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									HIGH PERFORMANCE CAPITAL PARTNERS
Providing a natural high to your returns




ALTIN 2008
Hinterberger, Mayer, Nagarajan, Stein-Kaempfe, Ugboma
10 March 2008
                                                                                                    LEGAL NOTICES & DISCLOSURES
This presentation is intended for information purposes only. It is not an invitation or offer to
make an investment in High Performance Capital Partners (the “Fund”) or to purchase any
investment product. Any representation to the contrary is not permitted.
The complete terms of investment for the Fund, including the investment program, fees and
charges, tax consequences, risk factors, conflicts of interest and liquidity are set forth in the
Fund’s offering memorandum.
The Fund or any investment product made available involve a degree of risk. Potential investors
must familiarize themselves with the offering materials related to such investment and must
meet certain investment sophistication levels in order to make such investments and must be
able to fully absorb the risks associated with such investment. The offering memorandum for
the Fund and related subscription agreement will be made available to those persons eligible
for participation who demonstrate the capacity to evaluate the risks and merits of such
investment.
The past performance of the principals of the Fund is no indication of future results that may
be achieved by an investment in the Fund.
This presentation is produced solely for the specified recipient. This presentation may not be
transmitted, reproduced or made available to any other person.
Executive Summary                            4




                                                  AGENDA
The Team                                     5

Investment Style & Process                   11

Risk Management & Control                    13

Performance                                  14

Sample Transactions                          15

Appendix – Summary of Investment Proposals   16
                                                                                                                                    EXECUTIVE SUMMARY
Company Information                                               Summary of performance & Portfolio mix
High Performance Capital Partners is a Global Macro fund          From inception to date our fund has returned annualized
active in the world’s Foreign Exchange, Commodities and           compounded returns of over 30%, outperforming the 5-year
Equities markets.                                                 S&P 500 compounded annual returns of 11.62%.
Our superior ability to identify and then exploit trends for                           % of HPCP portfolio value
absolute returns reflects three key approaches:
                                                                                       Equities     Commodities    FX

1. A fundamental, top-down approach in order to:
      – Identify structural changes                                                           31%         23%
      – Pick disruptive technologies
      – Barriers to entry                                                                                 46%
      – Pricing power
      – Macroeconomic issues
      – Demographic changes
                                                                  Portfolio value in $ since inception date
                                                               1,060,000.00
2. Sound bottom-up analysis through:
     – Balance sheet and other financial data modeling         1,040,000.00
     – Business model appraisal
                                                               1,020,000.00
     – Assessing the quality of Management
                                                               1,000,000.00

3. Trading and modeling skills to structure investment plays    980,000.00
   based on:
                                                                960,000.00
      – Intrinsic value analysis
      – Market sentiments                                       940,000.00
      – Technical analysis e.g. when prices break through
                                                                920,000.00
      support/resistance                                                      22/01   29/01       05/02    12/02    19/02   26/02

We pride ourselves on our ability to make profitable
investments on both sides of the market, whether long or
short.
OUR PARTNER’S ABILITIES DIFFERENTIATE US FROM OUR PEERS




                                                                THE TEAM
                             Economic &
                               Political
                               Analysis




                              Risk &                Financial
        Trading              Portfolio             Analysis &
                            Management             Modeling




                             Investment
                            Management
                                                                                                         INVESTMENT STYLE
OUR INVESTMENT PHILOSOPHY…


                                            Top Down          Theme-Based opportunities identified
                                                              by
                                                              (a) reviewing trends within current
                                                              market environment
Independent                                                   (b) developing specific themes from
Fundamental Research                                          which to associate opportunities. These
                                                              lead to a series of linked positions
Primary Focus
Top down                                      Asset
                                            Allocation
Early identification of
Secular & cyclical trends

Active Risk                                                   Traditional relative value opportunities
Management                                                    are identified within distinct asset
                                                              classes through fundamental and
                                                              statistical securities analyses
                                            Bottom Up



Key Drivers:
•Growth – Analyze growth in sector, industry and corporate profits
•Valuation – Historical and relative value comparison
•Catalysts – Analyze market momentum and other possible catalysts that could affect
the market
                                                                                        Weekly investment cycle
WEEKLY INVESTMENT PLANNING PROCESS



        EVENT            TIMING            ROLE              DOCUMENTATION

                Monday            Identify economic and     Email memo with
  Strategy                        macro trends              responsibilities
  Meeting
                                  Discuss possible trades
                                  Assign further research
                                  to “expert(s)”
  Investment    Thursday          Discuss details,          Written proposals
  Committee                       structuring and exit      circulated by “expert(s)”
                                  points
                                  Unanimously approve
  Board                           submission to board
  Approval      Friday            Validate trades           Selected proposals
                                                            submitted to board for
                                                            approval
  Execution
                Week following    Trades are executed       Email memo with details
                approval          pending approval by the
                                  “board”
                                                                                          RISK MANAGEMENT & CONTROL
RISK IN OUR PORTFOLIO IS ACTIVELY MANAGED

High Performance Capital Partners has put several mechanisms in place to limit risk and
market exposure:


     • Trades are unanimously approved by all partners before implementation
     • We monitor risk via the calculation of VaR, semi-standard deviation and RAP
     • Extensive & creative use of Scenario analysis tools
     • We do not allow losses over :
           – 10% of nominal for simple transactions and
           – 5% of long exposure for Long-Short plays
     • A maximum loss in % and/or USD is defined in every investment proposal
     • Risk Return Ratio must exceed 1:2
     • Every trade has a clear time horizon, all open positions reviewed after 4 weeks
     • Use of real-time tools to monitor prices
     • More robust monitoring of execution after initial loss of 7% of portfolio


     Appointed risk managers: Iris Hinterberger, Francis Ugboma
                                                                                                               PERFORMANCE
    TARGET PERFORMANCE                                     RETURN/RISK MEASURES
    High Performance Objectives :
                                                           Annualized Standard Deviation        31.53%
    • Annual compounded returns above 15%                  Annualized Semi-standard deviation   23.96%
                                                           Skewness                             -0.79
    • Non-volatile return profile                          Kurtosis                             8.94

    • 1 Month VaR < 10% portfolio value                    VAR & SCENARIO ANALYSIS MEASURES


    Implement advanced risk measures e.g. RAP,             Positive days                        20
    Sharpe & Sortino ratios                                Negative days                        9
                                                           Latest 1 Month VaR (SD)              $117,982,95
 CUMULATIVE DISTRIBUTION OF DAILY RETURNS $
                                                           Latest 1 Month VaR (SSD)             -$100,296.33
            35                                   100.00%

            30   76% between $0-$2500
                                                 80.00%
                                                           ACTUAL PERFORMANCE
            25
Frequency




            20                                   60.00%
                                                           Annualized arithmetic mean returns   36.64%
            15                                   40.00%    Annualized compounded returns        31.64%
            10                                             Risk-Adjusted Performance            8.33%
                                                 20.00%
             5                                             Sortino ratio (3%)                   1.40
             0                                   0.00%     Sharpe ratio                         1.07
                                                                                    SAMPLE TRANSACTIONS
BEARISH ON THE USD, CONFIDENT ON EUR           SHORT US CAR RETAILERS


           Underlying Idea                          Underlying Idea

       US – pessimistic outlook        Decrease in purchases, car credit defaults
       EU – optimistic outlook             to squeeze margins, young, highly
                                       leveraged companies will increase bearish
                                                      sentiment

              Execution                                Execution

       Long EUR/USD @ 1.4548            Short a basket of US small car retailers

                 Exit                                     Exit

       @ 1.5208 after 7 weeks                        After 5 weeks
            ROCE: 322%                        ROI: 9.27% (ex repo profit)
                                                                              CONTACT INFORMATION
CONVINCED? TERMS CONDITIONS
CONDITIONS&& FEE STRUCTURE

Minimum Investment:             $10,000,000   Management Fee:     1.5% p.a.
Subsequent Purchase Minimum: $1,000,000       Performance Fee:    18.5%
Lockup:                         2 years       High-Water-Mark?:   Yes
Subscription Frequency:         Annual        Hurdle rate:        15%
Notice for Redemption:          12 months


CONTACT DETAILS                               HOW TO FIND US
Website:
Email: highperformancecap@gmail.com
High Performance Capital Partners
c/o IESE Business School
Avda. Pearson, 21
08034 Barcelona
                                      APPENDIX – INVESTMENT PROPOSALS
Summary of our investment proposals
                                                                                               WEEK 1 – 18/01/2008
BEARISH ON THE USD, CONFIDENT ON EUR

• Rationale: US slowdown worse than currently priced in, possible reserve diversification of
oil exporting nations – European economic outlook is stable, dovish interest rate policy
• Specs: Long EUR Futures, Entry: 1.4630 - Target: 1.6500 - Stop Loss: 1.4300
• Executed? Yes, held for 7 weeks
• Return: 4,54%       ROI: 322% (on initial margin)



BULLISH ON AGRICULTURAL COMMODITIES VS. ENERGY

• Rationale: Crude is not breaking through 100$/bbl, supply squeeze on seeds due to higher
demand (biofuels), weakening dollar is followed by increasing commodity prices
• Specs: Long GSCI, Short Crude Oil, Heating Oil, Natural Gas, Gasoline
• Executed? Yes, held for 1 week
• Return: -7.47%
                                                                                               WEEK 2 – 25/01/2008
BULLISH ON JBLU VS. OTHER AIRLINES

• Rationale: JBLU has suffered more from oil price rise than competition, spread will narrow
due to sound strategy and management, softening crude prices, Lufthansa
• Specs: Long JBLU, Short airline stocks – here UAUA (United Airlines)
• Executed? No
• Return:



BULLISH SAMSUNG VS. ASIAN TECHNOLOGY STOCKS

• Rationale: Samsung’s low performance indicators are unjustified – handset share and the
TFT-LCD margins more than offset memory weakness
• Specs: Long Samsung ADR, Short Matthews Asian Technology Fund
• Executed? No
• Return:
                                                                                                   WEEK 3 – 01/02/2008
SHORT US CAR RETAILERS

• Rationale: Economic environment leads to decrease in purchase of big-ticket items,
manufacturing prices under inflation pressure will push down retail margin, car credit defaults
in the wake of the credit crisis will push supply of (used) cars while lowering demand. Choice
of young, highly leveraged companies will increase bearish sentiment
• Specs: Short KMX, AN, LAD, RUSHB, CRMT (independent US car vendors)
• Executed? Yes, held for 5 weeks
• Return: 9.27% (pure return on capital employed excluding repo profit)

MERGER ARBITRAGE ON BANK OF AMERICA - COUNTRYWIDE

• Rationale: Market sentiment is that merger is not 100% certain – we believe it is because
BAC has never backed out of a transaction, is already highly exposed to CFC and is facing a high
break-up fee. Also, CFC management needs to act to avoid jail and the companies are highly
complementary
• Specs: Long CFC, short BAC
• Executed? No.
• Return:
                                                                                                  WEEK 4 – 08/02/2008
CHINESE YAHOO - MICROSOFT

• Rationale: The deal faces close antitrust scrutiny, Google is very actively lobbying to block
the deal and presents a second strategic option, it has been rumored that the deal plan is
merely a decoy to divert attention from poor management performance at MSFT and finally
MSFT does not have the experience to merge the businesses
• Specs: Short YHOO, long MSFT
• Executed? Yes, held for 4 weeks
• Return: 1.78%

BULLISH ON VOLATILITY

• Rationale: Recession fears stay unchanged, disappointing home sales, tax stimulus packet is
not going to be helpful, emerging monoline insurer issues will be worse than currently
expected, Put/Call Ratio (indicating bearish sentiment) is rising
• Specs: Long slightly out-of-the-money SPY put and call options
• Executed? No
• Return:
                                                                                                 WEEK 5 – 15/02/2008
CONSTRUCTION: SHORT SPAIN, LONG FULL ORDER BOOKS

• Rationale: Sound companies have been caught in the market turmoil, even though their
order books are healthy and big orders are likely to come in in the short term. On the other
hand Spanish constructors are set to suffer as house prices fall and mortgage applications get
stricter.
• Specs: Long PCEI, TOSH, short ABG, ANA, ACS, CLEO, FCC, OHL
• Executed? Yes, held for 3 weeks
• Return: 7.25% (24.20% on net capital employed)

LONG AMERICAN COAL MINES

• Rationale: US mining companies profit from China’s increased demand in coal and recent
export ban, adverse weather conditions in exporting countries, breakdown of price correlation
with oil and increase of mining capacity in US
• Specs: Long ACI, FCL, BTU
• Executed? Yes, held for 3 weeks
• Return: 4.55%
                                                                                                    WEEK 6 – 22/02/2008
BEARISH GBP, BULLISH JPY

• Rationale: Interest rate in Great Britain is set to fall, undermining the attractiveness of the
GBP for investors. Falling M&A activity, rising current accounts and high deficit/high taxes add
to the problem. In contrast, the Japanese labor and equity markets are sound and the
dependence on the US has decreased
• Specs: Short USD/GBP, long USD/JPY
• Executed? No.
• Return:

EXPLOIT SEASONAL PATTERN OF SOYBEANS AND CORN

• Rationale: Soy and corn mainly come from the Northern Hemisphere where planting starts
soon. Weather patterns, US elections and fundamental shifts in agricultural markets influence
traders’ sentiment on the supply situations and drive prices up in the short term
• Specs: Long CK8, SK8
• Executed? Yes, held for 2 weeks
• Return: 10.95%       ROI: 269% (on initial margin of contracts)
                                                                                                 WEEK 7 – 29/02/2008
CONVERGING VALUATIONS IN AGROCHEMICALS

• Rationale: Driven by growing world population and demand for bio-fuels the demand for
GM seeds is set to increase dramatically over the next few years. Whereas these possibilities
are far overvalued in the shares of Monsanto (P/E 53) we believe that the opportunities for
Syngenta (P/E 24) are undervalued by the market
• Specs: Short USD/GBP, long USD/JPY
• Executed? Yes, held for 1 week
• Return: 4.51%       ROI: 15.60% (on net capital employed)

BEARISH ON BANKING SECRET IN EUROPE

• Rationale: After the tax probes into German and British tax evaders in Liechtenstein, the
interest of other countries in the subject and the vow of Monaco to work with EU countries to
hinder tax evasion, we believe that tax havens in continental Europe will see massive outflows
of funds to more opaque legislations (Bahamas, Singapore, Middle East). Overall we believe
the Swiss economy is stable
• Specs: Short BAER, long EWL Index Fund (Swiss companies)
• Executed? No
• Return:

								
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