Page 1

Asset Management Inc.

SMART VALUE FUND©


www.tw-am.com Asset Management Inc.

“The question is no longer about

Mutual vs Hedge Value vs Growth

Emerging vs Traditional Markets Long vs Short

but about SMART or DOGMATIC investing. The team of TWELVE Asset Management prefers the SMART way.“ Markus Schuller TAM Managing Director

OVERVIEW

TAM SMART VALUE Fund©

2


Updated 13.02.2008 www.tw-am.com Asset Management Inc.

01 TAM Team

04 TAM Smart Value Fund The Fund

02 TAM Mission

05 TAM USP

03 TAM Smart Value Fund

06 TAM Contact

The System

This presentation supersedes any presentation or information which may have been previously issued to anyone in relation to TAM Smart Value Fund ©. The contents of this presentation, including the terms of the fund, are preliminary and subject to change without notice. This is not an offer of interests or a solicitation of an offer to sell securities or an interest in TAM Smart Value Fund ©. or in any investment vehicle. This presentation is only intended for preliminary information purposes, is for the addressee only, is the property of TWELVE Asset Management Inc (“TAM”) in any media, and may not be disclosed to any third party in part or in whole without the written consent of TAM. Neither TAM nor the Advisor, nor any of the parties mentioned herein including their subsidiaries, affiliates, shareholders, directors or employees, nor any persons or professional firms directly or indirectly involved in any aspect of TAM Smart Value Fund ©. , guarantee the accuracy or completeness of this presentation; neither are they making any representation or providing any guarantee whatsoever as to the future economic performance of TAM Smart Value Fund ©. or as to whether TAM Smart Value Fund ©. will at any time in the future produce any return or other benefits to any potential participant or investor. Anyone contemplating a participation or investment in TAM Smart Value Fund ©. or a similar vehicle should refer to the private placement memorandum (which shall supersede and cancel this presentation), and should understand that participating in TAM Smart Value Fund ©. constitutes a risky investment in an emerging market, and are invited to conduct their own due diligence. The name of “TAM Smart Value Fund” is the property of TAM and is subject to change without notice. This document shall be superseded by the PPM when available.

OVERVIEW

TAM SMART VALUE Fund©

3


www.tw-am.com Asset Management Inc.

01 TAM Team

01 TAM TEAM

TAM SMART VALUE Fund©

4


www.tw-am.com Asset Management Inc.

TAM is led by an experienced team of successful investment professionals. Mag. Markus Schuller, MBA, MScFE

Team Member, CFP

Team Member, MBA, CPM

Professional Background

Professional Background

Professional Background

Senior Analyst Monaco Capital Partners Ltd.

Head of Private Banking (Regional Bank)

Senior Private Banker (Private Bank)

Equity-/ Options-Trader VKB Bank

Senior Private Banker (Regional Bank)

Senior Private Banker (Regional Bank)

Private Banker Hypo Landesbank AG

Senior Private Banker (Private Bank)

Equity Trader (Regional Bank)

Education

Private Banker (Private Bank)

Education

Master (Business Admin) at Kepler University (A) & University of Pittsburgh) MBA | International University of Monaco

Certified Portfolio Manager (CPM)

Education

MBA in Finance | Austrian University

Certified Financial Planner (CFP)

TRIGON OE-Werkstatt Trader & Market Maker Licenses MScFE | International University of Monaco

01 TAM TEAM

TAM SMART VALUE FundŠ

5


www.tw-am.com Asset Management Inc.

02 TAM Mission

02 TAM Mission

TAM SMART VALUE FundŠ

6


www.tw-am.com Asset Management Inc.

Smart Value Investing © The Alternative Investment industry is going through a period of fast growth and isochronously indicates in these days the first signs of a consolidation. Many Leverage & Arbitrage strategies are fighting for their right of existence. Although the industry records new money inflow highs, the selection process has started.

Smart Value

Our response to this selection is simple: We count on the power of quality. In the last six centuries, the financial market has derived four basal views of itself.

Transparency Fundamental View

Technical View

Behavioural View

Quantitative View

We invest in top quality companies and surround them with a 24/7 carefree airbag. Based on a smart assembling of the 4 basal views, TAM structures automatic systems which enable the selected companies to unhurriedly follow their operational growth path and show their superior qualities to the financial community. The result of TAM´s credo is an Equity Exposure Substitute, called Smart Value Investing ©.

02 TAM Mission

Relativity

Quality

Ethics

TAM SMART VALUE Fund©

7


www.tw-am.com Asset Management Inc. Smart Value

Relativity Transparency

Relativity

TAM´s systemic approach incorporates the “von Forster´s“ guiding idea of unfinished systems. As a consequence we are continuously tracing for improvement opportunities. This is best demonstrated by our co-operation with the MScFE Program of the International University of Monaco – a leading program in

Quality

Ethics

Europe. Our approach is superior, because we are undogmatically assembling stratgies and analysis methods in accordance with the best of breed principle.

Ethics The market shows daily how imprudent contenders invoice hidden or horrendous costs for their hedge fund management services. Even worse, together with the branch success, black sheep have slipped into the industry, not maintaining the quality of risk management and commercial due diligence. TWELVE Asset Management Inc. guarantees a simple and fair cost structure of its products. We feel constrained to the AIMA code of conduct and take a leading position in corporate governance for hedge funds.

02 TAM Mission

TAM SMART VALUE Fund©

8


www.tw-am.com Asset Management Inc. Smart Value

Transparency

Quality

Quality

Relativity

Ethics

We demand highest quality from ourselves. We expect the same from our partners. Therefore we only work with the best of the service industry. Reputation Generates Business.

Transparency Naturally our developed strategies are our most important property. Divulging strategies and the more common irrational decline of transparency are poles apart. We claim to provide highest possible transparency to our investors, enabling them to closely monitor their investments.

02 TAM Mission

TAM SMART VALUE FundŠ

9


www.tw-am.com Asset Management Inc.

03 TAM Smart Value Fund THE SYSTEM

03 TAM Smart Value Fund The System

TAM SMART VALUE FundŠ

10


www.tw-am.com Asset Management Inc.

The TAM Smart Value Fund – System is assembled by 4 phases. Phase I

Phase II

Worldwide universe of more than 12.000 listed stocks is

The allocation of all filtered stocks in accordance with several

screened fully automated on a daily base. The system is aligned

cycle theories is managed in phase II. Main focus is on using

to filter “operationally healthy“ companies.

industry momentum as additional portfolio driver.

Phase III

Phase IV

Equity and currency hedges arrange for an Alpha bias of the

Phase IV is called the “Trading Phase“. Here the system

TAM Smart Value Fund. Derivative strategies are exclusively

responds to short term market movements. On the one hand

adjusted to hedge the portfolio.

it allows single portfolio positions to have individual volatility ranges. On the other hand it protects the portfolio against excessive market correlation.

03 TAM Smart Value Fund The System

TAM SMART VALUE Fund©

11


www.tw-am.com Asset Management Inc.

R&D

The TAM Smart Value Fund Phase I 11

TAM

parameters

are

analyzing

the

operational strength of a company. These diverse views allow a comprehensive picture of a security´s fundamental core. Estimates and analyst recommendations (= best guesses) are not taken into account. A universe of more than 12.000 single stocks can

only

be

diligently

analyzed

with

an

extraordinary fundamental database. In co-

we are truly emphasizing on keeping the source state of the art.

03 TAM Smart Value Fund The System

Flexibility

operation with our partners Rimes and Reuters,

TAM SMART VALUE FundŠ

12


www.tw-am.com Asset Management Inc.

SYSTEM TESTS Gross Performance

The TAM Smart Value Fund – System was academically and

36,21%

40,00%

empirically put to the acid test. It ran through all characteristic

35,14%

35,00%

ideal test phases of a quantitative system:

30,00%

2001 – 2003:

Backtest

2004 – 2005:

Paper Live Test

2006 – 2007:

Real Money Test

2008 – YTD:

Paper Live Test

22,96%

25,00%

15,00%

19,33%

18,90%

20,00%

16,56%

10,02%

Additionally the system was modified and financial-theoretically

10,00%

5,57%

5,00%

rounded in the course of a master thesis for a MScFE degree at the International University of Monaco in 2005.

0,00%

2001

2002

Backtest

2003

2004

2005

Papertest

2006

2007

2008 (YTD)

Real Money Papertest Test

The system has shown superior success in all tested phases and has confirmend its basal hypotheses.

03 TAM Smart Value Fund The System

TAM SMART VALUE Fund©

13


www.tw-am.com Asset Management Inc.

REAL.MONEY.TEST | Performance TAM comparison

TAM comparison

(in original FX)

60,00%

(in EUR)

60,00%

50,00%

50,00%

40,00%

40,00% 30,00%

30,00%

20,00%

20,00%

10,00% 10,00% 0,00% 0,00% -10,00%

TAM %

S&P500 %

DAX %

DJI %

MSCI World %

TAM %

S&P EUR %

DAX %

DJI EUR %

MSCI World EUR %

The TAM Smart Value Fund – System shows adjoining its qualities during the Real Money Test. Intended to become an equity exposure substitute, the system outperformed all benchmarks in performance and volatility measures. It passed all upwards, sidewards and downwards market trends with flying colours.

03 TAM Smart Value Fund The System

TAM SMART VALUE Fund©

14


www.tw-am.com Asset Management Inc.

REAL.MONEY.TEST confirms stress resistance TAM System passes all critical moments since the start of the Real Money Tests in September 2006.

Feb2007

Jul2007

Nov2007

Asian Shakeout

Credit Crunch

US Recession Worries

03 TAM Smart Value Fund The System

TAM SMART VALUE FundŠ

15


www.tw-am.com Asset Management Inc.

52,68 %

REAL.MONEY.TEST

Where does the performance come from?

57 %

TOP 10 Equity Performers % contribution

52,68 % WORST 10 Equity Performers % contribution

11,01 %

43 %

-5,74 % Realized profits

Non-realized profits

Equity

Hedge

Performance

contribution Index

Equity

Portfolio Turnover NAV FX

03 TAM Smart Value Fund The System

1 Turnover

3,4

TAM SMART VALUE FundŠ

16


www.tw-am.com Asset Management Inc.

REAL.MONEY.TEST | Evaluation Overview of empirical “real money test“ parameters. Geographic Allocation TOP 5 Performer (%)

TAM Statistics

TOP 5 Holdings

North Nordamerika America

1. Research in Motion 55,53

Sharpe Ratio

1,47

1. Telefonica

2. Telefonica

31,52

Up Weeks

68 %

2. Sonova

3. Severfield Roven

29,71

4. North West

26,63

TAM Performance

4. Rogers Comm

5. Sonova

20,81

Equity Contribution 39%

5. CDI Corp

MaxD (week)

Europa Europe

Asien Asia

7%

-1,2 %

31 %

3. Novo Nordisk

62 %

Hedge Contribution 61%

The TAM system provides convincing performance and risk parameters. 68% up-weeks and a Sharpe Ratio of 1,47 are idealy taylormade for a sophisticated equity investor, who wants to see his asset exposure smartly allocated.

03 TAM Smart Value Fund The System

TAM SMART VALUE Fund©

17


www.tw-am.com Asset Management Inc.

REAL.MONEY.TEST | field report TAM tested the system as real portfolio from September 2006 until Dezember 2007. We

want

to

implement

the

The selection parameter of phase I have proven their value. We have discovered weaknesses in the data quality provided by Bloomberg. Especially fundamental data of emerging market companies have been less complete than they should be. TAM responded to it by changing the data provider. The switch from Bloomberg to Reuters and Rimes is minimizing the potential non-coverage of companies. In phase II TAM will re-categorize two industry sectors in its cycle allocation. The distribution of the other 39 sectors remain the same.

experiences of 5 quarters before the fund launch. As a capacity constrained

consequence

we

ended the Real Money Test at the end of December 2007.

The hedging strategy in phase III convinced in upwards, downwards and low volatile sidewards trends. Highly volatile markets in autumn 2007 have shown the limits of our strategy (also indicated by the flattening performance). We have worked on an improvement of the strategy. Result is that the core strategy remains the same. In a certain market condition we add another option strategy to optimize the overall exposure. Target of the sole and the combined strategy is to hedge the equity exposure. Phase IV has validated ist conceptual qualities. The execution part clearly pointed out how important it was and is to rely on a close relationship with the brokers. Additionally our assumptions about the staff requirements for fund operations and risk management were confirmed.

03 TAM Smart Value Fund The System

TAM SMART VALUE FundŠ

18


Updated 13.02.2008 www.tw-am.com Asset Management Inc.

SYSTEM.PAPER.TEST | 2008 Performance TAM Comparison (in EUR)

TOP 5 Performer (%) (since 02.01.08)

TAM Performance TAM Total (YTD):

+ 5,57 %

1. Embotell. Andina

TAM Equity (YTD):

+ 0,42 %

+ 30,50%

2. Atlantic Telenetwork + 21,61%

5,00%

3. SGL Carbon

+ 17,73%

4. Timah TBK

+ 15,43%

5. Potash Corp

+ 9,00%

Geographic Allocation

0,00%

-5,00%

North America

South America

Europe

Asia

2%

TOP 5 Holdings (%)

-10,00%

1. Atlantic Telenetwork

24%

-15,00%

2. EBIX Inc. 7%

-20,00%

3. MEMC Electronics TAM %

S&P EUR %

DAX %

DJI EUR %

MSCI World EUR %

67%

4. Goodrich Corp 5. Embotell. Andina

03 TAM Smart Value Fund The System

TAM SMART VALUE FundŠ

19


www.tw-am.com Asset Management Inc.

04 TAM Smart Value Fund THE FUND

04 TAM Smart Value Fund The Fund

TAM SMART VALUE FundŠ

20


www.tw-am.com Asset Management Inc.

TAM Smart Value Fund

Product Parameter

Fund Currency

EUR

Fund Domicile

Cayman Islands

Fund Structure

Corporate

Fund size – final closing

EUR 100 million

Fund size – first closing

EUR 25 million

Minimum Investment

EUR 250.000

NAV available

Weekly

Redemption

Monthly

Redemption Fee

No

Lock Up

6 months

Initial Fee

2%

Management Fee

2%

Performance Fee

20 %

Performance Fee Cap

High Water Mark

04 TAM Smart Value Fund The Fund

No Redemption Fees

Weekly NAV

Fair Fee Structure

TAM SMART VALUE Fund©

21


www.tw-am.com Asset Management Inc.

TAM Smart Value Fund

Product Parameter

TAM Commitment

1 % of final closing

Fund Target Group

European HNWI, small institutional investors, family offices, endowments

Fund Category

Long/Short Equity

Fund Earnings

Retained profits

Fund Reporting

TAM Smart Value Fund will provide weekly updates and monthly reports to investors

Fund Broker & Custodian

Goldman Sachs, Interactive Brokers

Fund Administrator

Bank of Ireland

Fund Auditor

KPMG

Fund Lawyer

Walkers Global

04 TAM Smart Value Fund The Fund

Strong TAM Commitment

Top Tier Partners

Perfect Equity Substitute

TAM SMART VALUE FundŠ

22


www.tw-am.com Asset Management Inc.

An investment vehicle is as good as its execution. The TAM Smart Value Fund is operationally embedded in a “Culture of Excellence“.

Operational Excellence

Operational Excellence Fully automated sytem phases I, II and IV, and a semi-automated phase III allow efficient and non-emotional trading. The system is securely backed up and therefore fully functional at any time.

Risk Management Excellence The co-operative structure with our service partners enables us to generate intraday updated risk profiles of all portfolio postitions. We use state of the art portfolio risk management tools. As a consequence we have a constant ability to respond to any upcoming market condition.

Risk Management Excellence

Service Excellence

Service Excellence Investors of TAM Smart Value Funds are weekly and monthly updated about their investments via online and offline reporting tools. Additionally the TAM team will meet each investor individually for an annual talk, underscoring our intense communication culture.

04 TAM Smart Value Fund The Fund

TAM SMART VALUE Fund©

23


www.tw-am.com Asset Management Inc.

05 TAM Smart Value Fund USP

05 TAM Smart Value Fund The USP

TAM SMART VALUE FundŠ

24


www.tw-am.com Asset Management Inc.

Just another Long/Short Equity Hedge Fund? NO! Our Unique Selling Propositions:

05 TAM Smart Value Fund The USP

TAM SMART VALUE FundŠ

25


www.tw-am.com Asset Management Inc.

The TAM system phases I, II and IV are fully automized. Phase III is kept in semiautomized mode to promptly adjust derivative hedging strategies depending on the market conditions. The high degree of automatization guarantees analysis, selection and execution on a permanet top quality level and protects the portfolio from behavioural finance effects.

The TAM system succesfully mastered the ideal sequence of backtest – real time paper test – real money test . All 3 phases have shown over a period of 6 years that the system succeeds in upwards, downwards and sidewards market trends.

The TAM Smart Value Fund draws a 4phase bow, beginning with macro- and meso-economic analysis with century horizon, ending with processing intraday impulses on the micro-level.

The covered universe has a worldwide span. From Brasil to England. From South Korea to Canada. More than 12.000 single stocks are screened, selected, allocated and traded. We count on quality. We find it worldwide.

05 TAM Smart Value Fund The USP

As a consequence of undogmatically analyzing listed companies globally, we can find value stocks with growth potential even in Emerging Markets.

TAM SMART VALUE Fund©

26


www.tw-am.com Asset Management Inc.

Investors are used to investing in equities. But mutual funds are naturally exposed to a very high market correlation. Even some hedge fund strategies do not convince investors any more. Our “Smart Value Investing“ © concept is convincing. It is perfectly suitable to substitute the Equity exposure of a portfolio.

The TAM Team is guided by a „Service Excellence“ strategy and counts on longlasting and trustworthy investor relationships.

All testing phases identify the TAM System as vol-reduced version of a pure equity investment. A Sharpe Ratio of 1,47 and a standard deviation of 2.2 % (figures of the “Real Money Test“) prove the system is an attractive portfolio allocation.

Investors do not pay “penalty“ fees when they redeem their fund investments. We are convinced that investors are trusting us on basis of provided quality.

05 TAM Smart Value Fund The USP

The TAM Smart Value Fund reports weekly via electronic newsletter about fund activities. A weekly calculated NAV (est.) allows prompt monitoring of an investment. The monthly report adds a comprehensive perspective on fund and fund context matters.

The product parameters of the TAM Smart Value Fund are assembled under the premisse of structuring a hedge fund investment as simple, transparent and traceable as a mutual fund investment. We consider our structure as trend-setting for the upcoming merge of hedge and mutual worlds.

TAM SMART VALUE Fund©

27


www.tw-am.com Asset Management Inc.

06 TAM Contact Details

06 TAM CONTACT

TAM SMART VALUE FundŠ

28


www.tw-am.com Asset Management Inc.

TWELVE Asset Management Inc. Mag. Markus Schuller, MBA, MScFE Stockerhof Dreikönigsstraße 31 A CH - 8002 Zürich t. +41 (0) 44 208 3248 f. +41 (0) 44 208 3500 m. +33 (0) 674 274 986 e.

mschuller@tw-am.com

w. www.tw-am.com

06 TAM CONTACT

TAM SMART VALUE Fund©

29

TAM Presentation EN Feb08  

TAM Presentation EN Feb08

Read more
Read more
Similar to
Popular now
Just for you