Anchor Capital
BEYOND
TRADITIONAL
Alpha Trend Strategies
Global Equity Managed Futures
Alpha Trend Strategies is a Global Equity Managed Futures strategy that seeks to
achieve above average total returns with reduced correlation to traditional equity
indexes.
Managed Futures investing has become increasingly popular. Alpha Trend
Strategies employs many of the same strategies associated with successful
managed futures investing without the derivative and interest rate risk inherent when investing with futures.
Alpha Trend Strategies combines momentum trend following and short
term volatility strategies that invest in liquid exchange traded funds instead
of futures contracts. The result is a multi-strategy investment solution with
the opportunity for more consistently positive returns and low correlation to
broad equity benchmarks.
Alpha Generation with Country Rotation
Systematically rotates among country and regional specific Exchange Traded Funds, exploiting momentum and short term volatility.
Dynamic Exposure Management
By exploiting short, intermediate and long term trends, Alpha Trend
Strategies has the opportunity to exploit a wide variety of convergent market trends.
Seeking Low Correlations
Adding low correlated strategies to a portfolio has potential diversification benefits and may help to reduce risk and enhance overall
portfolio returns.
STRATEGY
A systematic equity managed futures
strategy that seeks to benefit from
both momentum price trends in
U.S. Equity indexes, and short term
counter-trend volatility in country and
regional index based securities.
INVESTS IN
Long Only: Country/Region based
exchange traded funds
Long or Short: Broad US Equity Index
based exchange traded funds.
THIS STRATEGY IS FOR
Investors seeking results typically associated with equity managed futures
without derivative exposure
Investors looking to diversify long
only equity portfolio holdings
Investors who want access to long/
short equity strategies with daily
liquidity
15 ENTERPRISE, SUITE 450, ALISO VIEJO, CA 92656 92618 949.341.0000 WWW.ANCHOR-CAPITAL.COM
Built for Modern Markets
Systematic Investment Process
One of the benefits of a systematic investment process is the investment rules can be
tested over historical markets. The chart below illustrates the hypothetical results of the
Alpha Trend Strategies investment model over the past decade. Despite two Bear Markets
and periods of high volatility, the Alpha Trend Strategies portfolio would have delivered on
its objective of providing above average returns with less than market volatility.
ALPHA TREND STRATEGIES HYPOTHETICAL RESULTS: VALUE OF AN INITIAL $1,000 INVESTMENT
January 1999 - Dec 2012
BEAR
MARKET
2000-2002
BULL
MARKET
2003-2007
Anchor Alpha Trend Strategies BEAR
MARKET
2007-2009
BULL
MARKET
2009 -?
Alpha Trend
Strategies
CS MF Liquid
Index
1999
50.7
6.6
2000
3.6
8.7
2001
16.5
7.0
2002
14.1
11.2
2003
48.9
21.3
2004
26.9
4.2
2005
17.5
6.3
2006
43.4
18.8
2007
11.2
9.5
2008
9.1
23.0
2009
30.8
0.9
2010
21.3
5.0
2011
(8.3)
(4.9)
2012
1.0
(8.0)
CS Managed Futures Liquid Index
PLEASE SEE IMPORTANT DISCLOSURES ON HYPOTHETICAL RESULTS ON PAGE 3.
Proven Alternative Experience
At Anchor Capital, we have a single focus: to deliver long term, consistently positive results regardless of market trends. Our investment strategies offer a disciplined, quantitative investment process
that removes the emotional side of investment decision making, and reveals a proven system of
money management.
Anchor Capital is offers a range of innovative, highly liquid Absolute Return and Alternative investment solutions for Private Investors, Investment Professionals and Institutions.
Anchor Capital is a SEC Registered Investment Advisor located in Aliso Viejo, California.
15 ENTERPRISE, SUITE 450, ALISO VIEJO, CA 92656 92618 949.341.0000 WWW.ANCHOR-CAPITAL.COM
Disclaimer
HYPOTHETICAL RESULTS
The Alpha Trend Strategies hypothetical portfolio results reflect hypothetical, back-tested results, that were achieved by means of the retroactive application of a back-tested portfolio and, as such, the corresponding results have inherent limitations, including: (1) the portfolio results do not reflect
the results of actual trading using client assets, but were achieved by means of the retroactive application of each of the referenced portfolios, certain
aspects of which may have been designed with the benefit of hindsight; (2) backtested performance may not reflect the impact that any material market
or economic factors might have had on the adviser’s use of the hypothetical portfolio if the portfolio had been used during the period to actually mange
client assets; and, (3) for various reasons (including the reasons indicated above), Anchor’s clients may have experienced investment results during
the corresponding time periods that were materially different from those portrayed in the portfolio.
Hypothetical results reflect the reinvestment of dividends and other account earnings, and (to the extent applicable) are net of applicable account
transaction and/or custodial charges, the maximum investment management fee that would have been charged by Anchor during the corresponding
time period, and the separate fees assessed directly by each unaffiliated exchange traded fund holdings. Anchor currently (subject to change without
notice) utilizes these exchange traded funds in managing actual client portfolios and/or may recommend that retirement plan participants utilize these
exchange traded funds when managing their own retirement accounts. However, neither the individual exchange traded fund performance results nor
the composite strategy results reflect the results of any specific Anchor client portfolio or any Anchor composite.
PAST PERFORMANCE MAY NOT BE INDICATIVE OF FUTURE RESULTS. THEREFORE, NO CURRENT OR PROSPECTIVE CLIENT SHOULD
ASSUME THAT FUTURE PERFORMANCE WILL BE PROFITABLE, OR EQUAL EITHER THE ANCHOR PERFORMANCE RESULTS REFLECTED
OR ANY CORRESPONDING HISTORICAL INDEX.
INDEX INFORMATION
Credit Suisse Managed Futures Liquid Index: Index uses a predefined quantitative methodology in seeking to gain exposure to the managed futures
strategy. Managed Futures hedge funds seek to add alpha by employing systematic trading strategies aimed at capitalizing on market trends across
a range of asset classes including: Equities, Fixed Income, Commodities, Currencies, and Short-Term Rates. Model Risks: The investment strategy
described herein relies on proprietary models and predictions with regard to the performance of an asset class or particular investment generated by
these models and may not be accurate because of imperfections in the models, their deterioration over time, or other factors, such as the quality of the
data input into the model, which involves the exercise of judgment. Even if the model functions as anticipated, it cannot account for all factors that may
influence the prices of the investments, such as event risk.The hypothetical performance shown is for illustrative purposes only and does not represent actual performance. The Credit Suisse Managed Futures Liquid Index (Net) was launched on February 1, 2011. Simulations for the Credit Suisse
Managed Futures Liquid Index were conducted to measure how a portfolio of securities designed to mimic a managed futures strategy would have performed in the period beginning December 31, 1997. Returns were simulated assuming various transaction costs per each instrument. Any invested or
borrowed cash earned or paid interest at market rates.Index portfolio weights were computed daily and index rebalancing occurred on the day after the
portfolio weights were computed and for which all instruments involved in the rebalancing process were available to be traded. The platform on which
this testing was performed is a proprietary system developed at Credit Suisse.All simulations were conducted by Credit Suisse Asset Management.
The Index does not represent that the hypothetical performance pre-dating February 2011 would be similar to actual performance of the Index.
For reasons including variances in portfolio account holdings, variances in the investment management fee incurred, market fluctuation, the date on
which a client engaged Anchor’s investment management services, and any account contributions or withdrawals, the performance of a specific client’s
account may have varied substantially from the indicated Alpha Trend Strategies hypothetical portfolio performance results.
The Alpha Trend Strategies hypothetical portfolio results reflect hypothetical, back-tested results, that were achieved by means of the retroactive application of a back-tested portfolio and, as such, the corresponding results have inherent limitations, including: (1) the portfolio results do not reflect
the results of actual trading using client assets, but were achieved by means of the retroactive application of each of the referenced portfolios, certain
aspects of which may have been designed with the benefit of hindsight; (2) backtested performance may not reflect the impact that any material market
or economic factors might have had on the adviser’s use of the hypothetical portfolio if the portfolio had been used during the period to actually mange
client assets; and, (3) for various reasons (including the reasons indicated above), Anchor’s clients may have experienced investment results during
the corresponding time periods that were materially different from those portrayed in the portfolio.
In the event that there has been a change in a client’s investment objectives or financial situation, he/she/it is encouraged to advise Anchor immediately. Different types of investments and/or investment strategies involve varying levels of risk, and there can be no assurance that any specific investment or investment strategy (including the investments purchased and/or investment strategies devised or undertaken by Anchor) will be either suitable
or profitable for a client’s or prospective client’s portfolio. All performance results have been compiled solely by Anchor utilizing the performance
results reported by each respective exchange traded fund that comprised the portfolio, are unaudited, and have not been independently verified.
Information pertaining to Anchor’s advisory operations, services, and fees is set forth in Anchor’s current disclosure statement, a copy of which is available from Anchor upon request. Information pertaining to any exchange traded fund that is current component of the Alpha Trend Strategies portfolio is
set forth in each respective exchange traded fund’s prospectus, a copy of which is also available from Anchor upon request.
15 ENTERPRISE, SUITE 450, ALISO VIEJO, CA 92656 92618 949.341.0000 WWW.ANCHOR-CAPITAL.COM