Growth 

A managed growth strategy could help limit severe drawdowns

ZEGA HIGH PROBABILITY OPTIONS STRATEGY

 

Higher risk-adjusted returns over the long term:

 

  • Investments in options primarily on the major equity indexes

  • A disciplined approach that only trades when the potential returns exceed the calculated risk profile

  • Positions are adjusted to fit the risk/return expectation of the target strategy

  • Returns that are driven by the natural time decay of near expiration options

AVERAGE ANNUALIZED RETURNS (% as of 6/30/15 NET OF FEES)

YTD      1 Yr       3 Yr               

9.85   10.98    25.05                             

STANDARD DEVIATION: 6.68

GROWTH OF A $10,000 INVESTMENT* (% as of 6/30/15 NET OF FEES)

All investments involve the risk of potential investment losses as well as the potential for investment gains. Prior performance is no guarantee of future results and there can be no assurance, and clients should not assume, that future performance of any model portfolio will be comparable to past performance. The risk of loss in trading can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. Different types of investments and/or investment strategies involve varying levels of risk, and there can be no assurance that any specific investment or investment strategy will be profitable. Not suitable for all investors. Under certain market conditions, it may be difficult or impossible to liquidate a position.

 

 

 

 

Guarding against volatility, seeking income:

 

  • Invests in high-quality, dividend paying companies with strong return on investment (ROI)

  • Utilizes call options on investment positions seeking to maximize current income and achieve a low correlation against the broad equity market

  • Designed to have less dependence on bull markets to achieve positive returns

HORIZON INVESTMENT SERVICES SOCIALLY RESPONSIBLE INVESTMENTS

AVERAGE ANNUALIZED RETURNS (% as of 6/30/15 NET OF FEES)

YTD      1 Yr       3 Yr      5 Yr       Since Inception 10/31/08            

-0.3      2.4        17.3     14.6         12.8                             

STANDARD DEVIATION: 14.2

PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF SHARES WILL FLUCTUATE AND SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE AMOUNT INVESTED.

The U.S. Dollar is the currency used to express performance. All composite performance returns include the reinvestment of all income. Gross composite performance returns for the Enhanced Socially Responsible strategy are asset-weighted total return figures after brokerage commissions, but do not reflect the payment of management fees. Net composite performance returns for the Enhanced Socially Responsible strategy are further reduced by the current advisor fee for the program, 2.25%, applied monthly. Actual investment advisory fees incurred by clients may vary depending on fee schedule and portfolio size. Please refer to Part 2 of Brookstone Capital Management’s Form ADV for a full description of services and fees. Each time a new account is initiated, the quantitative methodology of the Enhanced Socially Responsible strategy is applied to

create a portfolio of 40 stocks. Because of this, individual portfolio performance may differ materially because different stocks may be selected from the universe.

GROWTH OF A $10,000 INVESTMENT* (% as of 6/30/15 NET OF FEES)

GROWTH MANAGEMENT

 

Depending on your financial time horizon, having a growth manager for a portion of your portfolio can increase your overall returns in the long term.

 

Glossary

 

 

Bear Market: A market in which prices are declining. A "bear" is a person who expects that the market or the price of a particular security will decline.

 

Call Options: An option which gives the holder the right, but not the obligation, to buy a fixed amount of a certain stock at a specified price within a specified time. Calls are purchased by investors who expect a price increase.

 

Canterbury Volatility Index (CVI): Measures the market’s volatility or emotional state. A CVI reading below 90 reflects a stable or rational market. A CVI above 90 reflects an emotional market.  Investors may not make direct investments into an index.

 

Drawdown:  The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted as the percentage between the peak and the trough.

 

Index-Linked Certificate Of Deposit:  A certificate of deposit (CD) with a return based on a specific index. These CDs are purchased for a fixed price and are FDIC insured.  Reference to an index does not imply that the strategy will achieve returns, volatility or other results similar to that index. The composition of the index may not reflect the manner in which a strategy is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking error targets, all of which are subject to change.  Investors may not make direct investments into an index.

 

Open-End or Mutual Fund Investment Company:  This is a company which uses its capital to invest in other companies. Open-end, or mutual funds, sell their own new shares to investors, buy back their old shares, and are not listed for trading on a stock exchange. Open-end funds get their name because their capitalization is not fixed and they normally issue more shares as people want them.

 

Options: A purchaser of an option has the right, but not the obligation, to buy or sell certain securities at a specified price within a specified time.

 

S&P 500 Index: An index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. Companies included in the index are selected by the S&P Index Committee, a team of analysts and economists at Standard & Poor's.  Reference to an index does not imply that the strategy will achieve returns, volatility or other results similar to that index. The composition of the index may not reflect the manner in which a strategy is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking error targets, all of which are subject to change.  Investors may not make direct investments into an index.

 

Time Decay: The ratio of change in an option's price to the decrease in time to expiration of the option which occurs because the probability of that option being profitable is reduced.