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anuary 10, 2014

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$5&13$%/*/6 73 01%/ ,13 :1++1. 3$)3 1,% /$18+0 )+.)5/ -1 )-)*,/3 3$% &'%()*+*,- 3'%,06 =, 3$% ;1,3')'5<
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7 8112 9:;2<:#=->
2013 was a sLellar year for Lhe sLock markeL. Lvery ma[or lndex sans Lhe nASuAC closed aL record
prlces, whlle Lhe nASuAC ended a specLacular year wlLhln sLrlklng dlsLance of Lhe bubble hlghs.
Meanwhlle, bonds and commodlLles, parLlcularly gold, sLruggled Lremendously. Arguably we have seen
Lhe collapse of Lhe fear Lrade" ln whlch flnanclal doomsLers were posLurlng Lhelr porLfollos for Lhe
posslblllLy of a second CreaL uepresslon. ln our 2013 ouLlook, our case for a sLrong sLock markeL was
based ln our bellef LhaL Lurope was lmprovlng conslderably, households were rapldly repalrlng Lhelr
balance sheeLs, real esLaLe was resurgenL, energy was geLLlng more abundanL and cheaper, and Lhe
Lechnology secLor was ln poslLlon for a rally.
ln Lhe end, our maln falllng was noL poundlng Lhe
rheLorlcal Lable more emphaLlcally on Lhe seLup for an eplc, raLher Lhan merely sLrong, sLock markeL
Whlle we dld noL see Lhe economy's LradlLlonal meLrlcs of success reach normallzed" levels ln 2013, lL
has been clearly poslLloned for Lhe long awalLed, buL eluslve escape-speed breakouL from Lhe CreaL
8ecesslon. ln many respecLs, Lhe sLock markeL has now surpassed Lhe real economy ln lLs esLlmaLlon of
lmprovemenL. 4?+,* .@:. #,:0?.AB ?. ?- C"?., D1--?E0,B :0/1-. D#1E:E0, .@:. %&'( <?00 E, : E,..,# A,:#
F1# .@, ,;1*1/A .@:* ?. <?00 E, F1# .@, -.1;2 /:#2,.G
Cne reallLy we all musL accepL ls how greaL years ln Lhe sLock markeL Lend Lo borrow from fuLure
reLurns, raLher Lhan enhance Lhem. Peadlng lnLo 2013, one could have reasonably expecLed Lo earn an
annuallzed reLurn of 6.67 - on par wlLh Lhe markeL's average slnce 1923 - over Lhe course of Lhe nexL


1he S& 300 sLarLed 2013 aL 1426. lacLorlng ln a 6.67 annuallzed reLurn Lhe lndex would be
aL 2720 aL Lhe end of Len years. Assumlng LhaL desplLe lasL years' near 30 reLurn, Lhls 2720 Len year
S& lndex LargeL does noL change, Lhe expecLed reLurn over Lhe nexL nlne years would be 4.39
annually, lnsLead of 6.67.
ln LradlLlonal flnanclal parlance, H1.:0 I,."#* F1# :* ?*+,-.1# J 70D@: K 9,.:. 8eLa ls Lhe reLurn glven by
Lhe markeL, whlle Alpha ls Lhe excess reLurn provlded by acLlve managemenL (see our CcLober
CommenLary on Cur 'AcLlvely asslve' lnvesLmenL SLraLegy)
. When we suggesL LhaL Lhe markeL's
expecLed annuallzed reLurn over Lhe nexL Len years should drop, we are alludlng Lo a weaker Lallwlnd
from Lhe sLock markeL lLself-8eLa- as a source of reLurns over Lhe nexL nlne years. We by no means
vlew 2720 as a flrm LargeL for Lhe markeL down Lhe llne, and we would noL be surprlsed Lo see Lhe
markeL ouLperform or underperform Lhe 6.67 long-Lerm average. 8everslon Lo mean (or reverslon Lo
Lrend) ls an lmporLanL force ln flnanclal markeLs, Lhough lL ls by no means Lhe only force, nor ls lL Lhe
mosL powerful. L@,* <, -"55,-. .@:. A1"# ?*+,-./,*.- /?5@. *1. E,*,F?. F#1/ .@, -:/, .:?0<?*=
.@:. @:- @,0D,= .@?- D:-. A,:#B .@,#, :#, .<1 2,A .:2,:<:A-> 'M 5#,:. A,:#- :#, .@, ,N;,D.?1*B *1. .@,
*1#/O :*= %M /:#2,.- :#, ,C":00A :- 0?2,0A .1 @:+, : 5#,:. A,:# :- .@,A :#, : E:= 1*,G
We led Lhls commenLary wlLh a quoLe from Ceorge Soros LhaL lends lLself nlcely Lo where we Lhlnk Lhe
markeLs are aL Lhls polnL ln Llme. rlor Lo 2013, boLh Lhe economy and sLock markeL had been
lnconslsLenL, wlLh spuLLerlng" servlng as Lhe mosL descrlpLlve paLh. Whlle lasL year was a greaL Llme Lo
be looklng for an lnflecLlon polnL and an escape from Lhe spuLLers, we Lhlnk 2014 wlll be a year for rldlng
Lhe Lrend, Lhough Lo whaL exLenL lL wlll flow we can never be sure. 1he preference for conLrarlanlsm ln
calllng Lops and boLLoms ls parL of human naLure, however, Lhe vasL ma[orlLy of Lhe Llme, lL ls far more
beneflclal Lo follow, Lhan Lo flghL a Lrend. As of Loday, Lhe economy ls movlng fasLer and ln Lhe
conLlnued process of acceleraLlon. As we know from newLon's Second Law of MoLlon, Lhe greaLer Lhe
mass, Lhe greaLer Lhe force needed Lo change lLs dlrecLlon. When an economy Lhe slze of Lhe u.S. ls
acceleraLlng Lo Lhe upslde, lL would Lake an exLremely masslve force Lo flrsL, derall lLs momenLum and
second, change lLs course 180 degrees. Whlle such a force ls noL an lmposslblllLy, lL ls exLremely unllkely
ln Lhe comlng monLhs.


LeL's examlne some of Lhe more consequenLlal happenlngs ln 2013 LhaL wlll seL Lhe sLage for 2014:
H@, P#,=?. Q*+?#1*/,*.>
We have long emphaslzed LhaL Lhe CreaL 8ecesslon ls an ouLgrowLh of Lhe de-leverlng (l.e. debL
repaymenL) of Lhe u.S. economy ln aggregaLe. 1hls becomes clear when we look aL LoLal credlL as a
percenL of Cu.

8ay uallo of 8rldgewaLer AssoclaLes has called Lhls a beauLlful de-leveraglng" for how smooLhly Lhe u.S.
has comblned ausLerlLy (a reducLlon ln a secLor's annual deflclL as a share of Cu), debL resLrucLurlng
(Lhe reflnanclng of exlsLlng debLs Lo longer maLurlLles and lower lnLeresL raLes) and Lhe prlnLlng of
money (aggresslve moneLary pollcy).

WlLhln Lhls broader conLexL, lL's lmporLanL Lo look aL each of Lhe lndlvldual prlvaLe secLor componenLs.
Pousehold balance sheeLs sLopped decllnlng and ln aggregaLe, essenLlally flaL-llned. When household
credlL nelLher grows nor conLracLs, buL Cu does ln facL grow, Lhen household credlL as a share of Cu


decllnes. 1hls ls subLle and lmporLanL when looked aL ln Lerms of Lhe gross levels, buL clear as seen
relaLlve Lo Cu. More vlolenL conLracLlons ln household credlL would come alongslde equally more
vlolenL flssures ln our flnanclal markeL. As such, Lhe subLleLy lLself ls a core componenL of Lhe beauLlful"
naLure of our deleveraglng.
1he followlng charL shows each of Lhe key prlvaLe secLor componenLs as a share of Cu:

lmporLanLly, Lhe non-flnanclal corporaLe secLor (Lhe green llne) ls movlng upward/leverlng up for Lhe
flrsL Llme ln years, and lL ls Lhe only secLor Lo do so. We have argued for some Llme Lhls ls Lhe prlvaLe
secLor arena wlLh Lhe greaLesL capaclLy for expanslon ln borrowlng. Companles have been well
caplLallzed for a whlle now, bulldlng up masslve sLockplles of cash due Lo a lack of good lnvesLmenL
opporLunlLles. lor now, much of Lhls new debL has been used for repurchases of Lhe exlsLlng equlLy
sLock. Whlle Lhls ls less beneflclal Lhan ouLrlghL new lnvesLmenL, we Lhlnk Lhe re-leverlng of Lhe
corporaLe secLor has afforded capaclLy for boLh households and our governmenL (whlch ls noL lncluded
ln Lhls prlvaLe secLor snapshoL) Lo accompllsh Lhelr own deleveraglng wlLhouL leadlng Lo more pressure
on Lhe broader economy. ln our SepLember 2012 CommenLary, we hlghllghLed Lwo companles we

lnvesLed ln who Look on greaLer leverage ln order Lo smarLly allocaLe Lhe proceeds.
Cne company
opLed for share repurchases, whlle Lhe oLher made an aggresslve acqulslLlon. 8oLh lncreased Lhelr
leverage and boLh saw Lhelr sLocks appreclaLe aL a fasLer cllp Lhan Lhe markeL ln 2013.
1he normallzaLlon of credlL spreads over Lhe pasL year has been one facLor Lo help Lhe corporaLe secLor
Lake on new borrowlngs. lL also provldes a nlce snapshoL for [usL how far Lhe economy has moved
Lowards normallzaLlon slnce Lhe dawn of Lhe CreaL 8ecesslon.

R?-;:0 S,:=<?*=- T1 U1#,>
uurlng Lhe depLhs of Lhe CreaL 8ecesslon, whlle Lhe headllne presses focused on Lhe u.S. lederal
CovernmenL's lncreaslng deflclL, Lhere was a rapld conLracLlon ln expendlLures on Lhe sLaLe and local
level. Whlle sLaLe and local governmenLs also ran deflclLs durlng Lhls perlod, Lhey were due excluslvely


Lo shorLfalls ln revenue lnsLead of growLh ln expendlLures. SLaLe and local governmenLs were parLlcularly
aL rlsk wlLh Lhe rapldly decllnlng real esLaLe markeL and employmenL slLuaLlon.
As a resulL of consLlLuLlonal resLrlcLlons mandaLlng balanced budgeLs ln Lhese locallLles, sLaLe and local
governmenLs drasLlcally cuL spendlng ln order Lo maLch Lhelr shrlnklng revenue base. 1hls placed an
lmmense burden on Lhe economy. WlLh Lhe real esLaLe markeL's recovery and Lhe employmenL
slLuaLlon flnally sLarLlng Lo lmprove, sLaLe and local governmenL budgeLs have qulckly escaped deflclL
LerrlLory. ln aggregaLe, Lhere ls now a surplus. WlLh a growlng economy, Lhere ls ample room for
expendlLures on Lhls level of governmenL Lo rlse aL leasL as qulckly as Cu grows. WhaL had been a
headwlnd for Lhe pasL flve years now should Lurn lnLo a Lrue Lallwlnd:

LasL year was also one of Lhe blggesL conLracLlons ln Lhe lederal deflclL as a share of Cu ln recenL
hlsLory. Some esLlmaLe Lhe flscal drag"-Lhe headwlnd provlded by a conLracLlon ln Lhe governmenL's
deflclL as a share of Cu-was as hlgh as 2.4 of Cu.
1hls alone ls more Lhan our averaged annuallzed
growLh slnce escaplng Lhe CreaL 8ecesslon. Conslderlng 2013 was a poslLlve year for Cu growLh
overall, lL goes Lo show [usL how sLrongly Lhe prlvaLe economy ls performlng rlghL now.


Q/D01A/,*. ?- .@, V,A :*= ?. ?- )/D#1+?*5>
lmporLanLly, people who have Lhelr [obs have been ln a much more sLable poslLlon Lhan any Llme ln Lhe
recenL pasL. 1hls serves several crlLlcal roles lncludlng offerlng a much-needed boosL Lo consumer
confldence ln order Lo enable spendlng, and affordlng workers Lhe opporLunlLy Lo seek ouL more
aLLracLlve opLlons wlLhouL as much worry. Workplace moblllLy ls an lmporLanL facLor ln helplng workers
seek ouL hlgher pay, career advancemenL and enLrepreneurlallsm.

As of Loday, we see slgns of an lmprovlng wage envlronmenL for Lhe flrsL Llme slnce 2006. Pourly wages
have flnally sLarLed movlng upward from Lrough levels and Lhls ls a Lrend whlch we look Lo conLlnue and
acceleraLe Lhrough 2014. Should LhaL be Lhe case, lL would seL Lhe sLage for a much healLhler populace
and economy. We wlll be waLchlng Lhls charL closely Lo conflrm our susplclons LhaL such a Lrend ls afooL:

L@:. =1 <, 1<*W
1hls year we lnLroduced a quarLerly revlew LhaL Lakes a look aL our Lhree besL and worsL performers
durlng Lhe covered Llme perlod. Slnce Lhls ls our year-end reporL, Lhls edlLlon of WhaL do we own?" wlll
focus on our Lhree besL and worsL performers for Lhe year, wlLh a LwlsL: we wlll focus only on Lhose
flrms LhaL we sLlll own Loday and noL poslLlons LhaL have been exlLed durlng Lhe year. WlLh companles
purchased ln Lhe calendar year, we wlll focus only on performance from Lhe daLe aL whlch we
commenced our poslLlon. Cur prlmary goal ln lnLroduclng Lhls secLlon has been Lo help share wlLh you
Lhe source of our lnLeresL ln our porLfollo companles-boLh Lhe good ones and Lhe bad-and noL as an
expllclL means Lo hlghllghL performance. Conslderlng our low Lurnover, wrlLlng abouL new poslLlons
would ofLen leave us wlLhouL any companles Lo commenL on. As a resulL, leaders and laggards provlde a
naLural sLarLlng polnL for Lhls conversaLlon abouL whaL we own.
1hls was a very speclal year, for none of our Lhree ;1#, ,C"?.A D1-?.?1*- ln 1he Laggards" acLually wenL
down for Lhe year and/or from Lhe polnL of our purchase (we do own bonds ln some accounLs and Lhese
dld experlence losses durlng Lhe year, Lhough Lhey were modesL ln each poslLlon and lmmaLerlal on Lhe
porLfollo level). 8aLher Lhan an accompllshmenL, Lhls ls purely a sLroke of luck-a sLroke of luck whlch
we would welcome Llme and agaln.
!"# %#&'#()*
QN1# 6D7 X9)H> QY!M KZZG([\
Lxor ls an lLallan-based holdlng company, servlng as Lhe lnvesLmenL vehlcle for Lhe Agnelll lamlly-Lhe
foundlng famlly of llaL. llaL lLself was an excepLlonal drlver of reLurns aL Lhe parenL company, wlLh lLs
own lmpresslve 66.33 reLurn on Lhe year, Lhough lL was hardly Lhe only caLalysL for our shares of Lxor.
Cur poslLlon commenced as a sLake ln Lhe referred shares, however, ln Lhe flrsL quarLer, Lxor
underLook an lnlLlaLlve Lo sLreamllne Lhe caplLal sLrucLure and merge Lhe preferred sLock lnLo Lhe
Slnce Lhe preferred were Lradlng aL a dlscounL Lo Lhe common, Lhls sparked conslderable
upslde for our sLake. lurLher aldlng shares were Lhe merger of llaL lndusLrlal (formerly parL of llaL
lLself) lnLo CnP and Lhe successful sale of Lxor's sLake ln Lhe Swlss-based SCS.

We were flrsL aLLracLed
Lo Lxor because of our lnLeresL ln llaL, Lxor's conslderable dlscounL Lo neL AsseL value, and lLs sharp


managemenL Leam behlnd a well-rounded porLfollo. All facLors conLlnue Lo remaln aLLracLlve lnLo Lhe
new ?ear, desplLe Lhe sLrong run-up ln shares.
P#,,B )*;G XT76]7^> PIQQM K ZZG['\
Shares of Cree were a flrsL quarLer Leader" and Lhlrd quarLer Laggard" ln our porLfollos, Lhough Lhe
year lLself was Lruly a breakouL. As of 2014, consumers can no longer purchase 40- and 60-waLL
lncandescenL llghL bulbs.
noLlce LhaL Lhls ban dld noL enLer effecL unLll 2014, yeL Cree had a banner
year ln 2013. Cbvlously Lhe look-ahead Lo 2014 helped shape lnvesLor expecLaLlons abouL Lhe sLock, buL
mosL lmporLanLly, Lhe fundamenLals aL Cree Look a huge sLep forward ahead of schedule. Cree's
accompllshmenLs are greaLesL on Lwo fronLs: Lhey have by far Lhe hlghesL quallLy of llghL-bulb and Lhey
are able Lo offer Lhls quallLy aL an exLremely compeLlLlve prlce, sans subsldy.
WlLh Lhe lnLroducLlon of
an Ldlson-sLyled llghL bulb aL Pome uepoL, Cree was able Lo quell concerns LhaL Lhe lncandescenL llghL
bulb ban would resulL ln a marked decllne ln Lhe quallLy of lndoor llghLlng around u.S. households and
lnnovaLlon dellvered qulcker Lhan any expecLed ln Lhls case, and Lo LhaL end, Cree's sLock
conslderably ouLperformed our expecLaLlons. Cree enLers 2014 ln greaL flnanclal shape, Lhough aL a
modesLly expenslve valuaLlon. uesplLe LhaL, we Lhlnk Lhe growLh Lra[ecLory for Lhe company remalns
exLremely favorable.
H@, T,< _1#2 H?/,- P1/D:*A XT_6Q> T_HM KZ&G&&\
We commenced our poslLlon ln Lhe n? 1lmes on !anuary 31, 2013. We vlewed Lhe 1lmes as a sum of Lhe
parLs slLuaLlon lnvolvlng Lhree parLs: 1) a valuable ManhaLLan skyscraper, 2) a run-off prlnL newspaper
buslness, and, 3) a venLure caplLal-Lype lnLerneL sLarLup. When Lhe 1lmes was ln dlsLress durlng Lhe
CreaL 8ecesslon, Lhey sold an lnLeresL ln Lhe n? 1lmes bulldlng Lhrough a flnance lease. 1hls afforded Lhe
opporLunlLy for Lhe company Lo repurchase Lhls valuable properLy flfLeen years from Lhe daLe of Lhe
As new ?ork real esLaLe breaks ouL slgnlflcanLly from Lhe Lrough days of Lhe CreaL 8ecesslon, Lhe
value of Lhls repurchase opLlon ls levered Lo n? real esLaLe prlces and lncreaslng accordlngly. 1he markeL
conLlnues Lo under-appreclaLe Lhls source of hldden value. Moreover, wlLh a spaLe of aggresslvely
valued medla-based lCs, premlsed on Lhe poLenLlal for growLh, we felL Lhe n? 1lmes onllne plaLform-
lLself on Lhe recelvlng end of mllllons of global eyeballs-had Lhe undersLaLed capaclLy Lo enhance


moneLlzaLlon. 1he 1lmes conLlnues Lo lnnovaLe ln dlglLal dlsplay, wlLh feaLures llke +,-./&00, and Lhe
paywall conLlnues Lo exceed all expecLaLlons, whlle seLLlng Lhe bar for lLs peers.

!"# %&11&(')*
7/,#?;: U1+?0 XT_6Q> 7UYM K`G%\
We purchased Amerlca Movll on !uly 1, 2013 and slnce Lhen Lhe sLock has exhlblLed llLLle movemenL.
We spenL much of Lhe early summer looklng for bargalns ln Lmerglng MarkeLs as fears escalaLed over
whaL Lhe lederal 8eserve 8ank's Laperlng" would mean for LMs and wheLher Chlna would be able Lo
execuLe a sofL landlng." Amerlca Movll flL several quallLles LhaL we flnd exLremely aLLracLlve: lL has one
of Lhe besL caplLal allocaLors (Carlos Sllm) as an owner-operaLor buylng more shares wlLh hls own cash,
Lhe company ls repurchaslng shares aL a furlous pace (over 7 of shares ouLsLandlng ln 2013), and lL
operaLes ln a recurrlng revenue buslness LhaL ls one of Lhe lasL expenses any lndlvldual would cuL even
ln Lhe worsL economlc Llmes.
SenLlmenL ls exLremely low on Lhls sLock rlghL now due Lo Lhe
uncerLalnLy of Lhe Mexlcan Lelecom regulaLory reglme and Lhe aforemenLloned concerns relaLed Lo LMs.
We vlew Lhls confluence of rlsk facLors Lo be far more superflclal Lhan fundamenLal Lo Lhe buslness, and
Lhlnk Amerlca Movll ls ln a greaL poslLlon Lo be a sLeady compounder over Llme. 2014 should be beLLer
Lhan 2013 here.
H,+: a@:#/:;,".?;:0 )*="-.#?,- XT_6Q> HQb7M K`G`(\
1eva was a member of Lhe Laggards" secLlon ln Lhe Lhlrd quarLer, and obvlously dlsappolnLed us
conslderably on Lhe year. 1he pharmaceuLlcal and bloLechnology secLors en[oyed a blockbusLer 2013,
whlle 1eva langulshed ln dark. Mr. MarkeL conLlnues Lo look wlLh scorn upon Lhe lmpendlng paLenL
explraLlon of Copaxone and ln so dolng, conLlnues Lo lgnore Lhe valuable generlcs buslness. ln our Lhlrd
CuarLer noLe, we heaped pralse upon ur. !eremy Levln as CLC, Lhough ln a surprlslng move, 1eva and
ur. Levln declded Lo parL ways.
ln llghL of ur. Levln's deparLure, we spenL conslderable Llme revlslLlng
our analysls on Lhe company and remaln convlnced Lhe value ls exLremely aLLracLlve. An lsraell acLlvlsL
lnvesLor, 8enny Landa, has sLepped up Lo provlde an lmporLanL advocaLe for shareholders and looks Lo
close Lo securlng a well-regarded Lurnaround speclallsL" ln Lrez vlgodman as Lhe new CLC.



would be exacLly Lhe Lype of caLalysL Lhls sLock needs ln order Lo geL Wall SLreeL's shorL-Lerm aLLenLlon
span focused on Lhe fuLure raLher Lhan Lhe recenL pasL and Lhe nexL flfLeen mlnuLes.
P?-;1 6A-.,/- XT_6Q> P6P!M K'cG[%\
Clsco had a dlsappolnLlng 2013 on all levels. 1he sLock had been performlng falrly well unLll a huge
warnlng on revenues ln Lhe november earnlngs release-beLween 8 and 10 sequenLlally.
uesplLe Lhls
omlnous warnlng, Clsco sLock remalns very cheap. Powever, as Llme marches on, our confldence has
sLarLed Lo waver ln !ohn Chambers' leadershlp as Lhe company remalns overcaplLallzed, conLlnues Lo
repurchase shares, and yeL lLs share counL falls Lo maLerlally shrlnk. 1here ls slmply no excuse for Lhe
company's lacklusLer efforL Lo follow l8M's LemplaLe of smarL caplLal allocaLlon ln Lechnology. lrom our
seaL, lL seems as Lhough Chambers ls more wllllng Lo use hls excess cash poslLlon Lo LrumpeL pollLlcal
Lalklng polnLs (abouL hls deslre for a Lax hollday on repaLrlaLlon of forelgn earnlngs) Lhan he does for
shareholder value. 1he reallLy ls LhaL Lhe company would be a conslderably more valuable and respecLed
by Lhe sLock markeL had Chambers slmply pald Laxes Lo repaLrlaLe all of lLs cash and repurchased shares
ln a Lender Lhan engaglng ln publlc advocacy. 1haL belng sald, we conLlnue Lo vlew Clsco as a greaL value
wlLh a subsLanLlal margln of safeLy, Lhough should we noL see furLher progress on caplLal allocaLlon we
mlghL slmply leave Lhls lnvesLmenL for greener pasLures ln Lhe comlng monLhs.
Cnly Llme wlll Lell whaL Lhls llsL wlll look llke nexL year aL Lhls Llme.


1hank you for your LrusL and confldence, and for selecLlng us Lo be your advlsor of cholce. We wlsh you
and your famllles a healLhy, happy, and prosperous 2014. lease call us dlrecLly Lo dlscuss Lhls
commenLary ln more deLall - we are always happy Lo address any speclflc quesLlons you may have. ?ou
can reach !ason or LllloL dlrecLly aL 316-663-7800. AlLernaLlvely, we've lncluded our dlrecL dlal numbers
wlLh our names, below.
Warm personal regards,

Jason Gilbert, CPA/PFS, CFF
Managing Director
O: (516) 665-7800
D: (516) 665-1940
M: (917) 536-3066
Elliot Turner, Esq.
Managing Director
O: (516) 665-7800
D: (516) 665-1942
M: (516) 729-5174

Past performance is not necessarily indicative of future results. The views expressed above are those of RGA Investment
Advisors LLC (RGA). These views are subject to change at any time based on market and other conditions, and RGA disclaims any
responsibility to update such views. Past performance is no guarantee of future results. No forecasts can be guaranteed. These
views may not be relied upon as investment advice. The investment process may change over time. The characteristics set forth
above are intended as a general illustration of some of the criteria the team considers in selecting securities for the portfolio.
Not all investments meet such criteria. In the event that a recommendation for the purchase or sale of any security is presented
herein, RGA shall furnish to any person upon request a tabular presentation of: (i) The total number of shares or other units of
the security held by RGA or its investment adviser representatives for its own account or for the account of officers, directors,
trustees, partners or affiliates of RGA or for discretionary accounts of RGA or its investment adviser representatives, as
maintained for clients. (ii) The price or price range at which the securities listed in item (i) were purchased. (iii) The date or
range of dates during which the securities listed in response to item (i) were purchased.

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