institutional presentation september 2011 · institutional presentation september 2011 1-this...
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- This document is not meant to substitute the Offering Memorandum of the funds, which everypotential investor must refer to. Its purpose is only to provide a summary, offering a generalview of investment possibilities in the Funds, before examining the Offering Memorandum in itsentirety.- The Offering Memorandum must be entirely read before any investment.- This document shall not be considered as an offer, general solicitation or advertisement withrespect to the purchase or sale of the Funds. Past performance presented in this document isnot indicative of future performance.- This material is intended for qualified investors under the applicable laws to invest in the fund.- This report is merely informative and can not be distributed, reproduced or copied withoutexpress authorization of Skopos Invest Administradora de Recursos Internacionais Ltda.- Although every attempt has been made to ensure the accuracy of the information SkoposInvest assumes no responsibility for any errors or omissions. Skopos Invest Administradora deRecursos Internacionais Ltda, the Manager, is authorized and regulated by CVM, Comissão deValores Mobiliários (Securities Exchange Commission).
- This document is not meant to substitute the Offering Memorandum of the funds, which everypotential investor must refer to. Its purpose is only to provide a summary, offering a generalview of investment possibilities in the Funds, before examining the Offering Memorandum in itsentirety.- The Offering Memorandum must be entirely read before any investment.- This document shall not be considered as an offer, general solicitation or advertisement withrespect to the purchase or sale of the Funds. Past performance presented in this document isnot indicative of future performance.- This material is intended for qualified investors under the applicable laws to invest in the fund.- This report is merely informative and can not be distributed, reproduced or copied withoutexpress authorization of Skopos Invest Administradora de Recursos Internacionais Ltda.- Although every attempt has been made to ensure the accuracy of the information SkoposInvest assumes no responsibility for any errors or omissions. Skopos Invest Administradora deRecursos Internacionais Ltda, the Manager, is authorized and regulated by CVM, Comissão deValores Mobiliários (Securities Exchange Commission).
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DISCLAIMER
OUR MISSION
Gerar retorno superior absoluto aos nossos cotistas, investindo com horizonte de longo prazo, em ações prioritariamente listadas no Brasil.
Generate superior absolute return for our clients, investing in public equities, mainly in Brazil, with a long-term investment horizon.
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Firm & Strategy Overview
Team & Partnership Evolution
Investment Strategy in Details
2010 in review and current portfolio
Performance
Index
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OUR FIRM
- 10 year track record
- Team:
- 10 full time professionals
- 3 partners – fully dedicated to the firm
- No external partners - 100% independent
- AuM: ~US$ 1.0 billion
- Investors base mostly comprised of families ~70%
- Partners are the biggest investors (20% of the assets), investing alongside investors – same vehicle
- Vehicles: open for initial/additional investments
- Only one strategy: L&S Equity
- Local fund – for Brazilian investors
- Offshore Delaware LLC – for foreign investors
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OUR STYLE
- High conviction
- Going deep
- Research intensive
- Team’s experience + Relationships with real economy
- Concentration
- Best ideas fund 6 to 10 names
- Long term investment horizon and low turnover
- No financed leverage
- Collaborative approach – Boad Seats
- High Transparency
- Active management of net long exposure
- Ability/Experience to deal with specific situations
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TYPICAL SOURCES OF OPPORTUNITIES:
- Big price dislocations
- Room for corporate governance enhancement
- Strategic transactions
- Overlooked developments/hidden value
- Change in controllership
- Misunderstood events
- Poor communication with the market
- Migration to NOVO MERCADO
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OUR TEAM
PEDRO CERIZE*Founder & Managing Partner
Portfolio Manager
Bruno BergamascoAnalyst
José Luiz Montans*Head of Research
Gustavo FabrícioAnalyst
Marcel ZimmermannJr. Analyst
Daniele CerizeTrader Assistant
Marcelo Cerize*Trader
Felipe FerianOperations Associate
Marina BragaIR Officer
Celia GarciaAdmin Assistant
Research Trading Operations Investor Relations
* partner
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CORE POSITIONS OPPORTUNISTIC SHORT BOOK
CORE + OPPORTUNISTIC + SHORT BOOK
- Buy & Hold - Deep understanding - High Concentration
- 5 to 7 positions- Average size: 15%
- Low turn over- High degree of engagement- Board presence- Focus on mid cap Companies
- Catalyst driven- use of short-term distortions between the reality and the market perception.
- Developing Ideas- Initial investments in potential core positions
- Pair with long- Relative value- Individual stocks - Index
-Long term investment horizon
- Idea of owning a handful of companies that clearly we have an edge in understanding and have the ability to influence
- Short index gives us the flexibility to decrease the net exposure without needing to raise cash
- Total Limits: 200% Gross Long / 130% net Long
- Limits per individual stock: 20% long at cost / 3% short / 30% total short book of individual stocks
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- Investment Selection Process: LONG CORE Positions
- Good Business: simple and free cash flow generative- not likely to be materially affected by extrinsic factors- high ROIC - entrance barriers - hard to replicate
- Good Management: - honest - rational and aligned with shareholders
- Good Price: being conservative - focus on not overpaying- cash is an option when things are expensive
- Discipline: core positions are built over a long development period
- Mid Cap universe: companies in the range of USD 2 to 7 Bn allow us to be relevant enough to influence but not too relevant to impair liquidity
- Generally not present in the IBOVESPA: information asymmetry- Usually family controlled but with an appropriate free float
- Catalyst: hidden value / misunderstanding / changing processes that have not yet been priced in
INVESTMENT PROCESS: Core Book
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ACTIVE MANAGEMENT OF NET LONG EXPOSURE
Post 2008: future indices brought higher degree of flexibility to set the exposure.
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Gross Long X Net Long evolution
Net Long Gross Long
CURRENT BOARD REPRESENTATION
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FORMER BOARD REPRESENTATION
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2010 and 2011 RETURNS
- Biggest contributors to the performance in 2010:
- Performance attribution (gross returns):
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2010 Performance Attribution Jan Feb Mar Apr May Jun Jul Ago Set Out Nov Dez Year EndEquities ‐7.86 5.18 4.68 1.04 ‐7.25 9.15 5.53 8.56 6.80 7.57 5.84 5.70 51.59Derivatives 6.92 ‐6.96 ‐5.89 0.87 3.24 2.28 ‐5.86 2.65 ‐3.28 0.01 4.50 ‐0.72 ‐2.10Fx effect ‐0.50 0.70 0.10 0.13 ‐0.13 0.07 0.21 0.02 0.52 0.02 0.05 0.50 2.03Costs and fees ‐0.16 ‐0.23 ‐0.24 ‐0.31 ‐0.25 ‐0.29 ‐0.18 ‐0.23 ‐0.20 ‐0.20 ‐0.19 ‐0.23 ‐11.71Net Result ‐1.60 ‐1.31 ‐1.35 1.74 ‐4.38 11.22 ‐0.29 11.00 3.85 7.40 10.19 5.25 39.81
2011 Performance Attribution Jan Feb Mar Apr May Jun Jul AccumulatedEquities ‐6.5% ‐1.2% 5.7% 5.8% ‐2.5% 3.2% ‐7.0% ‐3.3%Derivatives 3.7% ‐0.1% ‐0.6% 3.4% 0.1% ‐0.4% ‐0.2% 6.0%Fx Effect 0.0% 0.1% 0.3% 0.7% ‐0.1% 0.2% 0.2% 1.3%Cost and Fees ‐0.2% ‐0.2% ‐0.3% ‐0.2% ‐0.2% ‐0.2% ‐0.2% ‐1.4%Net result ‐3.1% ‐1.3% 5.0% 7.8% ‐2.1% 2.2% ‐7.2% 0.6%
SKOPOS X IBOV
* Be aware that until december 30th, 2005 the NAV of the Fund is net of the administration fee and gross of the performance fee. As of January 31th, 2006 the NAV of the Fund is net of the administration and the performance fees. The performance´s information shown in this document refers to the performance of Skopos Fund, LLC .Please note that Skopos Fund, LLC- Skopos 90 Class started its activities on September, 2007. Be aware that the only difference between the classes is the redemption notice, with no changes in the fund´s strategy.This document is not meant to substitute the Offering Memorandum of the Skopos Fund which every potential investor must refer to. Its purpose is only to provide a summary, offering a general view of investment possibilities in the Fund, before examining the Offering Memorandum in its entirety. This document shall not be considered as an offer, general solicitation or advertisement with respect to the purchase or sale of the Fund.
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- Annualized return since 2001: 27%
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SKOPOS IBOV
APPENDIX
Index
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BRK
BRK 60
Canário
Sabiá
Quetzal
Cauré
- Local vehicles - Offshore vehicles
Skopos Master
Skopos Cardeal
Skopos Fund LLC
Skopos Grey City LLC
Skopos BRK Fund LLC
Skopos Stone LLC
Commingled fund
Fund of 1 family
Fund of 2 families
Not active
Commingled local feeder
Feeders of local families
Partners’ money feeder
L&S Master Fund
LO fund of 1 family
VEHICLES
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Auditor
- Service Providers
- SEC registration
- Organization CRD#: 147530- Organization SEC#: 801-69983 - SKOPOS INVEST ADMINISTRADORA DE RECURSOS INTERNACIONAIS LTDA
- Costs charged from the fund
- Management fee; Performance Fee; Audit; RTA; Tax advisor; Custody; CVM (SEC)
Administrator Custodian RTA
FirmContactEmailPhoneSinceFormer
PwcCaroline [email protected] 11 367433672005E&Y
Citi USClarissa [email protected]+ 1 813 604 1096Aug’2010CSHG
Citibank DTVM SARaquel [email protected] 11 4009 5287Aug’2010Itau
Citi USJim [email protected]+1 973 461 5853Aug’2010BoNY
Additional Info
Tax Advisor Legal Counsel
FirmContactEmailPhone
Kaufman, Rossin & CoLeandro Barbuscio, [email protected] + 1 305 646 6059
Morgan, Lewis & BockiusEthan [email protected]+ 1 305 415 3394
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