PS Portfolio Consulting - Strategy Presentation - Sept10

8/8/2019 PS Portfolio Consulting - Strategy Presentation - Sept10

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Founder of Panthera Solutions.

Markus has over 10 years experience in trading, structuring and managingstandard and alternative investment products. Previously to Panthera,Markus was Managing Director at Twelve Asset Management Inc., aLong/Short Equity Hedge Fund for which he developed the tradingalgorithm. He was one of the first in Europe to fit hedge fund strategiesinto UCITS III compliant structures.Markus successfully started his career as Equity and Options Trader at theAustrian Volkskreditbank, followed by an engagement at the HypoLandesbank as Macro Analyst for the Private Banking department in 2002.Markus graduated from his Master in Economics at Johannes KeplerUniversity (and University of Pittsburgh). In 2005 he successfullygraduated from his MBA (specialized in Corporate Finance and WealthMgmt) at the International University of Monaco (Top 35 worldwide) .

After receiving his MSc in Financial Engineering degree in 2006 from IUM,he joined the Alternative Investment Boutique Monaco Capital Partnerswhere he signed responsible for structuring offshore Real Estate andPrivate Equity funds with investment focus on Asia.

Since 2009 Markus is teaching the courses Hedge Fund Structures andPortfolio & Hedge Fund Strategies at the International University ofMonaco. In 2007 he was nominated as fellow for the renowned RoyalSociety of Arts.

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Institutional and private portfolio management still relies on outdated models,

antiquated allocation convictions and a limited use of modern portfolio managementinsights. See studies from Booz & Company and the University of Zurich.

The Great Recession taught us forcefully that following old paradigms in portfoliomanagement is the wrong response to a globalized, hence interconnected world.

Panthera Solutions
http://www.booz.com/de/home/Presse/Pressemitteilungen/pressemitteilung-detail/45871909http://www.ifi.uzh.ch/im/fileadmin/user_upload/research_downloads/Schweizer_Bank.pdfhttp://www.ifi.uzh.ch/im/fileadmin/user_upload/research_downloads/Schweizer_Bank.pdfhttp://www.booz.com/de/home/Presse/Pressemitteilungen/pressemitteilung-detail/45871909


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Mankinds civilizing evolution is driven by certain basal, globally

sourced trends (1). PPS covers these long-term trends by its defaultpolicy allocation of considered asset classes.

As evolution goes in cycles, PPS acknowledges the fact that thesetrends need to be cyclically exploited.

PPS responds to trend-led geographical allocation adjustments.

PPS conclusively follows trend substance (trend value) and filtersmarket fashion out.

* (1) Global Trends 2025: A Transformed World (NIC|11/08)

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Wealth Participation of the Third WorldLuxury Catch-Up of China, India and RussiaSustainable Consumption of the West (Eco Chic, Moral Commerce)

Shortage of Strategic Ressources like Water & Fossil RessourcesUtilization of Alternative Energy Sources and Energy EfficiencyDe-centralized Energy Supply

CO2 Contamination and Global WarmingGrowing Ecological Pollution in Emerging MarketsClean Technologies & Social Corporate Responsibility

Dynamic Growth of MegacitiesDevelopment of Adjusting Infrastructure SolutionsNew Residential-, Life- and Participation Solutions

World Risk SocietyGlobal Terrorism and Failed StatesProliferation of WMD

Aging and Shrinking of Western SocietiesGrowing Migration StreamsIncreasing Birth-Rate in Emerging Societies

Biology as Lead-ScienceRenaissance of BionicSwarm Intelligence: New Social Structures

IT & Nano-Technology as Key-Convergence DriversImpulses for Many Applications (Medicine, Energy)NBIC Convergence

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Panthera Solutions

Specialization has a tippingpoint to instabilization.

Correlation does not work.

Kurtosis does not work.

Developed & emerging market

distinction does not work.

CAPM does not work.

TAA (market timing)does not work

Liquidity evaporates whenneeded most.

Interconnectivity of global

economy will further increase.

Build allocation outsidecorrelation.

In complex systems, youneed a lot of insurance.

Spot global structuralinefficiencies & embed in policy

Cycle Timing supersedesMarket Timing

Global Investment Universewith no asset class limitations

Accurate policy allocation andsecurity selection is sufficient.

Distinction of different growthpotentials is relevant.


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Global Equity

Fixed Income

Real Estate

Forestry

Infrastructure

Commodities

Cash &Equivalents

Listed Equity

Private Equity

Governmental

Corporate

Direct Residential

Direct Commercial

Cash

FX

Volatility

Diversificationto Equity

-

DirectionalOptions

Long & Short

Sub-CategoriesConsideredAsset Classes

-

Medium

Medium

High

Low

Medium

Low

Medium

High

High

High Long

Long & Short

Neutral

Long & Short

Long & Short

Long

Long

Long

Long

Long

Long-

-

Physical

Medium Long & ShortDerivatives

ManagementTendency

Passive

Active

Passive

Active

Passive

Active

Passive

Passive

Passive

Active

Active

Active

Active

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Argentina

Australia

Brazil

Canada

ChinaFrance

Germany

India

Indonesia

Italy

Japan

Mexico

RussiaSaudi Arabia

South Africa

Turkey

UK

USA

EU 27

GrowthPotential *

G 20GDP (qoq)

Q1/10Cycle

Status *US Market

Diversifier *

7.00 %

4.00 %

9.00 %

4.00 %

13.00 %3.00 %

3.50 %

11.00 %

8.00 %

3.00 %

3.00 %

6.00 %

6.00 %6.00 %

7.00 %

12.00 %

4.00 %

5.00 %

4.00 %

3.00 %

0.80 %

2.70 %

3.40 %

11.90 %0.10 %

0.20 %

8.90%

5.70 %

0.40 %

1.20 %

4.30 %

4.50 %4.00 %

4.60 %

11.70 %

0.30 %

0.70 %

0.20 %

1

2

2

1

34

1

1

1

1

2

1

11

1

2

3

2

1

Medium

Weak

Medium

Weak

StrongWeak

Weak

Strong

Medium

Weak

Weak

Medium

MediumMedium

Medium

Medium

Weak

-

Weak

* Sample Data

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35%

31%

26%

5%

3%

Europe North America Asia South America Middle East/Africa

G20 Member Landscape

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INFLECTIONPOINT

1 2

3 4

TOP

BOTTOM

INFLECTIONPOINT

TURNINGPOINT

TURNINGPOINT

Cycle Status

Basal Trend

Growth Potential

Policy&

Underlying

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Business Cycle positioning of all G20 members inrelation to their individual growth potentialleads to the right diagram (Q3/09 example).

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Growth Potential Matrix Update

Product Rebalancing Window

Policy Rebalancing Window Quarterly

Weekly

Monthly

Due Diligence Parameters

Liquidity

Fee-Fairness

Counterparty Risk Diversification

Strategy Loyalty

Transparency

Manager Skills Tax Efficiency

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No product trading No product exchange No transaction costs Monthly re-balancing No currency hedge

Global Equity

Fixed Income

Real Estate

Forestry

Infrastructure

Commodities

Cash, Vola,Arbitrage

Allocation %

17,5

55

0

5

0

10

12,5

ConsideredAsset Classes

Master Parameters

2006 2007 2008 2009 2010 Avg

Inflation Eurozone 2,2 2,1 3,3 0,3 1,07 1,79

Expected Excess Return 4 4 4 4 2,67 3,73

Target Return 6,2 6,1 7,3 4,30 3,73 5,53

Delivered Return 5,63 6,99 5,66 6,26 8,78 6,66

MonthlyPerformance

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

2006 1,07 0,13 -0,12 0,30 -0,78 0,14 -0,19 1,38 0,71 1,33 0,37 1,17 5,632007 0,95 -0,26 -0,47 1,58 1,17 0,48 -0,06 0,19 1,22 2,43 -0,27 -0,12 7,052008 -0,02 0,92 -1,35 5,91 0,76 -1,80 -0,05 1,73 -1,57 0,26 0,41 0,53 5,662009 0,84 -0,58 -0,08 2,68 -0,50 0,50 1,57 0,60 1,04 -0,82 0,57 0,58 6,26

2010 0,23 1,41 2,81 1,34 0,93 -0,04 -0,1** 2,22* 8,78

Inflation+ 4 %

Panthera Solutions

Management Style PPSActive Management 45 %Passive Management 55 %

Strategy Style PPSLong & Short 32,5 %Long Only 67,5 %

Currencies80 % EUR15 % USD5 % GBP

Security Weightings10x 2,50%6x 5,00%6x 7,50%

22 Securities

* 82,5% of all NAVs reported** 97,5% of all MAVs reported

60

70

80

90

100

110

120

130

140

Dec05

Mar06

Jun06

Sep06

Dec06

Mar07

Jun07

Sep07

Dec07

Mar08

Jun08

Sep08

Dec08

Mar09

Jun09

Sep09

Dez09

Mrz10

Jun10

PPS MSCI World


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No product trading No product exchange No transaction costs Monthly re-balancing No Currency Hedge

Listed Equity

Fixed Income

Real Estate

Forestry

Infrastructure

Commodities

Cash, Vola,Arbitrage

Allocation %

7,5

37,5

0

5

0

25

15

ConsideredAsset Classes

Master Parameters

2006 2007 2008 2009 2010 YTD Avg

Inflation Eurozone 2,2 2,1 3,3 0,3 0,93 1,77

Expected Excess Return 8 8 8 8 5 7

Target Return 10,2 10,1 11,3 8,30 5,60 9,10

Delivered Return 6,34 10,58 7,71 8,20 9,84 8,53

MonthlyPerformance

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

2006 1,39 0,53 0,23 0,08 -0,67 0,06 0,04 1,12 1,03 1,34 -0,49 1,54 6,342007 1,50 0,08 -0,35 1,14 1,82 1,01 1,12 0,35 0,13 2,96 0,17 0,21 10,582008 0,04 1,26 -2,45 3,53 1,17 -1,54 -0,06 3,41 0,27 4,04 0,61 -2,56 7,712009 3,89 -0,21 -1,13 2,30 -1,77 0,55 1,47 0,70 0,79 -0,82 0,40 1,96 8,20

2010 1,79 2,31 2,85 2,02 2,56 0,17** -1,86* 9,84

Inflation+ 8 %

Private Equity 10

Panthera Solutions

Management Style PPSActive Management 65 %Passive Management 35 %

Strategy Style PPSLong & Short 52,5 %Long Only 47,5 %

Currencies50 % EUR45 % USD5 % GBP

Security Weightings12x 2,50%14x 5,00%0x 7,50%

26 Securities

* 90% of all NAVs reported** 97.5% of all NAVs reported

50

70

90

110

130

150

Dec05

Mar06

Jun06

Sep06

Dec06

Mar07

Jun07

Sep07

Dec07

Mar08

Jun08

Sep08

Dec08

Mar09

Jun09

Sep09

Dez09

Mrz10

Jun10

PPS MSCI World


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Inflation+ 8 %

Inflation+ 4 %

Inflation+ 2 %

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Mag. Markus Schuller, MBA MScFE, FRSA5, Rue des ViolettesMC 98000 Monaco

+33 674 274 [email protected]

This presentation supersedes any presentation or information which may have beenpreviously issued to anyone in relation to Panthera Portfolio Solution (PPS). The contentsof this presentation, including the terms of the fund, are preliminary and subject to changewithout notice. This is not an offer of interests or a solicitation of an offer to sell securitiesor an interest in PPS. or in any investment vehicle. This presentation is only intended forpreliminary information purposes, is for the addressee only, is the property of Panthera

Solutions (PANTHERA)in any media, and may not be disclosed to any third party in part orin whole without the written consent of PANTHERA. Neither PANTHERA nor the Advisor,nor any of the parties mentioned herein including their subsidiaries, affiliates, shareholders,directors or employees, nor any persons or professional firms directly or indirectly involvedin any aspect of PPS, guarantee the accuracy or completeness of this presentation; neitherare they making any representation or providing any guarantee whatsoever as to the futureeconomic performance of PPS. or as to whether PPS will at any time in the future produceany return or other benefits to any potential participant or investor. Anyone contemplatinga participation or investment in PPS or a similar vehicle should refer to the privateplacement memorandum (which shall supersede and cancel this presentation), and shouldunderstand that participating in PPS constitutes a risky investment in an emerging solution,and are invited to conduct their own due diligence. The name of Panthera PortfolioSolution is the property of PANTHERA and is subject to change without notice. This

document shall be superseded by the PPM when available.

DisclaimerContact Details
mailto:[email protected]://www.panthera.mc/http://www.panthera.mc/mailto:[email protected]

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PS Portfolio Consulting - Strategy Presentation - Sept10