www.j2cmonline.com • 248-641-4444
J2 Capital Investment Approach
Helping You Stay
the Course:
We believe that the best investment strategies are those that clients
can stick to regardless of market environment. It’s our experience
that individuals are more likely to achieve their financial goals if
investment volatility can be limited. Here at J2 Capital, we believe
there is a time to be invested and a time to not be invested. Because
markets cycle between good times and bad, we believe that limiting
the draw-downs is as important as capturing upside.
WE BELIEVE THAT OUR
TACTICAL STRATEGIES
CAN HELP COMPLEMENT
AN EXISTING PORTFOLIO
Actively Managing
Risk for You:
We will tactically adjust investment portfolios as risk and uncertainty
increases. This is all in an effort to help you sleep at night no matter
the market environment.
UTILIZING A STRATEGIC
OR PASSIVE APPROACH OR
AS A STAND-ALONE CORE
TACTICAL PHILOSOPHY.
Rules Based
Disciplined Process:
We use a proprietary process known as Volatility-Adjusted Relative
Strength. We apply this process across ETF and individual stocks
attempting to identify the next leaders with the least amount of risk.
We believe a quantitative, rules based approach helps us take the
emotion out of investing.
Experience and
Service Centric:
With nearly a decade of experience successfully managing tactical
portfolios, we have the experience necessary to help you achieve
your investment goals.
Our boutique investment management model will afford you and
your clients greater access to our thinking and expertise.
www.j2cmonline.com • 248-641-4444
WE CAN HELP YOU
UNDERSTAND HOW
TO BEST INTEGRATE
J2 CAPITAL’S TACTICAL
PORTFOLIOS INTO
YOUR PRACTICE OR
INVESTMENT PORTFOLIO.
What is Tactical Asset Allocation?
TACTICAL ASSET ALLOCATION:
• No one can predict markets.
• Emotions can lead investors astray.
• Markets cycle between Bull and Bear constantly.
For this reason, J2 Capital’s strategies are designed to react to
ongoing market changes through a rules-based, quantitative
process that seeks to identify the overarching market trend
and invest accordingly.
J2 CAPITAL
MANAGEMENT
SPECIALIZES IN A
WHAT IS RELATIVE STRENGTH?
Relative Strength is a tactical investment methodology that
measures the performance of a stock, exchange-traded fund or
mutual fund against the performance of the corresponding sector
and/or asset class. Relative strength calculates which investments
are the strongest performers. J2 Capital enhances this by taking
volatility into the equation, and highlights those investments that
are superior from a risk-reward standpoint.
SYSTEMATIC, TACTICAL
ASSET ALLOCATION
STRATEGY THAT IS
MODELED ON THE
VOLATILITY-ADJUSTED
RELATIVE STRENGTH
METHODOLOGY.
RISK MANAGEMENT:
Rigorous and cutting-edge risk management techniques are
employed in analyzing and qualifying the potential for loss in
a variety of systematic and non-systematic risk scenarios.
Knowing when and where we might be wrong is as important
as being right.
www.j2cmonline.com • 248-641-4444
J2 Capital Investment Approach
Our Firm
J2 Capital Management is a recognized leader in the development of volatility-adjusted relative strength
strategies.
We believe that the best investment strategies are those that clients can stick to regardless of market
environment. It’s our experience that individuals are more likely to achieve their financial goals if investment
volatility can be limited.
John E. Benedict
Chief Executive Officer
Portfolio Manager for J2 Strategies
John Benedict has been in the investment industry since 1998. He has combined his talents
and passion in statistics and technical analysis to create J2’s tactical strategies, managing them
since 2007. He is a frequent contributor in the media discussing markets and technical analysis.
John was a contributor in the book “The StockTwits Edge: 40 Actionable Trade Set-Ups from
Real Market Pros” (Wiley Trading, July 2011). His thoughts have appeared in the Wall Street
Journal, moneyshow.com and Investment News. He won the prestigious Five Star
Professional Wealth Manager award 5 years in a row (2011–2015) by Detroit’s Hour
Magazine. In the past, John Benedict was a member of both NAAIM (National Association of
Active Investment Managers) and the (MTA) Market Technicians Associations. John’s career
started at American Express Financial Advisors in 1998. In 2007, he opened his own RIA and
merged with John Salomon in 2010 to co-create J2 Capital Management. John is a graduate
of Central Michigan University and is married to wife Janine. They have three children Jack,
Alexis and Saraphina.
John Salomon, Jr. CPA, CFP®
Chief Financial Officer
John Salomon has been a practicing CPA since 1985. In 1998, he added portfolio management
and financial planning to the tax and compliance services offered to the clients of his CPA
practice. In 2002, he earned the CERTIFIED FINANCIAL PLANNER™ certification. As the CFO of
J2, John uses his past experience of running a small practice to guide practice management
decisions at J2. John’s technical abilities are mostly appreciated by J2 clients in the area of
financial and tax planning, cash flow management, as well as tax preparation. John is a
graduate of Michigan State University and is a resident of Troy, Michigan where he is married
to wife Michele for over 25 years. They have three children, Emily, Nicholas and Aidan.
www.j2cmonline.com • 248-641-4444
Overview of Strategies Offered by J2 Capital
Tactical ETF Strategies I Minimum Investment $25,000
J2 RCI Tactical Models
Holding Type
Risk Level
Broad Based ETF
(Core Holding)
Global All-Asset
RCI
Tactical
Growth
RCI Tactical Aggressive
Equity Range
0 – 100%
RCI Tactical Growth
Equity Range
0 – 85%
RCI Tactical Moderate
Equity Range
0 – 65%
RCI
Tactical
Moderate
25 ETF’s Analyzed
Covering U.S., International,
Commodity and
Fixed Income Markets
RCI
Tactical
Aggressive
5–7
Positions
J2 Tactical Sector Rotation
Holding Type
35% – 100%
Equity Range
Sector ETFs
(Satellite Holding)
3–5
Positions
J2 Tactical Global Rotation
Holding Type
3–5
Positions
Risk Level
International
Country ETFs
(Satellite Holding)
35% – 100%
Equity Range
Risk Level
Tactical Stock Strategies I Minimum Investment $75,000
J2 Risk Managed RS Leaders
Holding Type
Momentum Growth
Stock Portfolio
(All Cap Growth)
25% – 100%
Equity Range
Up to 40
Positions
J2 Tactical Value & Income
Equity Range
Positions
Risk Level
Holding Type
Risk Level
Contrarian All-Asset
Deep Value
Flexible Stock Portfolio
35% – 100%
Up to 40
Tactical Annuity Management
Models Offered
J2 RCI Growth Model
J2 Sector Rotation
J2 Tactical Income
Strategic-Tactical Combinations
www.j2cmonline.com • 248-641-4444
Offering management through Jefferson
National Monument Advisor
Investment Advisory Services offered through J2 Capital Management, an SEC Registered Investment Advisor.
FOR INVESTMENT ADVISOR USE ONLY – NOT FOR PUBLIC
J2 RCI Tactical
Strategy Description
A tactical ETF strategy that analyzes over 20 broad based equity index and fixed income ETFs. J2 uses an overall market
indicator (RCI Indicator) that attempts to identify bull/bear markets and provides guidance on when to add/subtract
equity exposure. Each month the top 5 ETFs are ranked and chosen using J2’s Volatility-Adjusted Relative Strength
methodology. Cash in each model can reach 100% in declining markets.
Options Available
RCI Tactical Aggressive Equity Range
0-100%
RCI Tactical Growth 0-85%
RCI Tactical Moderate 0-65%
Minimum Investment$25,000
Investment Objective
A tactical global asset allocation strategy that seeks to
provide long-term capital appreciation while managing
market risk through a combination of quantitative rules
based indicators and manager discretion. A proprietary
screening process is used to select ETFs and allocated
amongst domestic, international, fixed income and
commodities exhibiting high relative strength and
low volatility when compared to the universe.
Portfolio Management Team
John E. Benedict I Lead Portfolio Manager
1
• Managing tactical strategies since 2007
Market
Signal
• B.A. Central Michigan University
• 15 years trading experience
Tactical Rotational
strategy utilizing a
2
John Salomon CPA,CFP I CFO
• B.A. Michigan State University
3 step rules based
Rank ETF’s
process to analyze
broad market ETF’s.
3
Ongoing
Risk
Management
Key Differentiator
• Attempts to provide a more stable return profile
over its benchmark over a 3-5 year period.
• Growth with downside protection.
• Excellent diversifier to traditional asset
allocation portfolios.
• Go anywhere all-asset portfolio.
www.j2cmonline.com • 248-641-4444
Investment Advisory Services offered through J2 Capital Management, an SEC Registered Investment Advisor.
FOR INVESTMENT ADVISOR USE ONLY – NOT FOR PUBLIC
J2 RCI Tactical
Investment Process
STEP 1
}
OFFENSE
– or –
DEFENSE
Characteristics I
Using J2 Capitals Risk Controlled Indicator to
determine intermediate trend of market.
Model Gross Net RCI Tactical Aggressive
6.01%
5.48% 0.43%
Scores > 80
Show high institutional
sponsorship
MSCI ACWI
6.10%
RCI Tactical Growth
6.22%
Scores < 20
Signal distribution
80%ACWI/20%AggBond
5.49%
RCI Tactical Moderate
5.53%
60%ACWI/40%AggBond
4.82%
RCI Model Inputs
Weighted Model (5 Factors):
WEIGHTED
– and –
SCORED
• Trend
• Price Momentum
• Technical • Breadth
=
Trailing 3 Yr. Return as of 3/31/2016
Beta
–
Std Dev.
– 12.05%
5.69% 0.48%
–
7.19%
6.51%
–
9.71%
5.00% 0.56%
5.75%
–
–
7.43%
STEP 2
OFFENSE
}
• US Large Cap
• Emerging Markets
• Commodities
• US Small Cap
• Fixed Income
If on OFFENSE, we invest in leaders moving up with the least
amount of volatility. 20 Broad Indexes and Bonds.
• REITs
• US Mid Cap
• International
• Precious Metals
}
The TOP 5 are selected based on
J2’s Volatility-Adjusted Relative
Strength methodology.
STEP 3
SELL equities when RCI
model dips BELOW 20
}
Fixed Income is allowed to float into
the TOP 5 even if RCI indicator is still
on a buy signal.
Broad Based ETF Roster Used for Monthly Ranking
US Equity VYM IJR
IJH
IWV IVV
QQQ
International RSX VGK VWO EWJ
AAXJ
ILF
Alternative GLD DBC GDX VNQ
Fixed Income AGG LQD BKLN TLT
SHY
CASH
J2 Capital Management (J2CM) is an SEC Registered Investment Adviser. Information presented herein is for educational purposes only and does not intend to make an offer or solicitation
for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with
a qualified financial adviser, tax professional, and/or legal counsel before implementing any securities, investments, or investment strategies discussed.
Model Performance Disclosure: Any Model performance shown for the relevant time periods is based upon composite returns of (J2CM’s) model portfolio net of any trading costs. The firm’s
policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. It does not reflect any investor’s actual experience with owning, trading or
managing an actual investment account. J2 Capital Management claims compliance with Global Investment Performance Standards (GIPS®). A list of composite descriptions and a disclosure
presentation is available upon request. For more information please contact J2 Capital Management at 248-641-4444.
Model portfolio performance is shown both gross and net of the annual advisory fee of 0.50% which is the highest fee charged by (J2CM) to broker dealers and institutions to manage the
models. The management fee does not pertain to direct retail clients of J2CM. Performance does not reflect the deduction of other fees or expenses, including but not limited to brokerage fees
and custodial fees. Performance results shown include the reinvestment of dividends and interest on cash balances where applicable. The data used to calculate the model performance was
obtained from sources deemed reliable and then organized and presented by AdvisoryWorld, Orion Advisor Services, and InformaIS-CompSiteIQ. Actual performance of client portfolios may
differ materially due to the timing related to additional client deposits or withdrawals and the actual deployment and investment of a client portfolio, the length of time various positions are
held, the client’s objectives and restrictions, and fees and expenses incurred by any specific individual portfolio.
Benchmarks: All index results do not reflect deduction of fees/expenses. All applicable dividends are reinvested. The RCI Tactical Aggressive performance results shown are compared to the
performance of the MSCI ACWI Gross benchmark, RCI Tactical Growth results compared to the blended benchmark 80% MSCI ACWI Gross/ 20% Barclays Aggregate bond index, and RCI Tactical
Moderate performance compared to the performance of the blended benchmark 60% MSCI ACWI Gross/ 40% Barclays Aggregate bond index.
Return Comparisons: The MSCI ACWI index, is a broad based global index recognized as a representation of the global stock market. The Barclays Aggregate Bond Index is recognized as a
representation of investment grade U.S. bonds. Benchmarks and blended benchmarks used by (J2CM) have not been selected to represent an appropriate benchmark to compare an investor’s
performance, but rather is disclosed to allow for comparison of the investor’s performance to that of certain well-known and widely recognized indices. Indices are typically not available for
direct investment, are unmanaged and do not incur fees or expenses.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS
www.j2cmonline.com • 248-641-4444
Investment Advisory Services offered through J2 Capital Management, an SEC Registered Investment Advisor.
FOR INVESTMENT ADVISOR USE ONLY – NOT FOR PUBLIC
J2 Tactical Sector Rotation
Strategy Description
A Tactical ETF strategy that analyzes over 25 U.S. Sector and Industry ETFs. Each month the universe is ranked using
J2’s Volatility-Adjusted Relative Strength methodology and the top 3-5 ETFs are chosen. Cash can reach 65%
in declining markets.
35% – 100%
Equity Range
Minimum Investment $25,000
Market Cycles and Sectors
Investment Objective
Seeks long-term capital appreciation, while using
J2 Capital’s proprietary Volatility-Adjusted Relative
Strength to mitigate risks and protect in declining
markets. A tactical screening process is used to select
U.S. Equity Sector ETFs exhibiting the best volatilityadjusted return in an attempt to outperform the S&P
500 over a 3-5 year period with reduced volatility.
Portfolio Management Team
Late
Bear Market
Market
Bottom
Bear
Market
Energy
Staples
Health Care
John E. Benedict I Lead Portfolio Manager
Financials
Technology
Cyclicals
Health Care
Utilities
Finance
Full
Recession
Early
Recovery
Early
Recession
Full
Recovery
• Managing tactical strategies since 2007
• B.A. Central Michigan University
• 15 years trading experience
John Salomon CPA,CFP I CFO
Technology
Industrials
Basic Material
Basic Materials
Energy
Staples
Market
Top
www.j2cmonline.com • 248-641-4444
• B.A. Michigan State University
Bull
Market
Key Differentiator
• Invest in the highest rated relative strength sectors
while avoiding the worst.
• Growth with downside protection.
Investment Advisory Services offered through J2 Capital Management, an SEC Registered Investment Advisor.
FOR INVESTMENT ADVISOR USE ONLY – NOT FOR PUBLIC
J2 Tactical Sector Rotation
Investment Process
Step 1: Analyze and Rank International Markets
Characteristics I
J2 Capital uses a proprietary indicator to analyze the
S&P 500 index to determine Bull or Bear Market over
an intermediate time frame.
Model Trailing 1 Yr. Return as of 3/31/2016
Tactical Sector Rotation
S&P 500 TR
Gross -3.17%
1.78%
Net Beta
Std Dev.
-3.65% 0.38%
–
6.98%
– 14.65%
Step 2: Allocate Portfolio
If the S&P 500 is in a bull market, J2 Capital will rank a
list of U.S. Equity Sectors including commodities using
our proprietary Volatility-Adjusted Relative Strength
methodology – what’s going up with the least risk.
Positions are reduced or cut if intermediate term
prospects are weak, risk is high, or S&P 500 has been
determined to be in a bear market.
Step 3: Manage Risk through Buy/Sell Criteria
Select 3-5 of the highest ranked U.S. Equity ETFs.
J2 Capital will continuously monitor positions and
reduce or sell when pre-determined technical levels
have been breached. Each month the ETF roster
is re-ranked.
Sector ETF Roster Used for Monthly Ranking
US Sector ETFs IBB IGF
IHF
IHI
IYT KIE
KOL KRE MOO
OIH SMH
VEU
VNQ VWO XLB
XLE XLF
XLI
XLK XLP XLU
XLV XLY
XRT
GLD GDXDBC
CASH
J2 Capital Management (J2CM) is an SEC Registered Investment Adviser. Information presented herein is for educational purposes only and does not intend to make an offer or solicitation
for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with
a qualified financial adviser, tax professional, and/or legal counsel before implementing any securities, investments, or investment strategies discussed.
Model Performance Disclosure: Any Model performance shown for the relevant time periods is based upon composite returns of (J2CM’s) model portfolio net of any trading costs. The firm’s
policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. It does not reflect any investor’s actual experience with owning, trading or
managing an actual investment account. J2 Capital Management claims compliance with Global Investment Performance Standards (GIPS®). A list of composite descriptions and a disclosure
presentation is available upon request. For more information please contact J2 Capital Management at 248-641-4444.
Model portfolio performance is shown both gross and net of the annual advisory fee of 0.50% which is the highest fee charged by (J2CM) to broker dealers and institutions to manage the
models. The management fee does not pertain to direct retail clients of J2CM. Performance does not reflect the deduction of other fees or expenses, including but not limited to brokerage fees
and custodial fees. Performance results shown include the reinvestment of dividends and interest on cash balances where applicable. The data used to calculate the model performance was
obtained from sources deemed reliable and then organized and presented by AdvisoryWorld, Orion Advisor Services, and InformaIS-CompSiteIQ. Actual performance of client portfolios may
differ materially due to the timing related to additional client deposits or withdrawals and the actual deployment and investment of a client portfolio, the length of time various positions are
held, the client’s objectives and restrictions, and fees and expenses incurred by any specific individual portfolio.
Benchmarks: The Tactical Sector Rotation performance results shown are compared to the performance of the S&P 500 Index with all applicable dividends reinvested. The index results do not
reflect fees and expenses.
Return Comparison: The S&P 500 index is a broad based index recognized as a representation of large capitalization companies of the U.S. stock market. The benchmark has not been selected
to represent an appropriate benchmark to compare an investor’s performance, but rather are disclosed to allow for comparison of the investor’s performance to that of certain well-known and
widely recognized indices. Indices are typically not available for direct investment, are unmanaged and do not incur fees or expenses.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS
www.j2cmonline.com • 248-641-4444
Investment Advisory Services offered through J2 Capital Management, an SEC Registered Investment Advisor.
FOR INVESTMENT ADVISOR USE ONLY – NOT FOR PUBLIC
J2 Tactical Global Rotation
Strategy Description
A Tactical ETF strategy that analyzes over 25 Country/Global ETF’s. Each month the universe is ranked using
J2’s Volatility-Adjusted Relative Strength methodology and the top 3-5 ETFs are chosen. Cash can reach 65%
in declining markets.
Equity Range
35% – 100%
Minimum Investment $25,000
Investment Objective
Seeks long-term capital appreciation, while using J2
Capital’s proprietary Volatility-Adjusted Relative Strength
to mitigate risks and protect in declining markets. A
tactical screening process is used to select international
and emerging market ETFs exhibiting the best volatility.
Portfolio Management Team
John E. Benedict I Lead Portfolio Manager
• Managing tactical strategies since 2007
• B.A. Central Michigan University
• 15 years trading experience
John Salomon CPA,CFP I CFO
• B.A. Michigan State University
Key Differentiator
• Diversifier to traditional international allocations.
• Growth with downside protection.
• Allocations to individual countries and
Emerging Markets.
www.j2cmonline.com • 248-641-4444
Investment Advisory Services offered through J2 Capital Management, an SEC Registered Investment Advisor.
FOR INVESTMENT ADVISOR USE ONLY – NOT FOR PUBLIC
J2 Tactical Global Rotation
Investment Process
Step 1: Analyze and Rank International Markets
Characteristics I
J2 Capital Tactical Global Rotation strategy uses a
proprietary indicator to analyze the MSCI ACWI index
to determine Bull or Bear Market over an intermediate
time frame.
Model Trailing 3 Yr. Return as of 3/31/2016
Tactical Global Rotation
MSCI ACWI
Gross -0.84%
Net Beta
Std Dev.
-1.34% 0.66% 10.29%
6.10%
–
– 12.05%
Step 2: Allocate Portfolio
ETF Roster Used for Monthly Ranking
If the MSCI ACWI is in a bull market J2 Capital will rank
a list of global and emerging market countries using
J2 Capital’s Volatility-Adjusted Relative Strength
methodology – what’s going up with the least risk.
Positions are reduced or cut if intermediate term
prospects are weak, risk is high, or MSCI ACWI has
been determined to be in a bear market.
Step 3: Manage Risk through Buy/Sell Criteria
US Equity
IWV
IJR
International Developed
VGK EWA EWC
EWGEWL EWO
Emerging Market
EPI
EWH EWJ EWM
EWPEWS EWTEWW
EWYEZA FXI ILF
RSX THD TURVWO
EWD
Individual Holdings:
Select 3-5 of the highest ranked Global ETFs. J2
Capital will continuously monitor positions and reduce
or sell when pre-determined technical levels have been
breached. Each month the ETF roster is re-ranked.
CASH
J2 Capital Management (J2CM) is an SEC Registered Investment Adviser. Information presented herein is for educational purposes only and does not intend to make an offer or solicitation
for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with
a qualified financial adviser, tax professional, and/or legal counsel before implementing any securities, investments, or investment strategies discussed.
Model Performance Disclosure: Any Model performance shown for the relevant time periods is based upon composite returns of (J2CM’s) model portfolio net of any trading costs. The firm’s
policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. It does not reflect any investor’s actual experience with owning, trading or
managing an actual investment account. J2 Capital Management claims compliance with Global Investment Performance Standards (GIPS®). A list of composite descriptions and a disclosure
presentation is available upon request. For more information please contact J2 Capital Management at 248-641-4444.
Model portfolio performance is shown both gross and net of the annual advisory fee of 0.50% which is the highest fee charged by (J2CM) to broker dealers and institutions to manage the
models. The management fee does not pertain to direct retail clients of J2CM. Performance does not reflect the deduction of other fees or expenses, including but not limited to brokerage fees
and custodial fees. Performance results shown include the reinvestment of dividends and interest on cash balances where applicable. The data used to calculate the model performance was
obtained from sources deemed reliable and then organized and presented by AdvisoryWorld, Orion Advisor Services, and InformaIS-CompSiteIQ. Actual performance of client portfolios may
differ materially due to the timing related to additional client deposits or withdrawals and the actual deployment and investment of a client portfolio, the length of time various positions are
held, the client’s objectives and restrictions, and fees and expenses incurred by any specific individual portfolio.
Benchmarks: The Tactical Global Rotation performance results shown are compared to the performance of the MSCI ACWI Gross benchmark with all applicable dividends reinvested. The index
results do not reflect fees and expenses.
Return Comparison: The MSCI ACWI index, a broad based global index recognized as a representation of the global stock market used by (J2CM) have not been selected to represent an
appropriate benchmark to compare an investor’s performance, but rather are disclosed to allow for comparison of the investor’s performance to that of certain well-known and widely
recognized indices. Indices are typically not available for direct investment, are unmanaged and do not incur fees or expenses.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS
www.j2cmonline.com • 248-641-4444
Investment Advisory Services offered through J2 Capital Management, an SEC Registered Investment Advisor.
FOR INVESTMENT ADVISOR USE ONLY – NOT FOR PUBLIC
J2 Risk Managed RS Leaders
Strategy Description
Tactical rules based momentum strategy. Seeks to buy stocks experiencing strong EPS growth and high ROE that are
experiencing relative strength against the market.
J2 uses an absolute market filter to determine when to buy/sell equities. We screen all NYSE and Nasdaq stocks experiencing
strong EPS and ROE and then rank the Universe using J2’s Volatility-Adjusted Relative Strength. Utilizes industry unique riskbased allocation for position sizes. Equity Allocation 0-100% based on market signal.
Category Tactical All Cap Growth
Mid Cap Growth
Best Fit Category
Minimum Investment$75,000
Up to 40
Positions
Investment Objective
Seeks to provide long-term capital appreciation and
capital preservation. Seeks to achieve this investment
objective by investing in leading growth stocks in
favorable market environments and scales to cash to
preserve gains when bear market risk is high.
Portfolio Management Team
Step
1
John E. Benedict I Lead Portfolio Manager
• Managing tactical strategies since 2007
Access
Current
Market
Environment
Step
5
Risk
Management
• B.A. Central Michigan University
• 15 years trading experience
Security
Selection
Step
2
John Salomon CPA,CFP I CFO
• B.A. Michigan State University
Key Differentiator
Portfolio
Construction
Step
4
Find Relative
Strength
Step
3
• Clients looking for individual equity selection of
high growth names in a concentrated portfolio.
• Active risk management – able to shift tactically
from 100% cash to 100% equity.
• Rules-based quantitatively driven process.
www.j2cmonline.com • 248-641-4444
Investment Advisory Services offered through J2 Capital Management, an SEC Registered Investment Advisor.
FOR INVESTMENT ADVISOR USE ONLY – NOT FOR PUBLIC
J2 Risk Managed RS Leaders
Investment Process
Asset Allocation Range
Equities Characteristics I Trailing 3 Yr. Return as of 3/31/2016
25% – 100%
Based on market conditions
Model Gross Net Beta
Risk Managed RS Leaders
4.00%
3.48% 0.65% 10.69%
Russell Mid Cap Growth
10.99%
–
Std Dev.
– 12.57%
STEP 1
STEP 2
STEP 3
STEP 4
STEP 5
Access
Market
Screen for
Growth
Relative
Strength
Construct
and Allocate
Ongoing Risk
Management
Access current market
using a proprietary
technical indicator to
determine bull or
bear market.
Screen all NYSE and Nasdaq
stocks uncovering the
highest quality growth
stocks that are experiencing
high EPS and ROE.
Using J2 Capitals VolatilityAdjusted Relative Strength
process we rank the entire
filtered database to uncover
the stocks experiencing
the best momentum
and least risk.
Based on market indicator
determine equity
allocation 30% – 100%.
Portfolio is reviewed
bi-monthly to check
stocks are still ranked
above market and are
continuing to meet
technical parameters.
Include only those stocks
that are ranked above
the market (step 3)
and meet other
technical parameters.
Overall indicator is also
Allocate these positions
using an industry unique
equal-based risk
contribution formula.
J2 Capital Management (J2CM) is an SEC Registered Investment Adviser. Information presented herein is for educational purposes only and does not intend to make an offer or solicitation
for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with
a qualified financial adviser, tax professional, and/or legal counsel before implementing any securities, investments, or investment strategies discussed.
Model Performance Disclosure: Any Model performance shown for the relevant time periods is based upon composite returns of (J2CM’s) model portfolio net of any trading costs. The firm’s
policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. It does not reflect any investor’s actual experience with owning, trading or
managing an actual investment account. J2 Capital Management claims compliance with Global Investment Performance Standards (GIPS®). A list of composite descriptions and a disclosure
presentation is available upon request. For more information please contact J2 Capital Management at 248-641-4444.
Model portfolio performance is shown both gross and net of the annual advisory fee of 0.50% which is the highest fee charged by (J2CM) to broker dealers and institutions to manage the
models. The management fee does not pertain to direct retail clients of J2CM. Performance does not reflect the deduction of other fees or expenses, including but not limited to brokerage fees
and custodial fees. Performance results shown include the reinvestment of dividends and interest on cash balances where applicable. The data used to calculate the model performance was
obtained from sources deemed reliable and then organized and presented by AdvisoryWorld, Orion Advisor Services, and InformaIS-CompSiteIQ. Actual performance of client portfolios may
differ materially due to the timing related to additional client deposits or withdrawals and the actual deployment and investment of a client portfolio, the length of time various positions are
held, the client’s objectives and restrictions, and fees and expenses incurred by any specific individual portfolio.
Benchmarks: The Risk Managed RS Leaders performance results shown are compared to the performance of the Russell Mid Cap Growth Index with all applicable dividends reinvested. The
index results do not reflect fees and expenses.
Return Comparison: The Russell Mid Cap Growth Index is a U.S. based index recognized as a representation of mid-capitalization companies of the U.S. stock market exhibiting growth
characteristics. The benchmark has not been selected to represent an appropriate benchmark to compare an investor’s performance, but rather are disclosed to allow for comparison of the
investor’s performance to that of certain well-known and widely recognized indices. Indices are typically not available for direct investment, are unmanaged and do not incur fees or expenses.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS
www.j2cmonline.com • 248-641-4444
Investment Advisory Services offered through J2 Capital Management, an SEC Registered Investment Advisor.
FOR INVESTMENT ADVISOR USE ONLY – NOT FOR PUBLIC
J2 Tactical Value & Income
Strategy Description
A tactical value-oriented stock strategy that screens for stocks that the manager believes are technically under-valued. The
manager will look for long-term entries into traditional value stocks and those paying dividends that are nearing long-term
support or other positive technical analysis attributes. Where most value managers use a bottom up, fundamental process for
decisions, the manager will use this as well as make use of technical analysis for buy points. Other assets, such as global ETFs,
fixed income and commodity asset classes could be included if selling at a historically low valuation or risk/return over the
broad market is compelling. The manager will use a market filter to determine overall market environment and raise cash in
declining markets. Cash could equal 50% of portfolio. Equities can also reach 100% in favorable environments.
Best Fit Category Tactical All Asset Value
30% – 100%
Equity Range
Minimum Investment$75,000
Up to 30
Positions
Investment Objective
Tactical value stock strategy that seeks long-term
capital appreciation while mitigating downside risks.
Income is a secondary consideration.
Portfolio Management Team
John E. Benedict I Lead Portfolio Manager
• Managing tactical strategies since 2007
• B.A. Central Michigan University
• 15 years trading experience
Contrarian
Value
Stocks
Tactical
Overlay
John Salomon CPA,CFP I CFO
• B.A. Michigan State University
Key Differentiator
Ongoing
Risk Management
• Fundamentals meet technicals.
• Complements traditional fundamental long
only portfolios.
• Cash can reach 30% in declining markets.
• Contrarian all-asset deep value portfolio.
www.j2cmonline.com • 248-641-4444
Investment Advisory Services offered through J2 Capital Management, an SEC Registered Investment Advisor.
FOR INVESTMENT ADVISOR USE ONLY – NOT FOR PUBLIC
J2 Tactical Value & Income
Investment Process
Characteristics I
Trailing 1 Yr. Return as of 3/31/2016
Model Gross Net Beta
Tactical Value and Income
3.48%
2.99% 0.67% 11.80%
MSCI ACWI
-3.81%
–
Std Dev.
– 15.90%
STEP 1
STEP 2
STEP 3
Determine Equity Exposure
Select Securities
Manage Risk
Assess long-term market trend by
using technical analysis.
Fundamentals
Evaluate a universe of high quality dividend
stocks + beaten up, out of favor growth stocks,
country ETFs or commodities selling at
attractive historical valuations.
On an ongoing basis, a stop loss will be noted
once a profit of greater than 20% has been
achieved and the long-term chart will be
monitored for potential breaching or
predetermined support levels.
Technicals
Using technical analysis, buy when these
contrarian stocks and other assets are coming
into long-term support and meeting
other technical criteria.
J2 Capital Management (J2CM) is an SEC Registered Investment Adviser. Information presented herein is for educational purposes only and does not intend to make an offer or solicitation
for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with
a qualified financial adviser, tax professional, and/or legal counsel before implementing any securities, investments, or investment strategies discussed.
Model Performance Disclosure: Any Model performance shown for the relevant time periods is based upon composite returns of (J2CM’s) model portfolio net of any trading costs. The firm’s
policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. It does not reflect any investor’s actual experience with owning, trading or
managing an actual investment account. J2 Capital Management claims compliance with Global Investment Performance Standards (GIPS®). A list of composite descriptions and a disclosure
presentation is available upon request. For more information please contact J2 Capital Management at 248-641-4444.
Model portfolio performance is shown both gross and net of the annual advisory fee of 0.50% which is the highest fee charged by (J2CM) to broker dealers and institutions to manage the
models. The management fee does not pertain to direct retail clients of J2CM. Performance does not reflect the deduction of other fees or expenses, including but not limited to brokerage fees
and custodial fees. Performance results shown include the reinvestment of dividends and interest on cash balances where applicable. The data used to calculate the model performance was
obtained from sources deemed reliable and then organized and presented by AdvisoryWorld, Orion Advisor Services, and InformaIS-CompSiteIQ. Actual performance of client portfolios may
differ materially due to the timing related to additional client deposits or withdrawals and the actual deployment and investment of a client portfolio, the length of time various positions are
held, the client’s objectives and restrictions, and fees and expenses incurred by any specific individual portfolio.
Benchmarks: The Tactical Value and Income performance results shown are compared to the performance of the MSCI ACWI gross index with all applicable dividends reinvested. The index
results do not reflect fees and expenses.
Return Comparison: The MSCI ACWI index, a broad based global index recognized as a representation of the global stock market used by (J2CM) have not been selected to represent an
appropriate benchmark to compare an investor’s performance, but rather are disclosed to allow for comparison of the investor’s performance to that of certain well-known and widely
recognized indices. Indices are typically not available for direct investment, are unmanaged and do not incur fees or expenses.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS
www.j2cmonline.com • 248-641-4444
Investment Advisory Services offered through J2 Capital Management, an SEC Registered Investment Advisor.
FOR INVESTMENT ADVISOR USE ONLY – NOT FOR PUBLIC
J2 Tactical Annuity
Strategy Description
Offered through Jefferson National Monument Advisor Variable Annuity:
J2 Capital Management offers money management services inside the Jefferson National Monument Advisor Variable Annuity.
Options Available
Overview
J2 RCI Growth Model
J2 Capital is an approved third party investment manager
on the Jefferson National platform.
J2 Sector Rotation
Please visit www.jeffnat.com for more information.
J2 Tactical Income
Portfolio Management Team
Strategic-Tactical Combinations
John E. Benedict I Lead Portfolio Manager
• Managing tactical strategies since 2007
• B.A. Central Michigan University
• 15 years trading experience
Analyze
John Salomon CPA,CFP I CFO
• B.A. Michigan State University
Monitor
J2
RS Process
Key Differentiator
• Access J2 Capital Management’s Tactical Strategies through
a fee based annuity offered through Jefferson National.
J2 Capital Management and Jefferson National are not affiliated. J2 Capital Management is an approved Jefferson National Third Party Manager (TPIA) available for fee based investment
advisors on their platform.
Jefferson National does not endorse or recommend any Third-Party Investment Advisor.
J2 Capital Management accesses fees for management of these portfolios. The maximum amount that J2 Capital charges is 0.50%. Fees are negotiable.
J2 Capital Management (J2CM) is an SEC Registered Investment Adviser. Information presented herein is for educational purposes only and does not intend to make an offer or solicitation
for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with
a qualified financial adviser, tax professional, and/or legal counsel before implementing any securities, investments, or investment strategies discussed.
About Jefferson National: Jefferson National is a recognized innovator of a leading tax-advantaged investing platform for RIAs, fee-based advisors and the clients they serve. Trusted partner
to a network of more than 3,500 advisors, Jefferson National provides greater efficiency, transparency and choice through an adaptable technology platform, award-winning distribution strategy
and cost-effective servicing capabilities. Named the industry “Gold Standard” and winner of more than 50 industry awards, the company serves advisors and their clients nationwide through
its subsidiaries Jefferson National Life Insurance Company and Jefferson National Life Insurance Company of New York. To reach our advisor support desk, please call 1-866-WHY-FLAT
(1-866-949-3528). Learn more at www.jeffnat.com.
No Solicitation or Investment Advice: The material contained on this website is for informational purposes only and J2CM is not soliciting any action based upon such material. The material
is not to be construed as an offer or a recommendation to buy or sell a security nor is it to be construed as investment advice.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS
www.j2cmonline.com • 248-641-4444
Investment Advisory Services offered through J2 Capital Management, an SEC Registered Investment Advisor.
FOR INVESTMENT ADVISOR USE ONLY – NOT FOR PUBLIC
“We allow our clients to
sleep at night regardless
of the markets.”
- John E. Benedict
Investment advisory services offered through J2 Capital Management an SEC Registered Investment Advisor.
Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any
specific investment or investment strategy will be profitable.
Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that future performance of any specific
investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by J2 Capital Management) will
be profitable or equal the corresponding indicated performance level(s). Different types of investments involve varying degrees of risk.
www.j2cmonline.com • 248-641-4444