Hepburn Capital Management, LLC
2069 Willow Creek Road • Prescott, AZ 86301
(After deduction of all fees)
Cumulative Profit 48.51%
We strive to provide high total return.
(Inception 3/15/01 to 9/30/11)
HOW WE DO IT Annualized Return 5.61%
Your money will be invested in a 50/50 mix of HCM’s 1 year annualized -0.65%
Flexible Income and Careful Growth strategies, 3 year annualized 5.02%
described separately. 5 year annualized 4.68%
10 yr annualized 4.85%
If you want growth of capital and are willing to accept a 2010 -1.30%
more moderate rate of return to enjoy greater risk 2009 22.82%
control than ordinary stock market investing, this 2008 -6.45%
strategy may be for you. 2007 6.42%
MINIMUM FEE 2005 1.87%
$500 per month. 2003 12.74%
* GET IMPORTANT DETAILS HERE 2001 6.87%
PLEASE READ THESE IMPORTANT DETAILS
ww w. H e p bur n Ca pi ta l. c o m
BALANCED STRATEGIES - A 50/50 BLEND OF Performance Details
FLEXIBLE INCOME AND CAREFUL GROWTH
See Important Details of these Strategies, provided separately
Growth of a Hypothetical $100,000 Account
160,000 CURRENT HOLDINGS
as of September 30, 2011
S&P500 Inverse Index Fund ..................... 10%
100,000 Japanese Index Funds ............... 10%
80,000 50-50 Idx Bond Funds ............................... 10%
60,000 Rising Dollar Funds .................. 22%
Money Market Fund (Cash) .... 48%
A portfolio blended with a roughly equal mix of HCM’s growth and
income portfolios can pursue growth while taking less risk, compared
to a pure growth portfolio. With three primary portfolios, Flexible
Income, Balanced and Careful Growth, HCM can serve investors with
widely varying risk comfort levels.
HCM’s Flexible Income Strategy avoids use of stock market
investments, ensuring that our balanced portfolio will maintain
excellent diversification while still pursuing growth.
HCM’s Careful Growth Strategies pursue growth in whatever market
it is occurring allowing greater opportunity for growth in rising
Our Balanced Portfolio is a great blend of comfort and performance for moderate investors.
IMPORTANT INFORMATION ABOUT PERFORMANCE REPORTING
This illustration is a hypothetical example of how the investment model for this strategy may work as designed. The data
presented for this strategy is from investment models that the manager uses as a pattern to guide investment decisions in
client accounts and may not represent an actual client account. Normally performance data is constructed from lists of model
trades the gains and losses from which are added together with the sum of the values adjusted downward quarterly to reflect
the impact of HCM’s maximum portfolio management fee. Portfolio performance data during periods of complex trading
activity may be gathered by recording values in a single representative account which includes deduction of maximum
management fees. Activity in client accounts may be substantially different from that shown in the model in amount of each
investment, specific timing of trades, the actual security used and contributions or withdrawals which may vary from account
to account. The subjective nature of evaluating the effect of transaction costs and internal expenses of investments weighed
against varying trade sizes among accounts and anticipated holding periods mean that large and small accounts will often
hold different investments pursuing the same objective, which may at times create materially different performance results
between large and small accounts following the same model. This data does not represent a dollar weighted, daily average of
results of all accounts, and therefore should be considered hypothetical because it does not accurately reflect actual activity
across all client accounts.
Data shown in this performance snapshot represents hypothetical buys or sells that were generated from real-time signals for
the model strategy in use at that time. HCM investment models change as they strive to adapt to changing markets, therefore
the investments represented in this hypothetical model and the signals that generated the buy and sell signals are not
necessarily the investments or signals that will be used in the future. Other investments and signals may be used that may
produce different results. This hypothetical illustration may report monthly returns rather than daily returns, and therefore
may materially understate volatility. A list of all hypothetical transactions for the past 12 months is available upon written
request. Certain buy prices have been adjusted for distributions between the purchase and sale dates so they will have no
meaningful effect on the percent changes or overall rates of return shown. Certain mutual funds may employ short term
redemption fees which can be triggered by a sale of the fund within a certain period after purchase. The manager strives to
avoid triggering these fees when possible, however clients newly employing a strategy may have a higher incidence of short
term redemption fees than previous clients because the manager makes decisions to hedge or adjust positions similarly in all
accounts in times of market decline without regard to when a client entered the strategy. Short term redemption fees, if
incurred, are not reflected in this data.
Hepburn Capital Management, LLC www.HepburnCapital.com • 928-778-4000 Page 2 of 3
No claim is made that the strategy will perform in the future as it has in the past or as illustrated above. Also, there can be no
assurances that the strategy will produce a profit in the future; it is possible that the strategy will produce losses.
Client accounts are managed on a discretionary basis by William T. Hepburn, an Investment Adviser Representative with
Hepburn Capital Management, LLC, a Registered Investment Adviser.
Model performance information assumes reinvestment of all dividends and capital gains, if any. Model performance assumes
investment at the beginning of the period indicated and reflects all changes among various types of investments due to signals
generated by the strategy indicated. Performance related numbers, including the Net Average Annualized Portfolio Gain after
fees, reflect the deduction from client accounts of the maximum quarterly management fee, transaction charges, if any, and
all internal mutual fund fees and expenses. The hypothetical composite performance results do not reflect the impact of taxes.
Please refer to Hepburn Capital’s SEC Form ADV Part II or contact Will Hepburn for details of the current management fee
The information shown is hypothetical past performance and past performance is not indicative of future results. Therefore
no current or prospective client should assume that the future performance of any specific investment, investment strategy or
product made reference to directly or indirectly by a representative of HCM, on its web site or unaffiliated third party web
site will be profitable or equal to performance levels shown. Investment return and principal value will vary so that when
redeemed, an investor's account values may be worth more or less than when purchased.
Different types of investments involve varying degrees of risk, and this degree of risk can change without warning depending
upon market conditions. HCM uses its best efforts, but cannot be held responsible for extreme market volatility or market
closures, which may materially and negatively affect the value of client accounts. There can be no assurance that any specific
investment will either be profitable or remain suitable for a client’s or prospective client’s portfolio. No client or prospective
client should assume that any information presented and/or made available by an HCM representative or on its web site
serves as the receipt of or a suitable substitute for personalized individual advice from HCM or any other investment
Despite HCM’s efforts to capture and quantify the key financial and economic relationships in the global financial markets,
our knowledge about many of the important linkages is far from complete and in all likelihood will remain so. Every
investment model, no matter how detailed or how well designed, conceptually and empirically, is a vastly simplified
representation of the securities markets with all its intricacies and variables.
*The S&P 500 Index is an unmanaged index considered representative of the entire stock market. The Vanguard Total
Market Bond Index fund is a mutual fund considered representative of the US bond market. 6-Month CDS are considered
safe haven investments. The volatility of these benchmarks and that of the model portfolio are materially different. The
benchmark Index may not accurately reflect the performance of individual segments of various markets used in this strategy.
At times this strategy will invest in securities that are not included in any of these indexes. Investors cannot invest directly in
Many of the HCM strategies shown involve investing in mutual funds as well as other types of securities. Mutual fund shares
are not insured by the FDIC or any other agency, are not guaranteed by any financial institution, are not obligations of any
financial institution, and involve investment risk, including possible loss of principal.
Contact us 928-778-4000 or 800-778-4610, or email Invest@HepburnCapital.com.
For the most current information, please see our website at www.HepburnCapital.com.
Hepburn Capital Management, LLC www.HepburnCapital.com • 928-778-4000 Page 3 of 3