RISK MANAGEMENT UPDATE Q2 2012 ALTRIUS CAPITAL MANAGEMENT, INC. | 855-ALTRIUS | WWW.ALTRIUS.US GLOBAL PERSPECTIVES WITH A VALUE FOCUS. PROVIDING TOTAL RETURN TO INVESTORS.
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R I S K M A N A G E M E N T U P DA T E
Q2 2012
ALTRIUS CAPITAL MANAGEMENT INC | 855-ALTRIUS | WWWALTRIUSUS
GLOBAL PERSPECTIVES WITH A VALUE FOCUS PROVIDING TOTAL RETURN TO INVESTORS
Q2 2012
Altrius Team
2
James RussoChief Investment Strategist
Portfolio Manager
Allison CowardSenior Client Advisor
Analyst
Tara Hughes CPASenior Client Advisor
Analyst
Zachary SmithAnalyst
Team Portfolio Manager
Loriann HarkerClient Services Manager
Director Performance Accounting
Nathan ByrdAnalyst
Team Portfolio Manager
Rita SmithClient Services Manager
Director Operations Compliance
Investment Committee
Blue Team
Red Team
Q2 2012
Strategies
3
Q2 2012
Mobile Technology
4
Q2 2012
Executive Summary
5
Rising event risk probability ndash during the second quarter of 2012 various macroeconomic factors have increased the downside risks to global growth and investment returns in the near term
Heightened volatility ndash market volatility has spiked given the degree ofuncertainty and the inadequacy of policy response
Strategic risk management response ndash in Q1 and April we implemented several tactical portfolio shifts in an attempt to mitigate market volatility
Opportunity in crisis ndash negative headlines and pervasive gloomy sentiment haveenabled us to acquire distressed assets and improve portfolio returns and income
Q2 2012
Event Risks
Q2 2012
Primary Global Risks
7
Source Risk to Global Growth
United States ldquoFiscal cliffrdquo hit of 5 to GDP at year-end
Europe Disorderly unwinding of the Euro bank runs etc
Emerging Markets Slowdown in China affecting other countries
Q2 2012
US Fiscal Cliff
8Source Goldman Sachs
Federal Spending Impact on GDP
Q2 2012
Debt Ceiling Debate Hurts the Economy
9
Index of Economic Policy Uncertainty Debt Ceiling Impasse 2011
Source VoxEUorg
Note Index of policy-related economic uncertainty Weights 12 News-based 16 tax expirations 16 CPI disagreement 16 expenditures disagreement after each index normalized to have a standard-deviation of 1 News query run Feb 3 2011 Index normalized mean 100 from 1985-2009
Q2 2012
Euro is Structurally Unsound
10Source JP Morgan OECD
Euro Zone Current Account Balances
Q2 2012
Ongoing Periphery Bank Runs
11 Source Bank of Spain ECB Citi
Note Deposits of domestic sector ex-credit institutions in Spanish MFIs Euro system borrowing is funding via Open Market Operations
Spanish Bank Deposits and ECB Funding
Q2 2012
History Repeats
12 Source Essays in Persuasion Reinhart and Rogoff
Ultimately and probably soon there must be a readjustment of the balance of exports and imports America must buymore and sell less This is the only alternative to her making to Europe an annual present Either American pricesmust rise faster than European (which will be the case if the Federal Reserve Board allows the gold influx to produce itsnatural consequences) or failing this the same result must be brought about by a further depreciation of the Europeanexchanges until Europe by inability to buy has reduced her purchases to articles of necessity
-John M Keynes 1921
0
50
100
150
200
250
300
350
Germany France UK Italy Spain US
Publ
ic D
ebt
GD
P
1921 1924 1929
Country Public Debt Post-WWI
Q2 2012
Key Upcoming Euro Zone Dates
13
Date Event
Sunday June 17th Election in Greece to determine ruling party
Monday June 18th Independent Spanish bank stress tests by the ldquoBig 4rdquo
Monday June 18th Start of 2 day G20 summit meeting
Thursday June 21st Meeting of Euro Zone finance ministers
Thursday June 28th Start of 2 day European summit in Brussels
Saturday June 30th Greece required to enact new austerity measures
Q2 2012
Chinarsquos Unsustainable Economic Model
14
Residential Housing Bubbles
Source HSBC
Hou
sing
Val
ue M
ultip
le o
f GD
P
Q2 2012
China Slowing
15 Source Markit HSBC
China Manufacturing PMI
Q2 2012
Economic Overview
Q2 2012
The ldquoPlow Horse Economyrdquo
17 Source Calculated Risk
Percent US Job Losses in Post-WWII Recessions
Q2 2012
Steady Slow Employment Growth
18 Source Calculated Risk
Labor Turnover Survey
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Altrius Team
2
James RussoChief Investment Strategist
Portfolio Manager
Allison CowardSenior Client Advisor
Analyst
Tara Hughes CPASenior Client Advisor
Analyst
Zachary SmithAnalyst
Team Portfolio Manager
Loriann HarkerClient Services Manager
Director Performance Accounting
Nathan ByrdAnalyst
Team Portfolio Manager
Rita SmithClient Services Manager
Director Operations Compliance
Investment Committee
Blue Team
Red Team
Q2 2012
Strategies
3
Q2 2012
Mobile Technology
4
Q2 2012
Executive Summary
5
Rising event risk probability ndash during the second quarter of 2012 various macroeconomic factors have increased the downside risks to global growth and investment returns in the near term
Heightened volatility ndash market volatility has spiked given the degree ofuncertainty and the inadequacy of policy response
Strategic risk management response ndash in Q1 and April we implemented several tactical portfolio shifts in an attempt to mitigate market volatility
Opportunity in crisis ndash negative headlines and pervasive gloomy sentiment haveenabled us to acquire distressed assets and improve portfolio returns and income
Q2 2012
Event Risks
Q2 2012
Primary Global Risks
7
Source Risk to Global Growth
United States ldquoFiscal cliffrdquo hit of 5 to GDP at year-end
Europe Disorderly unwinding of the Euro bank runs etc
Emerging Markets Slowdown in China affecting other countries
Q2 2012
US Fiscal Cliff
8Source Goldman Sachs
Federal Spending Impact on GDP
Q2 2012
Debt Ceiling Debate Hurts the Economy
9
Index of Economic Policy Uncertainty Debt Ceiling Impasse 2011
Source VoxEUorg
Note Index of policy-related economic uncertainty Weights 12 News-based 16 tax expirations 16 CPI disagreement 16 expenditures disagreement after each index normalized to have a standard-deviation of 1 News query run Feb 3 2011 Index normalized mean 100 from 1985-2009
Q2 2012
Euro is Structurally Unsound
10Source JP Morgan OECD
Euro Zone Current Account Balances
Q2 2012
Ongoing Periphery Bank Runs
11 Source Bank of Spain ECB Citi
Note Deposits of domestic sector ex-credit institutions in Spanish MFIs Euro system borrowing is funding via Open Market Operations
Spanish Bank Deposits and ECB Funding
Q2 2012
History Repeats
12 Source Essays in Persuasion Reinhart and Rogoff
Ultimately and probably soon there must be a readjustment of the balance of exports and imports America must buymore and sell less This is the only alternative to her making to Europe an annual present Either American pricesmust rise faster than European (which will be the case if the Federal Reserve Board allows the gold influx to produce itsnatural consequences) or failing this the same result must be brought about by a further depreciation of the Europeanexchanges until Europe by inability to buy has reduced her purchases to articles of necessity
-John M Keynes 1921
0
50
100
150
200
250
300
350
Germany France UK Italy Spain US
Publ
ic D
ebt
GD
P
1921 1924 1929
Country Public Debt Post-WWI
Q2 2012
Key Upcoming Euro Zone Dates
13
Date Event
Sunday June 17th Election in Greece to determine ruling party
Monday June 18th Independent Spanish bank stress tests by the ldquoBig 4rdquo
Monday June 18th Start of 2 day G20 summit meeting
Thursday June 21st Meeting of Euro Zone finance ministers
Thursday June 28th Start of 2 day European summit in Brussels
Saturday June 30th Greece required to enact new austerity measures
Q2 2012
Chinarsquos Unsustainable Economic Model
14
Residential Housing Bubbles
Source HSBC
Hou
sing
Val
ue M
ultip
le o
f GD
P
Q2 2012
China Slowing
15 Source Markit HSBC
China Manufacturing PMI
Q2 2012
Economic Overview
Q2 2012
The ldquoPlow Horse Economyrdquo
17 Source Calculated Risk
Percent US Job Losses in Post-WWII Recessions
Q2 2012
Steady Slow Employment Growth
18 Source Calculated Risk
Labor Turnover Survey
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Strategies
3
Q2 2012
Mobile Technology
4
Q2 2012
Executive Summary
5
Rising event risk probability ndash during the second quarter of 2012 various macroeconomic factors have increased the downside risks to global growth and investment returns in the near term
Heightened volatility ndash market volatility has spiked given the degree ofuncertainty and the inadequacy of policy response
Strategic risk management response ndash in Q1 and April we implemented several tactical portfolio shifts in an attempt to mitigate market volatility
Opportunity in crisis ndash negative headlines and pervasive gloomy sentiment haveenabled us to acquire distressed assets and improve portfolio returns and income
Q2 2012
Event Risks
Q2 2012
Primary Global Risks
7
Source Risk to Global Growth
United States ldquoFiscal cliffrdquo hit of 5 to GDP at year-end
Europe Disorderly unwinding of the Euro bank runs etc
Emerging Markets Slowdown in China affecting other countries
Q2 2012
US Fiscal Cliff
8Source Goldman Sachs
Federal Spending Impact on GDP
Q2 2012
Debt Ceiling Debate Hurts the Economy
9
Index of Economic Policy Uncertainty Debt Ceiling Impasse 2011
Source VoxEUorg
Note Index of policy-related economic uncertainty Weights 12 News-based 16 tax expirations 16 CPI disagreement 16 expenditures disagreement after each index normalized to have a standard-deviation of 1 News query run Feb 3 2011 Index normalized mean 100 from 1985-2009
Q2 2012
Euro is Structurally Unsound
10Source JP Morgan OECD
Euro Zone Current Account Balances
Q2 2012
Ongoing Periphery Bank Runs
11 Source Bank of Spain ECB Citi
Note Deposits of domestic sector ex-credit institutions in Spanish MFIs Euro system borrowing is funding via Open Market Operations
Spanish Bank Deposits and ECB Funding
Q2 2012
History Repeats
12 Source Essays in Persuasion Reinhart and Rogoff
Ultimately and probably soon there must be a readjustment of the balance of exports and imports America must buymore and sell less This is the only alternative to her making to Europe an annual present Either American pricesmust rise faster than European (which will be the case if the Federal Reserve Board allows the gold influx to produce itsnatural consequences) or failing this the same result must be brought about by a further depreciation of the Europeanexchanges until Europe by inability to buy has reduced her purchases to articles of necessity
-John M Keynes 1921
0
50
100
150
200
250
300
350
Germany France UK Italy Spain US
Publ
ic D
ebt
GD
P
1921 1924 1929
Country Public Debt Post-WWI
Q2 2012
Key Upcoming Euro Zone Dates
13
Date Event
Sunday June 17th Election in Greece to determine ruling party
Monday June 18th Independent Spanish bank stress tests by the ldquoBig 4rdquo
Monday June 18th Start of 2 day G20 summit meeting
Thursday June 21st Meeting of Euro Zone finance ministers
Thursday June 28th Start of 2 day European summit in Brussels
Saturday June 30th Greece required to enact new austerity measures
Q2 2012
Chinarsquos Unsustainable Economic Model
14
Residential Housing Bubbles
Source HSBC
Hou
sing
Val
ue M
ultip
le o
f GD
P
Q2 2012
China Slowing
15 Source Markit HSBC
China Manufacturing PMI
Q2 2012
Economic Overview
Q2 2012
The ldquoPlow Horse Economyrdquo
17 Source Calculated Risk
Percent US Job Losses in Post-WWII Recessions
Q2 2012
Steady Slow Employment Growth
18 Source Calculated Risk
Labor Turnover Survey
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Mobile Technology
4
Q2 2012
Executive Summary
5
Rising event risk probability ndash during the second quarter of 2012 various macroeconomic factors have increased the downside risks to global growth and investment returns in the near term
Heightened volatility ndash market volatility has spiked given the degree ofuncertainty and the inadequacy of policy response
Strategic risk management response ndash in Q1 and April we implemented several tactical portfolio shifts in an attempt to mitigate market volatility
Opportunity in crisis ndash negative headlines and pervasive gloomy sentiment haveenabled us to acquire distressed assets and improve portfolio returns and income
Q2 2012
Event Risks
Q2 2012
Primary Global Risks
7
Source Risk to Global Growth
United States ldquoFiscal cliffrdquo hit of 5 to GDP at year-end
Europe Disorderly unwinding of the Euro bank runs etc
Emerging Markets Slowdown in China affecting other countries
Q2 2012
US Fiscal Cliff
8Source Goldman Sachs
Federal Spending Impact on GDP
Q2 2012
Debt Ceiling Debate Hurts the Economy
9
Index of Economic Policy Uncertainty Debt Ceiling Impasse 2011
Source VoxEUorg
Note Index of policy-related economic uncertainty Weights 12 News-based 16 tax expirations 16 CPI disagreement 16 expenditures disagreement after each index normalized to have a standard-deviation of 1 News query run Feb 3 2011 Index normalized mean 100 from 1985-2009
Q2 2012
Euro is Structurally Unsound
10Source JP Morgan OECD
Euro Zone Current Account Balances
Q2 2012
Ongoing Periphery Bank Runs
11 Source Bank of Spain ECB Citi
Note Deposits of domestic sector ex-credit institutions in Spanish MFIs Euro system borrowing is funding via Open Market Operations
Spanish Bank Deposits and ECB Funding
Q2 2012
History Repeats
12 Source Essays in Persuasion Reinhart and Rogoff
Ultimately and probably soon there must be a readjustment of the balance of exports and imports America must buymore and sell less This is the only alternative to her making to Europe an annual present Either American pricesmust rise faster than European (which will be the case if the Federal Reserve Board allows the gold influx to produce itsnatural consequences) or failing this the same result must be brought about by a further depreciation of the Europeanexchanges until Europe by inability to buy has reduced her purchases to articles of necessity
-John M Keynes 1921
0
50
100
150
200
250
300
350
Germany France UK Italy Spain US
Publ
ic D
ebt
GD
P
1921 1924 1929
Country Public Debt Post-WWI
Q2 2012
Key Upcoming Euro Zone Dates
13
Date Event
Sunday June 17th Election in Greece to determine ruling party
Monday June 18th Independent Spanish bank stress tests by the ldquoBig 4rdquo
Monday June 18th Start of 2 day G20 summit meeting
Thursday June 21st Meeting of Euro Zone finance ministers
Thursday June 28th Start of 2 day European summit in Brussels
Saturday June 30th Greece required to enact new austerity measures
Q2 2012
Chinarsquos Unsustainable Economic Model
14
Residential Housing Bubbles
Source HSBC
Hou
sing
Val
ue M
ultip
le o
f GD
P
Q2 2012
China Slowing
15 Source Markit HSBC
China Manufacturing PMI
Q2 2012
Economic Overview
Q2 2012
The ldquoPlow Horse Economyrdquo
17 Source Calculated Risk
Percent US Job Losses in Post-WWII Recessions
Q2 2012
Steady Slow Employment Growth
18 Source Calculated Risk
Labor Turnover Survey
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Executive Summary
5
Rising event risk probability ndash during the second quarter of 2012 various macroeconomic factors have increased the downside risks to global growth and investment returns in the near term
Heightened volatility ndash market volatility has spiked given the degree ofuncertainty and the inadequacy of policy response
Strategic risk management response ndash in Q1 and April we implemented several tactical portfolio shifts in an attempt to mitigate market volatility
Opportunity in crisis ndash negative headlines and pervasive gloomy sentiment haveenabled us to acquire distressed assets and improve portfolio returns and income
Q2 2012
Event Risks
Q2 2012
Primary Global Risks
7
Source Risk to Global Growth
United States ldquoFiscal cliffrdquo hit of 5 to GDP at year-end
Europe Disorderly unwinding of the Euro bank runs etc
Emerging Markets Slowdown in China affecting other countries
Q2 2012
US Fiscal Cliff
8Source Goldman Sachs
Federal Spending Impact on GDP
Q2 2012
Debt Ceiling Debate Hurts the Economy
9
Index of Economic Policy Uncertainty Debt Ceiling Impasse 2011
Source VoxEUorg
Note Index of policy-related economic uncertainty Weights 12 News-based 16 tax expirations 16 CPI disagreement 16 expenditures disagreement after each index normalized to have a standard-deviation of 1 News query run Feb 3 2011 Index normalized mean 100 from 1985-2009
Q2 2012
Euro is Structurally Unsound
10Source JP Morgan OECD
Euro Zone Current Account Balances
Q2 2012
Ongoing Periphery Bank Runs
11 Source Bank of Spain ECB Citi
Note Deposits of domestic sector ex-credit institutions in Spanish MFIs Euro system borrowing is funding via Open Market Operations
Spanish Bank Deposits and ECB Funding
Q2 2012
History Repeats
12 Source Essays in Persuasion Reinhart and Rogoff
Ultimately and probably soon there must be a readjustment of the balance of exports and imports America must buymore and sell less This is the only alternative to her making to Europe an annual present Either American pricesmust rise faster than European (which will be the case if the Federal Reserve Board allows the gold influx to produce itsnatural consequences) or failing this the same result must be brought about by a further depreciation of the Europeanexchanges until Europe by inability to buy has reduced her purchases to articles of necessity
-John M Keynes 1921
0
50
100
150
200
250
300
350
Germany France UK Italy Spain US
Publ
ic D
ebt
GD
P
1921 1924 1929
Country Public Debt Post-WWI
Q2 2012
Key Upcoming Euro Zone Dates
13
Date Event
Sunday June 17th Election in Greece to determine ruling party
Monday June 18th Independent Spanish bank stress tests by the ldquoBig 4rdquo
Monday June 18th Start of 2 day G20 summit meeting
Thursday June 21st Meeting of Euro Zone finance ministers
Thursday June 28th Start of 2 day European summit in Brussels
Saturday June 30th Greece required to enact new austerity measures
Q2 2012
Chinarsquos Unsustainable Economic Model
14
Residential Housing Bubbles
Source HSBC
Hou
sing
Val
ue M
ultip
le o
f GD
P
Q2 2012
China Slowing
15 Source Markit HSBC
China Manufacturing PMI
Q2 2012
Economic Overview
Q2 2012
The ldquoPlow Horse Economyrdquo
17 Source Calculated Risk
Percent US Job Losses in Post-WWII Recessions
Q2 2012
Steady Slow Employment Growth
18 Source Calculated Risk
Labor Turnover Survey
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Event Risks
Q2 2012
Primary Global Risks
7
Source Risk to Global Growth
United States ldquoFiscal cliffrdquo hit of 5 to GDP at year-end
Europe Disorderly unwinding of the Euro bank runs etc
Emerging Markets Slowdown in China affecting other countries
Q2 2012
US Fiscal Cliff
8Source Goldman Sachs
Federal Spending Impact on GDP
Q2 2012
Debt Ceiling Debate Hurts the Economy
9
Index of Economic Policy Uncertainty Debt Ceiling Impasse 2011
Source VoxEUorg
Note Index of policy-related economic uncertainty Weights 12 News-based 16 tax expirations 16 CPI disagreement 16 expenditures disagreement after each index normalized to have a standard-deviation of 1 News query run Feb 3 2011 Index normalized mean 100 from 1985-2009
Q2 2012
Euro is Structurally Unsound
10Source JP Morgan OECD
Euro Zone Current Account Balances
Q2 2012
Ongoing Periphery Bank Runs
11 Source Bank of Spain ECB Citi
Note Deposits of domestic sector ex-credit institutions in Spanish MFIs Euro system borrowing is funding via Open Market Operations
Spanish Bank Deposits and ECB Funding
Q2 2012
History Repeats
12 Source Essays in Persuasion Reinhart and Rogoff
Ultimately and probably soon there must be a readjustment of the balance of exports and imports America must buymore and sell less This is the only alternative to her making to Europe an annual present Either American pricesmust rise faster than European (which will be the case if the Federal Reserve Board allows the gold influx to produce itsnatural consequences) or failing this the same result must be brought about by a further depreciation of the Europeanexchanges until Europe by inability to buy has reduced her purchases to articles of necessity
-John M Keynes 1921
0
50
100
150
200
250
300
350
Germany France UK Italy Spain US
Publ
ic D
ebt
GD
P
1921 1924 1929
Country Public Debt Post-WWI
Q2 2012
Key Upcoming Euro Zone Dates
13
Date Event
Sunday June 17th Election in Greece to determine ruling party
Monday June 18th Independent Spanish bank stress tests by the ldquoBig 4rdquo
Monday June 18th Start of 2 day G20 summit meeting
Thursday June 21st Meeting of Euro Zone finance ministers
Thursday June 28th Start of 2 day European summit in Brussels
Saturday June 30th Greece required to enact new austerity measures
Q2 2012
Chinarsquos Unsustainable Economic Model
14
Residential Housing Bubbles
Source HSBC
Hou
sing
Val
ue M
ultip
le o
f GD
P
Q2 2012
China Slowing
15 Source Markit HSBC
China Manufacturing PMI
Q2 2012
Economic Overview
Q2 2012
The ldquoPlow Horse Economyrdquo
17 Source Calculated Risk
Percent US Job Losses in Post-WWII Recessions
Q2 2012
Steady Slow Employment Growth
18 Source Calculated Risk
Labor Turnover Survey
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Primary Global Risks
7
Source Risk to Global Growth
United States ldquoFiscal cliffrdquo hit of 5 to GDP at year-end
Europe Disorderly unwinding of the Euro bank runs etc
Emerging Markets Slowdown in China affecting other countries
Q2 2012
US Fiscal Cliff
8Source Goldman Sachs
Federal Spending Impact on GDP
Q2 2012
Debt Ceiling Debate Hurts the Economy
9
Index of Economic Policy Uncertainty Debt Ceiling Impasse 2011
Source VoxEUorg
Note Index of policy-related economic uncertainty Weights 12 News-based 16 tax expirations 16 CPI disagreement 16 expenditures disagreement after each index normalized to have a standard-deviation of 1 News query run Feb 3 2011 Index normalized mean 100 from 1985-2009
Q2 2012
Euro is Structurally Unsound
10Source JP Morgan OECD
Euro Zone Current Account Balances
Q2 2012
Ongoing Periphery Bank Runs
11 Source Bank of Spain ECB Citi
Note Deposits of domestic sector ex-credit institutions in Spanish MFIs Euro system borrowing is funding via Open Market Operations
Spanish Bank Deposits and ECB Funding
Q2 2012
History Repeats
12 Source Essays in Persuasion Reinhart and Rogoff
Ultimately and probably soon there must be a readjustment of the balance of exports and imports America must buymore and sell less This is the only alternative to her making to Europe an annual present Either American pricesmust rise faster than European (which will be the case if the Federal Reserve Board allows the gold influx to produce itsnatural consequences) or failing this the same result must be brought about by a further depreciation of the Europeanexchanges until Europe by inability to buy has reduced her purchases to articles of necessity
-John M Keynes 1921
0
50
100
150
200
250
300
350
Germany France UK Italy Spain US
Publ
ic D
ebt
GD
P
1921 1924 1929
Country Public Debt Post-WWI
Q2 2012
Key Upcoming Euro Zone Dates
13
Date Event
Sunday June 17th Election in Greece to determine ruling party
Monday June 18th Independent Spanish bank stress tests by the ldquoBig 4rdquo
Monday June 18th Start of 2 day G20 summit meeting
Thursday June 21st Meeting of Euro Zone finance ministers
Thursday June 28th Start of 2 day European summit in Brussels
Saturday June 30th Greece required to enact new austerity measures
Q2 2012
Chinarsquos Unsustainable Economic Model
14
Residential Housing Bubbles
Source HSBC
Hou
sing
Val
ue M
ultip
le o
f GD
P
Q2 2012
China Slowing
15 Source Markit HSBC
China Manufacturing PMI
Q2 2012
Economic Overview
Q2 2012
The ldquoPlow Horse Economyrdquo
17 Source Calculated Risk
Percent US Job Losses in Post-WWII Recessions
Q2 2012
Steady Slow Employment Growth
18 Source Calculated Risk
Labor Turnover Survey
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
US Fiscal Cliff
8Source Goldman Sachs
Federal Spending Impact on GDP
Q2 2012
Debt Ceiling Debate Hurts the Economy
9
Index of Economic Policy Uncertainty Debt Ceiling Impasse 2011
Source VoxEUorg
Note Index of policy-related economic uncertainty Weights 12 News-based 16 tax expirations 16 CPI disagreement 16 expenditures disagreement after each index normalized to have a standard-deviation of 1 News query run Feb 3 2011 Index normalized mean 100 from 1985-2009
Q2 2012
Euro is Structurally Unsound
10Source JP Morgan OECD
Euro Zone Current Account Balances
Q2 2012
Ongoing Periphery Bank Runs
11 Source Bank of Spain ECB Citi
Note Deposits of domestic sector ex-credit institutions in Spanish MFIs Euro system borrowing is funding via Open Market Operations
Spanish Bank Deposits and ECB Funding
Q2 2012
History Repeats
12 Source Essays in Persuasion Reinhart and Rogoff
Ultimately and probably soon there must be a readjustment of the balance of exports and imports America must buymore and sell less This is the only alternative to her making to Europe an annual present Either American pricesmust rise faster than European (which will be the case if the Federal Reserve Board allows the gold influx to produce itsnatural consequences) or failing this the same result must be brought about by a further depreciation of the Europeanexchanges until Europe by inability to buy has reduced her purchases to articles of necessity
-John M Keynes 1921
0
50
100
150
200
250
300
350
Germany France UK Italy Spain US
Publ
ic D
ebt
GD
P
1921 1924 1929
Country Public Debt Post-WWI
Q2 2012
Key Upcoming Euro Zone Dates
13
Date Event
Sunday June 17th Election in Greece to determine ruling party
Monday June 18th Independent Spanish bank stress tests by the ldquoBig 4rdquo
Monday June 18th Start of 2 day G20 summit meeting
Thursday June 21st Meeting of Euro Zone finance ministers
Thursday June 28th Start of 2 day European summit in Brussels
Saturday June 30th Greece required to enact new austerity measures
Q2 2012
Chinarsquos Unsustainable Economic Model
14
Residential Housing Bubbles
Source HSBC
Hou
sing
Val
ue M
ultip
le o
f GD
P
Q2 2012
China Slowing
15 Source Markit HSBC
China Manufacturing PMI
Q2 2012
Economic Overview
Q2 2012
The ldquoPlow Horse Economyrdquo
17 Source Calculated Risk
Percent US Job Losses in Post-WWII Recessions
Q2 2012
Steady Slow Employment Growth
18 Source Calculated Risk
Labor Turnover Survey
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Debt Ceiling Debate Hurts the Economy
9
Index of Economic Policy Uncertainty Debt Ceiling Impasse 2011
Source VoxEUorg
Note Index of policy-related economic uncertainty Weights 12 News-based 16 tax expirations 16 CPI disagreement 16 expenditures disagreement after each index normalized to have a standard-deviation of 1 News query run Feb 3 2011 Index normalized mean 100 from 1985-2009
Q2 2012
Euro is Structurally Unsound
10Source JP Morgan OECD
Euro Zone Current Account Balances
Q2 2012
Ongoing Periphery Bank Runs
11 Source Bank of Spain ECB Citi
Note Deposits of domestic sector ex-credit institutions in Spanish MFIs Euro system borrowing is funding via Open Market Operations
Spanish Bank Deposits and ECB Funding
Q2 2012
History Repeats
12 Source Essays in Persuasion Reinhart and Rogoff
Ultimately and probably soon there must be a readjustment of the balance of exports and imports America must buymore and sell less This is the only alternative to her making to Europe an annual present Either American pricesmust rise faster than European (which will be the case if the Federal Reserve Board allows the gold influx to produce itsnatural consequences) or failing this the same result must be brought about by a further depreciation of the Europeanexchanges until Europe by inability to buy has reduced her purchases to articles of necessity
-John M Keynes 1921
0
50
100
150
200
250
300
350
Germany France UK Italy Spain US
Publ
ic D
ebt
GD
P
1921 1924 1929
Country Public Debt Post-WWI
Q2 2012
Key Upcoming Euro Zone Dates
13
Date Event
Sunday June 17th Election in Greece to determine ruling party
Monday June 18th Independent Spanish bank stress tests by the ldquoBig 4rdquo
Monday June 18th Start of 2 day G20 summit meeting
Thursday June 21st Meeting of Euro Zone finance ministers
Thursday June 28th Start of 2 day European summit in Brussels
Saturday June 30th Greece required to enact new austerity measures
Q2 2012
Chinarsquos Unsustainable Economic Model
14
Residential Housing Bubbles
Source HSBC
Hou
sing
Val
ue M
ultip
le o
f GD
P
Q2 2012
China Slowing
15 Source Markit HSBC
China Manufacturing PMI
Q2 2012
Economic Overview
Q2 2012
The ldquoPlow Horse Economyrdquo
17 Source Calculated Risk
Percent US Job Losses in Post-WWII Recessions
Q2 2012
Steady Slow Employment Growth
18 Source Calculated Risk
Labor Turnover Survey
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Euro is Structurally Unsound
10Source JP Morgan OECD
Euro Zone Current Account Balances
Q2 2012
Ongoing Periphery Bank Runs
11 Source Bank of Spain ECB Citi
Note Deposits of domestic sector ex-credit institutions in Spanish MFIs Euro system borrowing is funding via Open Market Operations
Spanish Bank Deposits and ECB Funding
Q2 2012
History Repeats
12 Source Essays in Persuasion Reinhart and Rogoff
Ultimately and probably soon there must be a readjustment of the balance of exports and imports America must buymore and sell less This is the only alternative to her making to Europe an annual present Either American pricesmust rise faster than European (which will be the case if the Federal Reserve Board allows the gold influx to produce itsnatural consequences) or failing this the same result must be brought about by a further depreciation of the Europeanexchanges until Europe by inability to buy has reduced her purchases to articles of necessity
-John M Keynes 1921
0
50
100
150
200
250
300
350
Germany France UK Italy Spain US
Publ
ic D
ebt
GD
P
1921 1924 1929
Country Public Debt Post-WWI
Q2 2012
Key Upcoming Euro Zone Dates
13
Date Event
Sunday June 17th Election in Greece to determine ruling party
Monday June 18th Independent Spanish bank stress tests by the ldquoBig 4rdquo
Monday June 18th Start of 2 day G20 summit meeting
Thursday June 21st Meeting of Euro Zone finance ministers
Thursday June 28th Start of 2 day European summit in Brussels
Saturday June 30th Greece required to enact new austerity measures
Q2 2012
Chinarsquos Unsustainable Economic Model
14
Residential Housing Bubbles
Source HSBC
Hou
sing
Val
ue M
ultip
le o
f GD
P
Q2 2012
China Slowing
15 Source Markit HSBC
China Manufacturing PMI
Q2 2012
Economic Overview
Q2 2012
The ldquoPlow Horse Economyrdquo
17 Source Calculated Risk
Percent US Job Losses in Post-WWII Recessions
Q2 2012
Steady Slow Employment Growth
18 Source Calculated Risk
Labor Turnover Survey
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Ongoing Periphery Bank Runs
11 Source Bank of Spain ECB Citi
Note Deposits of domestic sector ex-credit institutions in Spanish MFIs Euro system borrowing is funding via Open Market Operations
Spanish Bank Deposits and ECB Funding
Q2 2012
History Repeats
12 Source Essays in Persuasion Reinhart and Rogoff
Ultimately and probably soon there must be a readjustment of the balance of exports and imports America must buymore and sell less This is the only alternative to her making to Europe an annual present Either American pricesmust rise faster than European (which will be the case if the Federal Reserve Board allows the gold influx to produce itsnatural consequences) or failing this the same result must be brought about by a further depreciation of the Europeanexchanges until Europe by inability to buy has reduced her purchases to articles of necessity
-John M Keynes 1921
0
50
100
150
200
250
300
350
Germany France UK Italy Spain US
Publ
ic D
ebt
GD
P
1921 1924 1929
Country Public Debt Post-WWI
Q2 2012
Key Upcoming Euro Zone Dates
13
Date Event
Sunday June 17th Election in Greece to determine ruling party
Monday June 18th Independent Spanish bank stress tests by the ldquoBig 4rdquo
Monday June 18th Start of 2 day G20 summit meeting
Thursday June 21st Meeting of Euro Zone finance ministers
Thursday June 28th Start of 2 day European summit in Brussels
Saturday June 30th Greece required to enact new austerity measures
Q2 2012
Chinarsquos Unsustainable Economic Model
14
Residential Housing Bubbles
Source HSBC
Hou
sing
Val
ue M
ultip
le o
f GD
P
Q2 2012
China Slowing
15 Source Markit HSBC
China Manufacturing PMI
Q2 2012
Economic Overview
Q2 2012
The ldquoPlow Horse Economyrdquo
17 Source Calculated Risk
Percent US Job Losses in Post-WWII Recessions
Q2 2012
Steady Slow Employment Growth
18 Source Calculated Risk
Labor Turnover Survey
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
History Repeats
12 Source Essays in Persuasion Reinhart and Rogoff
Ultimately and probably soon there must be a readjustment of the balance of exports and imports America must buymore and sell less This is the only alternative to her making to Europe an annual present Either American pricesmust rise faster than European (which will be the case if the Federal Reserve Board allows the gold influx to produce itsnatural consequences) or failing this the same result must be brought about by a further depreciation of the Europeanexchanges until Europe by inability to buy has reduced her purchases to articles of necessity
-John M Keynes 1921
0
50
100
150
200
250
300
350
Germany France UK Italy Spain US
Publ
ic D
ebt
GD
P
1921 1924 1929
Country Public Debt Post-WWI
Q2 2012
Key Upcoming Euro Zone Dates
13
Date Event
Sunday June 17th Election in Greece to determine ruling party
Monday June 18th Independent Spanish bank stress tests by the ldquoBig 4rdquo
Monday June 18th Start of 2 day G20 summit meeting
Thursday June 21st Meeting of Euro Zone finance ministers
Thursday June 28th Start of 2 day European summit in Brussels
Saturday June 30th Greece required to enact new austerity measures
Q2 2012
Chinarsquos Unsustainable Economic Model
14
Residential Housing Bubbles
Source HSBC
Hou
sing
Val
ue M
ultip
le o
f GD
P
Q2 2012
China Slowing
15 Source Markit HSBC
China Manufacturing PMI
Q2 2012
Economic Overview
Q2 2012
The ldquoPlow Horse Economyrdquo
17 Source Calculated Risk
Percent US Job Losses in Post-WWII Recessions
Q2 2012
Steady Slow Employment Growth
18 Source Calculated Risk
Labor Turnover Survey
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Key Upcoming Euro Zone Dates
13
Date Event
Sunday June 17th Election in Greece to determine ruling party
Monday June 18th Independent Spanish bank stress tests by the ldquoBig 4rdquo
Monday June 18th Start of 2 day G20 summit meeting
Thursday June 21st Meeting of Euro Zone finance ministers
Thursday June 28th Start of 2 day European summit in Brussels
Saturday June 30th Greece required to enact new austerity measures
Q2 2012
Chinarsquos Unsustainable Economic Model
14
Residential Housing Bubbles
Source HSBC
Hou
sing
Val
ue M
ultip
le o
f GD
P
Q2 2012
China Slowing
15 Source Markit HSBC
China Manufacturing PMI
Q2 2012
Economic Overview
Q2 2012
The ldquoPlow Horse Economyrdquo
17 Source Calculated Risk
Percent US Job Losses in Post-WWII Recessions
Q2 2012
Steady Slow Employment Growth
18 Source Calculated Risk
Labor Turnover Survey
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Chinarsquos Unsustainable Economic Model
14
Residential Housing Bubbles
Source HSBC
Hou
sing
Val
ue M
ultip
le o
f GD
P
Q2 2012
China Slowing
15 Source Markit HSBC
China Manufacturing PMI
Q2 2012
Economic Overview
Q2 2012
The ldquoPlow Horse Economyrdquo
17 Source Calculated Risk
Percent US Job Losses in Post-WWII Recessions
Q2 2012
Steady Slow Employment Growth
18 Source Calculated Risk
Labor Turnover Survey
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
China Slowing
15 Source Markit HSBC
China Manufacturing PMI
Q2 2012
Economic Overview
Q2 2012
The ldquoPlow Horse Economyrdquo
17 Source Calculated Risk
Percent US Job Losses in Post-WWII Recessions
Q2 2012
Steady Slow Employment Growth
18 Source Calculated Risk
Labor Turnover Survey
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Economic Overview
Q2 2012
The ldquoPlow Horse Economyrdquo
17 Source Calculated Risk
Percent US Job Losses in Post-WWII Recessions
Q2 2012
Steady Slow Employment Growth
18 Source Calculated Risk
Labor Turnover Survey
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
The ldquoPlow Horse Economyrdquo
17 Source Calculated Risk
Percent US Job Losses in Post-WWII Recessions
Q2 2012
Steady Slow Employment Growth
18 Source Calculated Risk
Labor Turnover Survey
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Steady Slow Employment Growth
18 Source Calculated Risk
Labor Turnover Survey
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Significant US Market Outperformance
19 Source Bespoke Invest
SampP 500 vs MSCI World Index
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Gas Prices Falling
20 Source wwwgasbuddycom
Average US Retail Gasoline Price
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
The Importance of Managing Volatility
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Volatility Impact on Returns
22
Drawdown Return Needed to Breakeven
-10 11
-20 25
-30 429
-40 666
-50 100
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Low-Volatility Relative Performance
23
Contrary to CAPM efficient market claims high risk is often not associated with high reward
Empirical Returns by Volatility QuintileVa
lue o
f $1
Inve
sted
in 19
68
Source Benchmarks as Limits to Arbitrage Understanding the Low Volatility Anomaly Financial Analyst Journal Volume 67 2011
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Altrius Commitment to Risk-Adjusted Returns
24
Altrius has maintained a consistent focus on risk management while also achieving strong returns
Source Brockhouse Cooper analytics as of 12312011
Altrius 5yr RiskReturn vs Brockhouse Cooper LC Value Mandate
Ann
ualiz
ed R
etur
n (
)
Standard Deviation ()
Altrius LC Dividend Income
Russell 1000 Value
Altrius LC Dividend
Russell1000 Value
5yr Return 207 -264
StdDev 1991 2277
Beta 086 100
5yr Jensenrsquos Alpha 398 000
TrackingError 470 NA
Jensenrsquos Alpha is the average difference betweenthe return of the manager and the return of apassive strategy of equal market risk
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Altriusrsquo Tactical Response in Q1 and April
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Actions Taken in Q1 and April
26
Reduced portfolio Beta ndash during the market run-up in the first quarter we sold several more volatile stocks such as BAC and replaced them with healthcare and defense which have historically been less volatile
Added short position ndash purchased a position in a triple-short ETF intended to provide ballast to the rest of the portfolio
Increased fixed income allocation ndash reduced equity exposure and purchased bonds and preferred stocks with the proceeds
Defensive fund position ndash raised cash inside the Altrius Small Cap Value Fundin order to offset the volatility of the asset class
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Subsequent Market Decline
27 Source Doug Short
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Opportunity in Crisis
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Durable Business
29
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Example Stock ConAgra Foods
30
Business Consumer foods Chef Boyardee Egg Beaters Healthy Choice Snack Pack Garden Frost David Seeds etc
Dividend yield 39
PriceEarnings 13x (trailing twelve months)
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Stock Investment Criteria
31
Criteria Explanation
Durable business Simple time-tested business model with proven above-average profitability over market cycles
Above-average dividend Dividends are a critical source of long-run returns and high-dividend stocks have been show to outperform
Value price We avoid high flyers and limit ourselves to buying when assets are on sale relative to the broader market
International presence Where possible we invest in multinational companies with global brand recognition and overseas growth potential
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Non-Durable Businesses
32
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Example Stock HampR Block
33
Business Tax preparation service provider
Dividend yield 53
PriceEarnings 14x (trailing twelve months)
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Fixed Income Opportunities
34
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
$100 Gets Youhellip
35 Source wwwgasbuddycom
Investment Annual Income on $100 After Inflation
Cash $000 ($230)
2 Year Treasury $062 ($168)
10 Year Treasury $147 ($083)
SampP 500 Dividend $214 ($016)
Barclays Agg Bond $274 $044
Altrius Equity $306 $076
Altrius Fixed Income $742 $512
Altrius Balanced Portfolio $400 $170
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Conclusion
36
We expect near term volatility primarily from political catalysts
Our focus is on managing risk rather than on outperforming an index
We have implemented several changes to mitigate potential drawdowns
Our long term outlook remains optimistic and we are finding investment opportunities in the crisis
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Questions
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
Q2 2012
Contact Information
38
Toll Free 855-ALTRIUSEmail Address infoaltrius-capitalcom
Altrius Capital Management434 Fayetteville StreetSuite 2110Raleigh NC 27601Phone 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern NC 28562Phone 252-638-7598Fax 252-635-6739
Worldwide
Raleigh
New Bern
- Slide Number 1
- Altrius Team
- Strategies
- Mobile Technology
- Executive Summary
- Slide Number 6
- Primary Global Risks
- US Fiscal Cliff
- Debt Ceiling Debate Hurts the Economy
- Euro is Structurally Unsound
- Ongoing Periphery Bank Runs
- History Repeats
- Key Upcoming Euro Zone Dates
- Chinarsquos Unsustainable Economic Model
- China Slowing
- Slide Number 16
- The ldquoPlow Horse Economyrdquo
- Steady Slow Employment Growth
- Significant US Market Outperformance
- Gas Prices Falling
- Slide Number 21
- Volatility Impact on Returns
- Low-Volatility Relative Performance
- Altrius Commitment to Risk-Adjusted Returns
- Slide Number 25
- Actions Taken in Q1 and April
- Subsequent Market Decline
- Slide Number 28
- Durable Business
- Example Stock ConAgra Foods
- Stock Investment Criteria
- Non-Durable Businesses
- Example Stock HampR Block
- Fixed Income Opportunities
- $100 Gets Youhellip
- Conclusion
- Slide Number 37
- Contact Information
-
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