Leeb Capital Management (LCM) Performance Results: Peak Resources and Energy Composite
Past performance is not indicative of future returns. For more information on the performance as well as additional disclosures, please contact Stephen Perkins at SPerkins@Leeb.com.
Leeb Capital Management (“LCM”) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared this report in compliance with the GIPS Standards. LCM has been independently verified for the periods 4/1/99 through 12/31/17. 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 Income & Growth Composite has been examined for the periods 12/1/99 – 12/31/2018. The verification and performance examination reports are available upon request. Verification does not ensure the accuracy of any specific composite presentation.
1.) 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 Peak Resources and Energy Composite (“Composite”) represents all fee-paying accounts with assets greater than $100,000 that are managed in accordance with LCM’s Peak Resources and Energy Portfolio (P.R.E.P.). This strategy invests in securities and is managed with an emphasis on capital appreciation. The P.R.E.P. strategy offers clients a diversified portfolio of energy-related companies and hedges.
The portfolio will include investments in the following: oil, natural gas, coal, shale/tar sands as well as alternative/renewable energies, i.e. wind, solar, and nuclear. Further, the portfolio aims to hedge against both inflation and deflation through investment in precious metals, including: gold, silver, and platinum.
2.) The Composite was created as of July 31, 2005 which coincides with the inception of this strategy. A complete list of composite descriptions is available upon request. For the period of April 1, 1999 through September 30, 2007, LCM was verified by Ashland Partners and Company LLP. For the period October 1, 2007 through December 31, 2016, LCM was verified by ACA Performance Services, LLC. In 2017, 2018 and 2019, 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 compliant presentations are available upon request.
3.) Prior to April 1, 2008 the Composite was known as the Global Power and Energy Composite. The change in name was due to the evolution of the strategy, as precious metals are now part of the investable universe as of April 1, 2008.
4.) From inception through March 31, 2008, the composite returns are compared to the S&P 500 GICS Energy Sector, the volatility and holdings of which may be materially different from that of the composite. The S&P 500 GICS Energy Sector is widely used as the representative benchmark for energy strategies. The S&P 500 GICS Energy Sector is a subset of the S&P 500 and represents only those companies that meet S&P’s definition of energy companies. For period April 1, 2008 through December 31, 2008, a static blended benchmark which consists of 80% the aforementioned S&P 500 GICS Energy Sector, and 20% the Philadelphia Stock Exchange Gold and Silver Index (XAU), is used. The XAU is a capitalization-weighted index which includes leading companies involved in the mining of gold and silver. The blended benchmark is rebalanced monthly. For periods after January 1, 2009, the portfolio became more balanced between energy and materials (including precious metals). As such, the benchmark was changed to the S&P North American Natural Resources Sector Index, a market-weighted index that includes energy, materials, and precious metals. The changes in benchmark coincide with an evolution of the strategy to include precious metals.
5.) Valuations are computed and performance is reported in U.S. dollars.
6.) Composite returns are presented gross and net. Gross returns are presented gross of fees (net of only transaction costs) and includes reinvestment of dividend and income when applicable. Net return reduces the gross return by investment advisory fees. It was calculated using the highest management fee charged to clients in accordance with LCM’s Peak Energy and Resources strategy fee schedule: 2% flat fee based on AUM.
7.) Quarterly and annual rates of return for the portfolio are computed by compounding the monthly rates of return over the applicable number of months.
8.) LCM utilizes neither leverage nor derivative instruments as a material component of its investment strategies.
9.) Composite dispersion is calculated using the asset-weighted standard deviation of all portfolios that were included in the composite for the entire year. Information is not statistically significant due to an insufficient number of portfolios in the composite for the entire year
10.) 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 has been effective since the inception of the composite on July 31, 2005.
11.) The 3-year annualized standard deviation measures variability of the (gross) composite and the benchmark returns over the preceding 36-month period. N/A – Information that is not statistically significant due to an insufficient number of portfolios in the composite for the entire year.
12.) Actual performance of client accounts may differ substantially.
13.) Past performance is not indicative of future results.
14.) The Benchmark Returns are not covered by the report of independent verifiers.
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 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.