Leeb Capital Management (“LCM”) is a registered investment advisor with the Securities and Exchange Commission. Prior to 2001, the firm was doing 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.
The Composite was created on March 31, 1999 which coincides with the inception of this strategy. A complete list of composite descriptions is available upon request. For the periods from April 1, 1999 through September 30, 2007, LCM was verified by Ashland Partners and Company LLP. For the periods from October 1, 2007 through December 31, 2016, LCM was verified by ACA Performance Services, LLC. From 2017 through 2021, LCM was verified by The Spaulding Group. 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 GIPS reports are available upon request.
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 institutional investors as a gauge of the U.S. large-cap growth equity market.
Valuations are computed and performance is reported in U.S. dollars.
Since September 30, 2007, the composite gross total returns are presented gross of fees (net of only transaction costs) and includes reinvestment of dividend and income when applicable. Between July 1, 2002 and September 30, 2007, certain accounts paid a bundled fee. For these accounts, the gross return was reduced by the bundled fee (see Note #6). Therefore, for this period the gross returns presented are hybrid returns consisting of both gross-of-fees return and pure-gross return, and are shown as supplemental information. Net return reduces the gross return by investment advisory fees. It was calculated using the highest management fee (1.5%) charged to clients in accordance with LCM’s Growth strategy fee schedule which is stated below. LCM’s advisory fee schedule is: for Retail Growth Accounts: Up to $500,000, 1.5% flat fee based on AUM; Over $500,000, 1.0% flat fee based on AUM. In addition, between July 1, 2002 and September 30, 2007, the net return for certain accounts was further reduced by a bundled fee (See Note #6).
Between July 1, 2002 and September 30, 2007, some accounts in the Large Cap Growth 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). As of September 30, 2007, the composite has been redefined to exclude these bundled fee accounts. The percentage of composite assets that were bundled fee accounts, from 2002-2006, respectively, were: 14%, 17%, 7%, 7%, and 6%.
Annual rates of return for the portfolio are computed by compounding the monthly rates of return over the applicable number of months.
LCM utilizes neither leverage nor derivative investments as a material component of its investment strategies.
From composite inception through December 31, 2017, composite dispersion was calculated using the asset-weighted standard deviation of all portfolios that were included in the composite for the entire year. From January 1, 2018 through December 31, 2021, composite dispersion is calculated using the equally-weighted standard deviation of all portfolios that were included in the composite for the entire year. Dispersion is calculated gross of fees.
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.
The 3-year annualized standard deviation measures variability of the (gross) composite and the benchmark returns over the preceding 36-month period.
Actual performance of client accounts may differ substantially.
Past performance is not indicative of future results.
The Benchmark Returns are not covered by the report of independent verifiers.
GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
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 were provided by Standard & Poor’s, Russell, and Orion Advisor. 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.