Investment Advisor

Sizemore Capital

Sizemore Capital

Education Texas Christian University, B.A. Phi Beta Kappa; London School of Economics, Master's in finance and accounting
Founded 2008

Strategic Growth Allocation

Exceptions
Sell Discipline
Allocation Discipline
Research
Approach
Summary

The Strategic Growth Allocations are Sizemore Capital's answer to traditional asset allocation and will invest primarily using ETFs. The Strategic Growth Allocations are appropriate for risk-averse investors that prefer a more passive "buy and hold" strategy that is consistent with their risk and return goals. The Strategic Growth Allocation seeks to achieve returns comparable to the S&P 500 while taking less risk and is appropriate for investors with an objective of long-term growth. Income is secondary objective.

Unlike traditional asset allocation—which generally shifts assets between "conventional" equities and bonds—Sizemore Capital incorporates non-traditional asset classes including:

High-Dividend Stocks
Emerging Market Consumer Stocks
Master Limited Partnerships (MLPs)
Real Estate Investment Trusts
Tax-Free Municipal Bonds
Inflation-Protected Bonds (TIPs)

The portfolios are long term in nature and utilize regular rebalancing as a risk management tool. By rebalancing, we continually buy low and sell high—which is the essence of successful investing.

Using historical returns data, Sizemore Capital constructs its Strategic Growth Allocations using asset classes it believes to be attractive as long-term investments. These asset classes are chosen not only for their potential for returns—which are attractive in their own right—but for their diversification potential. The non-traditional asset classes used by Sizemore Capital tend to have relatively low correlations to the broader stock market as measured by the S&P 500. Sizemore Capital will choose ETFs that it believes best represents the assets classes covered.

The Strategic Growth Allocation will have the following target weightings:

Large Cap U.S. Equities: 20%
High Dividend Equities: 15%
Euro / Pacific Equities: 15%
Inflation-Adjusted Bonds: 10%
Master Limited Partnerships: 10%
Real Estate Investment Trusts: 10%
Diversified Fixed Income: 7.5%
Emerging Market Equities: 5%
Small Cap U.S. Equities: 5%
Cash / Short-Term Fixed Income: 2.5%

Rebalancing will occur at least annually and may occur more frequently as market conditions warrant.

Strategic Growth Allocation positions will generally only be closed for one of two reasons:

1. Sizemore Capital has made a major strategic change to the allocation and has decided to eliminate an asset class.
2. Sizemore Capital has identified a new security that is a better match for the exposure sought (i.e. we find a large-cap equity ETF that we feel better achieves our objectives than the current holding).
Positions will, however, be regularly rebalanced.

None.

Approach Macro
Asset class Multi Asset Class
Geography Global

Replicability

100.0%

Replicable

Top 5 Holdings View all

24.0%

15.1%

13.4%

10.6%

10.1%

Model commentary

The pain in Spain is a buying opportunity

22 May 2012

The prices in Madrid’s stock market are downright extraordinary.
The real lesson of the 2010 flash crash 17 May 2012
Why we changed the lineup on our ETF models 13 May 2012
Here's why the big money likes stocks 4 May 2012
How Peruvian horses show us the way in this market 27 April 2012

Performance detail

Manager
Dow Jones Moderately Aggressive
S&P 500

30D 90D 365D SI

Performance

Inception September 29, 2011

as of May 23, 2012	Manager	Dow Jones Moderately Aggressive	S&P 500	Average Subscriber
Past 30 days	-2.2%	-4.3%	-3.5%	-
Past 90 days	-2.8%	-5.6%	-3.3%	-
Since Inception	12.1%	8.3%	13.7%	-
2012 (YTD)	3.6%	2.8%	4.9%	-

Risk Metrics

Since Inception

as of May 23, 2012	Manager	Dow Jones Moderately Aggressive	S&P 500
Best 30 days	10.9%	11.4%	13.6%
Worst 30 days	-8.3%	-9.3%	-9.8%
Volatility	14.8%	15.0%	19.1%
Sharpe Ratio	1.25	0.84	1.09
Sortino Ratio	1.90	1.27	1.65
Maximum Drawdown	-8.3%	-9.3%	-9.8%
Value-at-risk (95%, 1 week)	-3.4%	-3.5%	-4.4%

	vs. Dow Jones Moderately Aggressive	vs. S&P 500
Information Ratio	1.41	-0.42
Alpha	6.0%	2.4%
Beta	0.95	0.75
R-Squared	0.92	0.95

Latest transactions view all

Average trades per month 1.4

Executed	Symbol	Security	Replicable	Type	Price
05/09/12	VIG	VANGUARD DIVIDEND APPRECIATION		Buy	$56.97
05/02/12	VIG	VANGUARD DIVIDEND APPRECIATION		Buy	$58.53
05/02/12	SPY	SPDR S&P 500 ETF Trust		Sell	$140.21
01/03/12	TIP	iShares Barclays TIPS Bond Fund		Buy	$116.48
01/03/12	AGG	ISHARES BARCLAYS AGGREGATE		Buy	$110.01
09/30/11	IJR	ISHARES S&P SMALLCAP 600		Buy	$59.74
09/30/11	ECON	EGSHARES DOW JONES EMERG MAR		Buy	$20.17
09/30/11	AMJ	JPMorgan Alerian MLP Index ETN		Buy	$34.10

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1.0% 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
Sizemore Capital Form ADV II

Sizemore Capital