Wealth Management Overview Jfg

VISION. EXPERIENCE. DEDICATION to our CLIENTSVISION. EXPERIENCE. DEDICATION to our CLIENTS

Wealth Strategists for Successful Families

VISION. EXPERIENCE. DEDICATION to our CLIENTS

Our Company

Emerald Asset Advisors, LLC is a wealth management firm

based in South Florida that has served as a trusted financial

advisor to high net worth individuals, affluent families and

institutional investors for over a decade.

The firm has achieved a reputation for bypassing conventional

wisdom and designing insightful portfolio strategies that offer a

refreshing approach to protection, growth and diversification of

assets. We have gained national recognition for our flexible and

adaptive approach to portfolio management.

We are also the creators and managers of the Emerald

Allocation Strategies (EAS), which we make available to

other investment advisors as a sub-advisor for their clients.

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Wealth Management Services

• Financial Consulting– Asset Allocation Modeling

– Coordination of Retirement, Estate and Tax Planning (US and Non-US Clients)

• Investment Management– Diversified Investment Portfolios

– Equity Investing

– Fixed Income Investing

– Alternative Investment Strategies / Hybrid Models

– Consolidated Performance Reporting Including Investments Held Elsewhere

– Single Stock / Concentrated Position Strategies

• Advisory Services– Personalized and Objective

– Open Architecture Investment Platform

– Sophisticated Account Analysis

– Comprehensive, Consolidated Performance Reporting

– Fee Based

• Family Office Services *– Coordination of All Financial Affairs

– Highly Personalized Service Provided by Senior Executive and Multi-Disciplined Team

– Management of Multiple Entities

– Coordination with CPA, Attorney & Insurance Provider

– Document Review

– Domestic Administration Including Payroll, Hiring, Background Checks

– Family Meetings & Education

– 3rd Party Investment Manager Review

* Family Office Service offered through Stoloff Investment Advisory

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Wealth Planning Process

• Goal Planning & Assessment• Financial Needs Analysis• Risk Tolerance Analysis

1. Initial Planning Stage

• Asset Allocation Strategy and Personalized Portfolio Design

• Coordination with Attorney, CPA and Insurance Provider

2. Implementation Stage• Ongoing Portfolio

Management, Reporting and Review

• Aggregated Asset Reporting• Responsive Client Service• Ongoing Education,

Communication and Review

3. Monitoring Stage

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Our Philosophy

The graph above shows the significance of downside protection relative to the S&P 500. The goal of Emerald Asset Advisors is to Protect and Grow capital by capturing no more than 33% of the downside moves and at least 66% of the upside moves of the S&P 500 over time.

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The information and statistical data quoted herein were gathered from sources that we believe to be reliable; however, it is not warranted to be accurate. As in any

investment situation, past performance is no guarantee of future results.

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185

285

385

485

585

685

Jan-90 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09

S&P 500Full Capture

Capture: 66% upside, 33% downside

Capture: 70% upside, 30% downside

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130

180

230

Jan-90 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95

Full CaptureCapture: 66% upside, 33% downsideCapture: 70% upside, 30% downside

S&P 500


Key Features of our Investment Philosophy

1. We use a diversified, multi-manager approach.We use multiple investment styles, run by several different money management firms nationwide.

2. We aim for low market correlation.That is, we try to generate long-term returns that are largely independent of what happens in the stock and bond markets.

3. We employ alternative strategies to classic stock or bond portfolios.We use styles that tend to have either a hedging mechanism in place and/or have not historically moved in tandem with the broad stock or bond indexes.

"We offer a spectrum of strategies that are flexible and forward-looking, not simply based on what happened in the past. A rearview mirror is helpful to have in a car, but you should not base your entire approach to driving on it. Looking ahead is the more important factor in driving; so too is it in portfolio management. When we drive your portfolio strategy, we use this same philosophy. As the saying goes, 'history doesn't repeat but it rhymes.' To us, that means be mindful of past lessons, but don't get addicted to them.“

Rob Isbitts, Chief Investment Officer

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Why We’re Different – old idea, different approach

Asset allocation is the foundation of any investor's long-term strategy. However, in our opinion, there are limits to traditional asset allocation approaches. Investors and investment advisors have seen that the “easy money” days of the 1980s and 1990s did not last forever. They also started to see the gaps in traditional asset allocation approaches. We aim to resolve that.

Emerald Asset Advisors' mission since inception has been to provide a practical alternative to the traditional asset allocation solutions that Wall Street typically offered to investors. Specifically, we wanted to construct portfolios that produce the key benefits often found in hedge fund investing…

• An absolute return objective

• Low correlation to the global stock and bond markets

• Low volatility relative to the stock market

• Competitive upside capture with limited downside capture

• Flexible investment styles

…but without the issues inherent in the hedge fund Limited Partnership (LP) structure:

• Lock-ups and limited liquidity

• Limited regulation and lack of transparency

• Potential for excess leverage

• High investment minimums and high management fees

• Tax inefficiency

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Emerald Allocation Strategies - Overview

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CONSERVATIVE: THIS STRATEGY exhibits low volatility and low correlation to the broad markets. Our investment approach in this strategy is similar to the multi-manager approach used by absolute return hedge funds-of-funds. The difference is that we use mutual funds and other traditional, highly-liquid investment vehicles that employ hedge fund-like strategies. By doing this, we hope to deliver to the investor a competitive risk-reward profile as compared to absolute return hedge funds as well as traditional fixed income strategies.

MODERATE: This strategy pursues long-term growth of capital using a very limited number of holdings (typically 30 or less). The managers chosen are usually focused on finding companies they can own a piece of for a long time. They tend to favor conducting thorough company research over analysis of short-term market factors. While each manager's relatively small number of holdings may produce greater short-term volatility than a broad-based strategy, we attempt to lower portfolio volatility by diversifying amongst a group of managers. We may also buy short-index securities as a hedge in perceived periods of high market risk.

AGGRESSIVE: This strategy uses securities that seek to capitalize on long-term trends identified by Emerald's research team. We believe some of these themes will take place over many years, even decades. This strategy often involves investing in areas of the markets that exhibit high short-term volatility. While the themes are expected to play out over a long period, we do recognize that it may be helpful to increase or decrease our position in a particular theme over time. We may also buy short-index securities as a hedge in perceived periods of high market risk.


Investment PhilosophyThere is a bull in every market – our job is to find it

EMERALD ASSET ADVISORS (Emerald) is an asset allocation strategist that employs a flexible and adaptive investment approachto portfolio management.

Emerald’s BULL MARKET FORECASTER is a compilation of what we believe to be our investment committee’s best macrothinking. The investment themes below and their ranking reflect our view of the relative risk-reward potential on world-wideinvestment themes over a 3 year period.

The selection of these themes is the genesis of our investment analysis process. The next slide shows how these themes areapplied across our three distinct investment strategies, the EMERALD ALLOCATION STRATEGIES.

EXCELLENT GOOD FAIR POOR

The above illustration is not a complete analysis and should not be considered investment advice. The positioning of the investment themes and styles highlighted above reflect the Advisor’s outlook as of 9/30/09 andmay change at any time. Projections are not guaranteed and may vary significantly. Any statements nonfactual in nature constitute current opinions, which are subject to change.

Healthcare

Stocks

Large Cap

Relative Value

“Vice” Equity

Oil

Nanotech

Stocks

Energy Stocks

Non-US Bonds

Large Cap

Growth

Agricultural

Commodities

Europe Equity

Japan Equity

S&P 500 Index

Emerging

Market Bonds

US T-bills (90-

day)

Dedicated

Short Equity

High-Quality

Bond Funds

Balanced

Funds

US DollarGlobal

Infrastructure

Equity L/S

Convertible

SecuritiesConvertible

Arbitrage

Environmental

Equities

Contrarian

Value Equity

High Yield

BondsHedged

Equity

Frontier

Markets

US REITs

Equity-Income

(Dividends)

Equity Market-

Neutral

Financial

Stocks

Non-Japan

Asia Equity

Bank Loan

Funds

Merger

Arbitrage

“Busted”

Convertibles

China

India

Dedicated

Short Treasury

Brazil Equity

ROI Growth

Equity

Small-Midcap

Stocks

Global REITs

Gold

Homebuilding

Stocks

Emerging

Pharma Stocks

Tactical Asset

AllocationUtility Stocks


Reward

Risk

- Frontier Markets

- Global Infrastructure

- Homebuilding Stocks

- Oil

- Energy Stocks

- Healthcare Stocks

- Japan Equity

- Non-US Bonds

- China- India- Gold- Dedicated Short

Treasury- Emerging Pharma

Stocks

- Dedicated Short Equity

- US Dollar

AGGRESSIVE

- Contrarian Value Equity

- Large Cap Growth

- S&P 500 Index

- Europe Equity

- ROI Growth Equity

- Small-Midcap Stocks

- Equity-Income (Dividends)


MODERATE

- Hedged Equity

- Convertible Securities

- High Yield Bonds

- Convertible Arbitrage

- Equity L/S

- Tactical Asset Allocation

- US REITS- “Busted” Convertibles

- Merger Arbitrage

- Bank Loan Funds

- Equity Market-Neutral


CONSERVATIVE

Risk/Reward

Assessment:EXCELLENT

GOOD

FAIR

POOR

Application of Themes

Moderate: 5-year horizon

• Concentrated equity portfolios

• Long equity-biased

• Periodic hedge overlay

CONSERVATIVE STRATEGY OVERVIEW

Conservative: 3-year horizon

• Absolute return focus

• Low net equity exposure

• Hedged strategiesAGGRESSIVE STRATEGY OVERVIEW

Aggressive: 10-year horizon

• Global portfolio

• Primarily net long

• Opportunistic short positions

MODERATE STRATEGY OVERVIEW

The above illustration is not a complete analysis and should not be considered investment advice. The positioning of the investment themes and styles highlighted above reflect the Advisor’s outlook as of 9/30/09 andmay change at any time. Projections are not guaranteed and may vary significantly. Any statements nonfactual in nature constitute current opinions, which are subject to change.


Investment Management Process

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Portfolio Construction Process

Theme

Investments

Weightings

Manager Choice

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Top-down Macroeconomic Assessment

Fundamental analysis of critical factors that drive markets and prices

Bottom-up Analysis

Identify the investment vehicles that best express the themes

Quantitative Analysis

Analyze all key metrics (trading turnover; expenses; risk stats and tax implications)

Technical Analysis

Determine entry / exit points through charting analysis


Ongoing Manager Due Diligence Process

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Assess market

factors and

their impact

on manager’s

strategy

Analyze

valuation ratios

and economic

indicators

Evaluate bond

rates and yield

curve

Identify

change in

macro

environment

Monitor any

change in

manager

thinking and

style

consistency

Review

written

material &

interview

managers

Continuous

Interactive

Process


Your Investment Team

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Robert A. IsbittsChief Investment Officer

•Co-Founded Emerald in 1998

•20+ years in the investment field

•DLJ, Morgan Stanley, Fiduciary Trust

•CFS Designation, 1997

•MBA, Rutgers University

•BS, SUNY Albany

Allan M. BudelmanManaging Partner

•Joined Emerald in 1999


•JP Morgan, Bankers Trust, Chase Manhattan

•MBA, University of Miami

•BA, University of Maryland

Mathew J. MacEachernPortfolio Manager



•Fidelity Investments, Leerink Swann & Company, Inc.

•Suffolk University

Keith D. StoloffResearch Analyst



•Stoloff Advisory, Raymond James, Citicorp, Great Western Securities

•CIMA, CIMC, CPWA, CMFC, AAMS

•BS, University of South Florida

Michael N. KahnTechnical Analyst

•Joined Emerald 2008


•Barron’s Online Columnist since 2001

•CMT designation, 2008

•MBA, New York University

•BA, Brandeis University

Seasoned professionals with a combined 90 years of experience


National Media Recognition

Cover story: Wealth Manager, March 2008

Cover story: Registered Rep, February 2007

WORTH Magazine: Top Advisors - 2005, 2006, 2007, 2008

http://www.emerald-eas.com/pdf/WealthManager_AlternativelySpeaking-March08.pdf

http://www.emerald-eas.com/pdf/RegisteredRep.pdf


Biography - Jack F. Gonzalez, Director of Business Development

Jack is the Director of Business Development for Emerald Asset Advisors, LLC. As a South Florida native, he began his career in financial services with Amerifirst FSB in 1986. In the span of 22 years, Jack has gathered the knowledge and experience necessary to lead the business development efforts for the firm. In addition to his administrative responsibilities, Jack specializes in the design and implementation of customized wealth strategies for high net worth individuals, families, institutions, foundations and not-for-profit organizations.

Jack earned his Bachelor of Arts degree in Business Administration from Florida International University with a major course of study in International Business and Business Management. He has earned his FINRA Series 24 licensed as a Supervising Principal, 7 licensed as a Registered Representative as well as Series 66 Licensed as an Investment Advisor Representative and is licensed in Florida to sell Life insurance as well as Variable Annuities.

Jack spends most of his spare time supporting his children’s activities and enjoys playing golf and working in the community. He has been involved with many civic and community service organizations including the Boys Scouts of America and the International Task Force of The Beacon Council. He currently serves as Secretary of Miami Symphony Orchestra Board of Directors, President Elect of Florida International University Alumni Association Board of Directors, and a member of Florida International University’s “President’s Council.”

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VISION. EXPERIENCE. DEDICATION to our CLIENTSVISION. EXPERIENCE. DEDICATION to our CLIENTS

“The Noah Rule: Predicting rain doesn't count; building arks does.”

-Warren Buffet

2843 Executive Park DriveWeston, Florida 33331

Telephone: 954.385.9624

www.emeraldassetadvisors.com

WEALTH STRATEGISTS forSUCCESSFUL FAMILIES

Wealth Management Overview Jfg

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