Contact Information NOCTUA PARTNERS 1450 Brickell Avenue Suite 1400 Miami, FL 33131 - USA Telephone: (786) 220-0330 Fax: (786) 513-2222 info@noctuapartners.com www.noctuapartners.com
NOCTUA
PARTNERS
Symbol of Wisdom
NOCTUA
PARTNERS
About the
Noctua
Name
In the mythology of ancient Greece, Athene, the Goddess of Wisdom, was so impressed by the great eyes and solemn appearance of the Owl that, having banished the mischievous crow, she honored the night bird by making him her favorite among feathered creatures. Athene's bird was a Little Owl (Athene Noctua).
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This Owl was protected and inhabited the Acropolis in great numbers. It was believed that a magical "inner light" gave Owls night vision. As the symbol of Athene, the Owl was a protector, accompanying Greek armies to war, and providing ornamental inspiration for their daily lives. If an Owl flew over Greek Soldiers before a battle, they took it as a sign of victory. The Little Owl also kept a watchful eye on Athenian trade and commerce from the reverse side of their coins.
PORT FOLIO
NOCTUA Noctua Partners is an independent, privately-owned asset management and investment advisory firm, committed to creating exceptional value for its clients through a new and distinctive approach.
PARTNERS
The firm offers an array of services that includes portfolio management, structured transactions, wealth advisory and risk management, with superior execution capabilities through its strong institutional relationships and global presence. Our investment and advisory platform was designed to eliminate all conflicts of interest, delivering comprehensive tailor-made wealth-management strategies and investment-management solutions to achieve each client's individual goals.
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Independent, objective advice is the foundation of our firm allowing us to build long-term relationships with our clients.
Investment management solutions tailored to achieve each client’s individual goals.
THE
NOCTUA
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The economic and financial crises we have experienced over the past decade are triggering profound changes in the financial industry. This has led to a dramatic increase in market volatility and unprecedented government intervention. Assumptions regarding credit risk, transparency and liquidity of financial markets need to be adjusted in order to reflect this new environment. These changes are demanding a new approach to asset management with increased transparency, active portfolio management, and efficient execution. Our investment decisions and recommendations are built on extensive market analysis combined with thorough macroeconomic and country research. Our presence in Latin America, Europe and the US provides our investment team access to local information, deal flow and execution. We pride ourselves on having regular and concise communication with our clients, allowing all parties to understand the risk/reward parameters and to set appropriate expectations for the portfolio. A global view of the client’s overall wealth helps our clients to manage and understand risks within their liquid and illiquid portfolios.
At Noctua, we focus on optimizing the client's portfolio absolute return and improving efficiencies through cost-effective trade execution. The execution process is enhanced by our ability to leverage the institutional relationships the company has developed over the past decades. Our Investment Management services are offered on a fee-only basis. This creates a conflict-free environment that supports investment management decisions that are in our client's best interest.
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The New Model
MODEL
A New, Distinctive Approach for a Challenging Environment
PORT FOLIO
NOCTUA
PARTNERS
One Integrated Platform
with Global Reach Noctua's integrated platform enhances the products and services provided to our clients, given our holistic approach to portfolio management, investments, research and analysis. Having one platform servicing different business lines increases efficiencies for all parties. More opportunities and information are sourced, as resources and ideas are coordinated and shared among all members of the team.
Asset Management NOCTUA PARTNERS
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Wealth Management Advisory
Special Situations
The senior members of the Company have been actively investing since the early 1990's. The team is structured with diverse and complimentary backgrounds, as well as experience across different asset classes. The ability to leverage the institutional relationships with banks, brokerages and leading independent research firms enhances our platform to service our clients more effectively. Noctua staff is composed of qualified market professionals with an open platform that aims to provide the best ideas, offerings, and expertise on the market. Noctua’s integration of the best available solutions, whether in-house or externally, through our alliances or network of service providers, shows its focus on providing the highest level of service for our clients. Active investment management requires an ongoing process of rebalancing a portfolio's allocation as risk tolerance and economic cycles change. We are determined to have clear and concise market views with full transparency on the risk and liquidity of our recommendations.
Portfolio
Dynamic
Noctua consults with each client to understand their individual risk/return expectations taking into account liquidity and time horizon. Our staff ensures there are no changes in risk/return parameters triggered by market gyrations and/or portfolio volatility. At Noctua, the professional team consistently reviews the relative and absolute returns of our clients’ portfolios which are analyzed from a qualitative and quantitative perspective studying returns by asset classes and securities. This process enables our clients to better understand the sources of inherent risks and returns.
Investment Committee meetings are held regularly in order to enhance and refine our macroeconomic themes, market positioning theses and tactical calls, which serve as the basis for our decisions and recommendations.
Noctua staff rebalances portfolios as a function of market changes, price targets achieved and/or stop losses being triggered. Our due diligence and recommendations on funds is enhanced by our experience and involvement with markets from an investing and trading experience.
•Macro Analysis •Market Technical's •Research and Due Dilligence •Security analysis
Investment Committee
Dynamic Portfolio Construction •Quantitative and Qualitative Analysis •Research and Due Diligence •Security Analysis
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The committee follows a strict and rigorous analytical process encompassing a top-down macroeconomic analysis complemented with bottom-up fundamentals, including monitoring technicals, market positioning and global capital flows.
•Expected Return •Volatility and Maximum Tolerable Loss •Liquidity Constraints •Time Horizon •Investment Policies and Procedures
PARTNERS
Construction
Our enhanced portfolio management is the cornerstone of our product offerings. The process utilized to manage client portfolios is based on our experience, unbiased opinion and extensive market knowledge that allows Noctua’s professionals to understand the various sources of risks involved in each portfolio.
Client Parameters
NOCTUA
PORT FOLIO
Our Products
Wealth Management Noctua’s staff recognizes that individual and family client objectives change over time; however the need for an independent, objective, and capable advisor will not change. Noctua designs its unique service offerings tailored to fit the profile of each client. The Noctua approach to manage wealth management is focused on active investment strategies. We are not passive "buy and hold" investors or simplistic asset allocators whose investment decisions are based on designing portfolios that follow a onesize-fits-all models. We strive to maximize Monitoring performance by and Control combining our strategic and tactical portfolio allocation models, with the objective of successfully navigating all market conditions. In addition to risk management, our team emphasizes portfolio cost controls through our unique execution capabilities.
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Noctua Partners adheres to strict confidentiality of client information.
Asset Management Noctua provides investors with a flexible investment approach through managed accounts. These accounts are tailor-made investment strategies defined by the mandate of each client, which varies by region, asset-class focus, target return, and overall risk profile. Noctua has substantial experience managing global macro portfolios, with a strong emphasis on emerging The senior team has been involved in the Enhanced markets. development of the emerging market asset class Portfolio over the past few decades by actively investing, Management interacting with regulators and policymakers, and completing transactions in the region, thereby offering its clients a unique perspective on global financial markets. NOCTUA
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Incorporating views from its Committee allows us Global Investment to rebalance the managed Reporting accounts within the mandate of and Risk each client.
Analysis
Our objective is to attain high risk-adjusted returns through the use of more effective asset management strategies and tools. The tools we have at our disposal to execute this model include quantitative and qualitative analysis, macroeconomic models, and technical and correlation analysis, among others. We aim to identify investment opportunities with attractive risk/return characteristics within liquid instruments. In addition, we monitor market conditions and evaluate positions on a real-time basis. This allows us to make rapid adjustments to portfolios as needed. Noctua’s team works with a select group of top-tier banks and financial custodians where clients maintain full account ownership and control, as well as with clients’ current institutions. This approach affords our clients heightened levels of transparency, a clear asset allocation, and control of their assets.
NOCTUA
PARTNERS
& Services Real Assets
Special Situations
Real Assets are becoming a key component for any portfolio seeking diversification. Aggressive monetary policy risks distorting financial assets and creating substantial inflation. Historically, Real Assets serve as insurance for diversified portfolios versus these risks.
Noctua partners leverage their experience in investment banking and business operations as well as their access to information, deal flow, and special situations, to support our clients in finding, valuating and executing exceptional transactions.
Noctua has been investing actively in real estate since the 2008 financial crisis. The company’s opportunistic focus has allowed it to conduct and close transactions both in the US and Latin America taking advantage of the significant opportunities in this area.
For those clients who control and operate businesses, Noctua provides support on a wide range of services that include Corporate Finance, Mergers & Acquisitions, Corporate Governance, and Strategic Planning. This service includes optimizing balance sheet and capital structures, cash management, and liability strategy.
We strive to find quality and income producing assets at heavily discounted levels when sellers are impaired by excessive leverage, and look for strategic opportunities based on features like location, development type, market segment access, among others. ASSET CLASS ALLOCATION 3.2%
CURRENCY ALLOCATION
1.8%
0%
36.5% 58.5%
This diverse investment expertise, unparalleled depth of experience, and extensive network of contacts contributes to the success of those transactions that our management team elects to pursue.
100%
Cash And Equivalent 18, 179,045 Equitities 989.337 Fixed Income 106.013 Alternative Investment 11.324.061
Our team is highly experienced in credit investing with an extensive background in transaction origination, structuring, credit analysis, trading and risk management. It also maintains extensive relationships with financial institutions, hedge funds, corporations, and financial and legal advisors from which to source our investments.
USD 31.048.338 EUR 119
REGION EXPOSURE July 2009
CASH FLOW - MTD
PERFORMANCE BY ASSET CLASS - MTD
PORTFOLIO ACTIVITY SUMMARY From 06-30-09 to 07-31-09 Portfolio Value on 06 - 30 - 09 Accrued Interest
Portfolio Fees Portfolio Value on 07-31-09
30.598.694 31,513 396,874 -104.654 395.000 -395.000 1,633 105,432 -3,312 2,021 17,910
1.9 0.09
0.4
Alternative Investment
Total
0 Cash and Equivalent
-1,655
Equities
Fixed Income
30.995.034
PERFORMANCE BY ASSET CLASS - MTD Cash and Equivalent Market Value on 07-31-09 Total Gain after fees IRR
18,179,045 -667 0.00
Region
Market Value
Weight
Emerging Markets Europe Japan United States Total Portfolio
10,944,302 119 231,334 19,872,701 31,048,457
35,2 0,0 0,7 64,0 100.0
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Contributions Withdrawals Transform In Transform Out Realized Gains Unrealized Gains Interest Dividends Change in Accrued Interest
12.48
Equities 989,337 102,433 11,48
Fixed Income 556,013 10,393 1,90
Alternative Investment
Total Portfolio
11,324,061 9,871 0,09
31,048,457 122,029 0,40
Human Capital Local Presence Top Tier Resource Platform
MANAGEMENT
Management
Team
The Noctua Partners management team blends and integrates knowledge, experience, and information from different disciplines in a synergistic fashion.
This experience was built on past senior leadership positions at top tier Investment Banks, Hedge Funds and Asset Management firms during the past 20 years. The volatility in Emerging Markets over the past decades has given the team the right experience in bringing unique insights into the investment process.
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As the markets have become unstable by the global financial crisis, the level of experience and talent for asset allocation and portfolio management has become even more valuable. Noctua Partners has the adequate expertise to successfully execute an integrated model of advising, transacting, and managing portfolios in this new environment.
NOCTUA
PARTNERS
Disclaimer The information provided in this report is for informational purposes only and is not intended to be, nor should it be considered to be, an advertisement or an offer or a solicitation of an offer to buy or sell any securities. The information provided herein, or upon which opinions provided herein have been based, has been obtained from sources believed to be reliable, but no representations, expressed or implied, or guarantees can be made as to the accuracy, timeliness or completeness of such information or opinions. All opinions and estimates expressed herein are subject to change without notice. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty is made regarding future performance. This information will be superseded in its entirety by any subsequent versions of this information and is also subject to, and superseded in its entirety by, the current Confidential Explanatory Memorandum for the Fund. The information provided herein is not intended as an offer to sell, or a solicitation of an offer to buy interests in the Fund. Offers to sell and solicitations of offers to buy the securities issued by the Fund will be made exclusively by the Confidential Explanatory Memorandum relating to such securities. Potential investors should refer to the Confidential Explanatory Memorandum for the Fund for important information related to the Fund’s Investment Manager’s organization, investment strategies and history, as well as detailed risks of investing in the Fund. The Confidential Explanatory Memorandum includes a separate section addressing risk factors involved in an investment in the Fund. This information is not intended to be used as the primary basis for investment decisions, nor should it be construed as advice designed to meet the particular needs of an individual investor.
An investment in the Fund is speculative and involves a high degree of risk. This information includes statements that are not purely historical in nature but are “forward-looking statements.” These statements may include, among other items, projections, forecasts, estimates of income, yield of return, future performance targets, anticipated portfolio composition and specific investment strategies. These forward-looking statements are based upon certain assumptions and are necessarily speculative in nature. The assumptions upon which forward-looking statements are based may not be stated herein. Actual events are difficult to predict, are beyond Noctua’s control, and may differ from those assumed. In particular, the Investment Manager may modify the Fund’s investment strategy described herein to respond to changing market conditions. All forward-looking statements included are based on information available on the date hereof, and Noctua and its affiliates do not assume any duty to update any forward-looking statement. This information is confidential and proprietary to Noctua and its affiliates and accordingly, is not to be reproduced in whole or in part or used for any other purpose, except as authorized by Noctua. By accepting delivery of this information, the recipient agrees to treat this information as strictly confidential and will not distribute or provide this information to any person outside his/her organization other than its accountants and attorneys (so long as such persons are advised of the highly confidential nature of this information and do not distribute this information outside their organization). By accepting delivery of this information, the recipient also agrees to destroy this information upon request by Noctua.