PORTFOLIO MANAGEMENT

Nov 4rd Nov 29th

Europe Va lue Inve stment Strategy
Value EMSV.DE 105%

Euro Value rises as benchmark lags behind

During November, our new European value portfolio outperformed its benchmark, yielding a risk-adjusted return almost 3 times higher than those of the latter. ACE Limited (ACE) yielded a positive return of 5.1%, since the board of directors announced it will propose a 24% increase in quarterly dividend at the next extraordinary general meeting. Total SA (TOT) returned 0% during this month. The stock was acquired, after the previous position on BP was closed, as the British company was accused of being part of an oil price manipulation scheme. On Nov. 23 US and other five world powers reached an agreement with Iran to temporarily freeze its nuclear program, putting a downward pressure on oils price and consequently on the one of Totals shares. StealthGas, Inc. (GASS) recorded a monthly return of 6.23%, despite announcing that Q3 earnings per share decreased by almost 60% (YoY). Additionally, XL Group plc (XL) registered a 5.5% return, due to its significant correlation with the market (1.85) beta. Lastly, AerCap Holdings N.V. (AER) also posted a positive return this month (3.8%), as commercial aviation demand continue to grow quite steadily.

101%

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Asset Contr ibution to Europe Va lue

TOT

XL
GASS AER ACE 0.00% 1.00% 2.00% 3.00% 4.00% 5.00%

Iberia Value Invest ment St rategy

Iberia Value 101%

29-nov

Iberia Value is hit by Spanish Assets

In its first month of existence, our Iberia Value Portfolio yielded a negative return of almost 3%, while our benchmark, which is a weighted average of PSI 20 and IBEX on a 1 to 4 ratio, recorded a monthly return of 0.85%. Additionally, the daily volatility of the former was higher than the one of the latter by approximately 0,27 pp. Portucel (PTI.LS) was the company that performed better, rising 2.8%, after it announced a 120M investment, for the requalification of its factory in Cacia. On the other hand, Obrascon (OHL.MC) fell 4.98%, as it was announced that its profits decreased 19.8% between January and September. Moreover, Amnesty International said that some of Qatars maltreated workers were employed by subcontractors, who worked for the company. Portugal Telecom (PTC.LS) dropped 0.6%, after its Q3 results showed 66.4% decrease of the companys net profit between July and September. Iberdrola (IBE.MC) recorded 0.43% return, as the company created a holding for its U.S. businesses. Lastly, MAPFRE (MAP.MC) registered a negative 0.7% return.

97%

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Asset Contr ibution to Ibe ria Value

PTI.LS PTC.LS OHL.MC IBE.MC MAP.MC -3.5% -2.5% -1.5% -0.5% 0.5%

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29-nov

Asia Va lue Inve stment Strategy

MSI Asia VW Value

Asia Value slightly outperforms benchmark

During the last month, our new Asian value portfolio recorded a small gain of 0.41%, while the benchmark remained flat during this period. Moreover, the daily volatilities were 1.35% and 0.49%, respectively.
100%

100%

The positive performance of our portfolio was mainly driven by Sumitomo Mitsui Financial group, Inc. (SMFG), which registered a 3.84% return. The company reported first-half earnings of JPY 508 billion, a record high for any previous six-month period. On the other hand, SORL Auto Parts Inc. (SORL registered a negative return of 13.45%, despite recording a new Q3 sales record high. Although Nippon Telegraph and Telephone Corporation (NTT), KB Financial Group Inc. (KB), Sutor Technology Group Limited (SUTR) reported Q3 earnings growth (YoY), they suffered similar fates, recording negative returns of 2.17%, 3.54% and 8.91%, respectively.

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Asset Contr ibution to As ia Va lue

SUTR SORL SMFG NTT KB

29-nov

After a decade, emerging markets flop

On the first 11 months of the year, dollar bonds in Asia have returned 0.03% compared with 14% during the same period of 2012, showing a slowdown on EM. Nonetheless, during the month of November, our new Emerging Markets (EM) USD bond portfolio outperformed the J.P. Morgan USD EM Bond Index, with a 1.50% return against a 2.25% negative one of the latter. The positive performance of our portfolio was mainly due to our long position on Chinese bonds, as well as to our short position in U.S. ones, with Vietnam yielding the worst contribution. China continued with good prospects as its manufacturing index and balance of trade beat estimates in November. Moreover, Chinas foreignexchange reserves surged $166 billion in the third quarter to a record $3.66 trillion, an amount bigger than the GDP of Germany, Europes largest economy. Long term treasury bonds continue with a negative return posting around 0.5% losses in November as fears surrounding Feds next policy move hurt bond prices. The 10y U.S. Treasury yields rose 20 bp to 2.74% over the month, after the Fed suggested that it could begin to scale back quantitative easing in the next few months. Regarding Vietnam, despite considering that its macroeconomic stability continues to improve, World Bank stated that several risks remain, such as fragile private sector demand, slow progress on structural reforms, loss of confidence in a fragile banking sector, possibility of departure from fiscal and monetary discipline and low foreign exchange reserves.

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Eme rging Ma rket s Bond Invest ment St rateg y

2% 1% 0% -1% -2% -3% JPM Emerging Markets Bond FFC Emerging Markets Bond

Asset Contr ibution to Eme rging Ma rket s Bo nd

U.S. China

Vietnam
Poland Indonesia Turkey Peru Brazil -0.30% 0.20% 0.70% 1.20%

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U.S. Value Investment Strategy

Value S&P 500 128%

U.S. Value ends slightly below market

Our North American value portfolio unperformed S&P 500, during November, with the former increasing 1.5% while the market gained 2.5%. Moreover, daily volatilities were 1.32% and 0.55%, respectively. Tutor Perini Corporation (TPC), the stock with the highest weight in our portfolio, yielded a positive return of 7.79% over the past month. The leading civil and building construction company, started the month falling approximately 6% until Nov 12 since it reported a 9% year-on-year decline in Q3 adjusted on Nov 4. The fast growth of the portfolio value since Nov 13 resulted from the announcement that a Tutor Perini Corporation subsidiary, Roy Anderson Corp., had been awarded a contract by HRI Properties for constructing of the 225 Baronne Mixed-Use Development Project, including luxury apartments and a hotel in New Orleans, Louisiana, with a value of $61.3 million. NetSol Technologies, Inc. (NTWK) dropped 34.75% during the month, due to the announcement of weak last quarters results. Superior Energy Services, Inc (SPN) fell 5.87%, after the Venezuelan government seized two hydraulic snubbing units from one of its facilities. Lastly, Citigroup, Inc (C) and Blackstone Mortgage Trust, Inc (BXMT) increased 8.58% and 5.04%, respectively. Both stocks benefited from the recovery of US economy, as the financial sector is still the prime beneficiary of ultra-low interest rates.

125%

NTWK -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0%

29-Nov 18-Dec 04-Jan 23-Jan 11-Feb 28-Feb 19-Mar 05-Apr 24-Apr 13-May 30-May 19-Jun 5-Jul 24-Jul 12-Aug 29-Aug 17-Sep 04-Oct 23-Oct 11-Nov 28-Nov

Asset Contr ibution to U.S . Value

BXMT C SPN TPC

U.S. Mo mentum Invest ment St rategy

S&P 500 Momentum 103%

103%

McKesson gives U.S. Momentum a lift

November saw our momentum portfolio start and rise with a return of 3.36%, slightly above the one of the benchmark. Nevertheless, the formers daily volatility was 0.79%, above the 0.55% of the market. McKesson (MCK) underlay this performance almost by itself, registering a 4.17% monthly return. After Nov. 21, the company yielded a 4.3% return, just in three consecutive trading sessions, after Deutsche Banks analyst, George Hill, initiated coverage on some firms in the health-care information technology and pharmaceutical distribution sectors, many of which he rated as buy. Although McKesson is a player on the former sector, the largest proportion of its revenue comes from the latter.

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Asset Contr ibution to U.S . Mo mentum

MCK
HAR XYL CMG APOL -0.5% 0.5% 1.5% 2.5% 3.5%

Ana Reis

David Novo

Jos Silva

Nuno Santos

29-nov

Pedro Santos

Phil Rose

Pratik Ashok

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