PAST PERFORMANCE MAY NOT BE INDICATIVE OF FUTURE RESULTS.
ValueWorks is a Registered Investment Adviser. ValueWorks has prepared and presented this information in compliance with the Global Investment Performance Standards (GIPS®). The firm maintains a complete list and description of composites, which is available upon request. Results are based on fully discretionary accounts under management, including those accounts no longer with the firm.
The Capital Appreciation Composite contains all accounts with a Capital Appreciation mandate; for comparison purposes this composite is measured against the S&P 500 Index. The Balanced Composite contains all accounts with a Balanced mandate; for comparison purposes this composite is measured against a 50/50 blend of S&P 500 and Merrill Lynch Master Bond Indices. The Long-Biased Composite contains all accounts with a Long-Biased mandate; for comparison purposes this composite is measured against the S&P 500.
The above benchmark indices are unmanaged indices. Beta was calculated using the S&P 500 as the market proxy for the Capital Appreciation and Long Biased Composites; the 50/50 Blended Index was used as the market proxy for the Balanced Composite. Index performance numbers reflect the reinvestment of dividends and interest, but do not reflect the deduction of any fees or expenses. ValueWorks’ value investing style is not limited to the securities in any of the above indices and utilizes specific investment techniques which are not utilized in the above indices and which may increase volatility. All composite returns include all dividends, interest, accrued interest and other cash flows received as they may result from the implementation of a particular investment strategy. Trade Date Accounting has been used. Results for the full period are time weighted. Accounts are included in composite at the start of the first full month under management. Exiting accounts are included through the last full month under management.
The U.S. Dollar is the currency used to express performance. Returns are presented gross and net of management fees and include the reinvestment of all income. The annual composite dispersion presented is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. Additional information regarding the policies for calculating and reporting returns is available upon request. The investment management fee schedule is as follows: Management Fee, 1.5%; Performance Allocation, 20% (Long-Biased Composite ONLY). Individual accounts can negotiate. Actual investment advisory fees incurred by clients will vary.
In the Long-Biased Composite leverage/derivatives may make up a material part of the composite strategy. The strategy used in this composite uses leverage that can total 150% of capital and short positions that can total 50% of capital. These techniques can increase volatility.
The Capital Appreciation Composite and Balanced Composite were created December 31, 1995. The Long-Biased Composite was created September 30, 1999. Performance presented prior to October 1, 2001 occurred while the Portfolio Manager was affiliated with two prior firms and he was the only individual responsible for selecting the securities to buy and sell.
ValueWorks was examined in 2007 by an external performance auditor and found to be in compliance with GIPS reporting standards for the period October 1, 2001 through December 31, 2007; the same methods continue to be used in performance presentation.
This document does not offer to sell or solicit any offer to buy any securities. Investments in all of these strategies may lose value.
This material is approved for client use.