Investment Advisor

Fletcher Wealth

Financial Planner,Fletcher Wealth Management

Education East Tenessee State University
Qualifications MBA

Fundamental Targets

Exceptions
Sell Discipline
Allocation Discipline
Research
Approach
Summary

This model invests in U.S. equities with strong fundamentals that are undervalued in relation to the rest of the market and respective industry.

This model analyzes Morningstar and S&P fair value targets in order to select equities that have forward P/Es that are <15 (large cap) and <40 (mid, small, micro) and that are selling at a significant discount to fair value, with upside potential based on market conditions.

The model also takes a macro view in order to allocate across industries.

Primary research tools are Morningstar and S&P fair value targets. Andy reviews equities for low P/E ratios and considers discount to fair value.

This model will typically hold 10-20 positions. The model may also hold long-only, non-leveraged ETFs in order to gain broad industry exposure. ETFs will only be used if they are deemed to be more valuable than an individual security in the same sector.

The model will allocate across a minimum of 5 industries in order to achieve diversification. There is no capitalization bias.

The model may invest in ADRs, although it will likely not be a large percentage of the model.

Selling occurs when a holding hits a predetermined target price, develops problems with its operations, or can be replaced by a more attractively valued holding.

The model may invest in ADRs, although it will likely not be a large percentage of the model.

Approach Fundamental , Value
Asset class Equity
Geography US

Replicability

100.0%

Replicable

Top 5 Holdings View all

12.2%

11.1%

9.4%

8.9%

8.8%

WOOF
WLP
PFE
F
XOM

Model commentary

Hedging the dollar with these core holdings

16 November 2011

The overall market appears to have somewhat stabilized, so we will consider making some purchases over the next few months.
Oil and Gas MLPs remain a safe haven 14 November 2011
Maintaining stability in my Dividends and Yield … 11 November 2011
Staying patient on Oil & Gas MLPs 19 October 2011
Three defensive stocks I like (and own) here 20 September 2011

Performance detail

Manager
S&P 500

30D 90D 365D SI

Performance

Inception March 16, 2011

as of May 21, 2012	Manager	S&P 500	Average Subscriber
Past 30 days	-4.2%	-4.5%	-
Past 90 days	-4.5%	-3.4%	-
Past 365 days	-4.1%	-1.3%	-
Since Inception (Annualized)	3.9%	4.0%	-
2012 (YTD)	2.7%	4.6%	-

Risk Metrics

Last 365 Days

as of May 21, 2012	Manager	S&P 500
Best 30 days	13.3%	13.6%
Worst 30 days	-17.9%	-16.7%
Volatility	24.0%	23.2%
Sharpe Ratio	-0.18	-0.06
Sortino Ratio	-0.24	-0.08
Maximum Drawdown	-19.4%	-18.8%
Value-at-risk (95%, 1 week)	-5.6%	-5.4%

	vs. S&P 500
Information Ratio	-0.42
Alpha	-2.6%
Beta	1.00
R-Squared	0.92

Latest transactions view all

Average trades per month 1.1

Executed	Symbol	Security	Replicable	Type	Price
04/17/12	FE	FIRSTENERGY CORP		Sell	$45.68
04/17/12	ISCA	INTL SPEEDWAY CORP-CL A		Sell	$27.60
09/08/11	EXC	Exelon Corp		Sell	$43.28
09/08/11	XOM	Exxon Mobil Corp		Sell	$73.75
09/08/11	PFE	Pfizer Inc		Sell	$19.03
09/08/11	FE	FIRSTENERGY CORP		Sell	$44.24
09/08/11	CSCO	Cisco Systems Inc		Sell	$16.21
09/08/11	NRG	NRG ENERGY INC		Sell	$23.90

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$5,000 subscription min
1.5% fee

Important Information

1. Past performance is no guarantee of future results.

2. Performance of the model manager's account is calculated by Covestor on a daily time-weighted basis, including cash, dividends and earnings distributions, and broker commissions. Manager returns include trades that fail Covestor's trading rules, do not reflect any Covestor suitability or risk score restrictions and are exclusive of Covestor fees. More

3. Average subscription returns ("Avg Sub" or "Avg Client") are calculated by Covestor and are composed of the average, daily, time weighted returns of all active subscriptions to the underlying model. These daily average returns are then linked together for the timeframe requested. In addition, these returns include cash, dividends and earnings distributions, brokerage commissions, Covestor advisory fees, and reflect individual client suitability and risk score restrictions. More

4. All graph data is as of the end of day for the referenced period, unless otherwise specified. The subscription minimum is the minimum subscription required to follow a particular model. The minimum amount is determined by Covestor, based on the characteristics of the underlying model. It should not be considered as specific investment advice for your investment situation.

5. Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations and do not include cash, dividends and earnings distributions, or transaction costs. More

6. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.

7. All Model Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has been provided by the Model Manager. Covestor makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of Covestor. Transaction history is available upon request. Model classifications (Approach, Asset Class) are provided by Covestor, and are intended to serve as a general guide.

8. Top Replicable Holdings: These securities are currently held in the model manager's brokerage account. Those marked as "Replicable Holdings" currently pass Covestor's trading rules, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription holdings may vary.

9. Latest Transactions: These transactions were executed in the model manager's brokerage account. Those marked as "Replicable" () passed Covestor's trading rules and were eligible for replication at the time of execution, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription trade activity may vary.

10. S&P 500 Index is an unmanaged index compiled by Standard & Poor´s Corp. Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index. S&P 500 index data: S&P 500 Copyright © 2012.

11. Dow Jones index data: CME Group Index Services, LLC 2012

Background provided by the manager
Fletcher Wealth Form ADV IIA

Fletcher Wealth