SMART VALUE FUND
www.tw-am.com Asset Management Inc.
MEANING OF ´TWELVE´
12 Signs of the zodiac
12 – is the most holistic number in occidental cultures. •
Most calendar systems have twelve months in a year.
•
The Western zodiac has twelve signs, as does the Chinese zodiac.
•
The Chinese use a 12 years cycle for time-reckoning called Earthly Branches.
•
There are twenty-four hours in a day in all, with twelve hours for a half a day.
•
The number 12 is very important in many religions, mainly Judaism and Christianity, but some uses are to be found in pagan times.
12 Apostles of Jesus
12 Ancient Greek olmpic gods
TWELVE´s understanding of financial markets and the ability to seize opportunities represents the meaning of its name. 12 Knights of King Arthur´s round table
MEANING
TWELVE Smart Value Fund
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Updated 09.11.2008 www.tw-am.com Asset Management Inc.
01 TWELVE TEAM
04 TWELVE SYSTEM TESTS
02 TWELVE STORY
05 TWELVE Smart Value Fund
03 TWELVE SYSTEM
06 TWELVE Contact
This presentation supersedes any presentation or information which may have been previously issued to anyone in relation to TWELVE 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 TWELVE 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 GmbH (“TWELVE”) in any media, and may not be disclosed to any third party in part or in whole without the written consent of TWELVE. Neither TWELVE 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 TWELVE 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 TWELVE 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 TWELVE 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 TWELVE Smart Value Fund. constitutes a risky investment in an emerging market, and are invited to conduct their own due diligence. The name of “TWELVE Smart Value Fund” is the property of TWELVE and is subject to change without notice. This document shall be superseded by the PPM when available.
OVERVIEW
TWELVE Smart Value Fund
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TWELVE is led by an experienced team of investment professionals.
Andreas Edtbauer
Markus Schuller
MBA in Finance | Kepler Universität (A)
Professional
Senior Analyst Monaco Capital Partners Ltd.
Master (Business Admin) at Kepler University (A) & University of Pittsburgh)
Equity/ Options Trader VKB Bank Private Banking | Analyst OÖ Landesbank AG
MBA | International University of Monaco TRIGON OE-Werkstatt
Trader & Market Maker Licenses
Academia
Equity Trader OÖ Landesbank AG
Professional
Certified Portfolio Manager (CPM)
Senior Private Banker OÖ Landesbank AG
CPM
Academia
Professional Academia
CPM, MBA
Senior Private Banker Meinl Bank
Dietmar Mayrhofer
Mag., MBA, MScFE, FRSA
Private and Institutional Banking | Team Leader (Meinl Bank) Private and Institutional Banking | Team Leader (Credit Suisse) Head of Private Banking (OÖ Landesbank AG) Equity Trader (OÖ Landesbank AG) Supervisory Board (Kepler KAG) Certified Portfolio Manager (CPM)
MScFE | International University of Monaco
01 TWELVE TEAM
TWELVE Smart Value Fund
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TWELVE is different.
02 TWELVE is different
TWELVE Smart Value Fund
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Smart Value Investing
Relativity
Transparency
Smart, pragmatic product development contains the focus on lifting the premium substance of an asset class and providing easy to use investment vehicles for our investors.
Permanent search for improvement.
Our developed strategies are our most important property.
The TWELVE System as an example.
AI & Retail Structures, transparency and fees are aligned to serve institutional & privaten investors with premium alternative investments.
Co-operation with renowned International University of Monaco. No dogmatic persistence on strategies or analysis methods, but ´Best-Of-Breed´ principle.
We claim to provide highest possible transparency to our investors, enabling them to closely monitor their investments. No Black Box Thinking.
Quality
Ethics
We expect highest quality from ourselves.
TWELVE guarantees a simple and fair fee structure of its products.
The same from our service partners. Consequently we only work with top tier partners. Reputation Generates Business.
02 TWELVE is different.
We are aligned to the AIMA code of conduct and take a leading position in corporate governance for hedge funds.
TWELVE Smart Value Fund
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TWELVE System.
03 TWELVE System
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“The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.”
“Wide diversification is only required when investors do not understand what they are doing.”
How does Warren Buffett correlate with the TWELVE System?
03 TWELVE System
“Price is what you pay. Value is what you get.”
“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
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The TWELVE System counts on well proven Buffett principles and adds latest financial engineering methods to a comprehensive, semi-automized investment strategy. The result is an innovation of how to invest in quality companies worldwide - with permanent downside protection.
03 TWELVE System
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The TWELVE System synchonizes 4 phases. Phase I | Fundamental Filter
Phase II |Momentum Allocation
Worldwide universe of more than 12.000
Allocation of all filtered stocks in
listed stocks is screened fully automated
accordance with several cycle theories.
on a daily base. The system is aligned to
Using industry momentum as additional
filter “operationally healthy“ companies.
portfolio driver.
Unleveraged No Short Selling Automatic De-Investment
Automatic Automatic
Phase III | Hedges an Alpha bias of the TWELVE System. strategies
are
Permanent Hedging
Phase IV|Sentiment Trading
Equity and currency hedges arrange for Derivative
SYNC
exclusively
movements.
Single
SemiAutomatic
portfolio
positions
have individual volatility ranges. Trailing stop limits protect
adjusted to hedge the portfolio.
< 75 % Equity Quota
System responds to short term market
excessive market correlation.
03 TWELVE SYSTEM
< 25 % Derivative Quota
portfolio against Automatic
Matlab programmed
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R&D
Phase I | Outlined How ´operationally healthy´ is a company? 11 Fundamental Perspectives 2 Market Perspectives No Analyst Recommendations No Estimated Numbers
Daily Screening of 12.000 Companies
03 TWELVE SYSTEM
Flexibility
Top Database (Reuters & Rimes)
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SYSTEM TESTS | Does it work? Precisely tested
(Gross Performance) 36,21%
40,00%
35,14%
35,00% The TWELVE System ran through several acid tests.
30,00%
22,96%
25,00%
15,00%
19,33%
18,90%
20,00%
16,56% 10,11
10,02%
2001 – 2003:
Backtest
2004 – 2005:
Papertest
Sept06 – Dec07:
Managed Account Test (MAT)
in parallel to a Papertest
10,00% 2008 – YTD:
5,00%
Papertest | fund data since September 15th
0,00%
2001
2002
Backtest
2003
2004
2005
Papertest
Sept. 2006 2006
2007
2008 (YTD)
Academically audited
MAT & Papertest Papertest +SVF
04 TWELVE SYSTEM TESTS
TWELVE Smart Value Fund
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www.tw-am.com Asset Management Inc.
Performance 2008
SVF Start
25,00%
SVF comparison with • Dow Jones Industrials (DJI) • S&P500 • DAX • Nikkei 225 (N225) • MSCI World
15,00%
5,00%
-5,00%
-15,00%
Data before September 15th, 2008 does not refer to the TWELVE Smart Value Fund, but describe the testperformance of the TWELVE System (Gross performance).
-25,00%
-35,00%
-45,00%
The test-performance does not guarantee any future performance of the TWELVE Smart Value Fund.
-55,00%
04 TWELVE SYSTEM
TWELVE %
S&P500 %
DAX %
DJI %
MSCI World %
N225 %
TWELVE Smart Value Fund
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www.tw-am.com Asset Management Inc.
TOP 5 Industries (current) No
Distribution Daily Returns 2008 YTD 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0%
Häufigkeit
Industry
%
No
Comunications Equipment
29,12
1
USA
58,54
2
Healthcare/ Pharma
14,58
2
Argentina
10,22
3
Chemicals
14,43
3
Hong Kong
7,89
4
Construction
11,55
4
Israel
6,11
5
Media
7,98
5
Chile
4,13
Company
TOP 5 Holdings (current)
%
No
Company
WMS Industries
Low Volatility
4
Ansys
+10,63
4
Quidel Corp
No ´Fat Tails´
5
Embotelladora And
+4,15
5
Corning Inc
3,00%
3
Ideal Normal Distribution
04 TWELVE SYSTEM
und größer
+11,39
2,75%
Cal-Maine
2,50%
3
2,25%
Partner Communications
2,00%
2
1,75%
+ 21,05
1,50%
Telecom Argentina
1,25%
2
1,00%
Telecom Argentina SA
0,75%
1
0,50%
+28,71
0,25%
Myriad Genetics
0,00%
1 -0,25%
-0,50%
-0,75%
-1,00%
-1,25%
-1,50%
-1,75%
-2,00%
-2,25%
No
-2,50%
%
1
TOP 5 Performer (current)
-2,75%
Currency
SVF Statistik
Performance Statistics 2008
TOP Countries (current)
Calculations of the TWELVE GmbH per 09.11.2008
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www.tw-am.com Asset Management Inc.
HEDGING LOGIC Functionality of the TWELVE System â&#x20AC;&#x201C; Hedging Mechanism (Phase III & IV). An idealized description. Slightly Correcting Equity Markets
System Bias NET LONG
System Response SLIGHTLY ABSORBING MARKET LOSS
Strongly correcting Equity Markets
System Bias NEUTRAL
System Response NEUTRALIZING MARKET LOSS
Eroding Equity Markets
System Bias NET SHORT
System Response OVERCOMPENSATING MARKET LOSS
04 TWELVE SYSTEM
Portfolio stocks use their individualized volatility ranges and lose +/- market Hedges slightly absord equity losses.
Portfolio stocks start to hit stop-loss limits. Allocation ratio Equities-Derivatives change to the benefit of the hedging mechanism.
Many portfolio stocks are stopped out. Hedges stronger than equity losses = portfolio gains.
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Related News Articles
HOW GOOD IS ´HEALTHY´? Analysis of the current earnings season (Q3/2008), Phase I of the TWELVE System only marks 17 companies as „High Quality“ (out of 12.000) Since early September only 1 company was newly filtered. Empirically, the total number pends between 20 and 40 companies. How did the 17 management teams master the macro-economic difficulties in Q3/2008? :
TWELVE Stocks Filtered Q3 Numbers published Revenue increased Net Income increased Outlook confirmed
No. 17 13 11 12 9
in % 85% 92% 69%
Mission accomplished. Even in Q3/2008 the Phase I filtered companies delivered outstanding operational results.
04 TWELVE SYSTEM
TWELVE Smart Value Fund
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www.tw-am.com
TWELVE Smart Value Fund.
05 TWELVE SVF
TWELVE Smart Value Fund
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TWELVE Smart Value Fund
Specifications
TWELVE Smart Value Fund
Specifications
Fund Currency
EUR
Performance Fee Cap
High Water Mark
Fund Domicile/ Structure
Germany / UCITS III
Performance Fee
20 %
Fund Category
Absolute Return Fund
TAM Commitment
1 % of final closing
Fund Strategy
Long/Short Global Equity
Fund Target Groups
Minimum Investment
No
European HNWI, Institutional Investors, Family Offices , Endowments
NAV (Net Asset Value)
Daily
Fund Profits
Retained
Subscription | Redemption
Daily
Fund Taxation (AUT)
White Fund (since Nov 7th)
Redemption Fee
No Fund Reporting
TAM Smart Value Fund informs investors via weekly updates and monthly reports.
Fund Broker & Custodian
Hauck & Aufh채user
Fund Administrator
Universal Investment
Fund Auditor
KPMG
ISIN | WKN
DE000A0Q5R19 | A0Q5R1
Lock Up
No
Initial Fee
Max. 5%
Management Fee
2%
Performance Hurdle Rate
10 %
05 TWELVE Smart Value Fund
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www.tw-am.com Asset Management Inc.
Your advantages as investor Hedge Fund Strategy
Mutual Fund Structure
Warren Buffett Equity Approach
Smart Hedging Mechanisms
Long/Short Equity Strategy
No Short Selling & No Leverage
Retail Investor Compliant
Coherent Alternative Investment
Systemic Autopilot (TWELVE System)
Permanent AssetManager controlled
05 TWELVE SVF
TWELVE Smart Value Fund
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Active Fund Communication | in EN & DE Monthly
Weekly
Anytime
Newsletter about Smart Value Fund & TWELVE in general (per E-Mail)
Weekly update about Smart Value Fund (per E-Mail)
TWELVE Website
05 TWELVE SVF
www.tw-am.com
Anytime „Call the Manager“ Ask, respond, recommend!
TWELVE Smart Value Fund
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www.tw-am.com Asset Management Inc.
TWELVE GmbH Dametzstr. 38/3 A - 4020 Linz
FEEL INVITED TO CONTACT US.
Location: Structure: RegNr.:
Andreas Edtbauer, CPM, MBA
Dietmar Mayrhofer, CPM
Managing Director
Managing Director
phone +43 (0) 732 890103 - 30 mobil +43 (0) 664 1033327 email aedtbauer@tw-am.com web www.tw-am.com
phone +43 (0) 732 890103 - 20 mobil +43 (0) 664 1033171 email dmayrhofer@tw-am.com web www.tw-am.com
06 TWELVE CONTACT
TWELVE Smart Value Fund
Linz GmbH 313166p
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