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Arquitos Capital Partners

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Presentation on theme: "Arquitos Capital Partners"— Presentation transcript:

1 Arquitos Capital Partners
4910 Sunset Lane Annandale, VA 22003 Phone: (571) Fax: (571)

2 Disclaimer This presentation is for informational purposes only and does not constitute a complete description of our investment services or performance. This form is in no way a solicitation or offer to sell securities or investment advisory services. We do not warrant or guarantee the timeliness or accuracy of the information listed in this form. Nothing here should be interpreted to state or imply that past results are an indication of future performance. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION LISTED HERE. The publication of any performance data is in no way a solicitation or offer to sell securities or investment advisory services. No assurance is made that any performance data meets Global Investment Performance Standards. Individual results will vary depending on market conditions.

3 Arquitos Capital Partners
Long/short hedge fund launching in Q1 2012 The investment objective of the fund is to achieve superior, absolute returns over the medium to long term while minimizing the amount of risk of permanent capital loss Portfolio contains three types of securities: value-oriented, special situations, and shorts Competitive advantages Off-Wall Street perspective Ability to buy into small and micro-cap stocks Small size allows us to be nimble traders Focus on uncommon special situation and event-driven investments

4 Investment Strategy Arquitos Capital Partners invests in three types of investments: Value: This portion of the portfolio is made up of securities that trade at a significant discount to the company’s underlying value. These tend to be longer term holdings. Bottom-up fundamental analysis is employed. Special Situations: This category includes mergers, spin-offs, tender offers, wind-downs, closed-end fund discounts, and other event-driven and arbitrage opportunities. The purpose of these low risk, and sometimes high return, investments is to protect our downside, reduce volatility, and create positive gains under any market circumstances. Shorts: Shorting will be used for arbitrage situations, fraudulent or other extreme incorrect market valuations, and to hedge the portfolio against market risk.

5 Value Thesis Cyclical peak valuation being misapplied by investment community N.A. auto sales increasing Recent dividend reinstatement and opportunity for future increases Cyclical company in an uptrend with increasing cash flow and earnings, and decreasing debt

6 Special Situations Thesis
Royalty and patent defending company uncorrelated to overall market Patents expiring in 2013 and 2014 Shareholder friendly management Accretive options include Returning cash to shareholders Selling the company to an entity looking for cash flow; or Purchasing additional royalty streams 9.8% dividend

7 Shorts Shorts are used to off-set value holdings in order to attempt to achieve market-neutral returns. Below are some examples of how shorts are used: Arbitrage situations such as dual-class structure anomalies Fraudulent or other extreme incorrect market valuations General hedge against market risk Allocation adjusted based on overall market conditions,

8 Managing Partner Steven Kiel is the portfolio manager for Arquitos Capital Partners. He is the founder and president of Arquitos Capital Management. Steven is a graduate of George Mason School of Law and is a member of the bar in Illinois and Washington, D.C. He is licensed as a Registered Investment Advisor. Steven has been quoted in The Wall Street Journal, MarketWatch, Deal Journal, USA Today, and other publications. He is a regular contributor to a variety of investing websites, and has had op-eds published at places such as the Daily Caller and National Review Online. Steven is also a captain and judge advocate in the Army Reserves and a veteran of Operation Iraqi Freedom.

9 Limited Partners Arquitos Capital Partners is open to the following investors: Partners who share our goal of maximizing long term returns while minimizing risk Investors who have a long term investment horizon and want to become true partners with the fund Accredited investors as defined by securities regulations The minimum initial investment is $100,000. Existing investors may add any amount.

10 Advisory Council Members of Arquitos Capital Partners’ Advisory Council act as informal, unpaid resources to the general partner, providing marketing, administration, and business development assistance and recommendations. Matthew W. Mamak Partner, Alston + Bird New York, NY Christopher D. Gillott Special Advisor, State of Louisiana

11 Service Providers Accounting and Auditor Maurice Berkower, (732) Acquavella, Chiarelli, Shuster, Berkower & Co., LLP New York, NY Administrator Angie Kim Harrison, (800) Core Fund Solutions San Francisco, CA Legal Matthew Mamak, (212) Alston + Bird New York, NY Prime Broker Interactive Brokers

12 Risk Management The primary goal of the fund is to generate the maximum amount of investment gains while using the minimum amount of risk. The portfolio is focused and will typically hold between 20 and 30 well researched securities. Risk is managed at two levels: Position level: Limited at cost and market level Portfolio level: Managed by limiting position sizes for highly correlated risk factors. Allocations may be considered highly correlated if they are focused in a specific industry, such as financials, or a specific investment style, such as merger arbitrage.

13 Safety and Security Trusted Managing Partner
Independent third party administrator Well respected service providers SIPC and Lloyd’s of London insurance protections totaling $30.5 million Easy subscriptions and redemptions No lock-up period

14 Terms and Conditions Fund Arquitos Capital Partners Management Company
Arquitos Capital Management, LLC Eligible Investors Accredited Investors Minimum Investment $100,000 Subscriptions Monthly Redemptions Quarterly Lock-up None Management Fee 1% Performance Fee 20% after a 4% hurdle rate Law Firm Alston + Bird Administrator Core Fund Solutions Auditor ACSB Prime Broker Interactive Brokers

15 Arquitos Capital Partners
4910 Sunset Lane Annandale, VA 22003 Phone: (571) Fax: (571)


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