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Capital Management “Intellectual Honesty for the Global Investor”

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Page 1: “Intellectual Honesty for the Global Investor”Principles of Firm Performance History for ABE Strategy Performance History by Asset Class Performance During Financial Crisis Investment

CapitalManagement

“Intellectual Honesty for the Global Investor”

Page 2: “Intellectual Honesty for the Global Investor”Principles of Firm Performance History for ABE Strategy Performance History by Asset Class Performance During Financial Crisis Investment

Principles of Firm

Performance History for ABE Strategy

Performance History by Asset Class

Performance During Financial Crisis

Investment Research

Risk Management

Portfolio Management

Long-Term Methodology

Special Situations Investing

Transparency

Fiduciary Relationship

Management

Contact Information

Disclosures

CapitalManagement

Phone: 973.713.1236 E-mail: [email protected] • Page 1

ABE Capital ManageMent was established in June of 2010.

The following materials and charts include investment principles and

related performance figures designed to illustrate the ABE Capital

Management Strategy. This Strategy was privately managed by Mr. Nelson

prior to the establishment of ABE Capital Management and is now

available to new prospective investors.

Page 3: “Intellectual Honesty for the Global Investor”Principles of Firm Performance History for ABE Strategy Performance History by Asset Class Performance During Financial Crisis Investment

Principles of Firm

Performance History for ABE Strategy

Performance History by Asset Class

Performance During Financial Crisis

Investment Research

Risk Management

Portfolio Management

Long-Term Methodology

Special Situations Investing

Transparency

Fiduciary Relationship

Management

Contact Information

Disclosures

CapitalManagement

Phone: 973.713.1236 E-mail: [email protected] • Page 2

ABE Capital ManageMent is founded on the premise that

intellectually honest investment research practices and

portfolio management practices can, over time, meaningfully

shift the probabilistic odds in the investor’s favor.

Executive Summary

Page 4: “Intellectual Honesty for the Global Investor”Principles of Firm Performance History for ABE Strategy Performance History by Asset Class Performance During Financial Crisis Investment

Principles of Firm

Performance History for ABE Strategy

Performance History by Asset Class

Performance During Financial Crisis

Investment Research

Risk Management

Portfolio Management

Long-Term Methodology

Special Situations Investing

Transparency

Fiduciary Relationship

Management

Contact Information

Disclosures

CapitalManagement

Phone: 973.713.1236 E-mail: [email protected] • Page 3

• Itispreferabletomissanopportunitythantoloseclientmoney:

ABE will only invest when its proprietary research indicates that the

probabilistic reward-to-risk ratio is substantially in the client’s favor.

If no such opportunities exist, ABE will not invest.

• Investingisapartnership: Transparency, liquidity, and reasonable

costs are integral to this partnership.

• Educationthroughcommunication: By sharing its proprietary

investment research with the client, ABE intends to impart comfort

through knowledge.

• ABEowestheclientafiduciaryduty: ABE will approach every

decision with this principle in mind.

ABE’sFourMoralPillars

Page 5: “Intellectual Honesty for the Global Investor”Principles of Firm Performance History for ABE Strategy Performance History by Asset Class Performance During Financial Crisis Investment

Principles of Firm

Performance History for ABE Strategy

Performance History by Asset Class

Performance During Financial Crisis

Investment Research

Risk Management

Portfolio Management

Long-Term Methodology

Special Situations Investing

Transparency

Fiduciary Relationship

Management

Contact Information

Disclosures

CapitalManagement

Phone: 973.713.1236 E-mail: [email protected] • Page 4

ABECapitalManagementStrategy

SignificantlyOutperformedS&P500TotalReturnIndex

ABE Capital Management Strategy performance figures are based on Schedule of Gross Investment Performance of Account XYZ as verified in the Accountants’ Review Report prepared by Marcum, LLC and covers April 1, 2000 through August 31, 2010. Performance for the period September 1, 2010 through December 31, 2012 is based on management’s estimates. The performance results for ABE Capital Management Strategy are net of all trading costs/commissions and gross of all management fees. ABE Capital Management was established in June of 2010. Any performance figures before June of 2010 reflect Mr. Nelson’s private management of Account XYZ. The Strategy for Account XYZ has remained the same under Mr. Nelson’s private management and under ABE Capital Management. See Disclosures section of ABE Pitchbook for complete performance disclosure. Advisory services are only offered to clients or prospective clients where ABE Capital Management, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by ABE Capital Management, LLC unless a client service agreement is in place. Past performance is no guarantee of future results.

S&P 500 Total Return IndexABE Strategy

Jun-

00

Dec-0

0

Jun-

01

Dec-0

1

Jun-

02

Dec-0

2

Jun-

03

Dec-0

3

Jun-

04

Dec-0

4

Jun-

05

Dec-0

5

Jun-

06

Dec-0

6

Jun-

07

Dec-0

7

Jun-

08

Dec-0

8

J un-

09

Dec-0

9

Jun-

10

Dec-1

0

Jun-

11

Dec-1

1

Jun-

12

Dec-1

2

500,000

750,000

1,000,000

1,250,000

1,500,000

1,750,000

2,000,000

2,250,000

$2,500,000

Page 6: “Intellectual Honesty for the Global Investor”Principles of Firm Performance History for ABE Strategy Performance History by Asset Class Performance During Financial Crisis Investment

Principles of Firm

Performance History for ABE Strategy

Performance History by Asset Class

Performance During Financial Crisis

Investment Research

Risk Management

Portfolio Management

Long-Term Methodology

Special Situations Investing

Transparency

Fiduciary Relationship

Management

Contact Information

Disclosures

CapitalManagement

Phone: 973.713.1236 E-mail: [email protected] • Page 5

Monthly Rolling Returns

Quarterly Rolling Returns

Annual Rolling Returns

3-Year Rolling Returns

5-Year Rolling Returns

Total Periods 153 151 142 118 94

% of Periods with Positive Returns 62.7% 72.8% 76.1% 100.0% 100.0%

% of Periods with Negative Returns 37.3 27.2 23.9 0.0 0.0

Average Return for Period 0.5 1.6 6.5 24.1 46.5

Average S&P 500 TR Return for Period 0.2 0.8 3.7 13.2 16.7

Average Outperformance of S&P 500 TR 0.3 0.8 2.8 10.9 29.7

Best Return for Period 7.1 11.6 21.6 44.6 70.7

Worst Return for Period -6.1 -7.0 -5.1 0.8 18.2

ABECapitalManagementStrategy

PerformanceonaRollingPeriodBasisOverVariousTimeHorizons

PercentageofPeriodsABECapitalManagementStrategyOutperformed S&P500TotalReturnIndexonaRollingPeriodBasis

Rolling 5-Year ReturnsRolling 3-Year ReturnsRolling Annual ReturnsRolling Quarterly ReturnsRolling Monthly Returns0

102030405060708090

100%

ABE Capital Management Strategy performance figures are based on Schedule of Gross Investment Performance of Account XYZ as verified in the Accountants’ Review Report prepared by Marcum, LLC and covers April 1, 2000 through August 31, 2010. Performance for the period September 1, 2010 through December 31, 2012 is based on management’s estimates. The performance results for ABE Capital Management Strategy are net of all trading costs/commissions and gross of all management fees. ABE Capital Management was established in June of 2010. Any performance figures before June of 2010 reflect Mr. Nelson’s private management of Account XYZ. The Strategy for Account XYZ has remained the same under Mr. Nelson’s private management and under ABE Capital Management. See Disclosures section of ABE Pitchbook for complete performance disclosure. Advisory services are only offered to clients or prospective clients where ABE Capital Management, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by ABE Capital Management, LLC unless a client service agreement is in place. Past performance is no guarantee of future results.

Page 7: “Intellectual Honesty for the Global Investor”Principles of Firm Performance History for ABE Strategy Performance History by Asset Class Performance During Financial Crisis Investment

Principles of Firm

Performance History for ABE Strategy

Performance History by Asset Class

Performance During Financial Crisis

Investment Research

Risk Management

Portfolio Management

Long-Term Methodology

Special Situations Investing

Transparency

Fiduciary Relationship

Management

Contact Information

Disclosures

CapitalManagement

Phone: 973.713.1236 E-mail: [email protected] • Page 6

ABECapitalManagementStrategy

AbsoluteReturns:DistributionPatternofRollingReturns

DistributionPatternof5-YrRollingReturns

DistributionPatternof3-YrRollingReturns

0

10

20

30

40

50

40% < x < 50%30% < x < 40%20% < x < 30%10% < x < 20%0% < x < 10%x < 0%

Num

ber o

f Per

iods

Percent Return

0

5

10

15

20

25

x > 70%60% < x < 70%50% < x < 60%40% < x < 50%30% < x < 40%20% < x < 30%10% < x < 20%x< 10%

Num

ber o

f Per

iods

Percent Return

ABE Capital Management Strategy performance figures are based on Schedule of Gross Investment Performance of Account XYZ as verified in the Accountants’ Review Report prepared by Marcum, LLC and covers April 1, 2000 through August 31, 2010. Performance for the period September 1, 2010 through December 31, 2012 is based on management’s estimates. The performance results for ABE Capital Management Strategy are net of all trading costs/commissions and gross of all management fees. ABE Capital Management was established in June of 2010. Any performance figures before June of 2010 reflect Mr. Nelson’s private management of Account XYZ. The Strategy for Account XYZ has remained the same under Mr. Nelson’s private management and under ABE Capital Management. See Disclosures section of ABE Pitchbook for complete performance disclosure. Advisory services are only offered to clients or prospective clients where ABE Capital Management, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by ABE Capital Management, LLC unless a client service agreement is in place. Past performance is no guarantee of future results.

Page 8: “Intellectual Honesty for the Global Investor”Principles of Firm Performance History for ABE Strategy Performance History by Asset Class Performance During Financial Crisis Investment

Principles of Firm

Performance History for ABE Strategy

Performance History by Asset Class

Performance During Financial Crisis

Investment Research

Risk Management

Portfolio Management

Long-Term Methodology

Special Situations Investing

Transparency

Fiduciary Relationship

Management

Contact Information

Disclosures

CapitalManagement

Phone: 973.713.1236 E-mail: [email protected] • Page 7

ABEStrategySignificantlyOutperformedBenchmarkIndices

StockPortfolio

Jun-

00

Dec-0

0

Jun-

01

Dec-0

1

Jun-

02

Dec-0

2

Jun-

03

Dec-0

3

Jun-

04

Dec-0

4

Jun-

05

Dec-0

5

Jun-

06

Dec-0

6

Jun-

07

Dec-0

7

Jun-

08

Dec-0

8

J un-

09

Dec-0

9

Jun-

10

Dec-1

0

Jun-

11

Dec-1

1

Jun-

12

Dec-1

2

500,000

1000,000

1500,000

2,000,000

2,500,000

3,000,000

3,500,000

$4,000,000

S&P 500 Total Return IndexMSCI All-Country World Total Return Index ABE Strategy Stock Portfolio

ABE Strategy Stock Portfolio performance figures are based on management calculations using historic brokerage statements from Account XYZ. The figures cover the period from April 1, 2000 through December 31, 2012. The results from April 1, 2000 through August 31, 2010 were reconciled with the Accountants’Review Report prepared by Marcum, LLC. There were no material differences. The performance results across asset classes are net of all trading costs/commissions and gross of all management fees. ABE Capital Management was established in June of 2010. Any performance figures before June of 2010 reflect Mr. Nelson’s private management of Account XYZ. The Strategy for Account XYZ has remained the same under Mr. Nelson’s private management and under ABE Capital Management. See Disclosures section for complete performance disclosure. Advisory services are only offered to clients or prospective clients where ABE Capital Management, LLC and its representatives are properly licensed or exempt from licensure. Investing involves risk and possible loss of principal capital. No advice may be rendered by ABE Capital Management, LLC unless a client service agreement is in place. Past performance is no guarantee of future results.

Page 9: “Intellectual Honesty for the Global Investor”Principles of Firm Performance History for ABE Strategy Performance History by Asset Class Performance During Financial Crisis Investment

Principles of Firm

Performance History for ABE Strategy

Performance History by Asset Class

Performance During Financial Crisis

Investment Research

Risk Management

Portfolio Management

Long-Term Methodology

Special Situations Investing

Transparency

Fiduciary Relationship

Management

Contact Information

Disclosures

CapitalManagement

Phone: 973.713.1236 E-mail: [email protected] • Page 8

Monthly Rolling Returns

Quarterly Rolling Returns

Annual Rolling Returns

3-Year Rolling Returns

5-Year Rolling Returns

Total Periods 153 151 142 118 94

% of Periods with Positive Returns 58.2% 67.5% 72.5% 94.1% 100.0%

% of Periods with Negative Returns 41.8 32.5 27.5 5.9 0.0

Average Return for Period 1.0 3.0 12.5 51.9 107.7

Average S&P 500 TR Return for Period 0.2 0.8 3.7 13.2 16.7

Average Outperformance of S&P 500 TR 0.7 2.2 8.8 38.7 91.0

Best Return for Period 15.1 24.4 50.9 102.4 202.9

Worst Return for Period -15.9 -18.3 -19.0 -22.5 23.8

PerformanceonaRollingPeriodBasisOverVariousTimeHorizons

StockPortfolio

PercentageofPeriodsABEStrategyStockPortfolioOutperformed S&P500TotalReturnIndexonaRollingPeriodBasis

Rolling 5-Year ReturnsRolling 3-Year ReturnsRolling Annual ReturnsRolling Quarterly ReturnsRolling Monthly Returns0

102030405060708090

100%

ABE Strategy Stock Portfolio performance figures are based on management calculations using historic brokerage statements from Account XYZ. The figures cover the period from April 1, 2000 through December 31, 2012. The results from April 1, 2000 through August 31, 2010 were reconciled with the Accountants’Review Report prepared by Marcum, LLC. There were no material differences. The performance results across asset classes are net of all trading costs/commissions and gross of all management fees. ABE Capital Management was established in June of 2010. Any performance figures before June of 2010 reflect Mr. Nelson’s private management of Account XYZ. The Strategy for Account XYZ has remained the same under Mr. Nelson’s private management and under ABE Capital Management. See Disclosures section for complete performance disclosure. Advisory services are only offered to clients or prospective clients where ABE Capital Management, LLC and its representatives are properly licensed or exempt from licensure. Investing involves risk and possible loss of principal capital. No advice may be rendered by ABE Capital Management, LLC unless a client service agreement is in place. Past performance is no guarantee of future results.

Page 10: “Intellectual Honesty for the Global Investor”Principles of Firm Performance History for ABE Strategy Performance History by Asset Class Performance During Financial Crisis Investment

Principles of Firm

Performance History for ABE Strategy

Performance History by Asset Class

Performance During Financial Crisis

Investment Research

Risk Management

Portfolio Management

Long-Term Methodology

Special Situations Investing

Transparency

Fiduciary Relationship

Management

Contact Information

Disclosures

CapitalManagement

Phone: 973.713.1236 E-mail: [email protected] • Page 9

AbsoluteReturns:DistributionPatternofRollingReturns

StockPortfolio

DistributionPatternof5-YrRollingReturns

DistributionPatternof3-YrRollingReturns

0

5

10

15

20

25

30

x > 200%175% < x < 200%150% < x < 175%125% < x < 150%100% < x < 125%75% < x < 100%50% < x < 75%25% < x < 50%0% < x < 25%

Num

ber o

f Per

iods

Percent Return

0

5

10

15

20

25

30

35

40

45

x > 100% 80% < x < 100% 60% < x < 80% 40% < x < 60% 20% < x < 40% 0% < x < 20% -20% < x < 0% x < -20%

Num

ber o

f Per

iods

Percent Return

ABE Strategy Stock Portfolio performance figures are based on management calculations using historic brokerage statements from Account XYZ. The figures cover the period from April 1, 2000 through December 31, 2012. The results from April 1, 2000 through August 31, 2010 were reconciled with the Accountants’Review Report prepared by Marcum, LLC. There were no material differences. The performance results across asset classes are net of all trading costs/commissions and gross of all management fees. ABE Capital Management was established in June of 2010. Any performance figures before June of 2010 reflect Mr. Nelson’s private management of Account XYZ. The Strategy for Account XYZ has remained the same under Mr. Nelson’s private management and under ABE Capital Management. See Disclosures section for complete performance disclosure. Advisory services are only offered to clients or prospective clients where ABE Capital Management, LLC and its representatives are properly licensed or exempt from licensure. Investing involves risk and possible loss of principal capital. No advice may be rendered by ABE Capital Management, LLC unless a client service agreement is in place. Past performance is no guarantee of future results.

Page 11: “Intellectual Honesty for the Global Investor”Principles of Firm Performance History for ABE Strategy Performance History by Asset Class Performance During Financial Crisis Investment

Principles of Firm

Performance History for ABE Strategy

Performance History by Asset Class

Performance During Financial Crisis

Investment Research

Risk Management

Portfolio Management

Long-Term Methodology

Special Situations Investing

Transparency

Fiduciary Relationship

Management

Contact Information

Disclosures

CapitalManagement

Phone: 973.713.1236 E-mail: [email protected] • Page 10

Jun-

00

Dec-0

0

Jun-

01

Dec-0

1

Jun-

02

Dec-0

2

Jun-

03

Dec-0

3

Jun-

04

Dec-0

4

Jun-

05

Dec-0

5

Jun-

06

Dec-0

6

Jun-

07

Dec-0

7

Jun-

08

Dec-0

8

J un-

09

Dec-0

9

Jun-

10

Dec-1

0

May

-11

800,000

1,000,000

1,200,000

1,400,000

1,600,000

$1,800,000

Jun-12

Barclay's Municipal Bond Index (1-10 Year blend)ABE Strategy Bond Portfolio

ABEStrategyProvidedSteady,Tax-PreferredReturns

BondPortfolio

ABE Strategy Bond Portfolio performance figures are based on management calculations using historic brokerage statements from Account XYZ. The figures cover the period from April 1, 2000 through May 31, 2011. The results from April 1, 2000 through August 31, 2010 were reconciled with the Accountants’Review Report prepared by Marcum, LLC. There were no material differences. The performance results across asset classes are net of all trading costs/commissions and gross of all management fees. ABE Capital Management was established in June of 2010. Any performance figures before June of 2010 reflect Mr. Nelson’s private management of Account XYZ. The Strategy for Account XYZ has remained the same under Mr. Nelson’s private management and under ABE Capital Management. See Disclosures section for complete performance disclosure. Advisory services are only offered to clients or prospective clients where ABE Capital Management, LLC and its representatives are properly licensed or exempt from licensure. Investing involves risk and possible loss of principal capital. No advice may be rendered by ABE Capital Management, LLC unless a client service agreement is in place.Past performance is no guarantee of future results.

Page 12: “Intellectual Honesty for the Global Investor”Principles of Firm Performance History for ABE Strategy Performance History by Asset Class Performance During Financial Crisis Investment

Principles of Firm

Performance History for ABE Strategy

Performance History by Asset Class

Performance During Financial Crisis

Investment Research

Risk Management

Portfolio Management

Long-Term Methodology

Special Situations Investing

Transparency

Fiduciary Relationship

Management

Contact Information

Disclosures

CapitalManagement

Phone: 973.713.1236 E-mail: [email protected] • Page 11

Monthly Rolling Returns

Quarterly Rolling Returns

Annual Rolling Returns

3-Year Rolling Returns

5-Year Rolling Returns

Total Periods 134 132 123 99 75

% of Periods with Positive Returns 66.4% 76.5% 94.3% 100.0% 100.0%

% of Periods with Negative Returns 33.6 23.5 5.7 0.0 0.0

Average Return for Period 0.4 1.2 4.8 13.6 23.5

Average Return for Barclay's Muni (1-10yr) 0.4 1.2 4.9 14.3 23.1

Average Outperformance of S&P 500 TR 0.0 0.0 -0.1 -0.7 0.4

Best Return for Period 5.3 6.0 12.3 21.8 31.0

Worst Return for Period -3.3 -6.0 -4.7 4.5 11.8

PerformanceonaRollingPeriodBasisOverVariousTimeHorizons

BondPortfolio

PercentageofPeriodsABEStrategyBondPortfolioOutperformed Barclay’sMuniIndexonaRollingPeriodBasis

0

10

20

30

40

50

60

70%

Rolling 5-Year ReturnsRolling 3-Year ReturnsRolling Annual ReturnsRolling Quarterly ReturnsRolling Monthly Returns

ABE Strategy Bond Portfolio performance figures are based on management calculations using historic brokerage statements from Account XYZ. The figures cover the period from April 1, 2000 through May 31, 2011. The results from April 1, 2000 through August 31, 2010 were reconciled with the Accountants’Review Report prepared by Marcum, LLC. There were no material differences. The performance results across asset classes are net of all trading costs/commissions and gross of all management fees. ABE Capital Management was established in June of 2010. Any performance figures before June of 2010 reflect Mr. Nelson’s private management of Account XYZ. The Strategy for Account XYZ has remained the same under Mr. Nelson’s private management and under ABE Capital Management. See Disclosures section for complete performance disclosure. Advisory services are only offered to clients or prospective clients where ABE Capital Management, LLC and its representatives are properly licensed or exempt from licensure. Investing involves risk and possible loss of principal capital. No advice may be rendered by ABE Capital Management, LLC unless a client service agreement is in place.Past performance is no guarantee of future results.

Page 13: “Intellectual Honesty for the Global Investor”Principles of Firm Performance History for ABE Strategy Performance History by Asset Class Performance During Financial Crisis Investment

Principles of Firm

Performance History for ABE Strategy

Performance History by Asset Class

Performance During Financial Crisis

Investment Research

Risk Management

Portfolio Management

Long-Term Methodology

Special Situations Investing

Transparency

Fiduciary Relationship

Management

Contact Information

Disclosures

CapitalManagement

Phone: 973.713.1236 E-mail: [email protected] • Page 12

500,000

750,000

1,000,000

1,250,000

1,500,000

$1,750,000

S&P 500 Total Return Index

MSCI All-Country World Total Return Index

ABE Strategy Stock Portfolio

ABE Strategy

Aug-

10

Jul-1

0

Jun-

10

May

-10

Apr

-10

Mar

-10

Feb-

10

Jan-

10

Dec

-09

Nov

-09

Oct

-09

Sep-

09

Aug-

09

Jul-0

9

Jun-

09

May

-09

Apr

-09

Mar

-09

Feb-

09

Jan-

09

Dec

-08

Nov

-08

Oct

-08

Sep-

08

Aug-

08

Jul-0

8

Jun-

08

May

-08

Apr

-08

Mar

-08

Feb-

08

Jan-

08

Dec

-07

Nov

-07

Oct

-07

Sep-

07

Aug-

07

Returns Between Periods Since Inception of Financial Crisis

ABE Strategy Stock Portfolio

ABE Capital Management Strategy

MSCI All-Country World TR Index

S&P 500 TR Index

September 1, 2007 to March 31, 2009 15.49% 7.34% -46.12% -43.78%April 1, 2009 to August 31, 2010 42.00 19.72 43.71 35.54September 1, 2007 to August 31, 2010 63.99 28.51 -22.56 -23.80

ABECapitalManagementStrategy

GeneratedPositiveReturnsduringtheFinancialCrisis

ABE Capital Management Strategy performance figures are based on Schedule of Gross Investment Performance of Account XYZ as verified in the Accountants’ Review Report prepared by Marcum, LLC and covers September 1, 2007 through August 31, 2010. ABE Strategy Stock Portfolio performance figures are based on management calculations using historic brokerage statements from Account XYZ. The figures cover the period from September 1, 2007 through August 31, 2010. The Stock Portfolio results from September 1, 2007 through August 31, 2010 were reconciled with the Accountants’Review Report prepared by Marcum, LLC. There were no material differences. The performance results across the ABE Capital Management Strategy and ABE Strategy Stock Portfolio are net of all trading costs/commis-sions and gross of all management fees. ABE Capital Management was established in June of 2010. Any performance figures before June of 2010 reflect Mr. Nelson’s private management of Account XYZ. The Strategy for Account XYZ has remained the same under Mr. Nelson’s private management and under ABE Capital Management. See Disclosures section for complete performance disclosure. Advisory services are only offered to clients or prospective clients where ABE Capital Management, LLC and its representatives are properly licensed or exempt from licensure. Investing involves risk and possible loss of principal capital. No advice may be rendered by ABE Capital Management, LLC unless a client service agreement is in place.Past performance is no guarantee of future results.

ABE Capital Management’s research process enabled it to anticipate and prepare for risks not broadly recognized by the market. ABE’s flexible investment model provided the ability to opportunistically short at-risk sectors, to hedge across asset classes, and to reduce security-specific risk through sales of securities and through other hedging strategies.

Page 14: “Intellectual Honesty for the Global Investor”Principles of Firm Performance History for ABE Strategy Performance History by Asset Class Performance During Financial Crisis Investment

Principles of Firm

Performance History for ABE Strategy

Performance History by Asset Class

Performance During Financial Crisis

Investment Research

Risk Management

Portfolio Management

Long-Term Methodology

Special Situations Investing

Transparency

Fiduciary Relationship

Management

Contact Information

Disclosures

CapitalManagement

Phone: 973.713.1236 E-mail: [email protected] • Page 13

• Conduct value-oriented research in order to purchase securities at a

significant discount to intrinsic value and sell securities that are priced

at a premium to intrinsic value

• Allocate capital across asset classes on a global basis

• Create a diversified basket of long-term investment opportunities with

flexibility to hedge portfolio-specific or broader macroeconomic risks

• Seek special situation investment opportunities where counterparties

to the transactions are likely to be driven by mechanical selling for

non-economic reasons or short-term excessive sentiment

ABE Capital Management’s Investment Methodology

Page 15: “Intellectual Honesty for the Global Investor”Principles of Firm Performance History for ABE Strategy Performance History by Asset Class Performance During Financial Crisis Investment

Principles of Firm

Performance History for ABE Strategy

Performance History by Asset Class

Performance During Financial Crisis

Investment Research

Risk Management

Portfolio Management

Long-Term Methodology

Special Situations Investing

Transparency

Fiduciary Relationship

Management

Contact Information

Disclosures

CapitalManagement

Phone: 973.713.1236 E-mail: [email protected] • Page 14

ABE Capital Management has a disciplined investment research process.

This process is supported by three valuable and complementary investment

methodologies. Investment decisions will be initiated on the client’s

behalf after “Top-Down,” “Bottom-Up,” and “Behavioral” research

methodologies facilitate a probabilistic estimate of value. If the security’s

intrinsic value relative to its price is highly advantageous, ABE Capital

Management may purchase the security for the client’s portfolio.

After purchasing the security, ABE Capital Management monitors

the position in the client’s portfolio and has a sell discipline. ABE will

not encourage the client to take off (buy a security) without a flight path

and thoroughly considered landing instructions. ABE will also observe

prospective turbulence on an ongoing basis in an effort to effectuate a safe

flight and a secure landing (sale of a security).

ABE Capital Management Exercises Diligence in Research

Page 16: “Intellectual Honesty for the Global Investor”Principles of Firm Performance History for ABE Strategy Performance History by Asset Class Performance During Financial Crisis Investment

Principles of Firm

Performance History for ABE Strategy

Performance History by Asset Class

Performance During Financial Crisis

Investment Research

Risk Management

Portfolio Management

Long-Term Methodology

Special Situations Investing

Transparency

Fiduciary Relationship

Management

Contact Information

Disclosures

CapitalManagement

Phone: 973.713.1236 E-mail: [email protected] • Page 15

• Pricesaremorevolatilethanunderlyingintrinsicvalue,

which can create opportunity. Prices may be too high or

too low. As Warren Buffett notably stated, “Price is what

you pay; value is what you get.”*

• Securitiesshouldalwaysbepurchasedwithamarginof

safety (at a significant discount to intrinsic value) in order

to protect the client in the event that estimates of intrinsic value

prove overly optimistic. As Warren Buffett also stated,

“You build a bridge that 30,000-pound trucks can go across

and then drive only 10,000-pound trucks across it.”**

ABE Capital Management’s Value Orientation

*Berkshire Hathaway 2008 Letter to Shareholders**Financial World, June 13, 1984.

Page 17: “Intellectual Honesty for the Global Investor”Principles of Firm Performance History for ABE Strategy Performance History by Asset Class Performance During Financial Crisis Investment

Principles of Firm

Performance History for ABE Strategy

Performance History by Asset Class

Performance During Financial Crisis

Investment Research

Risk Management

Portfolio Management

Long-Term Methodology

Special Situations Investing

Transparency

Fiduciary Relationship

Management

Contact Information

Disclosures

CapitalManagement

Phone: 973.713.1236 E-mail: [email protected] • Page 16

Valuation Methodologies • Net Asset Value • Earnings Power Value • Discounted Free Cash Flow Value • Private Market Value • Sum-of-Parts Value

“Top-Down” Research: Broad Social, Economic, and Political factors

• Social: Demographic trends, cultural shifts in purchasing habits

• Economic: Balance of trade, monetary, and fiscal policy

• Political: Regulatory environment, currency implications

• Self-Reinforcing Interaction: Social,economic, and political developments

“Bottom-Up” Research: Evaluation of Security-Specific Criteria

• Industry Analysis: Market potential, competitive environment

• Industry Interviews: Management, competitors, suppliers, customers

• Financials: Financial statement analysis, ROIC, unit economics

• Fixed Income: Debt service, capital structure, liquidation value

“Behavioral” Research: Understand Investment Psychology

• Confirmation Bias: Seek evidence contrary to investment thesis

• Recency Effect: Do not extrapolate present; study market history

• Sentiment Indicators: Understand sentiment’s impact on security pricing

• Technical Indicators: Context for actions of market participants

ABE CapitalManagementApplies“Top-Down,”“Bottom-Up,” and“Behavioral”ResearchinEstimatingIntrinsicValue

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Phone: 973.713.1236 E-mail: [email protected] • Page 17

ABE Capital Management Conducts ResearchBasedonProbability

Estimated value of a security is a function of: WhatMightHappenxTheLikelihoodThatItWillHappen

Hypothetical example: Assume Company Y has an estimated value of $20 per share based on ABE’s proprietary research. There are two independent variables that might meaningfully impact the underlying value of the business:

Event 1: Will Company Y acquire or lose a major customer? Event 2: How successful will Company Y ’s newest business venture be?

Change in Customer Base(Event #1)

Probability#1

Impact on Share Value

of Event #1

Degree of Successof New Business Venture (Event #2)

Probability#2

Impact on Share Value

of Event #2

Overall Probability of Event #1 AND Event #2

(Probability #1 multiplied by Probabilty #2)

Original Value +

Impact of Events

Contribution to Overall Valuation

Acquire Major Customer

30% $5 Exceptional 20% $3 6% x $28 = $1.68 Moderate 40% $1 12% x $26 = $3.12

Original Estimated Value of Company Y

$20

Failure 40% ($2) 12% x $23 = $2.76

No Change in Customers

50% $0 Exceptional 20% $3 10% x $23 = $2.30 Moderate 40% $1 20% x $21 = $4.20 Failure 40% ($2) 20% x $18 = $3.60

Lose Major Customer

20% ($6)Exceptional 20% $3 4% x $17 = $0.68

Moderate 40% $1 8% x $15 = $1.20 Failure 40% ($2) 8% x $12 = $0.96

Value Estimate = $20.50

Probabilistic-based research allows ABE to garner a better understanding of the range of outcomes and provides consideration to even less likely outcomes. ABE seeks to purchase securities at a significant discount to the Probabilistic Value Estimate because the ability to climb higher is easiest when you start at a low point. Similarly, you get back up much quicker if you are only falling off of a pancake.

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Phone: 973.713.1236 E-mail: [email protected] • Page 18

• The valuation is no longer compelling

• The thesis for purchasing the security is no longer viable

• Better opportunities exist in the market

• Behavioral and/or technical considerations justify selling the security

“When the facts change, I change my mind.”

John Maynard Keynes

ABE CapitalManagementWillSellSecuritiesWhen:

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Phone: 973.713.1236 E-mail: [email protected] • Page 19

Misperception#1:VolatilityisRisk

ABE’sView: Volatility represents opportunity for long-term, intellectually honest

investors. Price changes more than underlying value.

Misperception#2:RewardisProportionaltoRiskAssumed

ABE’sView: Reward is not directly proportional to risk assumed. If risky

investments always produce high returns, they would not be risky.

ABE will only assume risk for the client when its research indicates

a compelling reward-to-risk ratio.

Common Misperceptions Regarding Risk

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Phone: 973.713.1236 E-mail: [email protected] • Page 20

Risk at the Security Level

• Payingtoomuchwhenthereward-to-risksetupisnotcompelling

• Makingpoorassumptionsaboutthefuturewhenvaluingasecurity

ABEattemptstomitigatesecurityspecificriskbydoingthefollowing:

• Investingonlywhenresearchindicatesahighreward-to-riskratiobyunderstanding

the client’s investment through a disciplined research process.

• Recognizingthat“top-down,”“bottom-up,”and“behavioral”research

methodologies can have “blind-spots.” The risks associated with these “blind-spots”

can be mitigated by research associated with the other two methodologies.

ABE Capital Management’s Perception of Risk

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Phone: 973.713.1236 E-mail: [email protected] • Page 21

ABE Capital Management’s Perception of Risk

Risk at the Portfolio Level

• Institutionalframeworks:Manyinvestmentfirmshaveself-imposedpoliciesand

procedures. These policies and procedures often set arbitrary rules which prevent

flexible asset allocation, thoughtful diversification, and prudent hedging.

• Behavioraldiscipline:Businessandcareerriskcaninduceshort-term,benchmark-focused

research processes. Such practices hinder patience and a willingness to

deviate from the consensus when it is appropriate.

ABEattemptstomitigateportfolioriskthroughaflexibleinvestmentmandate:

Flexibility:

• Permitspatiencewhenpatienceiswarranted

• Allowsdivergencefromconsensuswhendivergenceisjustified

• Supportsdiversificationwherediversificationisbeneficial

• Encourageshedgingwhenportfolioexposurecallsforit

• Multipliesareastotargethighreward-to-riskopportunities

ABE Capital Management is neither concerned with short-term performance

nor is it designed to mimic any index. ABE’s objective is to add value to the client’s

portfoliooverthree-yeartofive-yearperiodsoftimeinanabsolute,asopposed

torelative,sense.

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Phone: 973.713.1236 E-mail: [email protected] • Page 22

ABECapitalManagement’sCashAllocation ReflectsPatience,Discipline,andanInvestmentDecision

ABE’sHistoricAllocationbyAssetClass

Average Annual AllocationStocks Bonds Cash

2000 38.92% 36.56% 24.52%

2001 34.82 32.21 32.98

2002 28.56 32.61 38.83

2003 27.12 29.60 43.29

2004 33.80 31.05 35.15

2005 40.58 29.31 30.11

2006 53.06 27.06 19.88

2007 49.38 22.76 27.86

2008 54.45 17.84 27.71

2009 45.84 17.77 36.39

Average Annual AllocationStocks Bonds Cash

2010 42.84% 15.61% 43.81%

2011 31.02 0.17 68.81

2012 40.40 0.00 59.60

3-Year Average 38.09 5.12 56.80

5-Year Average 42.91 10.19 46.90

Historical Averages 40.08 22.19 37.72

Historical Median 39.63 26.49 35.24

Maximum (Monthly) 63.36 37.90 74.71

Minimum (Monthly) 22.09 0.00 14.54

• ABE’scashallocationenhancesflexibilitytoreactquicklytoattractiveinvestmentopportunities,buffers

returns during market declines, and increases portfolio purchasing power as market valuations compress.

• ABE’sfuturecashallocationmaybehigherorlowerthanhistoricalaveragesdependingoneconomic

conditions, existing security valuations, and other investments in the client’s portfolio.

ABE Strategy Stock Portfolio, ABE Strategy Bond Portfolio, and ABE Strategy Cash allocations are based on end of month figures calculated by management using historic brokerage statements from Account XYZ. The figures cover the period from April 1, 2000 through December 31, 2012. ABE Capital Management was established in June of 2010. Any asset allocation figures before June of 2010 reflect Mr. Nelson’s private management of Account XYZ. The Strategy for Account XYZ has remained the same under Mr. Nelson’s private management and under ABE Capital Management. See Disclosures section for complete performance disclosure. Advisory services are only offered to clients or prospective clients where ABE Capital Management, LLC and its representatives are properly licensed or exempt from licensure. Investing involves risk and possible loss of principal capital. No advice may be rendered by ABE Capital Management, LLC unless a client service agreement is in place.Past performance is no guarantee of future results.

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Phone: 973.713.1236 E-mail: [email protected] • Page 23

Be Contrarian When It Is Least Comfortable

“Skepticism and pessimism aren’t synonymous. Skepticism calls for pessimism

when optimism is excessive. But it also calls for optimism when pessimism is

excessive.” – howard MarKs, “the liMits to negativisM,” oCtober 15, 2008

Extreme consensus views (whether bullish or bearish) shift valuations and create an imbalance of prospective buyers relative to prospective sellers. Similar to a seesaw where all parties have shifted to one side, it is unreasonable to credibly believe that the seesaw can move further in the same direction. At some point, the process will reverse and the parties will start to shift back to a more normalized state, perhaps en masse. Thevariantperception,ifprobabilisticallyvalid,canoftenpresentcompellingreward-to-riskratiosforthepatient,independently-minded,andunleveragedinvestor.

In 2007, Citigroup CEO Chuck Prince famously quipped to the Financial Times, “As long as the music is playing, you’ve got to get up and dance. We’re still dancing.” History has shown that Citigroup remained on the dance floor too long, meaning that although the risks were readily apparent, their business needs justified investment. ABE Capital Management will not dance just because the music is playing. ABE Capital Management will only dance when the music is exceptional because it would rather miss an opportunity for the client than lose the client’s capital. Opportunities are made up easier than losses.

ABECapitalManagementwillnotbuythehotcompany,industry,orsecurityofthemomentifitsresearch does not justify such a position. It will look to such ‘hot money’ securities as prospective shorting opportunities.

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Phone: 973.713.1236 E-mail: [email protected] • Page 24

ABE Capital Management Diversifies with Reason and Not for the Sake of Diversification

Owning more things with the same or very similar risk profiles does not reduce risk; It merely distracts from research focus and provides a false sense of security.

ABE will focus its research in order to understand the securities in which it is investing and thespecificrisksforeachsecurityona“top-down”,“bottom-up”,and“behavioral”basis.

Research practices will likely result in a basket of opportunities with compelling reward-to-risk characteristics and diversified risk exposures. When meaningful risks are identified and overrepresented in the client portfolio, ABE Capital Management will look to hedge these risks. Furthermore, where macroeconomic risks are considered underappreciated in market pricing, ABE’s flexible investment model will seek out opportunities not only to mitigate these risks, but also to capitalize on this mispricing.

ABE Capital Management is structured to allow for reasonable diversification to the extent it benefits the client’s portfolio. ABE Capital Management can invest:

• AcrosstheGlobe

• AcrossAssetClasses(Stocks,Bonds,Commodities,Currencies,etc.)

• WithinAssetClasses(LargeCap,MidCap,SmallCap,MicroCapStocks)

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Phone: 973.713.1236 E-mail: [email protected] • Page 25

ABE Capital Management Is Able to Hedge Identified Market or Portfolio Risks

Hedging an investment portfolio should be approached like

purchasing insurance in other areas of life.

Hedging portfolio risks is most advantageous when the risks are present

but remain underappreciated. If you live on a fault line, it is preferable

to purchase insurance after 10 years of inactivity because low fear should

imply lower cost. If you wait for the earthquake, insurance costs will be

higher and the damage would have already been done.

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Phone: 973.713.1236 E-mail: [email protected] • Page 26

0

5

10

15

20

25

30

35

40

x > 5yr4 yr < x < 5 yr3 yr < x < 4 yr2 yr < x < 3 yr1 yr < x < 2 yr6 mo < x < 1yr< 6 months

Num

ber o

f Occ

uren

ces

Length of Holding Period

ABE Strategy Bond Portfolio

ABE Strategy Stock Portfolio

ABECapitalManagementBenefitsfrom WallStreet’s“Short-Term”Mentality

AverageHoldingPeriodsABE’sStockPortfolio:29Months/ABE’sBondPortfolio:46Months

Holding period figure estimates are determined by management using historic brokerage statements from Account XYZ and covers January 1, 2002 through December 31, 2010. ABE Capital Management was established in June of 2010. Any performance figures before June of 2010 reflect Mr. Nelson’s private management of Account XYZ. The Strategy for Account XYZ has remained the same under Mr. Nelson’s private management and under ABE Capital Management. See Disclosures for more information on holding period calculations.

Investment market participants have become increasingly short-term oriented.

This frequently drives security prices to levels that do not reflect underlying

value. ABE Capital Management’s investment approach seeks to capitalize on

this short-term mentality through “time-horizon arbitrage.” ABE will invest

and patiently wait for prices to catch up with underlying values.

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Phone: 973.713.1236 E-mail: [email protected] • Page 27

SpecialSituationInvesting: ABETakesAdvantageofMarketInefficiencies

Before investing on behalf of the client, it is imperative to remember that every transaction has one buyer and one seller. To put the probabilistic odds in the client’s favor, ABE Capital Management seeks opportunities where counterparties to the transaction are likely to be driven by mechanical selling for non-economic reasons or short-term excessive sentiment.

Example#1:Spin-offsoccur when a company separates a part of its business from the parent company. For example, assume a large pharmaceutical company ‘spins-off’ its small consumer products division. The recipients of the consumer product shares may sell because they:

• Donothaveaconsumerproductsanalyst• Onlyinvestinlargecapcompaniesbutthespin-offisasmallcapstock• Purchasegrowthstocksandthespin-offdoesnothaveahighrateofgrowth• Restricttheirinvestmentstohealthcarecompanies• Trackanindextowhichtheparent,butnotthespin-off,wasamember

Consequently, shortly after the spin-off, a significant percentage of shareholders may sell shares for non-economic considerations. This vast supply can overwhelm prospective buyers for a newly independent company with minimal analytical coverage. Asaresult,stockpricesmightplummetwhileunderlying value has not changed. A compelling reward-to-risk opportunity may be present.

Example#2:Closed-EndFundsmay, at times, be purchased for market prices that materially differ from known Net Asset Value. These opportunities allow patient investors to capture returns through a quantifiable and observable arbitrage process as market prices converge with known, underlying Net Asset Value. Whileinvestorspatientlybenefitfromthearbitrageopportunity,theycanearnanenhanced dividend yield without assuming additional risk.

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Phone: 973.713.1236 E-mail: [email protected] • Page 28

TranparencyofRelationshipwiththeClient

• ABECapitalManagementisstructuredtoprovideoptimaltransparencyfor

the client. To provide this transparency, ABE Capital Management selected a

large online brokerage firm to custody client assets. Clients will be able to see

their investments by logging onto their own online account and will receive

monthly statements directly from this online brokerage firm. The client

will provide ABE Capital Management the discretion to purchase and sell

securities within the account.

• Toprovideanadditionalleveloftransparencyandcomfort,ABECapital

Management will share its proprietary research pertaining to any security

purchased or sold in the client’s account. Clients will see the research that

is performed on their behalf and better understand how their savings are

being invested.

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Phone: 973.713.1236 E-mail: [email protected] • Page 29

ABEhasaFiduciaryObligationtotheClient

As a Registered Investment Advisor, ABE Capital Management provides

independent financial advice and receives a fee for this advice. ABE Capital

Management is governed by The Investment Advisers Act of 1940 and is legally

obligated to act in the interests of the client (act as a fiduciary).

Assets Under Management Annual Advisory Fee

$100,000-$250,000 1.30%

$250,001-$500,000 1.20%

$500,001-$1,000,000 1.10%

$1,000,001-$5,000,000 1.00%

$5,000,001-$10,000,000 .90%

$10,000,001 + .80%

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Phone: 973.713.1236 E-mail: [email protected] • Page 30

ManagementBiographyEricA.Nelson,Esq. has been responsible for actively

managing investment portfolios for high-net-worth

individuals, retirement accounts, trusts, and a

charitable entity since 2000. The portfolio management

responsibilities were conducted simultaneously with

other professional and academic responsibilities.

Mr. Nelson has years of experience performing

investment research for several financial firms including

OppenheimerCapitalandTheMDEGroup.He

graduated with honors from Columbia Business School

where he earned an MBA and was in the prestigious

and highly-competitive Value Investing Program. Mr.

Nelson is a graduate of Villanova University School

ofLawwherehefocusedhisstudiesonmattersof

international law and is a licensed attorney in the

States of New York and New Jersey. At Washington

UniversityinSt.Louis,Mr.Nelsonconductedresearch

on speculative financial

markets and behavioral finance while earning a BSBA

at the John M. Olin School of Business. Mr. Nelson is

an avid international traveler

and is intrigued by matters

of international economic

development. In this regard,

he has served on the Advisory

Council of The Center for New

Institutional Social Sciences (CNISS) and on the Board for

Eliminate Poverty Now. CNISS is a Washington University

based research institute focused on fostering political

stability and economic growth in developing and transition

economies through an interdisciplinary model. Eliminate

Poverty Now is a charitable organization dedicated

to eliminating extreme poverty through economic

opportunities with a focus on African development. Mr.

Nelson also manages the investment portfolio and serves

on the Board of the Teddie Nelson Wieland Scholarship

Fund, a college scholarship afforded to graduates of

Mount Vernon High School in Mount Vernon, New

York. He lives in New Jersey with his wonderful wife and

precious daughter.

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Phone: 973.713.1236 E-mail: [email protected] • Page 31

New Jersey Addresses51 JFK ParkwayFirst Floor, WestShort Hills, NJ 07078

24 Camlet CourtRoseland, NJ 07068

New York Address44 Wall Street10th FloorNew York, NY 10005

TelephonePhone: 973.713.1236Fax: 973.404.8808

[email protected]

Websitewww.abecm.com

ContactInformation

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Disclosures

Benchmark Information: The S&P 500 Total Return Index sets

forth the performance of a well-known, broad-based stock

market index which includes and adjusts for the reinvestment

of dividends. The MSCI ACWI (All Country World Index) is a

free float-adjusted market capitalization weighted index that

is designed to measure the equity market performance of

developed and emerging markets. As of May 27, 2010 the MSCI

ACWI consisted of 45 country indices comprising 24 developed

and 21 emerging market country indices. The MSCI ACWI returns

are calculated to include reinvested dividends. The Barclays

Capital Municipal Bond 1-10 Year Blend (1-12) Index consists of

a broad selection of investment-grade general obligation bonds,

revenue bonds, insured bonds (including all insured bonds with

a Aaa/AAA rating), and prerefunded bonds with maturities of

at least 1 year and less than 12 years. It is an unmanaged index

representative of the tax-exempt bond market. The index is

made up of all investment grade municipal bonds issued after

12/31/90 having a remaining maturity of at least one year.

ABE Capital Management is not restricted to the securities and

instruments comprising any one index.

Calculation of Returns: ABE Capital Management was

established in June of 2010. Any performance figures before

June of 2010 reflect Mr. Nelson’s private management of

Account XYZ. The Strategy for Account XYZ has remained the

same under Mr. Nelson’s private management and under

ABE Capital Management. The rates of return as provided in

Marcum’s Accountants’ Review Report were computed using

the modified Dietz method. This method computes the rate

of return by time weighting each cash flow by the amount of

time it is held in the portfolio. Cash flows consist of proceeds

from contributions and payments for withdrawals. The

cumulative gross rate of return is derived by geometrically

linking annual gross rates of return, which are derived by

geometrically linking monthly gross rates of return. The

investment performance for each period was computed on a

gross basis without regard to an advisory fee or income taxes.

Accrued interest in account XYZ was not included in computing

performance.Transaction costs for purchases and sales of

securities listed on exchanges were approximately $55 each

before October 2009, approximately $130 each from October

2009 through August 2010, and $10 since August 2010. The

average period gross returns have been computed by dividing

the aggregate annual gross returns by the respective number

of periods. The asset class returns for “Stocks,” “Bonds,” and

“Cash” were computed using a total return methodology.

Stocks include any exchange-traded securities, mutual

funds, and annuities. Bonds include fixed income securities

including municipal and corporate bonds. Cash includes

U.S. denominated currency and money market funds. The

asset class returns for the period of April 1, 200 through

August 31, 2010, were reconciled with the returns verified in

Marcum’s Accountants’ Review Report. There were no material

differences. All figures for the period September 1, 2010

through December 31, 2012 are based on management

estimates. A copy of Marcum’s Accountants’ Review

Report can be found at www.abecm.com.

Holding Period: The holding period for Stocks and Bonds were

calculated from the time of purchase or acquisition in Account

XYZ until the time of final sale. If the securities were in Account

XYZ at the time Mr. Nelson assumed management of Account

XYZ, the acquisition date was assumed to be April 1, 2000.

Since Mr. Nelson was responsible for rebalancing the portfolio

upon assuming management responsibilities, the holding

period data only reflects securities sold after December 31,

2001. Securities remaining in the portfolio are included in the

holding period figures and have a holding period based on the

date of initial purchase until December 31, 2010.

Important: This information is for illustration and discussion

purposes only and is not intended to be, nor should it be

construed or used as, investment, tax or legal advice, any

recommendation, or an offer to sell, or a solicitation of

any offer to buy, an interest in any security or any strategy

managed by ABE Capital Management. All material facts

(if any) have been properly disclosed. It is hereby disclosed

that any references to potential for profits also include the

potential for loss. All claims or results of the portfolio

portrayed reflect the reinvestment of dividends and

other earnings. All material facts (if any) have been properly

disclosed. It is hereby disclosed that any references to potential

for profits also include the potential for loss. Sample Research

of Stocks and Securities is available to clients upon request.

This research is for illustration and discussion purposes only. It

does not guarantee and promise a positive return or strategies

to use with specific clients. Any offer or solicitation of an

investment with ABE Capital Management may be made only

by delivery of the ABE Capital Management’s Form ADV Part II

and Investment Advisory Client Agreement. Advisory services

are only offered to clients or prospective clients where ABE

Capital Management, LLC and its representatives are properly

licensed or exempt from licensure. Investing involves risk and

possible loss of principal capital.