(949) 240-6074 CLIENT > Niemann Capital Management

CLIENT > Niemann Capital Management
(949) 240-6074
Color Palette
Primary Color Palette: Sky Blue, Indigo and Teal - these colors are to be used
as part of the brand look-and-feel. That can be used as solid colors, screened values, or
with black/white added to create gradients.
Callan Charts & Pie Graphs: The chart below indicates
the colors that are to be used when depicting any of the specified
elements in the charts and graphs of NCMs communications.
Secondary Color Palette: Charcoal Gray and Cool Gray - these are supporting
colors to be used in keylines, backgrounds or type treatments.
Cash :: RGB 145 / 139 / 77
sky blue
RGB: 130 / 187 / 222
CMYK: 46 / 13 / 4 / 0
Pantone: 283
Bonds :: RGB 145 / 139 / 77 @ 50%
Small Cap Value :: Sky Blue
Small Cap Blend :: Sky Blue @ 50%
indigo
RGB: 28 / 41 / 97
CMYK: 100 / 95 / 33 / 23
Pantone: 2766
Small Cap Growth :: Sky Blue @ 10%
Mid Cap Value :: Teal
Mid Cap Blend :: Teal @ 65%
teal
RGB: 31 / 134 / 122
CMYK: 83 / 27 / 56 / 7
Pantone: 562
Mid Cap Growth :: Teal @ 35%
Large Cap Value :: Indigo
Large Cap Blend :: Indigo @ 65%
charcoal gray
RGB: 47 / 47 / 47
CMYK: 69 / 63 / 63 / 62
Large Cap Growth :: Indigo @ 35%
Short Funds :: RGB 73 / 47 / 146 @ 60%
cool gray
RGB: 176 / 176 / 176
CMYK: 32 / 25 / 26 / 0
International :: Cool gray
NCM Style Guide
Page 2
The Value of Active Management
A Case Study - Equity Plus Mutual Fund
Every investor wants to be in the best performing asset class every year. Few investors are
savvy enough to pick the best consistently and picking the best does not eliminate the risk
of the market. That is why hiring an active manager with a focus on risk is so important. As
an active manager, Niemann strives to take the smallest possible risk to secure the greatest
potential return. Niemann’s systematic and disciplined process allows us to uncover the
areas of the market that are performing well and helps us determine the overall health of the
market; telling us where to invest and how invested we should be.
The pie charts below illustrate quarter end allocations in our Equity Plus strategy since 2003.
A passive approach would show stagnant allocations which remain unchanged from quarter
to quarter despite a constantly changing market. Niemann’s changing allocations demonstrate
our process in action. We rotate assets into well performing sectors of the market as themes
unfold, and to cash, short funds or bonds in adverse market conditions to protect capital. Our
risk management approach gives the greatest possibility for long term success.
Morningstar Asset Styles
Cash
2006
Bonds
Small Cap Value
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Small Cap Blend
Small Cap Growth
Mid Cap Value
2005
Mid Cap Blend
Mid Cap Growth
Large Cap Value
Large Cap Blend
2004
Large Cap Growth
Short Funds
International
Niemann’s Equity Plus strategy is crafted for investors
who seek to gain capital appreciation in all market
conditions. It can invest in U.S. and foreign equity and
bond markets. Equity Plus portfolios may be long, short
and/or hedged in domestic and international equity and
bond mutual funds. Risk is moderately aggressive as this
strategy employs multiple investment options.
2003
© 2008 Niemann Capital Management
NCM Style Guide
Page 10
CHALLENGE
STRATEGY
CREATIVE
RESULTS
Niemann’s communications materials
were outdated and ineffective. They
needed to clearly define their position
in a very competitive marketplace in
order to attract the attention of financial
advisors.
Through workshops and interviews
with key company representatives, we
distilled a few primary brand attributes
that would differentiate Niemann from
competitors, both large and small. Core
messaging would be consistent across
their website, brochures and more
focused print mailers.
We developed a clean and modern
visual identity and visuals of movement
and travel to express Niemann’s
pioneering approach to active portfolio
management. For their messaging,
we defined a punchy, confident style
that made strong points supported by
credible details and statistics.
The new brand design guidelines
and messaging were enthusiastically
embraced, and the firm’s sales force
gained new confidence carrying the new
messaging forward to their prospects in
the market.
CLIENT > Niemann Capital Management
(949) 240-6074
T h e N i e m a n n A d va n ta g e
Why Niemann?
No matter what path you choose,
the market will encounter big highs
and deep lows while you’re en route.
When it does, will your portfolio
stay on track? Will you arrive at your
financial destination on schedule?
Despite market volatility, some
advisors and their clients never get
derailed. They remain on course,
always focused on their destination.
They’re active.
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History
Niemann Capital Management was founded in 1991 by two
highly skilled portfolio managers who believed the key to
successful investing could be expressed in two words: active
management.
They recognized early on that the markets are dynamic, ever
changing. And they concluded that successful investing
required a strategic approach that is equally dynamic.
They also identified active management as the best
methodology available for responding decisively to daily
changes in the market.
Seventeen years later, we remain committed to this approach
and the belief that no portfolio is complete without the
benefit of active management.
“We define our success
by the success of our clients.”
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Why choose Active Management?
Rotation in Action
Active management is characterized by flexibility. The
major advantage of an active strategy is its ability to
adapt in direct response to changes in the market. Active
managers can employ tools and alternatives unavailable
within a passive strategy:
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2
3
3
The 12-month period from Q4 ’99 to Q4 ’00 illustrates the
Niemann process at work during a turbulent time in the
stock market.
Active managers can underweight or overweight
sectors – or even avoid sectors entirely.
A Case Study of Niemann’s Risk Managed Strategy
You can clearly see how Niemann actively changed allocations
in direct response to significant market movements.
LG
LG
MG
SV
Cash
Cash
Cash
MG
Cash
Scorecard
Cash
SV
SV
Q4 ‘99 to Q4 ‘00
MG
MG
They can respond to the market by allocating among
styles – large or small cap, growth or value, etc.
LV
SV
LB
MV
LV
SG
LV
Active managers typically outperform passive
managers in down markets, because they can
shift their portfolios, using defensive or
protective strategies.
Clearly, in today’s increasingly fluid market, active
management offers investors a significantly broader array
of alternatives for responding to changes in the market.
SG
SB
SG
MB
SB
SB
12/31/99
3/31/00
6/30/00
9/30/00
12/31/00
We ended 1999 primarily in cash,
to control risk. Yet we also held a
position in small cap growth – the
lone sector of the market that was
healthy. While conservative, we were
positioned to respond.
During Q1 ’00, our analytics
indicated that we should begin
rotating from growth funds into
value funds. The focus on value
remained strong throughout the
next three months.
In June, as performance improved
for growth mutual funds, we added
growth to the portfolio. In the
following months, we maintained
our focus, rotating toward strength
as small and mid caps were
dominant themes.
By the end of September, large caps
rebounded a bit, so we expanded
our position in large value. Our cash
allocation continued to shrink as we
committed more assets to
the market.
Value funds played a larger role as
we approached the end of 2000. By
continuing to rotate throughout the
year, we were able to respond to
those market sectors showing the
best opportunities for performance.
Why choose Niemann?
Methodology
Philosophy: The cornerstone of the Niemann
investment philosophy is to manage risk in all market
conditions. That’s why we always strive to err on the side
of caution.
Our approach to the market is founded on the belief that
a passive asset allocation strategy – which is static, by
definition — can’t possibly cope with the market’s constant
fluctuations. By contrast, the Niemann methodology occurs
in 3 distinct steps:
Track record: Historically, our results demonstrate the
functionality of this philosophy both in down markets—
when most people lose money—and in up markets.
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2
3
Consistency: Our philosophy and the methodology of
our proprietary process haven’t changed since the company
was founded. At Niemann, our performance is the proof
statement of our philosophy.
Managing the Downside: Niemann has extensive
experience in avoiding catastrophic loss. We keep losses
recoverable. If the market softens, navigating your
investments requires considerable skill. And in a bear
market, nothing beats experience.
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We collect and evaluate market data, and perform
our proprietary quantitative analysis of that
information, every day.
Through this unique process, we gauge the overall
health of the market and identify areas that are
performing well on a risk-adjusted basis.
We actively position your assets to take advantage
of those positive-trending themes with the best risk/
reward relationships.
What happens in a down market?
When to buy and when to sell?
Equally important is our ability to recognize when a theme
is deteriorating and take the appropriate action:
Relative to the performance of the rest of the market, we
seek to identify those “themes” with the most attractive
risk/reward ratios.
s )NADVERSEMARKETCONDITIONSORINTHEABSENCEOFA
prevailing theme, our conservative strategies will take a
defensive or cash position.
s 4OMINIMIZERISKWITHINAGGRESSIVESTRATEGIESWEWILL
rotate out of a weakening theme into a sector or theme
that is showing greater relative strength.
s "YSEEKINGTOAVOIDCATASTROPHICLOSSANDTAKING
advantage of thematic opportunities as they present
themselves, we position investors for the greatest
opportunity for long-term success.
When we identify outsized gains with relatively low risk,
we buy. And we stay in that investment as long as that
situation exists.
Once that position begins to deteriorate and we confirm the
downward trend, we’ll look to sell it.
Consistency counts
Within any system of money management, the importance
of consistency is crucial. After all, the process is only as good
as the universal application of that singular approach.
That’s why at Niemann, we believe the unfailing application
of our methodology is vital to our success — and yours. And
that’s why we execute the same steps in the process, for the
same reasons, every day.
We believe the results speak for themselves.
“We determine the strongest groups
of mutual funds by ranking them
daily on a risk-adjusted return basis.”
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