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SIDE STREET TEAM

SIDE STREET TEAM. SIDE STREET TEAM Agenda. Strategy Portfolio Performance. SIDE STREET TEAM. STRATEGY. SIDE STREET TEAM Strategy. Identify Companies with: Significant growth potential over the next 12 to 18 months Opportunities to outperform peers

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SIDE STREET TEAM

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  1. SIDESTREET TEAM

  2. SIDE STREET TEAMAgenda • Strategy • Portfolio • Performance

  3. SIDESTREET TEAM STRATEGY

  4. SIDE STREET TEAMStrategy Identify Companies with: • Significant growth potential over the next 12 to 18 months • Opportunities to outperform peers • Management teams with strong track records • Theme or catalyst that should drive out-performance

  5. SIDE STREET TEAM Strategy Bottom-Up Approach • Divide sectors among analysts • Narrow stock possibilities via appropriate screens • Gather ideas on upcoming market growth trends • Conduct individual research on respective sectors • Research industry competitors and leaders • Present companies and team decides if the portfolio profile is met • Allocate capital among the selected companies

  6. SIDE STREET TEAMStrategy How we analyzed the stock: • Reviewed SEC documents • Examined Bull & Bear reports from analysts • Evaluated sales, margins, and earnings drivers • Researched source of growth over 12 to 18 month period • Compared potential stocks to industry peers • Ensured companies were taking action to capitalize on existing growth potential • Analyzed market expectations to determine if current valuations have failed to incorporate the value of growth over the next 12 to 18 months

  7. Increasing market share Technological innovation Developing new markets Consistent performers PPP, HAL, COL, MS, AMTD, STKL, PFE, TXN, BSC, GDI, STR, HIG, CHK DNA, PFE, HIG, BSC, GSK, UEIC, ENER, ATR, BBBB DECK, KSWS, WFMI, ENER, AMTD, STR, PEIX, WAG TAC, WB, WAG, CHD, SIAL, ARJ, HIG SIDE STREET TEAMStrategy THEME COMPANY

  8. SIDE STREET TEAM PORTFOLIO

  9. SIDE STREET TEAMPortfolio: Stock Selection by Sector Consumer Discretionary Approach: Focus on companies with small but rapidly expanding market share KSWS DECK ATR UEIC Deckers Outdoor Corp.

  10. SIDE STREET TEAMPortfolio: Stock Selection by Sector Basic Materials Approach: Focus on specialty chemical producers expanding into their high growth areas ARJ SIAL Arch Chemicals Inc.

  11. SIDE STREET TEAMPortfolio: Stock Selection by Sector Utilities Approach: Diversify portfolio with low beta stocks in a small sector TAC STR Transalta Inc.

  12. SIDE STREET TEAMPortfolio: Stock Selection by Sector Energy Approach: Searched for companies actively pursuing growth opportunities HAL PPP PEIX CHK Chesapeake Energy Corporation

  13. SIDE STREET TEAMPortfolio: Stock Selection by Sector Technology Approach: Searched forcompanies with market changing capabilities TXN BBBB ENER Blackboard, Inc.

  14. SIDE STREET TEAMPortfolio: Stock Selection by Sector Consumer Staples Approach: Sought stocks with consistent earnings, high growth potential, and substantial product differentiation WAG WFMI CHD Whole Foods, Inc.

  15. SIDE STREET TEAMPortfolio: Stock Selection by Sector Telecommunications Approach: Looked for stocks that had growth potential and were not extremely volatile No stocks were chosen: - Overall sector was predicted to not perform well over short- term - No individual stocks held differentiation in their respective industries and valuations were unattractive - Certain industries, such as cable and cell phone services, were too aggressive

  16. SIDE STREET TEAMPortfolio: Stock Selection by Sector Financials Approach: Stable yet attractive growth prospects AMTD MS WB BSC HIG Morgan Stanley

  17. SIDE STREET TEAMPortfolio: Stock Selection by Sector Industrials Approach: Identify well-established companies with a strong market-share and potential for continued growth COL GDI STKL Sunopta Inc.

  18. SIDE STREET TEAMPortfolio: Stock Selection by Sector Health Care Approach: Identify companies with strong growth and earnings potential due to evolving product lines. DNA GSK PFE Genentech Inc.

  19. SIDE STREET TEAMPortfolio: Construction • Stock pickers • Sector weighting neutral • Position size dictated by conviction

  20. SIDE STREET TEAMPortfolio: Weekly Allocations WEEK 1 • Goal: • Invest 30% to 50% of • portfolio • Execution: • Invested in 10 Ideas • Held off on 2 ideas for • more research • Considered • underweighting utilities • and telecom if there • was a continuing • difficulty finding new • ideas

  21. SIDE STREET TEAMPortfolio: Weekly Allocations WEEK 2 • Goal: • Invest 75% of portfolio • into individual • companies • Execution: • Capital was allocated • based on confidence • in stocks • Added 6 new stocks • Added health • care sector • Diversified portfolio

  22. SIDE STREET TEAMPortfolio: Weekly Allocations WEEK 3 • Goal: • Completely invest in • portfolio • Diversify energy, • consumer discretionary, • financials • Execution: • Added 6 new stocks • Added Utility sector

  23. SIDE STREET TEAMPortfolio: Weekly Allocations WEEK 4 • Goal: • Diversify utilities and • technology • Execution: • Added 5 new stocks • Sold Aetna, did • not fit into the Side • Street strategy

  24. SIDE STREET TEAMPortfolio: Weekly Allocations WEEK 5 • Goal: • Lower exposure to • individual firms • Diversify consumer • discretionary • Execution: • Decreased all holdings • to under 6%

  25. SIDE STREET TEAMPortfolio: Weekly Allocations WEEK 6 • Goal: • Limit exposure and • reduce risk in energy • sector • Execution: • Reduced energy • sector’s weight in • portfolio • Added another energy • stock with lower beta

  26. SIDE STREET TEAMPortfolio: At a Glance * Outliers have been removed

  27. SIDE STREET TEAM PERFORMANCE

  28. SIDE STREET TEAMPerformance Total Portfolio Return Compared to S&P 500

  29. SIDE STREET TEAMPerformance

  30. SIDE STREET TEAMSummary • Researched sectors and companies • Strategy to pick stocks that will exceed expectations in next 12-18 months • Gradual investment process • Weekly competition for capital

  31. SIDE STREET Next Steps • Invest in the Side Street Fund today • Learn more about Side Street and research the Fund in the Prospectus

  32. Advisor:Tim Ryan- CFA Value Team Team:Brenna O’Regan- IMD Product Marketing Josh Davis- Corporate Technology Chris Breen- Retirement Anthony Gallardo- 529 College Savings Nina Reyes- Compliance Justin Sapolsky- Fixed Income SIDE STREET TEAM

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