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Opportunities exist where you least expect them
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The consumer needs of the changing middle class will fuel the global marketplace
Strategic Investment Vision For the first time in history more than half the world’s population resides in urban areas. Similar to the Industrial Revolution of the late 19th and early 20th centuries, major technological advancements and urban migration have altered society, creating permanent shifts in the global economy.
“We are witnessing a wave of colonialization in which developed and undeveloped nations are securing commodities, farmland, and water on a forward basis for their citizenry. Investing in commodity-based economies offers exposure to this theme.� Duncan Morton III, Principal
The cultural effects of urbanization have been substantial in emerging countries. Most third world nations have a twoclass system of rich and poor. As workers migrate to urban areas, the global economy is experiencing the rise of a third class or global middle class. Analysts forecast that in ten years the number of individuals whose incomes will exceed entry level to middle class will be over 800 million in the developing economies of China, India, Brazil and Russia. The new middle class will demand better quality goods and services, improved foodstuffs and staples, and better healthcare, job opportunities and education. The consumer needs of the changing middle class will fuel the global marketplace. As a global midle class rises, financial and economic power will shift from developed nations to emerging countries. The United States will become a smaller percentage of the global GDP, a new financial markets will emerge and global assets and reserves will rebalance as a global middle class rises. New financial markets increase the investment opportunities available across the globe.
Diversifying into global markets will be crucial for maintaining international purchasing power parity.
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Investment advisory services with institutional expertise
Our Story Our global philosophy and strategy is grounded by deep roots in our local community. We believe in living locally and investing globally. We are a team of seasoned professionals driven by passion, competitiveness, and intellectual curiosity. Our working relationships are long-term and built on mutual respect, clarity, responsibility and dedication. Our entrepreneurial spirit keeps us focused on discovering new investment opportunities for our clients. The principals participate in a hands-on manner and are focused on delivering personalized service and attention to our clients with the highest degree of independence, integrity and confidentiality. Founded in New York City in 1992, Interfund established its headquarters in Sun Valley, Idaho in 2001.
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Our Mission: Wealth Preservation & Capital Appreciation
Our Mission Our mission is to assist our clients in preserving their wealth and achieving capital growth by offering asset management services from a network of seasoned investment professionals.
Investor Profile Our clients are sophisticated and accredited high-net-worth individuals, corporations, foundations and family trusts who seek capital appreciation and growth with long-term horizons. They look to Interfund for direction in wealth preservation and capital growth. They appreciate the customizable custodial solutions we offer and the disciplined investment expertise we provide. Our dedication to integrity, transparency and fiscal probity resonates with clients and is the foundation for our long-standing relationships.
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Leadership Team Our core team members have experience investing in worldwide markets utilizing an extensive network of global professionals. Interfund’s principals have established decades-long working relationships with sell-side brokers, traders, analysts, and service providers. These relationships are based on common experiences and a shared history built over many years of professional dealings.
“Our strength is in our people.” Jamie Schwartz, Principal
Jamie Schwartz, Principal, founded Interfund Capital in 1992.
Ms. Schwartz has traded in the primary equity markets in New York, London, Paris, Milan, Jakarta, and Hong Kong for Interfund’s managed accounts. Prior to founding Interfund, Ms. Schwartz worked for Prudential Securities on the over-the-counter desk trading syndicate and proprietary firm positions. Previously, Ms. Schwartz worked at Jeffries & Co. as a trader covering institutional accounts. Ms. Schwartz began her career at Merrill Lynch in New York assembling portfolios for corporations and institutions. Ms. Schwartz graduated from the University of Rochester in 1982.
Duncan Morton III, Principal, joined Interfund Capital in 2007 as a partner and portfolio manager. Formerly, Mr. Morton worked for UBS Financial Services Inc. as Vice President - Investments and Branch Manager in Sun Valley, Idaho, where he provided wealth management services including lending solutions, equity risk strategies, financial and estate planning. Prior to UBS, Mr. Morton worked as a Financial Analyst at Moss Adams Advisory Services in Seattle, Washington, providing valuation services for closely held companies, family limited partnerships, estate and tax situations and fairness opinions. Mr. Morton earned a BA from the University of North Carolina - Chapel Hill and a Master of Science in Management from the Georgia Institute of Technology. Mr. Morton is a member of the CFA Institute and is a Chartered Financial Analyst.
David Hepworth, Principal, co-founded Interfund Capital in 1992. Mr. Hepworth began his career in New York City at Merrill Lynch in 1982 after graduating from Amherst College and continued to manage individual, corporate and institutional accounts at Lehman Brothers, Alex Brown and Prudential Securities. Mr. Hepworth has over 25 years of experience in the financial industry. Mr. Hepworth has been interviewed by Finance Asia, the Boston Globe, thestreet.com and has been a roundtable guest on CNNfn’s “Your Money.” Mr. Hepworth has served on the Board of Directors of the Hedge Fund Association as well as a number of other non-profit organizations.
Ian Jameson, Principal, joined Interfund Capital in 2007 and became a registered Investment Adviser Representative in 2008. Mr. Jameson received a BA in Economics with Honors from the University of California Santa Cruz in 2002. After graduating from college, Mr. Jameson worked at Craton Capital, a California-based hedge fund investing in the agriculture sectors. At Interfund, Mr. Jameson works as a Research Assistant to the portfolio managers and is a Candidate for CFA Level One.
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Penny Mandell, Director of Investment Advisory Group, joined Interfund in 2008. Ms. Mandell was previously at the Smith Barney division of Citibank and its predecessor firms for over eighteen years, working in Research, Institutional Sales and most recently as Director of the Smith Barney Portfolio Management Group. In this role, she was responsible for the development and management of the program which enabled qualified Financial Consultants to manage discretionary, fee-based assets. Prior to joining Smith Barney, Penny began her career at L.F. Rothschild, Unterberg, and Towbin. She holds a BA in Psycholinguistics from Davidson College, and a Masters in International Business from the University of South Carolina.
Matt McNeal, Investment Associate, joined Interfund Capital in 2009. Mr. McNeal earned a degree in Economics from Bowdin College in 2002 while interning at Uranga & Associates Financial Management. Since graduation Mr. McNeal has worked as a Project Manager for a high-end custom home builder where he oversaw and managed cost projections, budgeting and cost databases. Mr. McNeal also coaches competitive alpine ski racing for the Sun Valley Ski Education Foundation.
Curtis “Trip” L. Nabors III, Director of Sales,
joined Interfund Capital in 2009. Previously, Mr. Nabors founded Tidesend Partners, in Sun Valley, Idaho, a financial consulting firm. Mr. Nabors has worked on the floor of the NYSE for Thomas Weisel Partners, been a Vice President of Trading for Highlander Asset Management and worked as a Director of Sales for Alupka Asset Management. Prior to his career in the investment banking business, Mr. Nabors founded Altitude Marketing, an outdoor travel and sporting goods bag line. Mr. Nabors has also been a full-time crew member of Boomerang, an 81-foot professional Maxi racing boat in Newport, RI. Mr. Nabors earned a BA from Lynchburg College in 1990.
Nancy Glick, Creative Director,
joined Interfund in 2008. Ms. Glick received a BA in Communications and a minor in Journalism from Gonzaga University in 1994. After graduating, Ms. Glick spent several years in Seattle’s high tech sector as a Sr. Sales Executive for CompuCom Systems. In 2002 Ms. Glick shifted her focus to marketing and design. She has worked with top magazines and companies such as Stoecklein Photography & Publishing, Creative Arts, Western Horseman, King Ranch, Pro Bull Riders, Inc, Bayer Pharmaceuticals and Colliers International.
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Portfolio of Services Wealth Management Interfund offers personalized wealth management services to individuals, corporations, foundations and family trusts with an array of comprehensive strategies for wealth preservation and capital growth. We perform an in-depth analysis of our clients’ individual portfolios to assess each client’s investment goals, desired rate of return and risk tolerance. We then implement risk parameters and customize a plan to fit their specific needs. We have specialized expertise in multi-generational planning to assist investors who have accumulated concentrated and legacy positions through entrepreneurial activity or inheritance. We work closely with our clients’ trust departments, attorneys, and accountants.
Proprietary Financial Partnerships Interfund has successfully opened and closed a number of proprietary partnerships. We will be developing future products based on our financial models. Past partnerships have focused on technology and developing markets. Our future partnerships will focus on globalization, urbanization, and technology.
Customizable Custodial Accounts We offer customizable custodial solutions for clients who need or prefer to domicile assets at their current institution. This customization option offers our clients a variety of platform options and levels of portfolio control.
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Sophisticated Clients Deserve an Intellectual Approach
Our Approach Interfund was founded by traders who foresaw the need for investment advisors capable of servicing sophisticated clients. Our team aspires to provide institutional-style expertise at investment advisory prices. We believe that investors deserve an intellectual quantitative approach to investing fueled by analysis and interpretation of pure and unbiased economic data.
Client-Focused Our interests are aligned with our clients. Our unique culture offers a performance driven environment in which we are focused on our clients’ financial objectives and goals.
Seasoned Investment Professionals Our core team members have over a century of experience investing in worldwide markets utilizing an extensive network of global professionals.
Unbiased Advice Interfund takes an intellectual approach to investing. Our methodology includes analyzing and interpreting raw economic data. Our principals spend a significant amount of time reading and researching raw data compiled from a vast array of primary sources including spot prices, supply and demand forecasts, government websites, SEC documents and world economic forums. Our proprietary quantitative research is the foundation for our investment hypothesis. We incorporate buy-side, sellside and third party research in formulating our investment conclusions.
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“There is never a bad time for good advice.” David Hepworth, Principal
Established Working Relationships Interfund’s principals have established decades-long working relationships with sell-side brokers, traders, analysts, and service providers. These relationships are based on common experiences and a shared history built over many years of professional dealings.
Integrity-Driven Leadership Interfund’s tradition of integrity is reflected in all aspects of our business. The principals pride themselves on their reputation for providing objective advice without conflicts of interest.
Committed Senior Partners The principals in our firm are committed to all aspects of our business. They participate in a hands-on manner and are focused on delivering personalized service and attention to our clients with the highest degree of independence, integrity and confidentiality.
Structured Organization Interfund is a structured organization with regular external independent controls and documented procedures. We have a disciplined investment process and state of the art resources. We have dedicated personnel for client services, investment advisors, marketing and investment strategy. Our key investment personnel own the business and have significant personal assets invested in the business.
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Core Values That Endure the Test of Time
Core Values Interfund was founded on a set of core values meant to endure the test of time: •
Our clients’ interests come first.
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We uphold our fiduciary responsibility with integrity and adhere to principles of transparency and accountability.
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We are a team of seasoned professionals driven by passion, competitiveness, and intellectual curiosity.
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Our working relationships are long-term and built on mutual respect, clarity, responsibility and dedication.
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Our entrepreneurial spirit keeps us focused on discovering new investment opportunities for our clients.
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We are committed to assisting the communities in which we work and live.
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Independent Controls Designed to Safeguard Assets
Transparency & Accountability Segregation of Service Providers
Legal & Accounting Services
Interfund utilizes a network of service providers that includes a portfolio manager to manage the assets, a network of brokers to execute trades, and custodians /prime brokers to custody the positions, verify the existence and accuracy of trading information and independently calculate the net asset value of portfolios. These service providers work together but are functionally independent. They play a major role in providing operational transparency and helping to safeguard our clients’ assets from fraudulent activities.
Legal Counsel is provided by Foley & Lardner LLP, a top five firm peer-reviewed by Martindale-Hubbell. Accounting is provided by Stevens Pierce & Associates, an AICPA peer-reviewed accounting firm. Bookkeeping is provided by Sage Bookkeeping.
Prime Brokerage Services Our prime broker is Ridge Clearing Services, a division of Broadridge Financial Solutions, a $1.65 billion company spun out from ADP in 2007, which includes Bank of America’s former clearing business. Ridge received “Top Overall Honors” in “The Black Book of Outsourcing” in 2008 among the industry’s top brokerage process service providers. In addition, we employ a secondary layer of outsourcing to interface with Ridge Clearing’s margin department and access to Bank of America’s InstaQuote through Triad Securitites Prime Brokerage Service. Interfund has had over fifteen years of exemplary service from this dedicated team of traders and operational support staff.
Operational Transparency At Interfund, our clients have ready access and full disclosure to any information pertaining to their individual account, as well as access to our team of professionals and our network of independent service providers.
Structured Organization Interfund is a structured organization with regular
external independent controls and documented procedures. We have a disciplined investment process and state of the art resources. We have dedicated personnel for client services, investment advisers, marketing and investment strategy. Our key investment personnel own the business and have significant personal assets invested in the business.
The materials contained herein are informational only and are not intended to be a forecast of future events, a guarantee of future results, or investment advice. The information is not intended to be construed as an offering of securities or recommendation to invest. Investors should consult their investment professional for advice and information concerning their particular financial situation. Interfund Capital © 2009 - www.interfundcapital.com
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Interfund Capital Mailing Address: P.O. Box 8920 Ketchum, Idaho 83340 Shipping Address: 200 West River Street Third Floor Ketchum, Idaho 83340 - 8920 Telephone:
+1 208 928 6900
Fax:
+1 208 928 6901
E-mail: info@interfundcapital.net
Interfund Capital is a SEC Registered Investment Advisor - Member FINRA