and efficient frontierRavi kumar
The document discusses investment portfolios containing risky securities and the efficient frontier. It defines key investment terms like portfolio and outlines the main investment options. Factors that influence investment selection are discussed like risk appetite and investment horizon. The performance of investment portfolios depends on decisions by portfolio managers regarding investment policies, stock selection, and market timing. The efficient frontier shows the optimal portfolios that offer the highest expected return for a given level of risk or lowest risk for a given return. It is found by calculating the standard deviation and mean return of individual stocks.
The document is a letter from Guy Lerner, founder of ARL Advisers LLC, seeking investment from the recipient. It summarizes Lerner's investment approach which focuses on strategic asset allocation across a diverse set of assets using quantitative models, with an emphasis on risk management. It highlights backtested portfolio examples demonstrating competitive returns with reduced risk relative to benchmarks. Lerner invites the recipient to review additional presentation materials outlining ARL's strategies and credentials in more detail.
1. Portfolio management is a process of optimizing investment funds through activities like security analysis, portfolio construction, selection, revision and evaluation.
2. It involves choosing securities to create portfolios that balance risk and expected return. The optimal portfolio lies on the efficient frontier which shows maximum return for each risk level.
3. Risk is measured by variability of returns. The CAPM model relates expected return and systematic risk measured by beta for efficient portfolios on the SML and all securities.
The document discusses concepts related to investment including definitions of investment, speculation, and gambling. It defines investment as the employment of funds on assets with the aim of earning income or capital appreciation over time while accepting risk. Speculation is described as short-term trading of securities in hopes of profiting from price changes, while gambling relies solely on chance. The document also outlines the investment process, constraints that impact investment decisions, and different investment strategies such as active versus passive portfolio strategies.
This document discusses portfolio analysis and security analysis. It defines portfolio analysis as determining the future risk and return of holding various combinations of individual securities. Portfolio analysis involves diversifying investments across different assets, industries, and companies to reduce non-systematic risk. The document contrasts traditional portfolio analysis, which focuses on lowest risk securities, with modern portfolio theory, which emphasizes combining high and low risk securities to maximize returns at a given level of risk. Key aspects of portfolio analysis include calculating expected returns, variance, and the standard deviation and beta of a portfolio to measure risk. Diversification is presented as an important tool to reduce unsystematic risk.
The document summarizes the key topics covered in a textbook on portfolio management. It discusses the six steps of portfolio management: learning principles of finance, setting objectives, formulating an investment strategy, having a plan for revisions, evaluating performance, and protecting the portfolio. It also outlines the four parts of the textbook: background/principles, portfolio construction, portfolio management, and protection/contemporary issues. Key concepts discussed include risk management, diversification, security analysis, and active vs. passive management.
The document summarizes the key topics covered in a textbook on portfolio management. It discusses the six steps of portfolio management: learning principles of finance, setting objectives, formulating an investment strategy, having a plan for revisions, evaluating performance, and protecting the portfolio. It also outlines the four parts of the textbook: background/principles, portfolio construction, portfolio management, and protection/contemporary issues. Key concepts discussed include risk management, diversification, and balancing return with risk.
The document outlines the process of portfolio management in 4 parts:
Part 1 discusses background principles like risk tolerance and investment policy.
Part 2 covers portfolio construction including diversification and asset allocation.
Part 3 is about portfolio maintenance through active or passive management and performance evaluation.
Part 4 addresses portfolio protection strategies and contemporary issues such as derivatives.
The document outlines the process of portfolio management in 4 parts:
Part 1 discusses background principles like risk tolerance and investment policy.
Part 2 covers portfolio construction including diversification and asset allocation.
Part 3 is about portfolio maintenance through active or passive management and performance evaluation.
Part 4 addresses portfolio protection strategies and contemporary issues such as derivatives.
Modern portfolio concepts ppt @ bec domsBabasab Patil
This document discusses modern portfolio concepts including portfolio objectives, return and risk measures, diversification through correlation, international diversification, components of risk, beta as a risk measure, the capital asset pricing model, and traditional versus modern approaches to portfolio construction. Key concepts covered include the efficient frontier, portfolio betas, and reconciling risk-return tradeoffs. Tables and figures are included to illustrate concepts such as correlation, efficient portfolios, security market lines, and portfolio risk-return relationships.
The document discusses volatility arbitrage hedge funds and their performance relative to other hedge funds during the market downturn of 2008-2009. It notes that volatility arbitrage funds returned 7.3% through August 2008 while most other hedge fund strategies struggled. A number of reasons for the strong performance are provided, including high volatility, opportunities from illiquid market conditions, and avoidance of exposure to sub-prime credit. The document proposes a new volatility arbitrage fund that will utilize flexible strategies tailored to changing market conditions in order to generate positive returns across different market environments. Brief biographies of the proposed fund's trading team are also included.
The document provides an overview of security analysis and different analytical techniques used, including fundamental analysis and technical analysis.
Fundamental analysis involves analyzing the economy, industry, and company to determine a company's intrinsic value. Technical analysis uses historical price and volume data to identify trends and patterns that can predict future price movements. Key techniques include chart analysis and identifying support/resistance levels and patterns like head and shoulders. The efficient market hypothesis suggests stock prices already reflect all available public information and it is difficult to outperform the overall market through analysis alone.
Investment strategies of famous investment gurusHarish Manchala
This document summarizes the investment strategies of several famous investors including Benjamin Graham, Peter Lynch, Warren Buffett, David Dreman, John Neff, Kenneth Fisher, Martin Zweig, Joel Greenblatt, Joseph Piotroski, and James O'Shaughnessy. It describes the key aspects of each of their strategies such as focusing on value, price/earnings ratios, earnings growth rates, contrarian approaches, and blending growth and value styles.
1) Portfolio construction involves blending different asset classes like stocks, bonds, and cash to obtain returns while minimizing risk through diversification.
2) There are two main approaches - the traditional approach selects securities to meet an investor's needs, while the Markowitz efficient frontier approach constructs portfolios that maximize expected return for a given level of risk.
3) The Markowitz model helps investors reduce risk by choosing securities whose returns do not move together, identifying the efficient frontier of portfolio options, and allowing investors to select the portfolio with the highest return for a given risk level.
1) The document discusses investment strategies for advisors in today's challenging market landscape characterized by a secular stock bear market, inflation threats, and low bond returns.
2) It introduces Emerald's alternative asset allocation approaches across three strategies - Hybrid, Concentrated Equity, and Global Cycle - that aim to preserve capital, provide growth, and avoid style-box thinking.
3) The strategies utilize various mutual funds and investment styles, including hedged funds, theme-based funds, and short positions, to capture upside while limiting downside in different market environments over timeframes of 3+ years.
ILIM discusses incorporating factor investing as a means of building effective portfolios positioned for growth.
Leading experts discuss ILIM’s award winning strategies which are designed to help investors build equity portfolios which are protected against extreme draw down events.
Janney Capital Management provides discretionary investment management services through separately managed accounts. It has over $2 billion in assets under management. This document summarizes Janney Capital Management's investment philosophy, strategies, and portfolio characteristics. Their philosophy emphasizes asset allocation, diversification, and fundamental analysis. They offer both traditional strategies, such as all cap core equity and equity income, as well as alternative strategies like dynamic asset allocation. Portfolios are customized to each client's needs and risk tolerance.
The Colvert/Harvey Group provides personalized investment management through their portfolio management program. They offer four portfolio types (fixed income, conservative, moderate, and aggressive) that differ in their risk tolerance and growth objectives. Their investment approach analyzes market conditions and utilizes ETFs and mutual funds to construct strategic long-term and tactical short-term portions of client portfolios. The group leverages the global resources of UBS to inform their portfolio decisions and provide high-quality research and tools to support customized portfolio management.
This document summarizes an investment advisory firm that specializes in quantitative trading strategies. They aim to generate absolute positive returns each month using risk-minimized market neutral strategies. Their proprietary strategies utilize in-house non-traditional methods like statistical arbitrage and hedging to achieve returns regardless of market conditions. Back-testing of their multi-strategy model from 2005-2010 showed annual returns ranging from 26-119% with an average monthly return of 4.25% and low monthly drawdowns.
The document provides an overview of the DSP US Flexible Equity Fund, which provides Indian investors access to BlackRock's US Flexible Equity Fund. BlackRock combines human insight and innovative technology to generate alpha. It has over 80 offices globally and specialized risk management. The US Flexible Equity strategy blends fundamental and quantitative research at each stage of the process. It uses a multi-factor quantitative model and in-depth fundamental research to identify attractively priced stocks of companies with improving fundamentals.
Modern Portfolio Theory (MPT) was developed in the 1950s and remains the standard approach used today. However, MPT makes unrealistic assumptions. HighTower|Scottsdale has developed an advanced "Liability Derived Intelligence" (LDintelligence) methodology that builds on MPT but addresses its limitations. LDintelligence begins by calculating each investor's "Liability Derived Index" based on their unique financial goals and risk tolerance. It then constructs customized portfolios aimed at achieving this target return while managing downside risk.
ISA portfolios are designed to help investors navigate significant and
unstable movements in financial markets to obtain potentially increased
returns. Portfolio results are achieved through disciplined risk management,
situational awareness, global diversification and dynamic asset allocation.
The Colvert/Harvey Group provides personalized investment management through customized portfolios tailored to individual client needs and risk tolerances. They offer four portfolio types (fixed income, conservative, moderate, and aggressive) that vary in investment strategy and asset allocation. Through the UBS Portfolio Management Program, clients receive discretionary portfolio management and access to extensive global research resources to inform investment decisions.
The document provides an overview of TAG Benefit Advisors' investment recommendations and process for selecting investment managers and constructing investment menus for 401(k) retirement plans. It describes their rigorous quantitative and qualitative manager selection process, the diversified range of recommended investment styles and funds, and commentary on each recommended manager.
HAHN ETF Managed Portfolios - An Introductionrobyn_gra
This document provides an overview of HAHN Investment Stewards, a global macro investment manager that utilizes ETFs. It discusses their experienced investment strategy committee, core and focus portfolio strategies, attractive long-term performance record utilizing downside protection, philosophy of taking a global thematic and opportunistic approach through pragmatic use of ETFs, risk-sensitive nature, tactical asset mix changes, ETF portfolio construction process, example of a moderate core portfolio, and communications including their website and thought leadership in the media.
How Investment Analysis & Portfolio Management greatly focuses on portfolio c...QUESTJOURNAL
Abstract: Portfolio Construction is a capstone elective that draws on previously studied investment principles, theories and techniques. Its enable synthesize that acquired financial theories and knowledge in the context of portfolio construction and asset allocation. It focuses on gaps in theory and how they can be managed in practice.
The document provides an overview of mutual funds in India. It discusses:
- The Association of Mutual Funds in India (AMFI) is the umbrella body that regulates mutual funds in India.
- There are over 900 mutual fund schemes in India managing over Rs. 5 lakh crore in assets as of 2008, showing strong growth since the 1980s.
- Mutual funds pool money from investors and invest it in a variety of securities like stocks, bonds, money market instruments based on the scheme's investment objective. Returns are shared by investors proportionate to their investment.
The document provides an overview of mutual funds in India. It discusses that [1] mutual funds pool money from investors and invest it in securities like stocks and bonds, [2] the money is professionally managed by fund managers, and [3] investors share the returns generated from these investments. It also summarizes the different types of mutual fund schemes available in India based on their structure (open-ended, close-ended, interval schemes) and investment objectives (growth schemes that aim for capital appreciation, income schemes that aim to provide regular income).
Performance Management for Public Investment Funds - Part 1Khalizan Halid
The document discusses the requirements for corporate performance management systems to support public investment funds in the new global economy. It outlines how investment fund managers need visibility into market dynamics and the ability to balance risks and rewards through strategic formulation, execution, and portfolio controls. Effective corporate performance management relies on methodologies, systems, and practices to provide fund managers with integrated, timely information from a variety of external and internal sources to support decision making.
HAHN ETF Managed Portfolios - An Introductionrobyn_gra
HAHN Investment Stewards is a global macro investment manager that has been managing global balanced portfolios exclusively using ETFs since 2001. They employ a thematic, opportunistic, and pragmatic approach, actively shifting exposures across asset types and geographies based on macroeconomic themes. The document provides an overview of HAHN's philosophy, experienced team, track record of outperformance with lower volatility, ETF selection and portfolio construction process, and methods of communicating with clients.
Morgan stanley mutual fund common application form with kimPrajna Capital
This document provides key information memorandums for four mutual fund schemes offered by Morgan Stanley Investment Management Pvt. Ltd. It includes details on the investment objectives, strategies, and risks for the Morgan Stanley Growth Fund, Morgan Stanley A.C.E. Fund, Morgan Stanley Active Bond Fund, and Morgan Stanley Short Term Bond Fund. It notes that the schemes particulars have been prepared according to SEBI regulations and filed with SEBI for approval.
How to Build a Diversified Investment Portfolio.pdfTrims Creators
Building a diversified investment portfolio is a fundamental strategy to manage risk and optimize returns. For both novice and experienced investors, diversification offers a pathway to a more stable and resilient financial future. Here’s an in-depth guide on how to create and maintain a well-diversified investment portfolio.
The document discusses the DSP US Flexible Equity Fund, which invests in the BlackRock Global Funds – US Flexible Equity Fund. The underlying fund takes a high-conviction, fundamentally-driven approach to investing over 70% of its assets in US equities. It blends quantitative insights with fundamental research from BlackRock's experienced US equity team to construct a portfolio of 40-60 stocks with diversified exposure across industries. Recent performance and portfolio characteristics are also reviewed.
Similar to EAS SMA Strategy Booklet December 2009 (20)
1. INVESTMENT STRATEGISTS for
SUCCESSFUL ADVISORS
STRATEGY DESCRIPTIONS
&
PERFORMANCE PROFILES
December 2009
INVESTMENT STRATEGISTS for SUCCESSFULCLIENTS
VISION. EXPERIENCE. DEDICATION to our ADVISORS
2. OVERVIEW OF FIRM:
Founded in 1998, Emerald Asset Advisors, LLC is a Registered Investment Advisor and investment
management firm based in Weston, FL. We take a refreshing and insightful approach to portfolio strategy -
one that differs from what most investors experience in other asset allocation programs. Our Asset
Allocation models have been created to meet the needs of investors and advisors who want an alternative
to traditional portfolio mixes of long-only stock and bond funds. Our goal since inception was to provide
a set of practical low correlation strategies for any portfolio, large or small.
All of our strategies have specific risk-control measures within them, in addition to the general risk
reduction achieved by a diversified portfolio. We employ a flexible and adaptive investment approach,
and our firm’s style and accomplishments have been highlighted in many national media outlets including
Bloomberg, The Wall Street Transcript, Investment News, Registered Rep and Wealth Manager Magazine. We have
presented our expertise and views at various industry conferences, and our Chief Investment Officer has
been recognized as one of Worth Magazine's "Top 100 US Wealth Advisors" from 2005 – 2007 and one of
Worth Magazine’s “Top 250 US Wealth Advisors” in 2008. Our firm is driven to be one of the industry’s
specialists in the design and management of alternative allocation portfolios, but using only selective
traditional, SEC-Registered vehicles (mutual funds and ETFs) with full transparency and daily
liquidity.
EMERALD SMA’S
• Absolute return focus
• Low market correlation
• Low relative volatility
• Tax aware
USING NO-LOAD MUTUAL
FUNDS
• No lock-up period • Daily liquidity
• Full transparency • SEC-registered
• Cost effective vehicles
HEDGED INVESTMENT
STRATEGIES/STYLES
• Top manager talent
• Flexible investment styles
• Alpha generators
1 INVESTMENT STRATEGISTS for SUCCESSFUL ADVISORS
3. GENERAL DESCRIPTION OF METHODOLOGY: Emerald’s three portfolios are created out of
the firm’s three core investment disciplines, as follows:
HYBRID DISCIPLINE (HY): Hybrid’s objective is to achieve real, absolute returns (i.e., positive net of
inflation) over any three-year period, regardless of market conditions, and without resorting to the use of
high-quality bond funds (which, despite their reputation as conservative investments, can produce large
losses in periods of rising interest rates and inflation). Our Hybrid holdings typically come from the 10
sub-sectors/styles we have defined in the alternative mutual fund universe through our own research
(such as equity long-short, market-neutral, arbitrage, high-yield and bond hedge). As a result, Hybrid
investing is similar to the approach employed by low volatility hedge fund-of-funds managers but
without all the unfavorable characteristics of hedge funds or the limited partnership structure (e.g., –
lock-up periods; illiquidity; lack of transparency; excessive leverage; high fees; high investment
minimums and tax inefficiency).
CONCENTRATED EQUITY DISCIPLINE (CE): Concentrated Equity seeks to generate investment “alpha”
(excess return versus stock market benchmarks) through the purchase of a carefully selected group of
equity mutual funds, whose managers each confine their portfolios to a very limited number of holdings
(typically under 30 stocks) and generate those returns using distinctly different methods. The
combination of these funds seeks to combat the tendency for traditional “style-box” equity approaches
(investing by growth vs. value, large cap vs. small cap) that often produce mediocre or negative levels of
alpha over longer periods of time. We may also buy dedicated short funds as a portfolio hedge in
perceived periods of high market risk.
GLOBAL CYCLE DISCIPLINE (CY): Global Cycle is a true long-term approach to growing capital. It
involves the research and identification of global investment themes that are in the midst of a long,
positive business cycle (e.g., alternative energy, potable water, India equity, China equity, etc). Some of
these themes may take place, in our opinion, over many years, even decades. Others may start and
finish in periods as short as three years. This is a long-term strategy, and often involves investing in
areas of the markets that exhibit high short-term volatility in their returns. Patience is required to be
successful. We may also buy dedicated short funds as a portfolio hedge in perceived periods of high
market risk or as a way to capture alpha in a certain sector that we feel may be in decline.
The three disciplines can be pursued individually or blended together in various allocations
to provide an extensive set of complementary low correlation strategies, each managed with
distinct risk/return characteristics and objectives. The portfolio team at Emerald applies an
extensive and rigorous combination of top-down, bottom-up, fundamental, quantitative and
technical analysis to construct the desired mix of funds for each portfolio. For more
information, please visit www.EmeraldAssetAdvisors.com and/or www.EASfunds.com.
INVESTMENT STRATEGISTS for SUCCESSFUL ADVISORS 2
4. THE GENESIS OF THE EMERALD
ALLOCATION STRATEGIES
1998 1999 2000 - 2002 2002
Discontent with Began using low
Developed
flaws of correlation
diversified Created dedicated
“conventional” strategies via
absolute return Hybrid Strategy
portfolio hedged mutual
portfolios
construction funds
2003 2004 2004 - 2005 2005
Expanded
Created dedicated Expanded Created dedicated
spectrum to alpha-
Concentrated spectrum to global Global Cycle
generating equity
Equity Strategy theme-based funds Strategy
managers
From inception, Emerald has focused on constructing portfolios using
styles that go well beyond traditional “style box” strategies.
3 INVESTMENT STRATEGISTS for SUCCESSFUL ADVISORS
5. EMERALD’S ALTERNATIVE APPROACH HAS GENERATED NOTEWORTHY ATTENTION
Publication: November 2006
Cover Story: Registered Rep, February 2007 Cover Story: Wealth Manager, March 2008
INVESTMENT STRATEGISTS for SUCCESSFUL ADVISORS 4
6. EMERALD’s Multi-Dimensional Portfolio
Construction Process
Top-down Macroeconomic Assessment
Theme
Fundamental analysis of critical factors that drive markets and
prices
Bottom-up Analysis
Investments
Identify the investment vehicles that best express the themes
Quantitative Analysis
Weightings
Analyze all key metrics (trading turnover; expenses; risk stats
and tax implications)
Technical Analysis
Trade
Determine entry / exit points through charting analysis
5 INVESTMENT STRATEGISTS for SUCCESSFUL ADVISORS
7. Bull Market Forecaster
1st Quarter 2010
As an asset allocation strategist, we employ a flexible and adaptive investment
approach to portfolio management.
Emerald’s BULL MARKET FORECASTER is a compilation of what we believe to
be our investment committee’s best macro thinking. The investment themes
below and their ranking reflect our view of the relative risk-reward potential on
world-wide investment themes over a 3-year period.
The selection of these themes is the genesis of our portfolio construction
process. We follow with how these themes are applied across our three distinct
investment strategies, the EMERALD ALLOCATION STRATEGIES.
EXCELLENT GOOD FAIR POOR
Contrarian Bank Loan Agricultural Large Cap
Global REITs Balanced Funds
Value Equity Funds Commodities Relative Value
Convertible Emerging Dedicated Short
Brazil Equity Gold Non-US Bonds
Arbitrage Market Bonds Equity
Environmental “Busted” High Yield High-Quality
Equities Convertibles Bonds Energy Stocks Oil Bond Funds
Equity L/S Homebuilding
China Europe Equity S&P 500 Index US Dollar
Stocks
Frontier Convertible US T-bills (90-
India Healthcare
Markets Securities Utility Stocks day)
Stocks
Global Dedicated Non-Japan
Infrastructure Short Treasury Asia Equity Japan Equity “Vice” Equity
Hedged Equity Emerging ROI Growth Large Cap
Pharma Stocks Equity Growth
Merger Equity-Income Small-Midcap
Arbitrage (Dividends) Stocks
Natural Gas Equity Market- Tactical Asset
Neutral Allocation
Financial
US REITs
Stocks
The above illustration is not a complete analysis and should not be considered investment advice. The positioning of the investment themes and
styles highlighted above reflect the Advisor’s outlook as of 12/31/09 and may change at any time. Projections are not guaranteed and may vary
significantly. Any statements nonfactual in nature constitute current opinions, which are subject to change.
INVESTMENT STRATEGISTS for SUCCESSFUL ADVISORS 6
8. Application of Themes
Reward
- Environmental - Energy Stocks
Equities - Healthcare Stocks
- Frontier Markets - Japan Equity
STRATEGY OVERVIEW - Global Infrastructure - Non-US Bonds
Aggressive: 10-year horizon - Natural Gas - Oil
• Global portfolio
GLOBAL
• Primarily net long CYCLE
• Opportunistic short positions
- China
- Emerging Pharma
Stocks - Dedicated Short
Equity
- Global REITs
- Gold - US Dollar
- India
- Europe Equity
- Contrarian Value - Large Cap Growth
Equity - S&P 500 Index
STRATEGY OVERVIEW
Moderate: 5-year horizon
CONCENTRATED
EQUITY • Concentrated equity
portfolios
• Long equity-biased
- Equity-Income • Periodic hedge overlay
- Dedicated Short
(Dividends) Equity
- ROI Growth Equity
- Small-Midcap Stocks
- Convertible Arbitrage
- Equity L/S
- Hedged Equity
- Merger Arbitrage
STRATEGY OVERVIEW
Conservative: 3-year horizon Risk/Reward
HYBRID • Absolute return focus Assessment:
- Convertible Securities
• Low net equity exposure
EXCELLENT
- Equity Market- • Hedged strategies GOOD
Neutral
- High Yield Bonds - Dedicated Short FAIR
Equity POOR
- Tactical Asset
Allocation
Risk
The above illustration is not a complete analysis and should not be considered investment advice. The positioning of the investment themes and
styles highlighted above reflect the Advisor’s outlook as of 12/31/09 and may change at any time. Projections are not guaranteed and may vary
significantly. Any statements nonfactual in nature constitute current opinions, which are subject to change.
7 INVESTMENT STRATEGISTS for SUCCESSFUL ADVISORS
9. EAS Growth of $1,000 Chart
EAS NET RETURNS VS. THE S&P 500 TR
(10/1/05 – 12/31/09)
Performance shown is for the period 10/1/2005 through 12/31/09 and is net of fees. The performance data shown for the EAS Composites
vs. the S&P 500 TR is not presented for point-by-point comparison purposes, but to demonstrate the overall return characteristics of the
Emerald Allocation Strategies when contrasted with more traditional familiar styles. The appropriate EAS composite benchmarks, statistical
comparisons and other important information are located on the attached full disclosure performance presentations for each EAS composite.
Past performance is not indicative of future results.
INVESTMENT STRATEGISTS for SUCCESSFUL ADVISORS 8
10. EAS HYBRID STRATEGY
Market-Neutral Currency
REITs
Contact: Medon A. Michaelides
Inverse Bond
Phone: 954-385-9624 ext. 190
Global Macro Long-Short
Fax: 954-385-6770
Email: mmichaelides@emeraldeas.com
Dedicated Short High Yield Website: www.EmeraldAssetAdvisors.com
Convertibles Arbitrage
Equity Investment Time Horizon - 3 Years or More
Strategy Description
The Emerald Allocation Strategies (EAS) are a series of asset allocation portfolios focused on achieving long-term investment results with low market correlation (i.e.,
they aim to generate returns which are largely independent of market forces). They offer a refreshing alternative to traditional stock-bond investment approaches.
EAS Hybrid is similar to the multi-manager approach used by market-neutral and opportunistic hedge fund-of-funds. However, by using mutual funds and other
traditional, highly-liquid investment vehicles that employ hedge fund-like strategies, we expect to deliver to the investor a similar experience as a conservative hedge
fund-of-funds in terms of absolute return, but absent many of the uncomfortable features of hedge funds or the limited partnership structure.
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2009 -1.1% -1.5% 1.6% 2.5% 3.8% -0.4% 3.0% 0.9% 2.3% 0.1% 2.2% 0.7% 14.8%
2008 -0.2% 1.7% -1.4% 0.7% 1.9% -0.4% -2.6% -1.6% -3.4% -4.7% -2.1% 1.4% -10.5%
2007 0.4% 0.9% 1.0% 0.8% 0.9% 0.7% 0.7% -0.9% 1.7% 0.9% -0.1% 0.8% 8.1%
2006 2.0% -0.8% 1.2% 1.9% -0.2% -0.1% 0.5% 0.0% -0.5% 1.2% 1.3% 0.3% 6.9%
2005 -0.6% 2.0% -0.4% -1.5% 0.9% 1.0% 1.7% 1.2% 1.6% -1.2% 0.3% 1.1% 6.2%
2004 0.9% 0.6% 0.5% -1.9% -0.2% 0.8% -0.8% 0.1% 1.4% 0.4% 1.8% 0.5% 4.1%
2003 -0.5% -0.4% 0.6% 3.1% 2.5% 0.8% 0.6% 1.4% 0.4% 2.2% 1.2% 1.0% 13.6%
2002 Gross of Fees 2.8% -1.0% 1.9%
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2009 -1.3% -1.5% 1.6% 2.3% 3.8% -0.4% 2.8% 0.9% 2.3% -0.1% 2.2% 0.7% 13.9%
2008 -0.4% 1.7% -1.4% 0.5% 1.9% -0.4% -2.8% -1.6% -3.4% -4.8% -2.1% 1.4% -11.2%
2007 0.2% 0.9% 1.0% 0.6% 0.9% 0.7% 0.5% -0.9% 1.7% 0.8% -0.1% 0.8% 7.4%
2006 1.8% -0.8% 1.2% 1.8% -0.2% -0.1% 0.4% 0.0% -0.5% 1.0% 1.3% 0.3% 6.3%
2005 -0.8% 2.0% -0.4% -1.6% 0.9% 1.0% 1.5% 1.2% 1.6% -1.3% 0.3% 1.1% 5.6%
2004 0.7% 0.6% 0.5% -2.0% -0.2% 0.8% -1.0% 0.1% 1.4% 0.3% 1.8% 0.5% 3.5%
2003 -0.7% -0.4% 0.6% 2.9% 2.5% 0.8% 0.5% 1.3% 0.4% 2.1% 1.2% 1.0% 12.8%
2002 Net of Fees 2.8% -1.0% 1.9%
12 Month Rolling Return Strategy Statistics
Annualized Return 5.3%
25% Standard Deviation 5.0%
Best 12 Months 15.5%
Annualized Compound Return
15% Worst 12 Months -14.8%
Percent Profitable Months 66.3%
5% Best Month 3.8%
Worst Month -4.8%
Max Drawdown -15.5%
-5%
Annualized Return 1 Year 5 Years 7 Years
-15% EAS Hybrid Strategy - Net 13.9% 4.1% 5.2%
DJ Conservative US Rel Risk Port 11.0% 4.8% 5.8%
Barclays Aggregate Bond Index 5.9% 5.0% 4.8%
EAS Hybrid Strategy--Net
Dow Jones - Conservative U.S. Relative Risk Portfolio Index Correlation to Benchmarks BM1 BM2
Barclays Aggregate Bond Index Annualized Alpha 0.9% 4.4%
Beta 0.74 0.21
Benchmark Information R-squared 0.41 0.03
Benchmark 1 (BM1): Dow Jones - Conservative U.S. Relative Risk Portfolio Index Up Capture 76.1% 52.1%
Benchmark 2 (BM2): Barclays Aggregate Bond Index Down Capture 68.0% -15.4%
Cumulative Return *Risk/Return Scatterplot
6%
60%
Annualized Return
Cumulative Return
40% 5%
20%
4%
0%
-20% 3%
2% 3% 4% 5%
Annualized Standard Deviation
EAS Hybrid Strategy--Net
EAS Hybrid Strategy--Net
Dow Jones - Conservative U.S. Relative Risk Portfolio Index
Dow Jones - Conservative U.S. Relative Risk Portfolio Index
Barclays Aggregate Bond Index
Barclays Aggregate Bond Index
*Supplemental Information to Full Disclosure Presentation
9 PLEASE SEE IMPORTANT INFORMATION ON THE FOLLOWING PAGE
11. EAS Hybrid Strategy
Disclosure
EMERALD ASSET ADVISORS, LLC
HYBRID COMPOSITE
ANNUAL DISCLOSURE PRESENTATION
Total Firm Composite Assets Performance Results
Year Year otal Firm Assets Composite Assets Composite Annual Performance Results
T
Assets USD Number of Composite DJ US Composite
End End (Millions)(millions) Accounts
(millions) USD (million)Accounts
Composite Net
Net Consv. AllocDispersion
DJ Comp Cons. Alloc
Gross Dispersion
2006 242 14 24 6.2% 6.2% 0.4%
2009 2005 274 212 52 17 86
43 13.9%
5.6% 3.5%14.8% 1.4% 11.0% 0.8%
2008 2004 224 190 48 18 88
55 -11.2% 5.9%
3.4% -10.5% 1.5% -1.9% 0.5%
2007 2003 284 180 46 19 86
55 7.4%
12.8% 10.9%8.1% 4.3% 5.7% 0.4%
2006 2002 242 119 15 <1 5 or 26
Fewer 6.3% 6.9% 6.2% 0.4%
2005 212 18 46 5.6% 6.2% 3.5% 1.3%
2004 190 18 56 3.5% 4.1% 5.9% 1.5%
2003 180 19 57 12.8% 13.6% 10.9% 4.3%
*2002 119 <1 Five or Fewer 1.9% 1.9% 2.2%
*Performance starts on November 1, 2002.
The Hybrid Composite contains all discretionary, fee paying, Hybrid accounts that invest primarily in Hybrid mutual funds with a minimum of at least three
Hybrid mutual funds and $35,000 minimum account value. Hybrid holdings typically come from the 11 sub-sectors/styles we have defined in the alternative
mutual fund universe through our own research (such as equity long-short, market-neutral, arbitrage, convertibles, high-yield and bond hedge). Accounts may
contain 10% or less non-Hybrid assets and may be included or excluded based on the potential of those assets to materially affect the ability to invest to the
mandate or the account performance. For comparison purposes the composite is measured against the Dow Jones US Conservative Allocation Index.
Emerald Asset Advisors, LLC has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®).
Emerald Asset Advisors, LLC is a SEC Registered Investment Advisor providing wealth management services for high net worth individuals and institutions.
The firm maintains a complete list and description of composites which is available upon request.
Net of fee performance was calculated using actual management fees. Gross performance results do not reflect the deduction of investment advisory fees and
are calculated after the deduction of actual trading expenses. Your return will be reduced by the advisory fees and other expenses that may be incurred in the
management of your account. Net and gross of fees performance includes the reinvestment of all income including realized and unrealized gains and losses.
The management fee schedule is as follows: 1.25% for the first $2 Million; 1.00% for the next $3 Million and 0.75% for over $5 Million. Actual investment
advisory fees incurred by clients may vary.
Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. The U.S. Dollar is the currency used to
express performance. The annual composite dispersion is an asset-weighted standard deviation calculated for the accounts in the composite the entire year.
Additional information regarding the policies for calculating and reporting returns is available upon request. Past performance is not indicative of future
results.
The Hybrid Composite was created April 1, 2006. Emerald Asset Advisors, LLC's compliance with the GIPS standards has been verified by Ashland Partners
from 1/01/2002 to 9/30/2008 and by Beacon Verification Services from 9/30/2008 to 9/30/09. In addition, a performance examination was conducted on the
Hybrid Composite for the period 10/31/2002 through 9/30/09. A copy of the verification report is available upon request.
Important information for Investors: The performance shown is for separate accounts managed by Emerald Asset Advisors, LLC using the Hybrid strategy. It
is important to note that Emerald may use securities such as ETF’s, mutual funds or other completion strategies within their separate accounts that are not
available through other programs. Therefore, the results obtained through Emerald’s separate account management program should not be viewed as
indicative of the results of the Hybrid Model Portfolio available through Adhesion, Eqis Capital, FTJ FundChoice, FOLIOfn, SummitAlliance, World Equity
Group, Next Financial or other broker/dealer platforms and TAMPS where our models are offered.
VISION. EXPERIENCE. DEDICATION to our CLIENTS 10
12. EAS CONCENTRATED EQUITY STRATEGY
Contrarian
Dedicated Short Value Contact: Medon A. Michaelides
Phone: 954-385-9624 ext. 190
Concentrated Fax: 954-385-6770
Sector Rotation
Equity Email: mmichaelides@emeraldeas.com
Multi-Cap High ROE Website: www.EmeraldAssetAdvisors.com
Investing Growth Investment Time Horizon - 5 Years or More
Strategy Description
The Emerald Allocation Strategies (EAS) are a series of asset allocation portfolios focused on achieving long-term investment results with low market correlation
(i.e., they aim to generate returns which are largely independent of market forces). They offer a refreshing alternative to traditional stock-bond investment
approaches.
EAS Concentrated Equity pursues long-term growth of capital by selecting compelling equity managers who use a limited number of holdings (typically 30 or less),
compared to the average equity fund or managed account. We attempt to lower portfolio volatility by diversifying among a group of underlying managers, each
specializing in their own niche. We may also buy short-index securities as a hedge in perceived periods of high market risk.
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2009 -4.3% -9.4% 5.0% 10.2% 3.2% 1.2% 4.8% 2.9% 2.6% -1.7% 4.7% 3.8% 24.1%
2008 -2.5% 0.5% -2.8% 3.7% 2.7% -8.9% 0.3% 4.1% -4.5% -11.4% -10.7% 3.0% -24.9%
2007 1.6% -0.5% 1.7% 4.2% 6.1% -1.7% -2.1% 1.6% 4.1% 5.1% -6.0% -0.1% 14.2%
2006 4.5% -0.6% 3.1% 1.4% -1.0% 1.0% 0.4% 0.8% -0.4% 5.0% 1.9% -0.1% 16.9%
2005 -2.6% 4.3% 1.2% -0.6% 3.2% 2.1% 2.4% 2.5% -0.6% -1.3% 4.3% 1.4% 17.2%
2004 0.2% 0.1% 0.4% 2.2% 1.0% 1.3% 3.6% 4.6% 14.2%
Gross of Fees
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2009 -4.5% -9.4% 5.0% 10.0% 3.2% 1.2% 4.5% 2.9% 2.6% -1.9% 4.7% 3.8% 22.7%
2008 -2.8% 0.4% -2.8% 3.4% 2.7% -9.0% 0.0% 4.1% -4.5% -11.6% -10.7% 3.0% -25.9%
2007 1.3% -0.5% 1.7% 3.9% 6.1% -1.7% -2.4% 1.6% 4.1% 4.8% -6.1% -0.1% 12.6%
2006 4.2% -0.6% 3.1% 1.2% -1.1% 1.0% 0.0% 0.8% -0.4% 4.7% 1.8% -0.1% 15.3%
2005 -2.9% 4.3% 1.2% -0.9% 3.2% 2.1% 2.0% 2.4% -0.6% -1.6% 4.3% 1.4% 15.5%
2004 0.0% 0.1% 0.0% 2.2% 1.0% 0.9% 3.6% 4.6% 13.1%
Net of Fees
12 Month Rolling Return Strategy Statistics
Annualized Return 7.9%
40% Standard Deviation 13.5%
30% Best 12 Months 23.9%
Annualized Compound Return
20% Worst 12 Months -34.3%
10% Percent Profitable Months 64.7%
0% Best Month 10.0%
-10% Worst Month -11.6%
-20% Max Drawdown -39.8%
-30%
Annualized Return 1 Year 3 Years 5 Years
-40%
EAS Concentrated Equity - Net 22.7% 0.8% 6.4%
-50%
Russell 3000 Index (DRI) 28.3% -5.4% 0.8%
S&P 500 TR 26.5% -5.6% 0.4%
EAS Concentrated Equity - Net Russell 3000 Index (DRI) S&P 500 TR
Correlation to Benchmarks BM1 BM2
Annualized Alpha 5.7% 6.1%
Beta 0.77 0.79
Benchmark Information R-squared 0.82 0.81
Benchmark 1 (BM1): Russell 3000 Index (DRI) Up Capture 91.0% 101.4%
Benchmark 2 (BM2): S&P 500 TR Down Capture 78.7% 80.8%
Cumulative Return *Risk/Return Scatterplot
100% 8%
Annualized Return
Cumulative Return
80% 7%
60% 6%
40% 5%
20% 4%
0% 3%
-20% 2%
1%
-40%
12% 13% 14% 15% 16%
Annualized Standard Deviation
EAS Concentrated Equity Strategy--Net EAS Concentrated Equity Strategy--Net
Russell 3000 Index (DRI) Russell 3000 Index (DRI)
S&P 500 TR S&P 500 TR
*Supplemental Information to Full Disclosure Presentation
11 PLEASE SEE IMPORTANT INFORMATION ON THE FOLLOWING PAGE
13. EAS Concentrated Equity Strategy
Disclosure
EMERALD ASSET ADVISORS, LLC
CONCENTRATED EQUITY COMPOSITE
ANNUAL DISCLOSURE PRESENTATION
Total Composite Assets Performance Results
Year Assets
Firm USD Number of Composite Composite Russell Composite
End (millions) (millions) Accounts Net Gross 3000 Dispersion
2009 274 32 84 22.7% 24.1% 28.3% 11.1%
2008 224 33 106 -25.9% -24.9% -37.3% 7.9%
2007 284 50 129 12.6% 14.2% 5.1% 2.1%
2006 242 28 43 15.3% 16.9% 15.7% 2.4%
2005 212 13 24 15.5% 17.2% 6.1% 1.4%
*2004 190 4 8 13.1% 14.2% 11.8%
*Performance starts on May 1, 2004.
The Concentrated Equity Composite contains all discretionary, fee paying, concentrated equity accounts that invest primarily in concentrated equity managers.
The accounts within this composite are managed by sub-advisors that are reviewed and chosen (hired/fired) by Emerald Asset Advisors, LLC ("Emerald") using a
concentrated equity strategy or by Emerald using a mix of concentrated equity mutual funds and ETFs. Sub-advisors have been used since inception of the
strategy to present date. We may also buy dedicated short funds as a portfolio hedge in perceived periods of high market risk. This strategy may contain both
domestic and foreign securities. For comparison purposes the composite is measured against the Russell 3000 Index. The Russell 3000 Index is comprised solely
of domestic securities while the Concentrated Equity Strategy may invest in both domestic and foreign securities.
Emerald Asset Advisors, LLC has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®). Emerald is a
SEC Registered Investment Advisor providing wealth management services for high net worth individuals and institutions. The firm maintains a complete list
and description of composites, which is available upon request.
Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. The U.S. Dollar is the currency used to
express performance.The annual composite dispersion is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. The
$35,000 account minimum was removed on January 1, 2007. Additional information regarding the policies for calculating and reporting returns is available upon
request. Past performance is not indicative of future performance.
Net and gross of fees performance includes the reinvestment of all income including realized and unrealized gains and losses. Net of fee performance was
calculated using actual management fees. If sub-advisors are used to manage all or a portion of your account, you may be charged management fees by the sub-
advisor and by Emerald. Sub-advisor fees vary by advisor and are available in their respective ADV Part II and Schedule F which is available upon request.
The gross performance results shown do not reflect the deduction of investment advisory fees and are calculated after the deduction of actual trading expenses.
Your return will be reduced by the advisory fees and other expenses that may be incurred in the management of your account.
The management fee schedule is as follows: 1.25% for the first $2 Million; 1.00% for the next $3 Million and 0.75% for over $5 Million. Actual investment advisory
fees incurred by clients may vary.
The Concentrated Equity Composite was created April 1, 2006. Emerald Asset Advisors, LLC's compliance with the GIPS standards has been verified by Ashland
Partners from 1/01/2002 to 9/30/2008 and by Beacon Verification Services from 9/30/2008 to 9/30/2009. In addition, a performance examination was conducted on
the Concentrated Equity Composite for the period 4/30/04 through 9/30/09. A copy of the verification report is available upon request.
Important information for Investors: The performance results shown are for separate accounts managed by Emerald Asset Advisors, LLC using the
Concentrated Equity Strategy. It is important to note that Emerald may use securities such as ETF’s, mutual funds or other completion strategies within their
separate accounts that are not available through other programs. Therefore, the results obtained through Emerald’s separate account management program
should not be viewed as indicative of the results of the Concentrated Equity Model Portfolio available through Adhesion, Eqis Capital, FTJ FundChoice, FOLIOfn,
SummitAlliance, World Equity Group, Next Financial or other broker/dealer platforms and TAMPS where our models are offered.
VISION. EXPERIENCE. DEDICATION to our CLIENTS 12
14. EAS GLOBAL CYCLE STRATEGY
Dedicated India Equity
Global Contact: Medon A. Michaelides
Short
China Equity Phone: 954-385-9624 ext. 190
Infrastructure
Fax: 954-385-6770
Email: mmichaelides@emeraldeas.com
Frontier Alternative Website: www.EmeraldAssetAdvisors.com
Global REITs Energy Investment Time Horizon - 10 Years or More
Markets
Strategy Description
The Emerald Allocation Strategies (EAS) are a series of asset allocation portfolios focused on achieving long-term investment results with low market correlation
(i.e., they aim to generate returns which are largely independent of market forces). They offer a refreshing alternative to traditional stock-bond investment
approaches.
EAS Global Cycle seeks to capitalize on long-term trends identified by Emerald's research team. We believe that some of these themes will take place over many
years, even decades. This strategy often involves investing in areas of the markets that exhibit high short-term volatility. While the themes are expected to play out
over a long period, we do recognize that it may be helpful to increase or decrease our position in a particular theme over time. We may also buy short-index
securities as a hedge in perceived periods of high market risk.
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2009 -3.4% -3.7% 5.0% 8.2% 13.5% -1.1% 6.2% 0.5% 5.4% -0.8% 4.0% 1.3% 39.6%
2008 -2.3% -1.6% -2.4% 2.6% 0.7% -4.7% 0.3% -0.5% -6.3% -11.9% -2.7% 1.5% -24.8%
2007 1.5% -1.4% -0.2% 2.2% 2.9% 2.1% 1.5% -1.4% 5.4% 3.5% -1.9% -1.9% 12.7%
2006 7.9% 0.7% 1.3% 2.9% -1.0% -2.7% 1.2% 1.6% 1.9% 4.1% 1.4% 0.5% 21.3%
2005 -7.0% 3.9% 1.7% -1.7%
Gross of Fees
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2009 -3.6% -3.7% 5.0% 8.0% 13.5% -1.1% 6.0% 0.5% 5.4% -1.0% 4.0% 1.3% 38.5%
2008 -2.4% -1.6% -2.4% 2.4% 0.7% -4.7% 0.2% -0.5% -6.3% -12.0% -2.7% 1.5% -25.3%
2007 1.3% -1.4% -0.2% 2.0% 2.9% 2.1% 1.3% -1.4% 5.4% 3.4% -1.9% -1.9% 12.0%
2006 7.9% 0.7% 1.3% 2.7% -1.0% -2.7% 1.0% 1.6% 1.9% 4.0% 1.4% 0.5% 20.6%
2005 -7.0% 3.9% 1.7% -1.7%
Net of Fees
12 Month Rolling Return Strategy Statistics
Annualized Return 7.8%
50% Standard Deviation 14.2%
40%
30%
Best 12 Months 38.8%
Annualized Compound Return
20% Worst 12 Months -27.9%
10% Percent Profitable Months 60.8%
0% Best Month 13.5%
-10% Worst Month -12.0%
-20% Max Drawdown -33.3%
-30%
-40% Annualized Return 1 Year 3 Years
-50% EAS Global Cycle Strategy - Net 38.5% 5.0%
-60%
MSCI The World Index - Net 30.0% -5.6%
S&P 500 TR 26.5% -5.6%
EAS Global Cycle Strategy - Net MSCI The World Index - Net S&P 500 TR Correlation to Benchmarks BM1 BM2
Annualized Alpha 6.9% 7.8%
Beta 0.66 0.69
Benchmark Information R-squared 0.77 0.69
Benchmark 1 (BM1): MSCI The World Index - Net Up Capture 78.6% 85.9%
Benchmark 2 (BM2): S&P 500 TR Down Capture 68.7% 66.7%
Cumulative Return *Risk/Return Scatterplot
50% 8%
Cumulative Return
Anualized Return
40%
30% 6%
20%
10% 4%
0%
-10% 2%
-20%
0%
-30%
-40%
-2%
-50%
13% 14% 15% 16% 17% 18% 19%
Annualized Standard Deviation
EAS Global Cycle Strategy--Net MSCI The World Index - Net S&P 500 TR EAS Global Cycle Strategy--Net MSCI The World Index - Net
S&P 500 TR
*Supplemental Information to Full Disclosure Presentation
13 PLEASE SEE IMPORTANT INFORMATION ON THE FOLLOWING PAGE
15. EAS Global Cycle Strategy
Disclosure
EMERALD ASSET ADVISORS, LLC
EMERALD ASSET ADVISORS, LLC
Hybrid Composite
GLOBAL CYCLE COMPOSITE
Annual Disclosure Presentation
ANNUAL DISCLOSURE PRESENTATION
Total
Firm Composite Assets Performance Results
Year Year otal Firm Assets Composite of Composite Composite
Assets
T USD Number Assets MSCI Composite
Annual Performance Results
End (millions)
End (millions)
(Millions) Accounts Net DJ Consv. AllocDispersion Dispersion⁽²⁾
Accounts Composite Net Gross
USD (million) CompWorld Index
2009 2006 274 242 6 14 13 24 6.2%
38.5% 6.2%
39.6% 0.4%
30.0% 3.0%
2005 212 17 43 5.6% 3.5% 1.4%
2008 224 190 3 12 -25.3% -24.8% -40.7% 0.3%
2004 18 55 3.4% 5.9% 1.5%
2007 ⁾
⁽ 2003284 180 4 19 14 55 12.0%
12.8% 12.7%
10.9% 9.0%
4.3% N.A.
2006 2002242 119 1 <1 Five or Fewer
5 or Fewer 20.6% 21.3% 20.1% N.A.
2005 ¹ 212 <1 Five or Fewer -1.7% -1.7% 2.7%
(1) Performance starts on October 1, 2005.
(2) N.A. - Information is not statistically meaningful due to an insufficient number of portoflios in the composite for the entire year.
The Global Cycle Composite contains all discretionary, fee paying, accounts that invest primarily in long term business trends or "cycles" with a minimum of
$50,000 account value. This strategy uses mutual funds, ETFs, stocks, options and other completion strategies. The composite may contain both domestic and
foreign securities. For comparison purposes the composite is measured against the MSCI World Free (net) Index.
Emerald Asset Advisors, LLC has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®).
Emerald Asset Advisors, LLC (Emerald) is a SEC Registered Investment Advisor providing wealth management services for high net worth individuals and
institutions. The firm maintains a complete list and description of composites, which is available upon request.
Performance includes the reinvestment of all income including realized and unrealized gains and losses. Net of fee performance was calculated using actual
management fees. Gross performance results do not reflect the deduction of investment advisory fees and are calculated after deduction of actual trading expenses.
Your return will be reduced by the advisory fees and other expenses that may be incurred in the management of your account.
The management fee schedule is as follows: 1.25% for the first $2 Million; 1.00% for the next $3 Million and 0.75% for over $5 Million. Actual investment advisory
fees incurred by clients may vary.
Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Composite performance is presented net of
foreign withholdings taxes, where applicable. The U.S. Dollar is the currency used to express performance. The annual composite dispersion is an asset-weighted
standard deviation calculated for the accounts in the composite the entire year. Additional information regarding the policies for calculating and reporting returns
is available upon request. Past performance is not indicative of future performance.
The Global Cycle Composite was created April 1, 2006. Emerald Asset Advisors, LLC's compliance with the GIPS standards has been verified by Ashland Partners
from 1/1/2002 to 9/30/2008, and by Beacon Verification Services from 9/30/2008 to 9/30/09. In addition, a performance examination was conducted on the Global
Cycle Composite for the period 9/30/2005 through 9/30/09. A copy of the verification report is available upon request. (The "Global Cycle" Composite was formerly
known as the "Cycle" Composite).
Important information for Investors: The performance results shown are for separate accounts managed by Emerald Asset Advisors, LLC using the Global Cycle
Strategy. It is important to note that Emerald may use securities such as ETF’s, mutual funds or other completion strategies within their separate accounts that are
not available through other programs. Therefore, the results obtained through Emerald’s separate account management program should not be viewed as indicative
of the results of the Global Cycle Model Portfolio available through Adhesion, Eqis Capital, FTJ FundChoice, FOLIOfn, SummitAlliance, World Equity Group, Next
Financial or other broker/dealer platforms and TAMPS where our models are offered.
VISION. EXPERIENCE. DEDICATION to our CLIENTS 14
16. INVESTMENT STRATEGISTS for
SUCCESSFUL ADVISORS
2843 Executive Park Drive | Weston, FL 33331
-954-385-9624 | -www.EmeraldAssetAdvisors.com
VISION. EXPERIENCE. DEDICATION to our CLIENTS
ISION XPERIENCE EDICATION LIENTS