Investment Adviser

Sizemore Capital

Sizemore Capital

Education Texas Christian University; London School of Economics
Qualifications BA Phi Beta Kappa; Master's in Finance and Accounting
Investment Experience 10 years
Founded 2008

Dividend Growth

Exceptions
Sell Discipline
Allocation Discipline
Research
Approach
Summary

Sizemore Capital believes that a fundamental shift in investor preferences - due, among other factors, to the aging of America's Baby Boomers - is occurring that favors income over growth. At the same time, traditional income investments such as bonds and certificates of deposit offer unattractive yields near all-time lows. We believe that dividend-paying stocks represent an attractive income alternative over the next decade and beyond.

The model invests in the shares of U.S. and international common stocks, real estate investment trusts, master limited partnerships and other income-producing securities. The primary objective is the generation of a high and growing income stream that will outpace inflation over time, with a secondary objective of long-term capital gains.

Sizemore Capital selects investments that meet one or both of the following criteria:

1. Offers a high current yield relative to competing investments.
2. The income from the investment should have a long history of rising over time, or the manager should reasonably expect the yield to rise going forward.

Sizemore Capital places emphasis on the safety of the income stream. The manager seeks to avoid high yields that might be at risk of reduction.

The portfolio is concentrated among asset classes with a history of rising income payouts, such as dividend-paying stocks, real estate investment trusts, and master limited partnerships. Other asset classes and investment vehicles (such as closed-end mutual funds or ETFs) may also be considered as valuations and market conditions warrant. The initial investment in a security will not exceed 5% of the portfolio's value, though the allocation may rise above that threshold due to price movements over time.

The manager will divest of holdings that no longer meet the strategy's criteria for dividend growth. Companies the manager views at risk of dividend reductions will be considered for divestment. Additionally, holdings that the manager views as overvalued or that no longer offer an attractive yield relative to alternatives will be considered for divestment.

The manager may buy a security that does not have a history of dividend/distribution payouts if the manager reasonably believes that a payout will be initiated in the near future.

Replicability

100.0%

Replicable

Top 5 Holdings View all

5.3%

5.2%

5.1%

5.0%

4.9%

Model commentary

And the Masters of the Universe say...

19 May 2013

Some of these “smart money” guys haven’t been looking too smart of late.
Learning from what Big Money's thinking 1 May 2013
Gold: What happened?! 25 April 2013
Charles Sizemore on CNBC: Apple looks like Microsoft 10 years ago 23 April 2013
Gallop along with the global nouveau riche 23 April 2013

Performance detail

Manager
S&P 500

30D 90D 365D SI

Performance

Inception March 29, 2012

as of May 23, 2013	Manager	S&P 500	Average Subscriber
Past 30 days	2.5%	4.5%	1.9%
Past 90 days	13.0%	8.9%	-
Past 365 days	36.7%	25.1%	-
Since Inception (Annualized)	27.5%	15.1%	-
2013 (YTD)	25.6%	15.7%	-

Risk Metrics

Last 365 days

as of May 23, 2013	Manager	S&P 500
Best 30 days	10.4%	8.2%
Worst 30 days	-6.0%	-7.0%
Volatility	10.3%	12.7%
Sharpe Ratio	3.53	1.97
Sortino Ratio	5.72	2.85
Maximum Drawdown	-6.3%	-7.7%
Value-at-risk (95%, 1 week)	-2.4%	-2.9%

	vs. S&P 500
Information Ratio	1.75
Alpha	15.7%
Beta	0.70
R-Squared	0.73

Sizemore Capital's other strategies

Latest transactions view all

Average trades per month 5.1

Executed	Symbol	Security	Replicable	Type	Price
05/14/13	SAN	Banco Santander SA		Buy	$6.97
05/14/13	STO	STATOIL ASA-SPON ADR		Buy	$23.82
05/07/13	NSRGY	Nestle SA		Buy	$70.30
05/07/13	JNJ	Johnson & Johnson		Sell	$85.43
05/07/13	CSCO	Cisco Systems Inc		Buy	$20.45
04/24/13	SBY	Silver Bay Realty Trust Corp		Buy	$19.46
04/24/13	TWO	TWO HARBORS INVESTMENT CORP		Sell	$11.80
04/24/13	BX	BLACKSTONE GROUP LP/THE		Sell	$20.50

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. The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. Variables such as corporate actions or foreign exchange may affect daily performance displays. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither Covestor nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.

6. 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

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

8. 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.

9. 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.

10. 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.

11. 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/Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies Copyright © 2013.

Sizemore Capital