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Chris Campbell, Partner WhiteStone Global Partners Investment Alpha & Social Alpha simultaneously generating 1

White Stone Psnt Doing Well By Doing Good

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Page 1: White Stone Psnt   Doing Well By Doing Good

Chris Campbell, Partner WhiteStone

G l o b a l P a r t n e r s

Investment Alpha & Social Alpha simultaneously

generating

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Page 2: White Stone Psnt   Doing Well By Doing Good

Representshigh‐performinginvestmentstrategiesfromsociallycompellingfirms.

Promotesskill‐basedengagementsandequalopportuni>esforemerging(bou>que),minority‐owned,woman‐owned,

andsociallyresponsibleinvestmentmanagers.

RecognizesthatOpportunity≠Skill(i.e.virtuemaybeitsownreward,yetreturnspaythebills)

WhiteStone

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Page 3: White Stone Psnt   Doing Well By Doing Good

InvestmentAlpha(α):extraordinaryinvestmentreturns(where“ordinary”returnsarethosethemarketalreadyprovides)

SocialAlpha(α):extraordinarysocialreturns(where“ordinary”isapassive,non‐resistancetosocialprogress)

MakingYourInvestmentsStronger,YourWorldBeOer

InvestmentAlpha+SocialAlpha

DefiningAlpha(α)

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Page 4: White Stone Psnt   Doing Well By Doing Good

WhiteStone’sMandate:Iden:fyandrepresentsociallycompellingfirmswithina

“highalphauniverse”

HighAlpha

Emerging

Woman‐Owned

Minority‐Owned

SociallyResponsible

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Page 5: White Stone Psnt   Doing Well By Doing Good

Skilledsmallerbusinesses,minority/women‐ownedmangerstoooYengounseen,unheard,andun‐hired.

InvestmentperformanceisaNon‐Nego7able

MarketwithaSkill‐FirstFocus(i.e.wedon’tlookfor“sympathyvotes”)

Challenge:theG‐A‐PbetweenSkill…Opportunity

TheLandscapeForHiringEmerging&SociallyCompellingManagers

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Page 6: White Stone Psnt   Doing Well By Doing Good

BigorBou>queManagers?Wherearetheassets?

62%of$

30%of$8%of$

2%MegaManagers

16%Other

82%Bou>queManagers

Evolu:onRevolu:on2008:AProfileoftheInvestmentAdvisorProfession,IAA&NRS,2008

MegaManagers($50Borgreater)• Makeup2%ofPopula>on(82firms)• Controlnearly2/3oftotalassets

Bou7queManagers($2Borless)• 8ofevery10managers• Manage8%oftotalassets

ManagerPopula>on

AUM$

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Page 7: White Stone Psnt   Doing Well By Doing Good

BigorBou>queManagers?Where’stheSkill?

U.S.EquityManagers*AnnualizedPerformance(2000‐2005)

Performance EmergingMgrs MegaMgrs

Percen:le <$2billionAUM >$80billionAUM

5th 15.37% 11.38%

25th 8.51% 6.99%

50th 3.69% 1.54%

75th ‐0.36% ‐2.88%

95th ‐6.5% ‐8.30%

*NTGAResearchStudy:”CanElephantsDance?”,2005.

“Investorswhoinsistononlyhiringlargefirmsprobablyarenotprotec:ngthemselves,andpossiblymissingoutonmostofthebesttalentinthemarketplace.”

‐NorthernTrustGlobalAdvisors*

TheBigQ:Whynothireskill?

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Page 8: White Stone Psnt   Doing Well By Doing Good

Asinvestors,mostofus(ins>tu>onal,individual)investtoeithergroworprotectourmoney.

Skilliswhatgetsthejobdone.

Whiletherearemanyimportantconsidera>onsinhiringaninvestmentmanager,SKILLshouldbeatthetopofthelist.

Summary

Let’skeepitsimple…

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Page 9: White Stone Psnt   Doing Well By Doing Good

Take some action. Contact WhiteStone. Chris Campbell, Partner

937 609 8213 [email protected]

1)Realizeinvestmentskilldoesn’thaveasize/gender/agebias.Someofthemostskilledtalentis“flyingundertheradar”.

2)Confirmskill.Doesthisbou>que/minority/woman–ownedinvestmentmanagergenerateinvestmentalpha?

3)Givethisskillanopportunity,reapthereward,andsendamessage.Engagingahigh‐performinginvestmentstrategyfromasociallycompellingfirmsimultaneouslygeneratesinvestmentalphaandsocialalpha.

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