twelve svf nov08
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TWELVE Smart Value Fund PresentationTRANSCRIPT
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SMART VALUE FUND
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Asset Management Inc.
TWELVE Smart Value Fund 2MEANING
www.tw-am.com
MEANING OF ´TWELVE´
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.
TWELVE´s understanding of financial markets and the ability to
seize opportunities represents the meaning of its name.
12 Ancient Greek olmpic gods
12 Apostles of Jesus
12 Knights of King Arthur´s round table
12 Signs of the zodiac
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Asset Management Inc.
3OVERVIEW
01 TWELVE TEAM
02 TWELVE STORY
03 TWELVE SYSTEM
04 TWELVE SYSTEM TESTS
05 TWELVE Smart Value Fund
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.
www.tw-am.com
Updated 09.11.2008
TWELVE Smart Value Fund
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Asset Management Inc.
401 TWELVE TEAM
www.tw-am.com
Dietmar Mayrhofer
CPM
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)
TWELVE Smart Value Fund
Senior Private Banker
Meinl Bank
Senior Private Banker
OÖ Landesbank AG
Equity Trader
OÖ Landesbank AG
Certified Portfolio Manager (CPM)
MBA in Finance | Kepler Universität (A)
Andreas Edtbauer
CPM, MBA
Markus SchullerMag., MBA, MScFE, FRSA
Senior Analyst
Monaco Capital Partners Ltd.
Equity/ Options Trader
VKB Bank
Private Banking | Analyst
OÖ Landesbank AG
Master (Business Admin) at Kepler University (A) &
University of Pittsburgh)
MBA | International University of Monaco
TRIGON OE-Werkstatt
Trader & Market Maker Licenses
MScFE | International University of Monaco
TWELVE is led by an experienced team of investment professionals.
Professional
Academ
ia
Professional
Academ
ia
Professional
Academ
ia
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502 TWELVE is different
www.tw-am.com
TWELVE Smart Value Fund
TWELVE is different.
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602 TWELVE is different.
Smart Value Investing
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.
The TWELVE System as an example.
www.tw-am.com
Transparency
Our developed strategies are our most
important property.
We claim to provide highest possible
transparency to our investors, enabling
them to closely monitor their investments.
No Black Box Thinking.
Relativity
Permanent search for improvement.
Co-operation with renowned
International University of Monaco.
No dogmatic persistence on strategies or
analysis methods, but ´Best-Of-Breed´
principle.
TWELVE Smart Value Fund
Ethics
TWELVE guarantees a simple and fair fee
structure of its products.
We are aligned to the AIMA code of
conduct and take a leading position in
corporate governance for
hedge funds.
Quality
We expect highest quality from ourselves.
The same from our service partners.
Consequently we only work with top tier
partners.
Reputation Generates Business.
AI & Retail
Structures, transparency and fees
are aligned to serve
institutional & privaten investors
with premium alternative investments.
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703 TWELVE System
www.tw-am.com
TWELVE Smart Value Fund
TWELVE System.
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803 TWELVE System
www.tw-am.com
TWELVE Smart Value Fund
How does Warren
Buffett correlate with the
TWELVE System? “We simply attempt to be fearful when others are greedy
and to be greedy only when others are fearful.”
“Price is what you pay. Value is what you get.”
“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.”
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Asset Management Inc.
903 TWELVE System
www.tw-am.com
TWELVE Smart Value Fund
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.
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Asset Management Inc.
1003 TWELVE SYSTEM
www.tw-am.com
TWELVE Smart Value Fund
The TWELVE System synchonizes 4 phases.
Unleveraged
No Short Selling
Automatic De-Investment
< 75 % Equity Quota
< 25 % Derivative Quota
Matlab programmed
Permanent Hedging
Worldwide universe of more than 12.000
listed stocks is screened fully automated
on a daily base. The system is aligned to
filter “operationally healthy“ companies.
Phase I | Fundamental Filter
Allocation of all filtered stocks in
accordance with several cycle theories.
Using industry momentum as additional
portfolio driver.
Phase II |Momentum Allocation
Phase III | Hedges
Equity and currency hedges arrange for
an Alpha bias of the TWELVE System.
Derivative strategies are exclusively
adjusted to hedge the portfolio.
Phase IV|Sentiment Trading
System responds to short term market
movements. Single portfolio positions
have individual volatility ranges. Trailing
stop limits protect portfolio against
excessive market correlation.
SYNC
Automatic
Automatic
AutomaticSemi-
Automatic
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Asset Management Inc.
1103 TWELVE SYSTEM
Phase I | Outlined
www.tw-am.com
R&
D
Flex
ibili
ty
TWELVE Smart Value Fund
11 Fundamental Perspectives
2 Market Perspectives
No Analyst Recommendations
Top Database (Reuters & Rimes)
Daily Screening
of 12.000 Companies
No Estimated Numbers
How ´operationally healthy´ is a company?
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Asset Management Inc.
1204 TWELVE SYSTEM TESTS
The TWELVE System ran through several acid tests.
2001 – 2003: Backtest
2004 – 2005: Papertest
Sept06 – Dec07: Managed Account Test (MAT)
in parallel to a Papertest
2008 – YTD: Papertest | fund data since September 15th
(Gross Performance)
www.tw-am.com
10,02%
18,90%
35,14%
16,56%
22,96%
19,33%
36,21%
10,11
0,00%
5,00%
10,00%
15,00%
20,00%
25,00%
30,00%
35,00%
40,00%
2001 2002 2003 2004 2005 2006 2007 2008 (YTD)
Backtest Papertest MAT &
Papertest
Papertest
+SVF
TWELVE Smart Value Fund
Precisely tested
SYSTEM TESTS | Does it work?
Academically audited
Sept.2006
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Asset Management Inc.
13
www.tw-am.com
Performance 2008
SVF comparison with
• Dow Jones Industrials (DJI)
• S&P500
• DAX
• Nikkei 225 (N225)
• MSCI World
TWELVE Smart Value Fund04 TWELVE SYSTEM
Data before September 15th,
2008 does not refer to the
TWELVE Smart Value Fund,
but describe the test-
performance of the TWELVE
System (Gross performance).
The test-performance does not
guarantee any future
performance of the TWELVE
Smart Value Fund.
-55,00%
-45,00%
-35,00%
-25,00%
-15,00%
-5,00%
5,00%
15,00%
25,00%
TWELVE % S&P500 % DAX % DJI % MSCI World % N225 %
SVF Start
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Asset Management Inc.
1404 TWELVE SYSTEM
www.tw-am.com
TWELVE Smart Value Fund
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
-2,7
5%
-2,5
0%
-2,2
5%
-2,0
0%
-1,7
5%
-1,5
0%
-1,2
5%
-1,0
0%
-0,7
5%
-0,5
0%
-0,2
5%
0,0
0%
0,2
5%
0,5
0%
0,7
5%
1,0
0%
1,2
5%
1,5
0%
1,7
5%
2,0
0%
2,2
5%
2,5
0%
2,7
5%
3,0
0%
und g
röß
er
Distribution Daily Returns 2008 YTD
Häufigkeit
Performance Statistics 2008
Low Volatility
No ´Fat Tails´
Ideal Normal Distribution
TOP 5 Performer (current)
No Company %
1 Myriad Genetics +28,71
2 Telecom Argentina + 21,05
3 Cal-Maine +11,39
4 Ansys +10,63
5 Embotelladora And +4,15
TOP 5 Holdings (current)
No Company
1 Telecom Argentina SA
2 Partner Communications
3 WMS Industries
4 Quidel Corp
5 Corning Inc
TOP 5 Industries (current)
No Industry %
1Comunications
Equipment29,12
2Healthcare/
Pharma14,58
3 Chemicals 14,43
4 Construction 11,55
5 Media 7,98
TOP Countries (current)
No Currency %
1 USA 58,54
2 Argentina 10,22
3 Hong Kong 7,89
4 Israel 6,11
5 Chile 4,13
SV
F Statistik
Calculations of the TWELVE GmbH per 09.11.2008
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Asset Management Inc.
www.tw-am.com
HEDGING LOGIC
TWELVE Smart Value Fund04 TWELVE SYSTEM 15
Functionality of the TWELVE System – Hedging Mechanism (Phase III & IV).
An idealized description.
Slightly
Correcting
Equity Markets
Eroding
Equity Markets
Strongly
correcting
Equity Markets
System Bias
NET LONG
System Bias
NEUTRAL
System Bias
NET SHORT
System Response
SLIGHTLY ABSORBING
MARKET LOSS
System Response
NEUTRALIZING
MARKET LOSS
System Response
OVERCOMPENSATING
MARKET LOSS
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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Asset Management Inc.
www.tw-am.com
HOW GOOD IS ´HEALTHY´?
Analysis of the current earnings season (Q3/2008),
TWELVE Smart Value Fund04 TWELVE SYSTEM 16
Phase I of the TWELVE Systemonly marks 17 companies as„High Quality“ (out of 12.000)Since early September only 1company was newly filtered.
Empirically, the total numberpends between 20 and 40companies. How did the 17management teams master themacro-economic difficulties inQ3/2008? :
TWELVE Stocks No. in %
Filtered 17 -
Q3 Numbers published 13 -
Revenue increased 11 85%
Net Income increased 12 92%
Outlook confirmed 9 69%
Related News Articles
Mission accomplished.
Even in Q3/2008 the Phase I filteredcompanies delivered outstandingoperational results.
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1705 TWELVE SVF
www.tw-am.com
TWELVE Smart Value Fund
TWELVE Smart Value Fund.
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Asset Management Inc.
1405 TWELVE Smart Value Fund
www.tw-am.com
TWELVE Smart Value Fund Specifications
Fund Currency EUR
Fund Domicile/ Structure Germany / UCITS III
Fund Category Absolute Return Fund
Fund Strategy Long/Short Global Equity
Minimum Investment No
NAV (Net Asset Value) Daily
Subscription | Redemption Daily
Redemption Fee No
Lock Up No
Initial Fee Max. 5%
Management Fee 2 %
Performance Hurdle Rate 10 %
TWELVE Smart Value Fund Specifications
Performance Fee Cap High Water Mark
Performance Fee 20 %
TAM Commitment 1 % of final closing
Fund Target Groups European HNWI, InstitutionalInvestors, Family Offices , Endowments
Fund Profits Retained
Fund Taxation (AUT) White Fund (since Nov 7th)
Fund ReportingTAM Smart Value Fund informsinvestors via weekly updates andmonthly reports.
Fund Broker & Custodian Hauck & Aufhäuser
Fund Administrator Universal Investment
Fund Auditor KPMG
ISIN | WKN DE000A0Q5R19 | A0Q5R1
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Asset Management Inc.
1905 TWELVE SVF
www.tw-am.com
TWELVE Smart Value Fund
Your advantages as investor
Hedge Fund Strategy Mutual Fund Structure
Long/Short Equity
Strategy
No Short Selling &
No Leverage
Systemic Autopilot
(TWELVE System)
Permanent Asset-
Manager controlled
Warren Buffett
Equity Approach
Smart Hedging
Mechanisms
Retail Investor
Compliant
Coherent Alternative
Investment
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2005 TWELVE SVF TWELVE Smart Value Fund
Active Fund Communication | in EN & DE
www.tw-am.com
Anytime
TWELVE Website
Weekly
Weekly update
about Smart Value
Fund (per E-Mail)
Monthly
Newsletter about Smart
Value Fund & TWELVE in
general (per E-Mail)
Anytime
„Call the Manager“
Ask, respond, recommend!
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Asset Management Inc.
2106 TWELVE CONTACT
Andreas Edtbauer, CPM, MBA
Managing Director
phone +43 (0) 732 890103 - 30
mobil +43 (0) 664 1033327
email [email protected]
web www.tw-am.com
www.tw-am.com
TWELVE Smart Value Fund
Dietmar Mayrhofer, CPM
Managing Director
phone +43 (0) 732 890103 - 20
mobil +43 (0) 664 1033171
email [email protected]
web www.tw-am.com
FEEL INVITED TO CONTACT US.
Dametzstr. 38/3
A - 4020 Linz
Location: Linz
Structure: GmbH
RegNr.: 313166p
TWELVE GmbH