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Entrepreneur US All Cap Strategy
1. Entrepreneur US All Cap Strategy
EntrepreneurShares, LLC
470 Atlantic Avenue • Suite 400 • Boston, MA 02210
o. (617) 273.8218 • f. (617) 273.8118 • www.ershares.com
2. DISCLAIMER PAGE
EntrepreneurShares is an institutional asset management firm and is registered with the SEC as an investment advisor. The Entrepreneur All
Cap Strategy (the Strategy) contains portfolios invested in equities with market capitalizations above 200MM exclusively within the US. The
benchmark is the Russell 3000 index. The index measures the performance of the largest 3000 U.S. companies representing approximately 98%
of the investable U.S. equity market. Performance data of the index was obtained from publicly available sources.
From inception through September 2013, the Strategy represents the US long only performance extracted from the EntrepreneurShares Global
Equities composite as well as cash allocation of 2% based on the intention to be fully invested. The document has been prepared solely for the
informational purposes of prospective advisory clients. By accepting this document, the recipient acknowledges that all of the information
contained herein is confidential and may not be used for any purpose other than for discussions with EntrepreneurShares regarding its advisory
services. The information contained in this document is provided as of specified dates. EntrepreneurShares has no obligation to update,
supplement or correct any information in this document, although it reserves the rights to do so. This document does not purport to be allinclusive or to contain all of the information that a prospective advisory client may deem necessary to make its decision to engage
EntrepreneurShares as an investment advisor.
Investment in the Fund will result in certain risks which are detailed in the Prospectus. These risks include manager risk, market risk, common
stock risk, risk of no prior experience of managing a registered mutual fund, small and medium sized companies risk, technology company
investing risk and quantitative investment approach risk. Investors should consider carefully the investment objectives, risks, and charges and
expenses before investing. For a full prospectus which contains this and other information about the funds offered by EntrepreneurShares, call
us at (617) 273-8218 or email Jared Shulman at jared@ershares.com.
EntrepreneurShares, LLC
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
3. OVERVIEW
OBJECTIVE:
DIFFERENTIATING FACTORS:
Our investment objective is to outperform the Russell
3000 throughout all market cycles. In doing so, we
strive to consistently generate superior risk-adjusted
Alpha and Up-Capture ratio by investing in
entrepreneurial companies. We maintain a
commitment to meet the financial goals of every
client.
We employ a proprietary set of quantitative and qualitative
filters, developed over twenty years of academic research.
We are constantly seeking refinements and new
applications of our models. Our approach enables us to
create unique portfolios of companies led by
entrepreneurs that generate significant absolute and riskadjusted performance. We can assemble a subset of our
holdings that will track our desirable Entrepreneur
characteristics without disrupting our clients’ targeted risk
parameters (e.g. by market cap, geographic region, sector,
etc.). Our 8+ year track record of performance ranks well
against our peer benchmarks over the comparable time
period. We also employ a proprietary sector and style
rotational overlay that allows us to enter and exit global
markets efficiently based on dynamic changes to economic
conditions.
PHILOSOPHY:
Entrepreneurial leaders have economic and noneconomic incentives to create value in their
organizations. Their compensation packages are
heavily weighted based on company performance and
they have considerable assets invested in the
business. Ultimately, these benefits are reflected in
earnings growth, stock price appreciation and above
average employment growth. Our academic research
shows that companies led by entrepreneurs
outperform non-entrepreneurs over a long period.
EntrepreneurShares, LLC
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
4. MANAGEMENT TEAM
JOEL M. SHULMAN Ph.D., CFA
DAVID R. CRAGG
Managing Director & Chief Investment Officer
Chief Financial Officer
Joel Shulman is the managing director and CIO of
EntrepreneurShares. In addition, Dr. Shulman has
managed an offshore private fund for over 8 years. Dr.
Shulman is a Professor of Entrepreneurship at Babson
College (the number one ranked graduate and
undergraduate program in entrepreneurship, according to
BusinessWeek and U.S. News & World Report’s for the last
15 years). He holds a Ph.D. in Finance and is a CFA charter
holder. Dr. Shulman also holds an MPA from the JFK
School of Government at Harvard University. Dr. Shulman
was the founder of Shulman Review that trained over
10,000 investment professionals in over 110 countries for
the CFA designation.
David Cragg serves as the CFO & CCO of
EntrepreneurShares
Global
Fund.
Prior
to
EntrepreneurShares, David served as Chief Operating
Officer and Chief Financial Officer of Leuthold Weeden
Capital Management a Minneapolis based investment
management firm with $5.2 billion assets under
management. In addition to his roles as COO and CFO,
David assisted portfolio managers in the day to day
management of accounts. Prior to joining Leuthold
Weeden Capital Management, David held a variety of
positions within Piper Trust Company from 1993 to
January 1999, most recently as Operations Manager.
David graduated in 1991 from Westmont College with a
BA in Economics.
EntrepreneurShares, LLC
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
5. MANAGEMENT TEAM
ALICE J. THOMPSON
JARED I. SHULMAN
Chief Administrative Officer
Associate
Alice Thompson was previously an executive at Thompson
Guitars, where she led marketing and administrative
operations. She brings a fresh, hip edge to
EntrepreneurShares and handles all administrative,
communication and day-to-day operations. In addition,
she assists with front-end sales and marketing efforts.
She spearheads the image and spirit of our entity and
champions our social conscience efforts. She earned her
BS from Babson College.
Jared Shulman joins the EntrepreneurShares team after
serving as the leading Account Director at Blue Wolf
Group. As the newest addition to the team, Shulman
brings experience surrounding sales processes and
customer life cycle. His main responsibilities include sales
and marketing efforts. Shulman graduated from Babson
College with a degree in Entrepreneurship with focused
research in raising capital.
EntrepreneurShares, LLC
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
6. STRATEGIC PARTNERS | Pentegra Retirement Services
SCOTT STONE
MICHAEL RANDAZZO
SVP, Chief Investment Officer
VP Investments
Scott serves as the Chief Investment Officer at Pentegra
Retirement Services, where his duties include the
management and oversight of the investment processes
governing approximately $7.5 Billion in assets comprised
of both public and private holdings of fixed income,
equity, real estate and hedge fund investments. Scott
previously worked at Reinsurance Group of America (RGA)
and served in a number of roles beginning in 2003 as
Senior Portfolio Manager. He was soon after named Head
of Fixed Income Investments, and led the company's
effort to create its own trading operation and in-source
U.S. fixed income investment management. He later
served as VP and Director of Investment Strategy and
Credit research, where he managed the company's credit,
structured asset, and real estate research associates
through the credit downturn between 2007 and 2009. By
2010, Scott held primary responsibility for management
of the company's non-traditional investment vehicles,
including Private Equity partnerships, Mezzanine Debt
funds, Commercial Real Estate holdings, and Distressed
Securities markets.
BIO GOES HERE
EntrepreneurShares, LLC
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
7. INVESTMENT PROCESS
A
B
Quantitative Analysis
Qualitative Analysis
Companies are selected using
our proprietary filters to assess
their entrepreneurial profile.
We narrow our Universe of
55,000 publicly traded
companies down to
approximately 1,000 firms.
After our quantitative filters we
then apply our proprietary analysis
to arrive at approximately 400
“Global Entrepreneurs”. Our
Global 400 represent our Universe
of SMA, UMA and licensing
products. We then make a further
refinement to arrive at our
Entrepreneur US All Cap Strategy.
Our Strategy holds more than 100
of our US Domestic Entrepreneurs.
C
Perform monthly
monitoring and
rebalancing
The Strategy holdings are
reviewed and rebalanced monthly
and quarterly based on changes
to our 15 proprietary attributes.
We employ a sector and style
rotational overlay based on a
proprietary model of 12 macro
economic variables.
Entrepreneur US All Cap Strategy
EntrepreneurShares, LLC
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
8. INVESTMENT PROCESS
Entrepreneur US All Cap MODEL Filtering Process
55,000+
All Major Exchanges
1,000+
Broad Marketability
and Capitalization
400+
EntrepreneurShares
Global Index
100+
ER US All Cap
EntrepreneurShares, LLC
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
9. 15 KEY ENTREPRENUERIAL TRAITS
1
Organic growth opportunities
2
Above average ownership
3
Low SG&A
4
Above average return
5
Sustainable growth
on invested capital
EntrepreneurShares, LLC
Manageable debt
7
Active strategic alliances/
8
stake among key stakeholders
6
Aligned executive
9
Low executive turnover
partnerships/licensing
compensation packages
10
Transparent governance
11
Long duration of
12
Low or no dividends
13
Family involvement
14
High EBITDA Margin %
15
Other significant
key managers
stakeholder relationship
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
10. INVESTMENT PROCESS
Entrepreneur US All Cap Strategy
33,000+
All Major Exchanges
9,000+
Broad Marketability
and Capitalization
400+
Global Index
200+
EntrepreneurShares, LLC
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
11. INVESTMENT PROCESS
When Do We Rebalance the Portfolio?
33,000+
There are 7 times on the clock when we adjust the portfolio. Rules have been
All Major Exchanges
determined for each time. Only when those rules are met, do we consider it to be
that “time”.
9,000+
Broad Marketability
and Capitalization
400+
Global Index
200+
EntrepreneurShares, LLC
To tell the “time,” we analyze
objective measures such as:
Macroeconomic factors
Sector and style performance
Overall market trends
As each time is struck, the Fund
Manager will opportunistically
pursue those stocks, styles and
sectors which should be
rewarded.
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
12. INVESTMENT CHARACTERISTICS
ENTREPRENEURS BY SECTOR
EntrepreneurShares, LLC
PORTFOLIO BY INVESTMENT STYLE (%)
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
13. INVESTMENT PRODUCTS
Entrepreneur US All Cap Fund
(IMPAX):
The fund will be launched within the near future. It is
an actively managed Mutual Fund comprised of the
Domestic subset of our Global 400 Entrepreneurs. We
have scheduled maintenance on a monthly and
quarterly basis.
Licensing Opportunities:
Entrepreneur Indices may be allowed for licensing
purposes. (Note: significant investment requirements
and holding restrictions will apply.)
SMA/UMA Opportunities:
We compile a subset of our Global Entrepreneurs
for SMA/UMA investment purposes. We can structure
portfolios based on market cap, geographic region
and industrial sector. Other customized composites
are created to ensure the desired risk classification for
our clients. (Note: Minimum investment and holding
requirements may apply.)
EntrepreneurShares, LLC
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
14. SMA/UMA LICENSING SUMMARY
Entrepreneurial Composite Creates Risk Management (Index) Opportunities
Our Entrepreneur Index composites offer client investors opportunity to customize
desired risk exposure without sacrificing alpha generation or up capture performance.
EntrepreneurShares has created a new style of investment in entrepreneurial companies.
The Entrepreneur Index can be applied to a variety of investment strategies including:
large cap, mid cap, small cap, as well as different sectors, industries and countries.
The indices are easily replicated and are statistically significant compared to relevant
benchmarks.
Hedge funds and other institutional investors could use Entrepreneur Index to isolate
specific risk/return characteristics for benefit of their clients.
Entrepreneur Index potentially reduces downside risk by investing side-by-side with
motivated owner/managers.
EntrepreneurShares, LLC
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
15. ENTREPRENEUR US ALL CAP SUMMARY
Our Entrepreneur US All Cap Difference
This Strategy has created a new style of investment in
entrepreneurial companies.
Entrepreneur US All Cap Strategy provides significant riskadjusted (Alpha) benefits compared to its peer benchmarks
Entrepreneurs tend to outperform their peers over a period of
time (they have strong economic incentives and non financial
motivators to deliver strong performance).
Entrepreneur US All Cap Strategy provides significant absolute
returns over an extended period of time
The strategy uses proprietary filters that the portfolio manager
and his team have developed over the past twenty years of
academic research.
This strategy provides significant Up Capture benefits
EntrepreneurShares, LLC
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
16. TERMS AND CONDITIONS
Investment Advisor—Weston Capital, LLC
Investment Manager – EntrepreneurShares, LLC
Fund Type –SMA, UMA and licensing structures.
Entry Load – N/A
Subscription – Daily
Redemption – Varying for SMA, UMA & Licensing
Lock up period – 5 days, varying for SMA, UMA & Licensing
Management Fee – .80%; varying for SMA, UMA & Licensing
Minimum Application amount – Institutional - $2,500; different
restrictions apply for SMA, UMA & Licensing
Benchmark – Russell 3000
Custodian – US Bank
Auditor – McGladrey
Legal Advisors – Clearspire
EntrepreneurShares, LLC
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
17. DIRECTORS & ADVISORS
GEORGE R. BERBECO
STEPHEN SOHN, MD
Director
Director
Mr. Berbeco is the President of The Devon Group, Inc.,
a commodity trading advisor, and General Partner of
Devon Capital Partners, LP. He has founded several
technical companies, including Charleswater Products,
Xytest, Syon, Adhesivesmart.com, and successfully
exited by sale to Armstrong World Industries and ITW,
as well as private funds. Mr. Berbeco is the author of
over twenty publications in technical journals relating
to electronics, ESD control, adhesives, and industrial
applications of ionizing radiation. He has made over
fifty presentations, and is the author of fifteen U.S.
and foreign patents. Mr. Berbeco is Chairman of Bay
Colony Development Corporation, one the largest SBA
504 lenders in the country. He is an Overseer of
WGBH Public Television, and on the board of the New
Rep Theatre. His past affiliations have included
chairman of the NE Chapter of the MS Society,
International Board of Governors-Technion, Haifa,
Israel. Mr. Berbeco is a graduate of M.I.T, M.S. and
B.S. Chemical Engineering, National Merit Scholar,
Sigma Xi Honorary. He is registered as a Commodity
Trading Advisor, and Commodity Pool Operator.
Dr. Sohn holds an A.B. from Harvard College, an MD from
Duke University, and an MBA (Summa Cum Laude) from
Babson College. He has been a faculty member of the
Harvard Medical School, written two medical textbooks,
and has had multiple research interests including
cardiovascular surgery (heart bypass and cardiac assist
devices) reconstructive surgery (cartilage regeneration
and joint reconstruction) and drug development (wound
healing and snoring). He founded the first ambulatory
surgery center in Massachusetts, started a consolidation
of dental practices in New England, and built a high-end
nationwide group of aesthetic medical practices that he
sold to Sprout capital. He has advised equity research
companies and Wall Street Investment firms, and has
volunteered his medical services in Africa and Pakistan/
Afghanistan.
EntrepreneurShares, LLC
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
18. DIRECTORS & ADVISORS
THOMAS T. STALLKAMP
Director
Mr. Stallkamp is Founder/Principal of Collaboration
Management, a private consultancy specializing in helping
businesses implement collaboration; and Industrial
Partner at Ripplewood Holdings, LLC, a NY-based private
equity firm. Formerly CEO/Chairman of MSX
International, he is best known as former President and
Vice Chairman of DaimlerChrysler. During almost 20 years
at Chrysler Corporation, Stallkamp helped lead the
company to
new stability and growth in the uncommonly competitive
auto-motive industry. As President there, his supplier
relationship strategies drove major improvements
in both quality and cost, helping make Chrysler the
world’s most profitable automaker. Stallkamp serves on
several corporate boards and on the advisory board of
Georgetown University’s McDonough School of Business,
and is the chairman of the Trustees at Babson College as
well as an adjunct faculty member in Entrepreneurship.
EntrepreneurShares, LLC
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
19. DIRECTORS & ADVISORS
CRAIG R. BENSON
LEONARD C. GREEN
Advisor
Advisor
Craig Benson served as governor of the State of New
Hampshire from 2002 to 2005. A founder of Collingsworth
Company, Mr. Benson is currently reviewing strategic
investments and potential turnaround targets. Mr.
Benson co-founded Cabletron Systems in 1983 and
served as president and CEO, growing annual revenue
to $1.6 billion. He was inducted into the Babson College
Academy of Distinguished Entrepreneurs in 1995 and
formerly served on the ITSD Advisory Board.
Leonard C. Green is a CPA, MBA, and Entrepreneur.
He is CEO of the Green Group, which consists of 14
different businesses including accounting, consulting,
financial, real estate, thoroughbred horses, sports
teams, a dog food and cat food company, and three
charities. Len is also a member of the Board of
Directors of a number of companies and foundations.
Len teaches two entrepreneurial courses, one
structured similar to Donald Trump’s Apprentice
TV series and a Family Business course.
EntrepreneurShares, LLC
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
20. DIRECTORS & ADVISORS
SANDRA METRAUX
NORMAN MALO
Advisor
Advisor
Sandra Metraux was executive vice president of
marketing for National Financial, a provider of
Integrated Brokerage Solutions and a division of
Fidelity Investments. In this role, she oversaw National
Financial’s marketing strategy and program
development functions, including creating and
building the company’s Integrated Brokerage
Solutions positioning in the marketplace. Ms. Metraux
first joined Fidelity Investments in 1986 and as an
officer of the firm led the development and delivery of
new business strategies, innovative products and
marketing.
Norman Malo was president and chief executive officer
of National Financial, a Fidelity Investments company.
Fidelity Investments is the largest mutual fund company
in the United States, the No. 1 provider of workplace
retirement savings plans and a leading online brokerage
firm Mr. Malo also was chief executive officer of National
Financial Services LLC. Prior to assuming his current
position in March 2003, Mr. Malo was president and
chief operating officer of National Financial Services LLC.
EntrepreneurShares, LLC
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com
21. DIRECTORS & ADVISORS
SIAMAK TAGHADDOS
Advisor
Siamak Taghaddos is the co-founder and CEO of
Grasshopper Group, a technology incubator with multiple
products that have empowered over
100,000 entrepreneurs to start and grow their
small businesses. A lifelong student of marketing, Siamak
is one of the youngest CEOs to be named to Inc.
Magazine’s list of the 500 fastest-growing private
companies in America, is the founding supporter of
National Entrepreneurs’ Day, and has been featured in
various publications including the Wall Street Journal,
Boston Globe, CNN, FOX News, and other media.
EntrepreneurShares, LLC
470 Atlantic Ave • Suite 400 • Boston, MA 02210 • o. (617) 273-8218 • f. (617) 273-8118 • www.ershares.com