Tactical Equity Strategy
Strategy Profile
Strategy Inception January 1, 2007
The Tactical Equity Strategy seeks to produce total returns that exceed the
S&P 500 with less volatility over the long term through the use of active
portfolio management. The strategy invests primarily in large, low‐cost,
liquid exchange traded funds (ETFs), looking across geographies, industry
sectors, market capitalization, and income generation to provide
diversification and a superior risk/reward profile. The Tactical Equity
Strategy may invest in individual equities that are carefully researched and
present compelling total‐return opportunities. Total equity exposure may
range from 75% to 100%.
Returns and Analytics1
As of November 30, 2016
Measure
Granite
Springs
S&P 500 Index
November 2016
3.62%
3.70%
Q3 2016 Total Return
3.84%
3.86%
Year-to-Date Total Return (2016)
9.16%
9.81%
Previous Year Total Return (2015)
1.59%
1.41%
100.54%
61.63%
Total Return Since Inception
Annualized Return Since Inception
7.27%
4.96%
Upside Capture Since Inception
45.24%
100.00%
Downside Capture Since Inception
71.12%
100.00%
Growth of $10,000 Since Inception1
Quarterly Returns Since Inception1
20%
$21,000
$18,000
10%
$15,000
0%
$12,000
$9,000
-10%
$6,000
Monthly Performance (Net of Fees)1
JAN
FEB
MAR
2016
2015
2014
2013
2012
(3.34%)
-0.31%
-1.21%
3.41%
4.12%
(0.32%)
3.71%
4.36%
0.68%
4.29%
5.52%
(0.55%)
(3.22%)
3.71%
0.08%
APR
0.39%
0.26%
(1.19%)
(2.98%)
(0.38%)
MAY
1.41%
1.44%
1.89%
(1.61%)
(4.78%)
Annualized Return
8.0%
Investment Team
Randy Masel
Senior Portfolio Manager
AUG
(0.13%)
(5.26%)
3.66%
(2.50%)
1.48%
SEPT
(0.04%)
(2.87%)
(3.88%)
3.72%
1.92%
OCT
(2.00%)
6.64%
1.55%
1.92%
(2.83%)
NOV
3.62%
0.32%
1.34%
1.70%
(0.76%)
DEC
(1.42%)
(1.57%)
2.58%
(0.97%)
YTD
9.16%
1.59%
3.16%
12.26%
6.44%
4Q20162
1Q2016
2Q2015
3Q2014
1Q2013
2Q2012
3Q2011
4Q2010
2Q2009
3Q2008
4Q2007
1Q2007
4Q20162
JUL
4.02%
1.96%
(2.11%)
4.34%
1.40%
S&P 500 Index
ITD
100.54%
83.71%
80.83%
75.28%
56.14%
Risk Measures Since Inception1
Granite
Springs
S&P 500
Index
4.0%
0.0%
5.0%
1Q2016
JUN
0.02%
(1.82%)
3.96%
(2.91%)
3.11%
Risk vs. Return1
12.0%
Granite Springs
$2Q2015
3Q2014
4Q2013
1Q2013
2Q2012
3Q2011
4Q2010
1Q2010
2Q2009
3Q2008
4Q2007
1Q2007
-30%
S&P 500 Index
4Q2013
$3,000
Granite Springs
1Q2010
-20%
10.0%
Volatility
15.0%
20.0%
Volatility
Sharpe Ratio
Alpha
Beta
R-Squared
Positive Months
Granite Springs
S&P 500 Index
10.82%
0.60
67.43%
0.47
0.44
67
15.35%
0.27
*
1.00
1.00
73
• Nearly 35 years of industry experience
• Served in several senior-level research capacities before ultimately becoming Head of U.S. Credit Research at PaineWebber
• Additionally held positions as a credit analyst and portfolio manager at Millennium Management, Moore Capital Management, James Caird
Asset Management, and JAE Credit Management
25 Deforest Ave., Suite #308, Summit, NJ 07901 | T: (212) 935-0755 | F: (888) 901-4201 | E: [email protected]
1
2
Net of fees performance calculated using an annual 1.00% management fee amortized monthly; management fee may vary depending on individual investor agreements.
4Q2016 returns depict performance from 9/30/16 through 11/30/16.
Past performance is not indicative of future results. This material is not financial advice or an offer to sell any product. The opinions expressed are those of the Granite Springs Asset Management, LLC Investment Team. The opinions
referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions. Material presented has been derived from sources considered to be reliable, but the accuracy and
completeness cannot be guaranteed. Nothing herein should be construed as a solicitation recommendation or an offer to buy, sell or hold any securities, other investments or to adopt any investment strategy or strategies. This
material is for educational purposes only. Granite Springs Asset Management, LLC is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training.
More information about Granite Springs Asset Management, LLC can be found in its Form ADV which is available upon request.
Not for Public Distribution - Strictly Confidential
Granite Springs Asset Management, LLC
Tactical Equity Strategy
ANNUAL DISCLOSURE PRESENTATION
Year End
Annual
Performance
Results
Composite Gross
Annual
Performance
Results
Composite Net
S&P 500 Index
Benchmark
Composite
Dispersion
Number of
Accounts
Composite
Assets (USD)
(millions)
Total Firm
Assets (USD)
(millions)
Composite 3
Year STD
DEV
Benchmark 3
Year STD DEV
2007
15.02%
15.02%
3.55%
N/A
<6
$0.10
N/A
N/A
N/A
2008
-16.92%
-16.92%
-38.50%
N/A
<6
$0.10
N/A
N/A
N/A
2009
17.24%
17.24%
24.76%
N/A
<6
$0.86
$12.7
12.88%
19.92%
2010
21.16%
20.87%
15.05%
N/A
<6
$0.83
$18.9
13.43%
22.18%
2011
10.54%
10.39%
2.12%
N/A
<6
$0.91
$24.4
9.94%
19.00%
2012
7.50%
7.45%
15.98%
N/A
<6
$1.37
$25.1
10.21%
15.34%
2013
13.38%
13.16%
32.41%
N/A
7
$1.82
$138.2
8.94%
12.15%
2014
4.21%
3.66%
13.69%
4.86
11
$5.47
$203.9
9.48%
9.10%
2015
2.61%
1.96%
1.41%
1.75
15
$3.96
$167.3
9.89%
10.54%
Granite Springs Asset Management, LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report
in compliance with the GIPS standards. Granite Springs Asset Management LLC has been independently verified for the periods June 30th 2009 through December
31st 2015. The verification reports are available upon request. Verification assesses whether (1) the firm has complied with all the composite construction
requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance
with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.
Granite Springs Asset Management, LLC defines itself for GIPS purposes as an SEC (Securities and Exchange Commission) register ed investment advisor. Granite Springs
was founded on May 7th 2009. Performance prior to June 30th 2009 is that of the lead portfolio manager while managing the same strategy prior to the launch of Granite
Springs. This track record has been reviewed for compliance with the portability requirements of the GIPS standards. All assets at year end 2007-2009 were non fee paying.
The Tactical Equity Strategy composite includes all institutional and retail portfolios that are primarily invested in publicly traded equity-based Exchange Traded Funds,
equities, and equity mutual funds with the goal of providing long-term capital growth. The strategy aims to generate competitive returns relative to its benchmark by using
macroeconomic research and quantitative analysis to identify securities and sectors with greater potential for superior risk-adjusted returns. The strategy seeks to overweight
those investments identified as attractive while avoiding or underweighting the sectors and securities with less potential for positive returns. The benchmark is the S&P 500
Index. Prior to March 31st 2015, the benchmark was the MSCI ACWI Index, a free float-adjusted market capitalization weighted index that is designed to measure the equity
market performance of developed and emerging markets. MSCI reviews and rebalances this index quarterly. Prior to August 31st 2013 the benchmark was the S&P 500.
Closed account data is included in the Composite as mandated by the standards in order to eliminate a survivorship bias.
The Tactical Equity Strategy composite was created on November 3rd 2010, and has an inception date of December 31st 2006. Prior to March 31st 2015 the Tactical Equity
Strategy composite was called the Tactical Global Equity Strategy composite. Prior to August 31st 2013 the Tactical Equity Strategy composite was called the Equity
Market Tactical Allocation Strategy composite. The U.S. Dollar is the currency used to express valuations and performance. The firm maintains a complete list and
description of composites, which is available upon request. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon
request.
Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Returns are presented gross and net of management fees
and include the reinvestment of all income. Net-of-fee performance is calculated using actual management fees. The Number of Accounts and Composite Assets columns
include only the accounts that were in the composite at the end of the year. The annual composite dispersion presented is a gross-of-fees, asset-weighted standard deviation
calculated only for the accounts in the composite for the entire year. Additional information regarding the policies for calculating and reporting returns is available upon request.
Past performance is not indicative of future results.
The specific manner in which investment advisory fees are charged by Granite Springs is established in each client’s respective Investment Advisory Contract (IAC). The basic
fee is 1.50% of assets under management, paid quarterly in advance. Actual investment advisory fees incurred by clients may vary. Investment advisory fees are negotiable.
Additional information on Granite Springs’s investment advisory fees can be found on its Form ADV, Part 2 A.
GIPS
Global Investment Performance Standards
GIPS® is a registered trademark of the CFA Institute. CFA Institute has not been involved in the preparation or review of this report/advertisement.
25 Deforest Avenue, Suite 308
Summit, NJ 07901
(855)212-0955