Soos Global Capital Advisors, LLC

Before reading any further, please take a look at the Editorial Note on the left side of this page; and thank you for participating in the feedback process!

One feedback issue that had compelling arguments on both sides of the debate was whether to begin the write-up with performance numbers or to hold off on posting them until the end of the message. Those who argued the former felt it was important to set the tone upfront on how the previous month turned out. Those who argued the latter said readers will read the numbers and then read no further! I’d appreciate more thoughts on this one, but in the meantime, I’ll go with what we started with in last month’s newsletter, putting the numbers upfront.

From a performance perspective, our

defensive posture helped mitigate negative returns on the month, leaving our CORE strategy (gross of fees, on a TWR basis) down 1.98% (up YTD 11.07%) and our IRA strategy down 1.65% (up YTD 7.24%), in comparison to the decline in the MSCI All Countries World Index of 2.29% and the decline in the S&P 500 of close to 3%. Please see the Appendix to this Newsletter for monthly performance data and important disclosure information.

Our previous Newsletter (dated July 31, 2013) (http://bit.ly/17BsWk6) had a summary of my global macro view that is as relevant today as it was then! I’d urge a re-read of that piece before proceeding further here where additional insights are added.

With that in mind, I’d note that August turned out to be a month where a tug-of-war continued to play out between those who view strong economic growth as bad for markets because it implies more imminent Fed tapering, and those

August 31, 2013

August 2013: How’d We Do? I N S I D E T H I S I S S U E :

Soos Global Investor Newsletter

“August 2013: How’d We Do” 1-3

“Portfolio Highlights” 3

“Inviting New Investors” 4

“New Blogsite” 4

Publication Highlights 4

Monthly Perf Data 5

Important Disclosure Info 6

See important disclosure information on Page 6.

2 Manhattanville Road, Purchase, NY 10577 Tel: 914-967-9568 Email: investorrelations@soosglobal.com

EDITORIAL NOTE: I asked.   You answered.   I listened. Normally I’m cautious to live by the rule: “Watch what you ask for.  You might get it!” But in this case, I’m glad I asked. In our first ever newsletter in this format, published on July 31, 2013, I asked for feedback on this new mode of communicating.  Valuable input came in across a broad array of areas from editing and formatting to substance and content.  In this version of the newsletter you’ll see some changes in response:  more content on the portfolio moves, more substance on why we took those moves, a brief and concise global macro view summarizing views already expressed in daily and periodic blogposts on our blogsite Soos Global Market Musings, a new section listing articles and blogposts that were recently published, and some updates on Soos Global’s growth and capital raising program. Once again, I hope you find this valuable, and yes, I’m still asking: feedback, please! 

“…the most deleterious impact of tapering tantrums has played out in Emerging Market countries… that face large current account deficits.”

Soos Global Investor NewsletterPage 2

who view tapering as something that will only happen once the economy is strong enough to be self-sustaining, which in turn, would be good for equity markets.

A collection of Fed statements including meeting minutes, speeches and Jackson Hole interviews and presentations did little to settle the conflicting views, despite the fact that the Fed has been remarkably consistent in specifying that tapering will only begin when the economy can handle it. The prevailing strength in that tug-of-war seemingly appears to be with the “tapering is bad” camp. This negative reaction to imminent tapering certainly took its toll on the bond markets as yields ratcheted up further, at one point bringing the US 10yr Treasury yield close to 3%.

As I’ve indicated many times in my daily blog on Soos Global Market

Musings, the most deleterious impact of tapering tantrums has played out in Emerging Market (EM) countries, where capital, that had been there for some time enjoying higher yields on local debt and rallying stock markets, turned tail and headed out of those countries in the face of tapering’s likely impact on raising rates in the US and in other developed nations in Europe.

The EM currency bashing that has taken place in the past month in particular is most notable in India, Indonesia and other similar countries that face large current account deficits. The weakened currencies in such countries have the effect of making it difficult to fund those deficits, and where imports are a major factor, make inflation on imported goods run up pretty quickly. This has forced many of those countries’ central banks to raise rates, a counter cyclical policy

response that while aiming to thwart inflation and capital flight, also has the effect of slowing growth just when those economies are most in need of more stimulus! On my “risk-ometer”, this situation ranks very high! These types of situations have historically been the early warning signs of a currency and/or debt crisis in the making.

Overall, August was a month of heightened geopolitical risks, starting with the closing of 22 US embassies for several days due to intercepted Al Qaeda communications indicating an imminent attack, continuing with the re-set of the ‘cold war button (if not cool, at least!)’ with Russia over the

Ed Snowden affair, and ending with the use of chemical weapons in Syria and, in turn, US plans to strike selected targets in retaliation.

Economically, the month started with the worse-than-expected employment report in the US, followed by other data essentially confirming an ongoing uninspiring pace of growth in the US, along with some concerns that the recent spike in rates could already be negatively impacting the housing recovery.

In Europe, some signs of ‘green shoots’ have emerged, but more in the form of “less bad” rather than a torrent of “genuinely good” data. The Eurozone, however, did emerge from recession in Q2. And in Asia, while

“This has forced many of those countries’ central banks to raise rates; a counter cyclical policy response…On my “risk-ometer”, this situation ranks very high”

Newsletter Title Page 3

From a portfolio positioning point of view, I have been out of direct ownership of Emerging Markets (EM) for some time. I’ve taken “indirect” ownership of EM by buying US based companies with large global businesses. It’s proven to be a safer and more rewarding way to capture growth opportunities in the EM countries without as much exposure to the capital flight predicament that has hurt EM equity and fx markets.

The ‘defensive’ posture that I spoke about last month still exists with cash levels historically high at close to 30%. The remainder of the portfolios in our two strategies is currently in equities, mostly US-based companies with our largest sector weightings in Consumer Discretionary, with names such as Nike (NKE), McDonalds (MCD), Cinemark (CNK) and Ballantyne Strong (BTN), and in Information Technology, with names such as Intel (INTC), Qualcomm (QCOM), EMC (EMC) and Paychex (PAYX). We still remain very light in financials with the exception of Citigroup (C) where we view the global opportunity of the firm under the new management to outweigh the headwinds faced by the sector overall.

Portfolio Highlights Among the biggest positive contributors to performance in August was Yamana Gold (AUY), benefitting from the run up in gold prices in the face of the heightened geopolitical risks around the world.

Qualcomm (QCOM) also contributed nicely on a strong end-of-July earnings report and several industry conferences where the company cited positive outlooks for mobile processor demand.

Dragging on performance were the ‘bond substitute’ type of stocks, those that have particularly high dividends and have been in demand by traditional bond investors as a substitute in the low interest rate environment that has existed for some time. With the ‘tapering’ driven selloff in bonds and the subsequent rise in yields, investors were heavy sellers of the likes of our Utilities ETF (XLU) and our senior-care REITs, Senior Housing (SNH) and Omega Healthcare (OHI), in many cases moving the money back into bonds at now higher yields. This pushed the dividend yield on these holdings to higher levels, and in the context of my overall positive view on their earnings potential, I used some of our cash hoard to add to positions.

Soos Global Investor NewsletterPage 3

“…So overall, a global economic picture that is ‘blah’ at best and facing many headwinds that could turn ‘blah’ into ‘uggh’!”

China continues to battle its housing and shadow banking bubbles, trying to defuse both without systemic catastrophic consequences, many other countries in emerging markets have been plagued with the currency, current account, inflation and growth problems mentioned above.

So overall, a global economic picture that is ‘blah’ at best and

facing many headwinds that could turn ‘blah’ into ‘uggh’! (pardon the editorial license on the use of such technical terms!)

Please see the next section on Portfolio Highlights for how all of this translated into our portfolio positioning. Ed L.

“…The defensive posture that I spoke about last month still exists….Among the biggest positive contributors to performance was Yamana (AUY)….Dragging on performance were “bond substitutes”….One new holding is DaVita HealthCare (DVA)….”

We’re Looking to Grow & We’re Hiring!!! Soos Global is looking to expand! I invite you to consider investing with us!!! Please call me or email me for a detailed conversation on our investment process and suitability requirements.

To help in the growth plan, we’re in the hunt for a senior business development and investor relations

professional who can help market our firm to new investors, raise new assets to manage and play an integral role in the investment process. If you know of any suitable candidates, please refer them to me or have them reach out directly through our website www.soosglobal.com or through LinkedIn.

New Blogsite!!We launched our new blogsite in June and have been using it for daily “Morning Memo”s and more substantive pieces. Please visit, ‘follow by email’’, share with others, and provide us with feedback! www.soosglobal.blogspot.com

“I invite you to consider investing with us….”

One new holding that’s entered the lineup is DaVita HealthCare Partners (DVA). I’ve written about this in my series on investing in “The Obesi-fication of America” (http://bit.ly/138IsnI ) which I’d urge you to read. I initiated a position with 1.5% of the portfolio and would look to add, though watching the sequestration and ongoing budget talks in Washington for clues as to how much impairment to

sales and earnings will ultimately come out of the Medicare cuts being discussed.

I’d be delighted to field questions on any of our holdings and on what’s on our radar screen. Much of that information I post on our Soos Global Market Musings blog, but for more detailed ‘uncut’ information, please feel free to reach out to me directly. Ed L.

“…The Obesi-fication of America…for more detailed uncut information, please reach out…”

Page 4 Soos Global Investor Newsletter

Soos Global Market Musings:

Articles of interest posted in August @ www.soosglobal.blogspot.com

“Morning Memo”: Highlights of economic and market relevant news, posted daily. (http://bit.ly/1eam8id)

“What’s on Our Radar Screen?” August 7, 2013, Charts of stocks and ETFs of particular noteworthiness. (http://bit.ly/1dKVcrA)

“Q2 Earnings-Factoids & Takeaways”, August 19, 2013. Thoughts and insights on Q2 corporate earnings. (http://bit.ly/15v2Env)

“The Obesi-fication of America, Part 1”, August 22, 2013. First in a series on investing in the business of obesity. (http://bit.ly/1fwkqpo)

“The Obesi-fication of America, Part 2-DaVita HealthCare (DVA)-Congress May Not Trim All the Fat”, August 29, 2013, a look at DVA and the state of play in Washington on healthcare cuts. (http://bit.ly/138IsnI)

(Please see important Disclosure information on Page 6. Comments on portfolio holdings are not to be considered personal investment advice and are provided for information and entertainment purposes only).

Soos Global Investor Newsletter: Appendix NOTE: All performance data is on a TWR basis, Gross of Fees and UnAudited. (See important disclosure information related to performance data on next page). CORE Strat Percent Return

Gross of fees Per Period

Time Period

CORE 

Strat 

Portfolios

MSCI All 

Countries 

World

S&P 500 

TR

Barclays 

Agg Bd 

Composite

MSCI 

Emerg 

Mkts

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐

6/14/2010 to 12/31/2012 19.84 21.39 38.21 16.12 13.43

12/31/2012 to 1/31/2013 4.28 4.52 5.18 ‐0.74 1.31

1/31/2013 to 2/28/2013 1.36 ‐0.19 1.36 0.53 ‐1.35

2/28/2013 to 3/31/2013 3.91 1.59 3.75 0.08 ‐1.87

3/31/2013 to 4/30/2013 2.19 2.6 1.93 1.07 0.44

4/30/2013 to 5/31/2013 ‐1.02 ‐0.6 2.34 ‐1.89 ‐2.94

5/31/2013 to 6/30/2013 ‐1.11 ‐3.1 ‐1.34 ‐1.64 ‐6.79

6/30/2013 to 7/31/2013 3.13 4.69 5.09 0.14 0.77

7/31/2013 to 8/31/2013 ‐1.98 ‐2.29 ‐2.9 ‐0.54 ‐1.9

Date to Date

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

12/31/2012 to 8/31/2013 11.07 7.13 16.15 ‐2.98 ‐11.91

Inception to Date

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

6/14/2010 to 8/31/2013 33.11 30.05 60.54 12.67 ‐0.08

Annualized 9.31 8.52 15.87 3.78 ‐0.03 IRA Strat Percent Return

Gross of fees Per Period

Time 

Period

IRA Strat 

Portfolios

MSCI All 

Countries 

World

S&P 500 

TR

Barclays 

Agg Bd 

Composite

MSCI 

Emerg 

Mkts

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐

4/30/2010 to 12/31/2012 19.45 10.54 27.32 17.54 3.45

12/31/2012 to 1/31/2013 3.62 4.52 5.18 ‐0.74 1.31

1/31/2013 to 2/28/2013 0.88 ‐0.19 1.36 0.53 ‐1.35

2/28/2013 to 3/31/2013 3.32 1.59 3.75 0.08 ‐1.87

3/31/2013 to 4/30/2013 1.81 2.6 1.93 1.07 0.44

4/30/2013 to 5/31/2013 ‐1.64 ‐0.6 2.34 ‐1.89 ‐2.94

5/31/2013 to 6/30/2013 ‐1.09 ‐3.1 ‐1.34 ‐1.64 ‐6.79

6/30/2013 to 7/31/2013 1.94 4.69 5.09 0.14 0.77

7/31/2013 to 8/31/2013 ‐1.65 ‐2.29 ‐2.9 ‐0.54 ‐1.9

Date to Date

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

12/31/2012 to 8/31/2013 7.24 7.13 16.15 ‐2.98 ‐11.91

Inception to Date

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

4/30/2010 to 8/31/2013 28.1 18.42 47.88 14.05 ‐8.87

Annualized 7.7 5.2 12.44 4.02 ‐2.75

Page 5

“See important disclosure information related to performance data on next page”

“See important disclosure information related to performance data on next page”

IMPORTANT DISCLOSURE INFORMATION: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this presentation (including the investments and/or investment strategies recommended or undertaken by Soos Global Capital Advisors, LLC), will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this presentation serves as the receipt of, or as a substitute for, personalized investment advice from Soos Global Capital Advisors, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing.

For existing investors, please remember to contact Soos Global Capital Advisors, LLC, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, to modify any reasonable restrictions to our investment advisory services, or if you wish to direct that Soos Global Capital Advisors, LLC to effect any specific transactions for your account.

A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

Page 6

DISCLOSURE INFORMATION RELATED TO PERFORMANCE DATA: All performance numbers for our two main strategies, CORE and IRA, indicated in the charts above and throughout this Newsletter are reported Gross of Fees, on a Time Weighted Return basis and are Unaudited. Each individual investor portfolio may have performance results varying from the results stated for CORE and IRA, earning more or less than those returns due to timing of cash flows, tailor-made portfolio strategies and other factors. Our regular fee structure is a fixed percentage of total Assets Under Management at month end, starting at 1.5% and declining when total AUM reaches higher amounts. Please contact us directly with any questions.

Soos Global Capital Advisors, LLC 2 Manhattanville Road Purchase, NY 10577

Tel: 914-967-9568 Email: investorrelations@soosglobal.com Website: www.soosglobal.com Blog: www.soosglobal.blogspot.com