Lakeshore Capital Value Composite contains fully discretionary accounts with similar value equity investment strategies and objectives. For comparison purposes the Lakeshore Value Composite is measured against the S&P 500 Index. In presentations shown prior to June 30, 2006, the composite was measured against the S&P 500 Index and the S&P 500 Index/Citigroup Value indices, excluding the reinvestment of dividends. The benchmarks were changed to more accurately reflect the strategy of the composite. Additional information regarding the prior benchmarks is available upon request. Beginning September 1, 2004, the minimum account size for this composite is $80 thousand.
Lakeshore Capital, LLC has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®). Lakeshore Capital, LLC is a registered investment advisor. The firm maintains a complete list and description of composites, which is available upon request. Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Composite performance is presented net of withholding taxes paid by foreign investors. Withholding taxes may vary according to the investor's domicile. Past performance is not indicative of future results.
The U.S. Dollar is the currency used to express performance. Returns are presented gross and net of management fees and include the reinvestment of all 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 actual management fees. The annual composite dispersion presented is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. Additional information regarding the policies for calculating and reporting returns is available upon request.
Beginning April 1, 2007, composite policy requires the temporary removal of any portfolio incurring a client initiated significant cash inflow or outflow of at least 15% of portfolio assets. This cash flow threshold was increased to 35% effective September 30, 2009. The temporary removal of such an account occurs at the beginning of the month in which the significant cash flow occurs and the account re-enters the composite at the beginning of the month which follows the cash flow by at least 30 days. Additional information regarding the treatment of significant cash flows is available upon request.
The investment management fee schedule is as follows: U.S. Clients – 1.0% on the first $5 million, 0.75% on assets over $5 million. Non-U.S. Clients -–1.5% on the first $1 million, 1.0% on the next $4 million, 0.75% on assets over $5 million. The minimum annual fee for U.S. clients is $1,500 and for non-U.S. clients is $2,500. Under special circumstances, fees may be negotiable.
The Lakeshore Capital Value Composite was created September 1, 2004. Performance presented for the period July 1, 2001 through July 14, 2004 represents the value track record established by the Portfolio Manager while affiliated with a prior firm. Performance presented for the period July 15, 2004 through August 31, 2004 represents the value track record while the Portfolio Manager was in a transitional period and was not affiliated with the prior firm. During these periods, the Portfolio Manager was the only individual responsible for selecting the securities to buy and sell. A review of this track record for compliance with the portability requirements of the GIPS standards was conducted by Ashland Partners & Company, LLP.
Lakeshore's compliance with GIPS® standards has been verified for the period September 1, 2004 through December 31, 2009 by Ashland Partners & Company, LLP. Performance for the period January 1, 2010 through March 31, 2010 is preliminary and subject to change. In addition, a performance examination was conducted on the Lakeshore Capital Value Composite beginning September 1, 2004. A copy of the verification report is available upon request.
Index Relative Statistics: Statistical risk/return measures
Up/Down Table: This table is a measure of managers' performance in up and down markets
relative to the market itself. A down market is one in which the index's quarterly return is less
than zero. To calculate down-market capture ratio, we link returns for the manager and the
market for all down-market quarters over the selected time frame, then divide the manager's
return during down-market quarters by the index's return during the same quarters. To
calculate
up-market capture ratio, this same process is carried out using returns from periods when the
index's return was greater than zero. The lower the manager's down-market capture ratio, the
better the manager protected capital during a market decline. A value of 90 suggests that a
manager's losses were only 90% of the market loss when the market was down.
Caution: The up/down table capture ratios can be deceiving if the nominal numbers involved are
small. For example, if a manager’s return during down market periods was 3%, while the index's
during return during those same periods was -1%, the manager’s down market capture ratio
would be 300.
Index Relative Statistics: Statistical risk/return measures Alpha measures nonsystematic return, or the return that cannot be attributed to the market. Thus, it can be thought of as how the manager performed if the market has had no gain or loss. In contrast, beta measures the return that is attributable to the market and is a measure of the portfolio’s overall volatility. If the market’s return as measured by an index was equal to the risk-free rate, the manager's expected excess return would be alpha. A positive alpha implies that the manager has added value to the return of the portfolio over that of the market. Returns with a negative alpha do not reflect any positive contribution by the manager over the performance of the market. An alpha of zero implies that a manager has provided a return that is equivalent to the market return for the manager’s specific risk class.
Beta measures the risk level of the manager. Beta measures the systematic risk, or the return that is attributable to market movements. In contrast, alpha measures the nonsystematic return of the portfolio, and standard deviation measures the volatility of a portfolio’s returns compared to the average return of the portfolio. A beta equal to one indicates a risk level equivalent to the market. Higher betas are associated with higher risk levels, while lower betas are associated with lower risk levels.
Sharpe ratio is used to measure risk-adjusted performance. It is calculated by subtracting the risk-free rate from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns.
| Year End |
Total Firm Assets ($MM) |
Composite Assets USD ($MM) |
Number of Accounts |
Composite Gross % |
Composite Net % |
S&P 500 Index % |
Composite Dispersion % |
| 2009 | 112 | 40 | 67 | 22.58 | 21.50 | 26.46 | 2.63 |
| 2008 | 87 | 33 | 65 | -25.68 | -26.31 | -37.00 | 2.10 |
| 2007 | 101 | 30 | 58 | 4.95 | 4.05 | 5.49 | 0.89 |
| 2006 | 76 | 16 | 24 | 14.63 | 13.60 | 15.80 | 0.80 |
| 2005 | 47 | 23 | 32 | 11.62 | 10.46 | 4.92 | 1.80 |
| 2004 | 46 | 29 | 69 | 15.60 | 14.48 | 10.88 | NA |
| 2003 | - | 6 | 13 | 25.61 | 24.58 | 26.68 | NA |
| 2002 | - | 3 | 5 or fewer | 2.00 | 1.43 | -22.06 | NA |
| 2001* | - | 1 | 5 or fewer | 4.60 | 4.34 | -5.61 | NA |
*Represents non-annualized (partial year) performance from July 1, 2001 through
December 31, 2001.
NA indicates that information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year.
On August 1, 2006, several Lakeshore Value Composite accounts switched to the Lakeshore Value
Wrap Composite as a result of the accounts entering into a wrap fee program where transaction
costs could not be segregated from the total fee. The total value assets managed
by the firm as of
March 31, 2010 are $84.8 million, which represents 72% of the total
firm assets.