Dear Fellow Investor:

I have entered the asset management business. My company, ARL Advisers, LLC, is a registered investment

advisory in the State of Kentucky, and I am seeking your business.

With all the options out there, why consider what I have to offer?

First, I like to think that what I do is unique, but not special. I will not be selling you hype or the latest and greatest.

My methodology is driven by my own research and the data, and all investing decisions are objective. Second, my

market edge is the ability to use my computer, and I level the playing field even more by investing in markets not

companies. Third, I put a great emphasis on risk management as it is one of the few aspects of the markets that I can

control.

Please take 15 minutes to review my presentation. Here I outline my approach to the markets, and the types of

portfolios that we customize for our clients. More importantly, you will understand what I have been doing for the

past 10 years of my life, and I hope you will come away with the notion that I am committed to providing you with

the best service possible.

As you review the material, ask yourself these three questions: 1) what was my financial plan for the past 10 years?;

2) how will I navigate the markets in the next 10 years?; 3) what is my plan to capture new opportunities and reduce

risks in the future? I don’t have a crystal ball nor do I need one. However, I do have a plan and a methodology that

should capture the major themes. My emphasis is on a disciplined strategy. In essence, I am offering highly

stylized, institutional quality portfolios but without the churn of excessive trading and without the high fees.

I look forward to talking to you soon, and thank you for your time.

Guy

“See why we are different.”

guy@arladvisers.com

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Key Points

strategic asset allocation is superior to passive asset allocation

strategic asset allocation produces consistent returns while protecting

against losses

ARL Advisers, LLC is replicating a strategy that is commonly employed

by major hedge funds and endowments

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Key Points

ARL Advisers, LLC uses proprietary models to allocate investment funds

toward asset classes with the highest potential for appreciation and

away from asset classes with greater potential for loss

funds are allocated across a breadth of alternative asset classes – you are

not limited to stocks and bonds

all models are quantitatively derived from fundamental and technical

inputs

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Key Points

emphasis on a disciplined strategy

emphasis on money management

emphasis on risk management

emphasis on investing not trading

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INTRODUCTION

goals

suitability

universe of assets

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my goal

is to make you money!

is to invest for long-term returns while managing risk

is to outperform the broad stock markets over the full market

cycle (peak-to-peak or trough-to-trough) with less risk than

experienced by passive approaches

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suitability

intended for long-term investors following a disciplined saving

and investing program

individual investors

institutional investors

investors seeking growth of income and capital

preservation

tax deferred or taxable accounts

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universe of assets

traditionalUS equity ETF’sBond ETF’sSector ETF’s

non-traditionalForeign developed equity ETF’sForeign emerging market equity ETF’sInternational Bond ETF’sREIT ETF’sCommodity ETF’sDollar/ currency ETF’s

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The Strategy

Asset allocation that is strategic, balanced, and targeted

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the benefits of passive asset allocation are well known*

asset allocation reduces portfolio volatility without sacrificing

returns

ability to profit in any economic environment

*Gibson, Roger C., Asset Allocation: 4th Edition, (2008)

Darst, David H., The Art of Asset Allocation: Principles and Investment Strategies For Any Market, Second Edition, (2008)

Ferri, Richard A., All About Asset Allocation, (2005)

Bernstein, William, The Intelligent Asset Allocator: How To Build Your Portfolio To Maximize Returns and Minimize Risk , (2000)

Swensen, David, Unconventional Success, A Fundamental Approach To Personal Investment, (2005)

Dalio, Ray, “Engineering Targeted Returns and Risk”, (2005)

Merriman-Cohen, Jeff, “The Perfect Portfolio”, (2003)

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then came 2008

when most major assets became highly correlated

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A Better Way!!!

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Step 1: strategic asset allocation

tactical or strategic asset allocation directs funds toward asset

classes with the highest potential for appreciation and away

from asset classes with greater potential for loss

proprietary, quantitative models are utilized to generate buy

and sell signals

models utilize fundamental and technical inputs

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Step 2: risk management

risk management is achieved through a balanced

portfolio that it is constructed from diversified, non-

correlated assets

the diversified, non-correlated assets and money

management strategy will seek to mitigate risk without

decreasing returns

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Step 3: targeted returns

each investor has their own level of acceptable risk and their

own expectations for returns

through the selection of different assets and the use of a

money management strategy, the return/ risk level is targeted

for each investor

level of return correlates with level of risk

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Portfolio Examples

these are hypothetical portfolios based upon historical data

commissions , trading slippage, and taxes are not considered

for back testing purposes, portfolios may use index data

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Conservative Portfolio

Goal: earn return = to long term returns of SP500 with capital

preservation

Assets: SP500, Bonds, Utilities, Gold

Allocation: SP500(25%), Bonds (30%), Gold (20%), Utilities (25%)

Money Management: No rebalancing, go to cash if asset on sell signal

When in cash, money earns interest at commercial paper rate

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Conservative Portfolio

since November, 1991, this strategy had a CAGR of 8.09%

$100,000 becomes $453,208

the maximum drawdown (loss) was 8.34%

the strategy averaged 6 round trip trades per year

the strategy was invested 100% only 25% of the time

the strategy had only 1 or no investment position 33% of the time

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Conservative Portfolio : equity curve v. SP500

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Strategy

SP500

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Drawdown is the peak-to-trough decline (in

percentage terms) of an investment, and it is

measured from the time a retrenchment

begins to when a new high is

reached. Drawdown is a measure of risk.

Conservative Portfolio: drawdown

-9.00%

-8.00%

-7.00%

-6.00%

-5.00%

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

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Conservative Portfolio

consistent returns

capital preservation

low volatility

periods of high cash

minimal churning

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Broad Market Portfolio

Goal: earn return > SP500 with significantly reduced volatility

Assets: SP500 sector ETF’s, REITs, Foreign Developed, Emerging

Market, Treasury Bonds

Allocation: based upon # of sectors/ assets on buy signal

Money Management: rebalance weekly if new buy signals

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Broad Market Portfolio

since November, 2001, this strategy had a CAGR of 15.27%

$100,000 becomes $430,312

the maximum drawdown (loss) was 10.58%

the strategy averaged <50 round trip trades per year

the strategy had > 75% of its funds invested 56% of the time

the strategy was in 100% cash 26% of the time

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Broad Market Portfolio: equity curve v. SP500

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$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

00 01 02 03 04 05 06 07 08 09 10

-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

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Broad Market Portfolio: drawdown

Broad Market Portfolio

broad exposure to domestic markets at the sector level

exposure to emerging markets and developed foreign markets

diversified

bond exposure in times of market duress

superior reward to risk

minimal churning

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Targeted Returns

With multiple assets available and with various money

management schemes, a portfolio can be designed to suit your

needs

Portfolios designed from conservative to aggressive

Portfolios designed to be long and short the markets

Portfolios designed to have high or low cash levels

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On the use of models and back testing to “predict” the

future:

past performance does not ensure future results

there is no assurance that ARL Advisers, LLC will achieve its investment objectives

however….

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you cannot understand the present if you don’t know what worked in the past

key to superior long-term returns is to take investment opportunities when the evidence suggests high return/risk tradeoffs on average, and to avoid situations when the evidence suggests low return/risk tradeoffs on average

back testing puts an emphasis on a disciplined strategy and ensures the conviction to execute the strategy

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ARL Advisers, LLC: the service

$50,000 minimum investment

fees based on assets under management

all funds held by 3rd party custodian

daily access to account via internet

monthly statements

quarterly reports

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Guy M. Lerner, MD

managing partner of ARL Advisers, LLC, a registered investment advisor, State of Kentucky (2010)

registered investment advisor representative (2010)

Series 65 license (2007)

founder TheTechnicalTake blog, 2004 to present

featured columnist with RealMoney.com and TheStreet.com, 2004 to 2006

routinely published in some of the most widely read financial publications

marquee speaker at financial seminars

for 20 years, has practiced as a pediatric anesthesiologist in some of the top universities and hospitals in the country

Bachelor of Arts in Literature, University of Pennsylvania, 1981

Doctor of Medicine, University of Pittsburgh School of Medicine, 1986

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ARL Advisers, LLC

asset allocation that is strategic, balanced, and targeted

portfolio diversification through innovative strategies

independent investment research

discipline and conviction

integrity

leads to…..

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Performance

competitive risk adjusted investment returns

ability to profit in any economic environment

reduced portfolio volatility

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Past performance is not an indication of future performance and there can

be no assurance that ARL Investment Advisers, LLC will meet its

investment objectives. The information contained in this presentation is

neither an offer to sell nor a solicitation of an offer to buy an interest in

ARL Advisers LLC. Any such offer or solicitation can be made only be

means of a confidential private offering memorandum and only in those

jurisdictions where permitted by law.

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THIS DOCUMENT IS INTENDED SOLEY FOR USE BY FINANCIAL ADVISORS AND THEIR CLIENTS OR BONA FIDE PROSPECTS WHO ARE ACCREDITED INVESTORS. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED, IN WHOLE OR IN PART, TO ANY OTHER PERSON NOR MAY IT BE USED IN PUBLIC SEMINARS, NEWSLETTERS OR ADVERTISEMENTS.PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. ALL DATA CONTAINED HEREIN HAS BEEN OBTAINED FROM RELIABLE SOURCES, HOWEVER ARL ADVISERS, LLC CANNOT BE REPONSIBLE FOR ERRORS AND OMISSIONS FROM SUCH SOURCES. THIS DOCUMENT IS NEITHER AN OFFER TO SELL NOR A SOLICITAION OF AN OFFER TO BUY UNITS OF LIMITED PARTNERSHIP INTERESTS IN THE ARL ADVISERS, LLC. AN OFFER OF SUCH INTEREST CAN BE MADE ONLY BY MEANS OF THE CONFIDENTIAL OFFERING MEMORANDUM.YOU AND YOUR FINANCIAL ADVISOR SHOULD CAREFULLY CONSIDER WHETHER YOUR FINANCIAL CONDITION PERMITS YOU TO PARTICIPATE IN ARL ADVISERS, LLC. YOU SHOULD BE AWARE OF THE RISKS IN THE FINANCIAL MARKETS AND OF INVESTING WITH ARL ADVISERS, LLC

THE CONFIDENTIAL OFFERING MEMORANDA OF THE FUNDS CONTAIN A DESCRIPTION OF THE PRINCIPAL RISK FACTORS, EACH EXPENSE TO BE CHARGED TO THE FUNDS AND A STATEMENT OF THE AMOUNT, AS A PERCENTAGE RETURN AND DOLLAR AMOUNT, NECESSARY TO BREAK-EVEN (THAT IS, TO RECOVER THE AMOUNT OF YOUR INITIAL INVESTMENT).

PROSPECTIVE INVESTORS WILL RECEIVE A DISCLOSURE DOCUMENT WHEN THEY ARE SOLICITED TO INVEST WITH ARL ADVISERS, LLC AND THAT CERTAIN RISK FACTORS BE HIGHLIGHTED. THEREFORE, YOU SHOULD ASK YOUR FINANCIAL ADVISOR OR THE GENERAL PARTNER FOR A COPY OF THE CONFIDENTIAL OFFERING MEMORANDUM AND STUDY IT CAREFULLY TO DETERMINE WHETHER SUCH AN INVSTMENT IS APPROPRIATE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.

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email:

guy@arladvisers.com

phone:

502 552 0018

mailing address:

ARL Advisers, LLC

528 Barberry Lane

Louisville, KY 40206

business hours:

Monday – Friday, 8 a.m. to 5:00 p.m. EST

websites:

www.arladvisers.com

www.thetechnicaltake.com