SYMONS CAPITAL MANAGEMENT
“Investment Risk Managers Generating Above-Benchmark Returns with Below-Benchmark Risks Over Full Market Cycles.”
Symons Capital Management, Inc. 650 Washington Road, Suite 800 Pittsburgh, PA 15228 412-344-7690 www.symonscapital.com
1 SYMONS CONTENTS CAPITAL MANAGEMENT
I. Overview 13 STEP SIX – Portfolio Oversight and Sell Decision 1 Symons Capital Management 14 CONCLUSION: Why Symons Capital Management II. Our People, Process, Risk Management and Performance 15 Market Cycle Returns — Value 2 Representative Institutional Client List 15.a Risk Statistics — Value 3 Investment Team 15.b Performance Statistics — Value 4 Six-Step Investment Process 15.c Portfolio Statistics – Value 5-6 STEP ONE – Macro Economic 16.a Small Cap Value Overview and Market Analysis 16.b Performance Statistics – Small Cap Value 7 STEP TWO — Initial Idea Generation 16.c Portfolio Statistics – Small Cap Value 8 STEP THREE – Preliminary Valuation 9-10 STEP FOUR – Exhaustive Fundamental III. Appendix Analysis 17-22 Colleagues’ Biographies 11-12 STEP FIVE – Portfolio Construction and Risk Management 23-25 Disclosures
WWW.SYMONSCAPITAL.COM SYMONS OVERVIEW OVERVIEW CAPITAL MANAGEMENT
PEOPLE: Chief Investment Officer in place since January 2000. Proven, stable and skilled investment team in place for next two decades.
PROCESS: Intellectually independent, macro top-down and fundamental bottom-up, holistic risk/reward research process that is disciplined, flexible and repeatable, that steers portfolios away from clouds on the horizon and toward opportunities.
RISK MANAGEMENT AND PERFORMANCE: Boutique equity manager that has generated material capital protection and material net-alpha over full market cycles.
COMMITMENT: SCM’s principals and retirement plan invest almost $8.8 million of their assets side-by-side with clients.
WWW.SYMONSCAPITAL.COM 1 SYMONS REPRESENTATIVE INSTITUTIONAL CLIENT LIST CAPITAL MANAGEMENT
CORPORATE / BUSINESS 1st Summit Bank Counsel Trust Company AmeriServ Trust and Financial Services Lawyers Mutual Insurance Co Benefit Plans Administrative Services, Inc. Quatrini Rafferty Buchanan Ingersoll & Rooney United States Telecom Association Community Bank Systems
PUBLIC FUNDS / TAFT HARTLEY Western PA Electrical Employees
CHARITABLE Botstiber Foundation Third Presbyterian Church Classic Car Club of America Museum Visiting Nurse Association of Northern New Jersey Rancho Research Institute, Inc. Westminster Presbyterian Church Los Angeles Firemen’s Relief Association
Note: The clients identified in this List were selected based on a variety of factors, including name recognition, industry, geographic region and investment mandate. The investment performance of the accounts managed by Symons Capital, including those identified on this List, was not considered. The List is neither a statement of a client’s experience with, nor an endorsement of, Symons Capital by the clients identified in the List. It is not known whether the clients identified in the List approve or disapprove of Symons Capital’s advisory services.
WWW.SYMONSCAPITAL.COM 2 SYMONS INVESTMENT TEAM INVESTMENT TEAM CAPITAL MANAGEMENT
Colin E. Symons, CFA Richard F. Foran, MPH Chief Investment Officer Vice President, Research and Portfolio Manager Years of experience: 13 Years of experience: 19 Sector Coverage: Healthcare Energy Industrials Utilities Financials Real Estate
Joshua I. Armstrong, CFA Matthew S. Wickline, CFA Vice President, Research Vice President, Research Years of experience: 9 Years of experience: 8
Sector Coverage: Sector Coverage: Technology Consumer Discretionary Materials Consumer Staples Telecom
WWW.SYMONSCAPITAL.COM 3 SYMONS SIX-STEP INVESTMENT PROCESS CAPITAL MANAGEMENT
Practical top-down forward-looking macro views of long-term economic, Macro Economic and Market Analysis business and demographic cycles data and short-term economic data to STEP ONE identify risks and opportunities in order to steer the ship in the right direction
Initial Stock Idea Generation Cull entire publicly traded stock universe for initial ideas using macro ideas, STEP TWO proprietary quantitative screens, and opportunistic circumstances
Examine initial stock ideas using standard analyst’s spreadsheets Preliminary Stock Valuation (e.g., revenue and margin trends) and quality of business factors STEP THREE (e.g., barriers to entry) to identify potentially attractive stocks
Exhaustive, critical fundamental analysis of remaining stocks: detailed Exhaustive Fundamental Stock Analysis analysis of SEC filings, conference call transcripts, management’s business STEP FOUR plan, etc., to identify both opportunities and potential problems (red flags)
Portfolio Construction and Risk Control Build economic-risk diversified portfolio, going beyond traditional STEP FIVE sector diversification to reduce coincident economic drivers
Other side of risk-reward analysis – monitor and sell stocks at Portfolio Oversight and Sell Decision appropriate time and valuation, based on macro and fundamental STEP SIX analysis of evolving market environments
RESULT: Repeatable FLEXIBLE investment process that generates consistent long-term capital protection and net alpha IN CHANGING MARKETS.
WWW.SYMONSCAPITAL.COM 4 SYMONS INVESTMENT PROCESS CAPITAL MANAGEMENT
STEP ONE
MACRO ECONOMIC ANALYSIS (Long-Term)