alphamax core

Investment Considerations

·	Proprietary quantitative long/short model based on research and testing of the

relationship between earnings expectations and equity price movements

·	Portfolio manager has over 35 years of investment management experience

Investment Strategy

·	Implicit in the approach is an equity valuation model
·	Earnings expectations are continuously monitored

- Equities underperforming earnings expectations are sold short
- Equities outperforming earnings expectations are purchased

·	Two part equity selection process

- Proprietary “breakout” model
- Strong consensus among analysts’ estimates of growth in earnings

·	Strict sell discipline
·	Constrained by factor and industry risk
·	“Market neutral” approach

- The long/short portfolios’ volatility substantially offset each other

·	Uses no derivatives
·	Competitive edge comes from a disciplined and “rapid response” model

Investment Results

·	50 issues in each long and short portfolio
·	Long portfolio earnings growth is greater than the market