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

Tactical ETF

Exceptions
Sell Discipline
Allocation Discipline
Research
Approach
Summary

The Sizemore Capital Tactical ETF Portfolio is a Global Macro ETF model with a strong contrarian value focus. The model will utilize all major asset classes -- including U.S. and global equities, emerging market equities, bonds, currencies and commodities -- as market conditions warrant. The model will attempt to generate returns with less volatility by allocating to those asset classes the manager believes to be undervalued while avoiding or selling those asset classes deemed to be overvalued.

While this model does not intend to trade on margin (i.e. trade with borrowed money), having a margin account enables it to act quickly when opportunities arise rather than wait for funds to officially settle.

Sizemore Capital identifies the powerful macro trends driving the global economy and makes investments to profit from those trends by taking advantage of short-term mispricings to generate higher returns with less risk. Like Warren Buffett, we attempt to be greedy when others are fearful and fearful when others are greedy. And like legendary speculator George Soros, we attempt to identify the trend whose premise is false and bet against it.

In taking a "Big Picture" approach to portfolio management, Sizemore Capital will augment its traditional investment analysis by considering such factors as geopolitical developments, historical precedents and demographic trends.

Sizemore Capital will utilize various data sources, including but not limited to company financial statements, research reports, financial periodicals, academic papers, and security screeners and databases.

Though the Tactical ETF Portfolio may have concentrated allocations to stock market sectors, countries, currencies, or commodities, the manager will always keep the portfolio prudently diversified. Only under very rare circumstances would the portfolio have more than 10% of its assets targeted to any single non-diversified position. Well-diversified positions (i.e. those that cover a broad segment of the market) could have higher allocations. The portfolio will generally hold 7-10 positions.

Generally, Sizemore Capital will use stop loss orders or trailing stops as a risk management technique, though other methods may also be used. (Note: the Covestor replication process does not consider stop loss orders.)

The sell discipline will vary from position to position based on the risks and characteristics of the investment (i.e. certain investments may have wider stops than others). Sizemore Capital will take profits on successful investments when it believes its investments are fairly valued or it sees better opportunities elsewhere.

Given the portfolio's global macro mandate, Sizemore Capital will change the focus of the Tactical ETF Portfolio's investments as conditions warrant and new opportunities present themselves. The asset mix will potentially vary substantially from year to year, but the basic risk profile of the portfolio should remain unchanged.

Replicability

100.0%

Replicable

Top 5 Holdings View all

19.8%

15.5%

14.9%

10.4%

10.0%

Model commentary

Income investors shouldn't panic as rates rise

12 June 2013

Even with rates rising, a dividend growth strategy still makes sense if done right.
After the bloodletting: Are REITs and MLPs still a buy? 11 June 2013
Covestor Profiles: Charles Sizemore 2 June 2013
And the Masters of the Universe say... 19 May 2013
Learning from what Big Money's thinking 1 May 2013

Performance detail

Manager
Dow Jones Aggressive
S&P 500

30D 90D 365D SI

Performance

Inception June 19, 2011

as of June 17, 2013	Manager	Dow Jones Aggressive	S&P 500	Average Subscriber
Past 30 days	-3.4%	-3.0%	-1.7%	-
Past 90 days	3.3%	3.3%	5.9%	-
Past 365 days	18.1%	26.0%	22.1%	-
Since Inception (Annualized)	8.1%	10.5%	13.6%	-
2013 (YTD)	8.3%	11.5%	14.9%	-
2012	10.4%	16.8%	13.4%	-

Risk Metrics

Last 365 days

as of June 17, 2013	Manager	Dow Jones Aggressive	S&P 500
Best 30 days	8.3%	8.0%	8.2%
Worst 30 days	-5.2%	-5.5%	-7.0%
Volatility	12.5%	11.2%	12.4%
Sharpe Ratio	1.44	2.31	1.77
Sortino Ratio	2.11	3.53	2.65
Maximum Drawdown	-5.6%	-6.9%	-7.7%
Value-at-risk (95%, 1 week)	-2.9%	-2.6%	-2.9%

	vs. Dow Jones Aggressive	vs. S&P 500
Information Ratio	-1.48	-0.90
Alpha	-6.2%	-2.2%
Beta	1.01	0.95
R-Squared	0.82	0.88

Sizemore Capital's other strategies

$5,000 subscription min
Margin account required
1.5% fee

Latest transactions view all

Average trades per month 2.2

Executed	Symbol	Security	Replicable	Type	Price
06/06/13	XLK	TECHNOLOGY SELECT SECT SPDR		Buy	$31.25
06/06/13	SYLD	CAMBRIA SHAREHOLDER YIELD ET		Buy	$24.78
06/06/13	VIG	VANGUARD DIVIDEND APPRECIATION		Sell	$66.70
06/06/13	AMJ	JPMorgan Alerian MLP Index ETN		Buy	$44.23
06/06/13	DLN	WISDOMTREE L/C DIVIDEND FUND		Sell	$59.98
06/06/13	TUR	ISHARES MSCI TURKEY INVSTBLE		Sell	$60.26
05/23/13	JGBD	POWERSHARES DB 3X INVERSE JA		Buy	$18.89
05/23/13	DLN	WISDOMTREE L/C DIVIDEND FUND		Sell	$61.62

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