Confidential: Not for distribution to the public
Stephenson & Company Capital Management Inc.TD Canada Trust Tower
161 Bay Street, Suite 2770
Toronto, Ontario M5J 2S1
www.stephenson-co.com
Fund Objective
The Fund will seek to provide consistent long-term capital
appreciation with attractive risk-adjusted rates of return
throughout market cycles, with a particular focus on risk
management and capital preservation. The Fund will be a
true long/short fund concentrating primarily on a portfolio
of large and mid capitalization global and North American
equities.
The Fund will be sector agnostic and will focus primarily on larger
capitalization equities. In choppy, uncertain markets, risk management
and true long/short investing will be increasingly important.
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The Manager – Business Philosophy
� Low volatility, Consistent Long-Term Capital Appreciation� Our investment process focuses on generating consistent long-term capital appreciation
with attractive risk-adjusted rates of return throughout market cycles with low volatility
and correlation to the broader markets
� Focus on Fundamentals� We invest based on rigorous fundamental analysis of the various drivers of risk and
return. We conduct extensive due diligence and we look at both quantitative and
qualitative factors in assessing risk/reward parameters
� Limited Use of Leverage
� Focus on Risk Management� We focus on hedging and actively managing the exposures of the Partnership. Our risk
management process are based on qualitative and quantitative analysis and are
implemented at both the individual position and portfolio levels and are reviewed daily.
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Source: Stephenson & Co. Risk Management model as of August 17, 2015
How We Assess Risk
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Global Stock Index Price Returns - 2015
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Source: Stephenson & Co.; Bloomberg ― September 14, 2015
The best investment opportunities are outside of Canada
-8.4%
-7.2%
-6.0%
-5.1%
-3.7%
1.9%
3.5%3.9%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
Canada - S&P/TSX Brazil - Bovespa India - Sensex USA - S&P500 China - Shanghai
Compsite
Russia - RTS Europe - STOXX
600
Japan - TOPIX
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Globally Diversified By Geography and Sector
Canada, 7.3%
US, 61.7%
Europe (ex-
UK), 19.2%
UK, 3.5%
Japan, 5.3%Other, 2.9%
Materials,
6.8%Industrials,
4.4%
Consumer
Discretionary,
12.0%
Consumer
Staples, 10.3%
Health Care,
15.6%
Financials,
34.8%
Information
Technology,
10.5%
Utilities, 5.6%
Note: By Gross Market Exposure as of August 4, 2015
Indicative Sector Longs and Shorts
Longs Shorts
Financials Utilities
Particularly U.S. money center banks
and alternative asset managers
Highest interest sensitivity of any
GICS sector
Information Technology Consumer Staples
Large capitalization dividend story
underappreciated
High valuations leave them vulnerable
to re-rating
Health Care Telecom/Cable
A strong demographic and secular
trends underpin this sector
Wireless penetration has stalled
(Canada grew only 0.2% in 2013)
Consumer Discretionary Energy/Materials
Low gasoline prices are a tax cut for
consumers
Slowing global growth a negative for
resource companies
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Indicative Portfolio
The Blackstone Group LP Petroleo Brasileiro S.A. (Petrobras)
Allergan PLC Lightstream Resources Ltd.
WhiteWave Foods Company Whole Foods Market, Inc.
Target Corporation Tesoro Corporation
Moncler S.p.A. Barrick Gold Corp
LKQ Corporation Las Vegas Sands Corp.
Horizon Pharma PLC WEC Energy Group Inc.
Longs Shorts
Note: Indicative names as of August 17, 2015
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Historical Performance
92
94
96
98
100
102
104
106
108
110
112
Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15
SCO N.A. Oppty Fund S&P500 S&P/TSX
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
2014 1.03 0.36 0.61 2.01*
2015 5.83 -0.26 1.78 -5.42 3.23 -0.05 2.03 6.97
Note: * = Based on S-Class Unit and Net of All Fees
Key Personnel
John Stephenson is the president and chief executive officer of Stephenson & Company Capital
Management, where he is responsible for overall firm direction. He is a multiple award-winning
portfolio manager having been recognized by Brendan Wood International (BWI) as a Platinum
Class Top Gun Investment Mind for five years in a row (2009-2013) and the recipient of the
prestigious Fundata A Award (January 2014) for his top quintile three-year track record (Utilities
Plus Fund). He also achieved top decile performance for his management of the Canadian Dividend
Opportunity Fund (2010-2014).
Prior to creating Stephenson & Company Capital Management, John was a senior vice president
and portfolio manager at First Asset. At First Asset he was responsible for heading most of the
equity mandates as well as being instrumental in creating and leading the portfolio management
team.
John holds a degree in Mechanical Engineering from the University of Waterloo, an MBA from
INSEAD, as well as the Chartered Financial Analyst (CFA), Financial Risk Manager (FRM) and
Chartered Investment Manager (CIM) designations.
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François Girard is the chief compliance officer and senior investment analyst with Stephenson
& Company Capital Management, where he is responsible for security selection and assists in the
management of the firm’s investment portfolios. Mr. Girard brings an in-depth knowledge of
financial products, capital markets, pricing theory, derivatives and various market conventions to
his role at Stephenson & Company Capital Management.
Prior to joining Stephenson & Company Capital Management in 2014, Mr. Girard was a senior
analyst at TD Securities in the Capital Markets Risk Management Group where he was
responsible for the valuation and risk management of various portfolios of customized interest
rate and foreign exchange derivatives. At TD Securities, he was the team lead on various
initiatives including; the implementation of OIS discounting, cheapest-to-deliver collateral as
well as spearheading the creation and launch of various new business segments such as U.S.
structured notes and Risk Participation Agreements.
François holds both a Bachelor of Business Administration (B.B.A.) in Finance and a Master of
Science in Finance (M.Sc.) from HEC Montréal. In addition, Mr. Girard is a Chartered
Alternative Investment Analyst (CAIA), a Chartered Investment Manager (CIM), a Professional
Risk Manager (PRM) and a CFA level III Candidate.
Key Personnel Continued
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Service Providers to the Fund
Auditor of the Fund PricewaterhouseCoopers (PwC)
Prime Broker CIBC World Markets Inc.
Legal Counsel Borden Ladner Gervais LLP
Administrator to the Fund SGGG Fund Services Inc.
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Contact Us
Stephenson & Company Capital Management Inc.
TD Canada Trust Tower
161 Bay Street
Suite 2770
Toronto, Ontario
M5J 2S1
416-572-2089
1-844-208-8817
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Disclaimer
This presentation is for informational purposes only and is not an offer, solicitation or recommendation to purchase or sell any securities or units of the Fund. Units of the Fund are offered only pursuant to an Offering Memorandum and only to accredited investors and other purchasers to whom the Units may be offered without a prospectus. For a complete discussion of investment strategies as well as various risk factors, prospective investors are encouraged to consult the Offering Memorandum and their own legal counsel.
Any reproduction or distribution of this presentation, or any information contained herein, is prohibited.
The information contained in this document is drawn from sources believed to be reliable but the accuracy or completeness of the information is not guaranteed, nor in providing it do we assume any responsibility or liability whatsoever. Terms and conditions are subject to change without notice. Nothing contained herein is a promise or forecast and thus should not be relied upon as such. Any information that can be considered forward-looking information under applicable securities laws is based on assumptions made by us of the success of our investment strategies in certain market conditions, relying on the experience of our officers and employees and their knowledge of historical economic and market trends. Investors are cautioned that the assumptions made by us and the success of our investment strategies are subject to a number of mitigating factors. Economic and market conditions may change, which may materially impact the success of these strategies. Past performance is not indicative of future results and, therefore, there can be no assurance that the results achieved for past investments will be achieved by the Fund.
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