9-30-14 Large Cap Growth

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Leeb Capital Management, Inc.
501 Fifth Avenue Suite 802, New York, N.Y. 10017 • 800.524.LEEB (5332) • www.leebcapital.com
Large Cap Growth Portfolio
9.30.2014
Portfolio Characteristics LCM S&P 500
Forward P/E Ratio 17 17
Projected Growth Rate 13% 11%
PEG 1.4 1.7
Wtd Average Market Cap $106.8 bil $128.5 bil
Top Ten Portfolio Holdings
Wells Fargo 5.6%
Canadian Pacific 4.7%
CVS Health Corporation 4.6%
Wabtec 4.6%
Berkshire Hathaway Class B 4.5%
Schlumberger 4.2%
Deere & Co. 4.2%
VF Corporation 4.0%
Valeant Pharmaceuticals 3.9%
Raytheon 3.9%
3/99 9/01 9/03 9/05 9/07 9/09 9/11 9/13 9/14
$3,000
$2,500
$2,000
$1,500
$1,000
$500
+175.6%
+117.9%
+104.8%
+62.4%
Leeb LCG Composite, Gross
Leeb LCG Composite, Net
S&P 500 - Total Return
Russell 1000 Growth
Total Return
Portfolio of
30-40 stocks
Macroeconomic Outlook
Interest Resource Country
Rates Prices Growth Rates Inflation Demographics
Stock
Selection
Dominance Growth Quality Valuation
Watchlist
Sector Expectations
Consumer Commodity Technology Healthcare
Trends Energy Shortages Proliferation Spending
Portfolio characteristics and holdings are based on a model portfolio
and are supplemental information to the compliant presentation.
Growth of $1000 Since Inception (3/31/99—9/30/14)
Leeb Capital Management
• Has managed money for high net worth individuals
since 1999.
• Has demonstrated “Thought Leadership” in the
identification of critical mega-trends and translation into
investment performance.
• Boasts a reputable Investment Committee with extensive
experience and established methodologies.
• Provides individually-tailored service and regular
communication of our investment outlook.
Investment Philosophy and Approach
• Disciplined security selection based on bottom-up
fundamental research with qualitative and quantitative
techniques.
• Invests in dominant companies in rapidly growing industries
that are undervalued relative to their growth prospects.
Strategy Combines Top Down
with Bottom Up
Macroeconomic analysis focuses fundamental
research efforts and portfolio construction process;
Industry/company earnings and growth estimates
informed by top-down research.
Prudent Risk Management
• 80% of securities have market capitalization of >$3.5 billion
• Limit sector weightings to 30%
• Unsponsored ADRs may not exceed 10% of portfolio
• Portfolio credit quality above S&P 500 average
• 2-4% typical initial position size
• Position limits of 8% per company
Portfolio Managers adhere to strict sell discipline to protect
the Fund. Positions are sold if:
• Company undergoes fundamental business change
• Stock becomes overpriced on relative valuation basis
• Stock can be replaced with better risk/reward opportunity
Fundamental Research
LCM’s fundamental research process seeks to identify companies
with the following characteristics and attractive valuation:
Leeb LCG
Composite, Gross
Leeb LCG
Composite, Net
S&P 500
Index
Russell 1000
Growth
1 3 5 10 Since
year years years years Inception
15.4% 16.2% 11.0% 7.3% 6.8%
13.8% 14.6% 9.3% 5.8% 5.2%
19.7% 23.0% 15.7% 8.7% 4.7%
19.1% 22.4% 16.5% 9.0% 3.2%
Annualized Returns as of 9/30/13
Business
Analysis
Growth
Analysis
Quality
Analysis
Management
Analysis
• Dominant
market position
• Companies
largely immune
to competitive
threats
• Barriers to
entry
• Growth
expectations
for sector
• Growth
expectations
versus peers
• Above average
earnings/sales
growth
• Overall
financial
strength
• Profitability
• Sales growth
by market
segments
• Strategic vision
• Stability
• Reputation
• Experience
• Track record
Leeb Capital Management (LCM) Performance Results: Large Cap Growth Composite April 1, 1999 through September 30, 2014
Russell Russell % of Composite
1000 Composite S&P 500 Growth Number Composite Composite Total LCG % of LCG Assets as Total
Total Return Total Return Growth 3-Yr St 3-Yr St 3-Yr St of Composite Assets Assets with Assets in Assets in % of Firm Firm Assets
Year (Gross) (Net of Fees) S&P 500 Index Dev
14
Dev
14
Dev
14
Accounts Dispersion (US$ mil) Bundled Fee
7
(US$ mil) Composite assets (US$ mil)
1999
12
24.5% 23.2% 15.3% 25.2% - - - 19 - $14.1 - $55.1 25.6% 21.0% $67.0
2000 15.6% 14.0% -9.1% -22.4% - - - 27 4.7% $20.3 - $73.1 27.8% 23.1% $87.8
2001 -8.2% -9.6% -11.9% -20.4% - - - 45 4.3% $28.2 - $74.4 37.9% 29.7% $95.1
2002 -27.3% -28.4% -22.1% -27.9% 17.2% 18.8% 25.6% 25 3.1% $15.7 14% $52.0 30.2% 23.4% $67.1
2003 34.4% 32.6% 28.7% 29.7% 16.5% 18.3% 23.0% 27 4.0% $20.8 17% $65.7 31.7% 24.8% $83.8
2004 12.9% 11.3% 10.9% 6.3% 14.6% 15.1% 15.8% 57 2.0% $56.1 7% $79.0 71.0% 51.4% $109.1
2005 13.5% 11.8% 4.9% 5.3% 9.4% 9.2% 9.7% 81 1.8% $75.3 7% $107.1 70.3% 50.8% $148.2
2006 8.0% 6.4% 15.8% 9.1% 7.8% 6.9% 8.5% 93 1.3% $83.4 6% $96.7 86.2% 56.3% $148.0
2007 23.3% 21.5% 5.5% 11.8% 8.6% 7.8% 8.7% 91 1.7% $82.0 - $99.8 82.2% 52.2% $157.1
2008 -34.1% -35.2% -37.0% -38.4% 15.7% 15.3% 16.6% 77 0.9% $56.3 - $72.7 77.5% 51.0% $110.4
2009 20.8% 19.1% 26.5% 37.2% 18.5% 19.9% 20.0% 81 1.2% $62.8 - $82.0 76.6% 53.6% $117.3
2010 18.2% 16.5% 15.1% 16.7% 20.2% 22.2% 22.4% 72 0.7% $62.1 - $81.3 76.3% 52.0% $119.4
2011 -10.3% -11.7% 2.1% 2.6% 17.7% 19.0% 18.0% 62 0.7% $49.5 - $60.1 82.3% 48.5% $102.1
2012 10.7% 9.1% 16.0% 15.3% 15.9% 15.3% 15.9% 56 0.5% $45.8 - $54.2 84.5% 48.1% $95.2
2013 27.0% 25.2% 32.4% 33.5% 13.7% 13.1% 12.4% 41 0.5% $32.8 - $45.3 72.4% 36.6% $89.7
2014
12
5.6% 4.4% 8.3% 7.8% - - - 36 - $31.2 - $46.0 67.7% 36.3% $85.9
Leeb Capital Management (“LCM”) claims compliance with the Global Investment Performance Standards (GIPS
®
) and has prepared this report in com-
pliance with the GIPS Standards. LCM has been independently verified for the periods 4/1/99 through 9/30/14. Verification assesses whether (1) the firm
has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are
designed to calculate and present performance in compliance with the GIPS standards. The LCG Composite has been examined for the periods 4/1/99 -
9/30/14. The verification and performance examination reports are available upon request.
Notes:
1.) Leeb Capital Management (“LCM”) is a registered investment advisor with the Securities and Exchange Commission. Prior to 2001, the firm was do-
ing business as Money Growth Institute. Leeb Capital Management provides equity money management to retail and institutional investors. LCM’s
Large Cap Growth Composite (“Composite”) represents all fee-paying accounts with assets greater than $250,000 that are managed in accordance
with LCM’s Large Cap Growth (“LCG”) investment strategy. This strategy invests in equities that are managed with a view towards growth, capital
appreciation and preservation of capital. The two major tenets of LCM’s Growth investment strategy include the selection of stocks within sectors
whose projected growth is higher relative to that of the market, and those stocks which are more cheaply valued than the market on a PEG basis.
2.) The Composite was created as of March 31, 1999 which coincides with the inception of this strategy. A complete list and description of LCM’s com-
posites is available upon request. For the periods from April 1, 1999 through September 30, 2007, LCM has been verified by Ashland Partners and
Company LLP. For the periods from October 1, 2007 through September 30. 2014. LCM has been verified by ACA Verification Services, LLC. A copy of
the verification report is available upon request. Additional information regarding the firm’s policies and procedures for valuing portfolios, calculating
and reporting performance results as well as preparing compliant presentations are available upon request.
3.) The composite returns are compared to the S&P 500 and the Russell 1000 Growth Indices, the volatility and holdings of which may be materially
different from that of the composite. The S&P 500 Index is widely regarded as the best single gauge of the U.S. equities market; this index includes
a representative sample of 500 leading companies in leading industries of the U.S economy. The Russell 1000 Growth Index is widely used by insti-
tutional investors as a gauge of the U.S. large-cap growth equity market.
4.) Valuations are computed and performance is reported in U.S. dollars.
5.) Composite returns are calculated using the aggregate method. This methodology has been applied consistently for all periods. Other methods may
produce different results.
6.) “Composite returns are presented gross and net of all management fees, transaction fees, and other expenses, and include the reinvestment of all
dividends and income. Gross returns will be reduced by investment advisory fees and other expenses that may be incurred in the management of
the account. Net of fee performance was calculated using the highest management fee charged to clients in accordance with LCM’s Growth strategy
fee schedule which is stated below. LCM’s advisory fee schedule is the following:
Retail Growth Accounts: Up to $750,000:1.5% , Over $750,000: 1.0%
7.) Prior to September 30, 2007, some accounts in the composite paid an all-inclusive fee based on a percentage of assets under management. Gross
and net performance for these accounts has been reduced by the entire bundled fee. Other than brokerage commissions, this fee includes portfolio
monitoring and consulting services (none of which are paid to LCM). Beginning July 1, 2002, in addition to a management fee, some accounts in the
composite pay an all-inclusive fee based on a percentage of assets under management. As of September 30, 2007, the composite has been redefined
to exclude these bundled fee accounts.
8.) Quarterly and annual rates of return for the portfolio are computed by compounding the monthly rates of return over the applicable number of
months.
9.) “Total LCG Assets” refers to all assets in the LCG strategy, including those which fall below the composite inclusion minimum of $250,000. This
figure is provided for comparison purposes.
10.) LCM utilizes neither leverage nor derivative investments as a material component of its investment strategies.
11.) Comosite dispersion is calculated using the asset-weighted standard deviation of all portfolios that were included in the composite for the entire
year.
12.) Performance for periods of less then 12 months is not annualized. Year 1999 results are for the period of April 1, 1999 through Dec. 31, 1999. Year 2014
results are for the period of Jan. 1, 2014 through September 30. 2014.
13.) LCM defines a significant cash flow as an external flow of cash or securities (capital additions or withdrawals) that is client initiated. An external flow
of at least 10% of the portfolio market value is considered significant. This policy became effective July 1, 2002.
14.) The 3-year annualized standard deviation measures variability of the (gross) composite and the benchmark returns over the preceding 36-month
period.
15.) Actual performance of client accounts may differ substantially
16.) Past performance is not indicative of future results.
The content presented in this document is for informational purposes and should not be taken as a recommendation to purchase any individual securities.
Index returns shown in the performance comparisons where provided by Standard & Poor’s, Russell, and Bloomberg. All of this information comes from
sources believed by LCM to be reliable. LCM, however, cannot guarantee the accuracy of the comparative returns and therefore shall not be held liable
for inaccurate information obtained from data providers.