(iii) Independent Money Managers:

Independent Money Managers include but are not limited to a select group of Large Cap, Domestic and/or Global Value investment managers that meet stringent set of quantitative and qualitative criteria. Our firm attempts to connect its investors to a diverse array of the world’s leading independent investment advisers that assist in complementing our firm’s investment discipline. This investment strategy relies on identifying global equities that sell at deep discounts to their respective and historical intrinsic values which are poised for a “Super Cycle” long-term growth. Also, our firm recognizes the fact that many boutique investment managers do not necessarily distribute their investment services through brokerage firms because of the sheer funds these firms normally require to raise for any given investment. These managers instead, limit the amount of capital they attempt to raise and manage in order to out-perform their peers. Their philosophy emphasizes that in order to maintain absolute positive returns independent of the market’s strength or weakness, one need to focus on better researching, buying and executing smaller but uniquely positioned investment portfolio(s). Fortunately, for us, this antithetical approach to fund raising by Wall Street mega brokers could in turn open up additional elite array of new investment managers for the firm’s clients. This new select group of independent asset managers should fit in and better complement our firm’s investment strategies.

We endorse a platform of Independent Money Managers that seek to identify globally undervalued Markets, Economic Sectors, Industries, and Specific Securities in “Super Cycles” that sell at deep discounts to both their respective and historical intrinsic values. “Super Cycles” are defined as undervalued Economic Sectors, and Industries in the Global Economy that we believe are best positioned for “Long-Term Growth. The select list due diligence process of Independent Money Managers begins with a rigorous screening process of some of the world’s best money managers in order to fulfill a comprehensive strategic asset allocation model.

Next, qualitative and quantitative assessments are applied for deciding on the best in class Independent Money Managers. This extensive due diligence process of filtering out a universe of uniquely positioned money managers includes but is not limited to the followings: 1) Researching organizational ownership, 2) Finding out portfolio management tenure, 3) Understanding the investment process and its implementation, and 4) Studying long and short-term performance results. This process also attempts to evaluate risk/reward parameters assumed by money management firms as measured by their quantitative and/or Mathematical Calculations of Risk. The followings are some of the criteria studied when quantitative risk parameters are evaluated: Beta, Alpha, Standard Deviation, Sharpe Ratio, and R-Squared. In addition, the followings are some of the risk parameters researched when qualitative data is included: Market Risk, Economic Sector Risk, Industry Risk, Significant Sector and Position Concentration Risk, Liquidity Risk, and Management Fee Risk.

Lastly, periodic ongoing reviews are scheduled with all clients. This process includes the followings:
- Review of the entire portfolio as well as its underlying Economic Sectors, Sub-Industries and their respective Individual Equities benchmarked each quarter against their respective Equity and World Indexes;
- Recalibrate each client’s asset allocation models as his or her life circumstances change, and;
- Present consolidated reporting that incorporates the portfolios of the Independent Money Managers with the entire holdings of the clients’ other investments disciplines.

For complete and updated information about our Investment programs and services, please refer to the Firm ADV Part 2A - Firm Brochure: