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INVESTMENT OPPORTUNITY PRESENTATION

3

rd

Dec 2013


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Table of Contents

Investment Team 3-4

Investment Philosophy 5

Methodology & Investment Process 6-8

Representative Portfolio 9-15

Operations 16-17

Q&A 18

Appendix 19-27

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Organizational Structure

Brian Garcia,

CFAPortfolio Manager

David Tao

Client Service Officer

Harsh Sharma

PortfolioManager

Louis Civitarese

Compliance Officer

Walter Hyde

Accounting Manager

Investment

TeamPhilosophy Process Portfolio Operations

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Investment Team

Investment

Committee

John Menke

ConsumerStaples, Utilities

Shantong Zhang

IT, Telecom

Lifan Yang, CFA

Energy,Industrials

Xiakai Cheng,MD

Health Care,Financials

Ian Melonuk,

CPAConsumer

Discretionary,Materials

Investment

TeamPhilosophy Process Portfolio Operations

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Investment Philosophy

Growth orientation, but at a reasonable price

Diversified portfolio of 30-50 stocks

Go anywhere style

Flexible market capitalization restrictions

Process-driven

Utilize fundamental research to verify quality of financial

statements Risk management through Northfield Risk Modeling

Process Portfolio OperationsInvestmentTeam

Philosophy

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Methodology & Investment Process

Create Investment Policy Statement

Universe Screen

Fundamental Research & Risk Management

Decision-making & Construction of the portfolio

Ongoing Monitoring

Philosophy Portfolio OperationsInvestment

TeamProcess

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Methodology & Investment Process

Universe: United States Stocks

Market cap >$1B

ROE>20%

5 year annualized sales

growth > 10%

80 - 120 stocks, to be

researched by analysts

13,000 Stocks

350-400 Stocks


TeamProcess

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Risk Management

Northfield Risk Modeling Standard Deviation

Information Ratio

Operations Asset Allocation

Rebalancing

Comply with guidelines and objectives set forth in RFP

Adhere to CFA Code of Ethics and Standards ofProfessional Conduct


TeamProcess

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Strategy Backtest

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

2000

2000

2001

2001

2002

2002

2003

2003

2004

2004

2005

2005

2006

2006

2007

2007

2008

2008

2009

2009

2010

2010

2011

2011

2012

2012

2013

2013

Growth of $10,000

Backtest S&P 500

Backtest S&P 5001-Year 41.2% 27.2%

3-Year 19.1% 16.6%

5-Year 20.8% 15.2%

10-Year 11.6% 7.5%

Since Incept

(Feb 2002)

11.2% 5.9%

YTD 34.1% 25.3%

2012 14.0% 16.0%

2011 0.7% 2.1%

2010 26.6% 15.1%

2009 43.8% 26.5%

2008 -44.1% -37.0%

2007 17.0% 5.5%

2006 13.0% 15.8%

2005 16.3% 4.9%

2004 20.5% 10.9%

2003 39.5% 28.7%

2002 -7.4% -20.9%

StdDev

R-Sq Beta TrackingError

SharpeRatio

InfoRatio

PositiveMonths

NegativeMonths

UpMarket

DownMarket

Backtest 18.80 0.82 1.09 8.0% 0.55 0.96 61.8% 38.2% 129.7% 96.4%

S&P 500 15.27 1.00 1.00 0.0% 0.35 0.00 64.5% 35.5% 100.0% 100.0%

Philosophy OperationsInvestment

TeamPortfolioProcess

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Representative Portfolio



Name SectorMarket Cap

($mil)PEG Ratio

P/E Ratio

5 Yr Avg

ROE TTM

(%)

5-Yr Rev

Growth (%)

3-Yr EPS

Growth

(%)

Net

Margin

TTM (%)

Portfolio

Weight

(%)AmTrust Financial Services, Inc. Financial Services 3,080 0.74 8.15 23.86 26.62 19.74 10.63 5.00

Apple Inc Technology 467,684 1.38 15.59 32.11 45.49 37.92 21.67 2.78

Boston Beer Company, Inc. Class A Consumer Staples 3,176 1.84 30.44 24.15 11.17 26.87 10.08 5.00

Celgene Corporation Healthcare 67,303 1.12 19.33 25.79 31.40 23.30 24.23 2.78

Chipotle Mexican Grill, Inc. Class A Consumer Discretionary 16,632 1.97 34.06 22.30 20.26 30.33 10.07 1.39

Cirrus Logic, Inc. Technology 1,231 0.41 -0.62 26.28 18.55 50.52 17.18 2.78

Cognizant Tec hnology Solutions Corporation Class A Tec hnology 28,169 1.07 22.60 24.22 28.03 24.60 14.02 2.78

Continental Resources Inc Energy 20,840 0.63 43.66 22.64 34.60 118.03 25.63 2.78

Credit Acceptance Corporation Financial Services 2,898 0.61 10.01 39.34 20.49 23.02 37.10 5.00

CVR Energy, Inc. Energy 3,181 1.00 23.58 46.40 23.63 76.08 5.13 2.78

Erie Indemnity Company Class A Financial Services 3,250 2.14 15.97 22.93 37.24 14.00 2.64 5.00

Gilead Sciences Inc Healthcare 113,882 0.81 17.00 30.72 18.06 -0.56 28.55 2.78

HollyFrontier Corp Energy 9,233 0.74 24.65 27.30 33.20 345.51 5.20 2.78

InterDigital Inc Communication Services 1,355 0.89 20.57 53.80 23.14 46.05 12.49 2.78

Intuitive Surgical, Inc. Healthcare 14,834 2.01 34.26 20.73 29.39 41.33 29.58 2.78

IPG Photonics Corporation Technology 3,755 1.17 45.65 20.76 24.42 199.10 24.57 2.78

Joy Global, Inc. Industrials 5,858 0.95 11.92 26.15 17.32 18.79 13.26 2.78

Las Vegas Sands Corp Consumer Discretionary 57,800 1.43 26.44 23.10 30.41 62.76 19.00 1.39

Marathon Petroleum Corp Energy 24,157 1.33 12.30 29.82 21.80 2.64 10.52 2.78

Monster Beverage Corp Consumer Staples 9,611 1.47 25.84 31.75 17.90 17.67 15.18 5.00

Myriad Genetics, Inc. Healthcare 2,152 1.14 20.92 21.57 25.85 -1.14 25.28 2.78

NIC, Inc. Technology 1,501 1.52 35.29 39.11 19.75 23.61 14.03 2.78

O'Reilly Automotive Inc Consumer Discretionary 13,495 1.09 19.73 27.00 19.64 23.96 9.99 1.39

Outerwall Inc Consumer Discretionary 1,874 1.03 24.81 29.43 32.15 40.96 7.67 1.39

Portfolio Recovery Associates, Inc. Industrials 2,875 1.18 14.05 21.23 21.84 41.90 23.50 2.78Priceline.com, Inc. Consumer Discretionary 59,604 1.02 24.84 35.67 30.14 42.61 27.99 1.39

Questcor Pharmaceuticals, Inc. Healthcare 3,593 0.31 19.68 104.32 59.22 95.07 36.92 2.78

Raven Industries, Inc. Industrials 1,406 2.43 19.79 26.20 11.89 22.70 12.90 2.78

SolarWinds, Inc. Technology 2,472 1.00 28.20 22.19 34.22 40.20 29.20 2.78

Steven Madden Ltd Consumer Discretionary 2,652 2.26 15.15 20.57 23.27 33.65 10.05 1.39

Sturm, Ruger & Company Industrials 1,487 0.46 11.95 62.42 25.74 36.94 16.12 2.78

Tractor Supply Consumer Discretionary 10,216 1.38 20.28 26.88 10.61 32.17 6.19 1.39

TransDigm Group Inc Industrials 7,821 1.62 21.97 24.16 23.46 22.82 6.19 2.78

Ubiquiti Networks Inc Technology 3,676 1.00 32.80 70.83 32.80 54.33 27.80 2.78

Ulta Salon Cosmetic s & Fragranc es, Inc . Consumer Disc retionary 8,182 1.81 35.18 25.25 18.66 63.67 7.74 1.39

United Therapeutics Corporation Healthcare 4,688 1.03 35.18 24.83 34.14 150.10 26.90 2.78

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Representative Portfolio



11.1%

10.7%

10.5%

17.1%

12.9%

10.8%

16.7%

3.5%

3.7%

3.1%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

Consumer Discretionary

Consumer Staples

Energy

Financial Services

Health Care

Industrials

Information Technology

Materials

Telecom

UtilitiesSample Portfol io S&P 500

Consumer

Discretionary,

11%

Consumer

Staples, 10%

Energy, 11%

Financials,

15%Health Care,

17%

Industrials,

14%

Information

Technology,

19%

Materials, 0%Telecom, 3% Utilities, 0%

Value Core Growth

Large 3 3 15

Mid 0 21 23

Small 0 12 23

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Questcor Pharmaceuticals, Inc. (QCOR)

Stock Price Performance - 5 year period

Current Price: $56.53

Screen:

Market Cap $3.4B

ROE 104.32%

5 yr Rev Growth 59.22%



Sector: Healthcare

Performance Versus Industry QCOR Industry

5 yr growth estimate (consensus) 31% 22%

Margins:

Gross 94% 74%

Operating 58% 19%

Pre-tax 58% 10%

5 year average ROE 106% 19%

PEG Ratio 0.35 2.18

Forward P/E 8.54 24.87

P/E 13.03 54.47

EV/EBITDA 7.95 30.23

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Questcor Pharmaceuticals, Inc. (QCOR)

Biopharmaceutical company that markets two major drugs- H.P.Acthar Gel and Doral, to treat serious autoimmune conditions and

insomnia, respectively.

Acthar shipments have grown on average 42% over the past 4 years

and shipments are projected to 15% in 2013 YoY.

Fundamentals are very attractive, as seen by average operating

margin of over 51% in the last 6 years, and the company operates on

very little debt outstanding. June 2013, acquired the drug Synacthen from Novartis. The drug is

not currently FDA approved for distribution in U.S. but provides

growth opportunity in international markets.



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Las Vegas Sands Corp (LVS)

Stock Price Performance - 5 year period



Current Price: $70.77

Screen:

Market Cap $57.8B

ROE 23.10%

5 yr Rev Growth 30.41%

Sector: Consumer Discretionary

Performance Versus Industry LVS Industry

5 yr growth estimate (consensus) 17% 11%

Margins: Gross 45% 54%

Operating 22% 15%

Pre-tax 19% 8%

5 year average ROE 21% 15%

PEG Ratio 1.43 4.01

Forward P/E 19.66 25.99P/E 26.44 23.88

EV/EBITDA 15.73 14.16

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Las Vegas Sands Corp (LVS)

Sands is best positioned to exploit growth opportunities in the

attractive Asia casino market, with a dominant position in Singapore

(about 50% share) and a strong competitive position in China (above

20% share).

Sands current operations positions it well to receive licenses in

countries that are expected to legalize casino gambling in the next

several years, including Japan, Taiwan, and South Korea.

The company has a strong economic moat, thanks to its possession of

one of only two licenses to operate casinos in Singapore and one of

six licenses to operate casinos in China.



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Operations

Daily flash report

Weekly performance update

Monthly detailed performance

and attribution analysis

Quarterly client service meeting

Philosophy Process PortfolioInvestment

TeamOperations

CFA Institute Code of Ethics and Standards of Professional

Conduct

XiakaiCompliance Officer

Custodian and broker/dealerState Street Bank

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Appendix

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Market Commentary

Dow above 16,000!

U.S. central bank has repeated it will not taper until the economy can stand on

its own

Interest rates will remain low in the near term.

There is now some possibility of Fed scaling back its $85 billion a month in

quantitative easing.

Inflation is well controlled considering the scale of money printing, and real

GDP growth advances.

Unemployment statistics continues to present a bullish case.

Investors are cautious - this round of the bull market likely has not reached its

end.

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MarketCommentary

Steadily decreasing at 0.7%/yr

since 2010 October.

Total nonfarm payroll

employment rose by 204,000 in

October.

Unemployment rate currently at

7.3%.

Employment increased in a

majority of industries.

Room to grow & potential

concern.

Unemployment Rate

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Market Commentary

Inflation & Real GDP Growth

Historically low inflation

Increasing GDP

Fed looking to taper

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Sample of Statement of Account

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Research Example

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Ubiquiti Networks

Ubiquiti Networks is a technology companystarted in 2005. Based in San Jose,California they are a manufacturer ofwireless products whose primary focus is onunder-served and emerging markets.

ROE: 70.83% Revenue Growth(3 year average):

39.94 Net income Growth(3 year

average): 54.33 Net Margin: 27.8%

P/E: 34.8

Higher growth rate and net marginratio than the industry average.

Wins Product of the Year for airFiber

Platform High growth stock to boost portfolio

performanceYear 2011-06 2012-06 2013-06 TTM

EPS 0.48 -0.12 0.89 1.21

Source: Morningstar

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Celgene Corp

Celgene Corp is a global biopharmaceuticalcorporation focusing on the discovery, thedevelopment, and the commercialization ofproducts for the treatment of cancer and othersevere, immune, inflammatory conditions.

ROE:25.8% Revenue Growth(3 year average):

27.0% Net income Growth(3 year

average): 23.3% Net Margin: 24.2%

P/E: 46.9

Higher growth rate and net marginthan industry average.

Pipeline consists of more than 25

unique compounds addressing morethan 30 disease areas ranging frommultiple myeloma to solid tumor.

Strong cash flow to support futureacquisitions.

Year 2008 2009 2010 2011 2012

EPS (3.46) 1.66 1.88 2.85 3.30

Source: Morningstar, Celgene website

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Raven Industries

Raven Industries is a conglomerate withdivisions that manufacture high-precisionagricultural electronics, specialty plasticsheeting, tethered aerostats, high-altitudeballoons, surveillance equipment, and radarsystems.

ROE: 26.2% Revenue Growth(3 year): 19.7% Net income Growth(3 year): 22.7% Net Margin: 12.9% P/E: 26.9

Higher than industry average salesand EPS growth

Strong cash flow

Clean balance sheet Increasing dividends (payout rate

~30%)Year 2008 2009 2010 2011 2013

Sales(M) 280 238 315 382 406

EPS 0.85 0.79 1.12 1.39 1.44

Source: Standard and Poors, Raven Industries

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