April 1, 2015

Dear Friends,
The first quarter of 2015 was a difficult period for investors with concentrated positions in
companies dependent upon export sales. The increase in the value of the dollar which took place
over the past several months made it more expensive for foreigners to buy American made
products. Companies dependent upon foreign sales therefore saw their revenue growth slow
and their profits and stock prices fall below expected targets.
The S&P index of 500 large cap companies, which includes many of these larger companies,
ended the quarter at approximately the same level it was at the start of the year. In contrast, the
stock prices of many small and midsized companies which are not as dependent upon revenue
from overseas customers rose by 5 percent or more since the start of the year.
The most recent macro-economic data on the performance of the economy show that overall
economic conditions continue to improve. The level of employment is steadily rising, housing
prices are reaching new highs, and automobile sales are strong. Interest rates are low, and could
continue at or near their low current levels through the end of the year.
Given the economic tension that now exists in the Middle East, Europe, and South America, the
differences in the stock price movements between large and smaller cap companies could
continue for some time. In addition, the current dividend yield of large companies is in the low
1 percent range. In contrast, the yield on our smaller and midcap Equity Income securities is in
the 4 to 5 percent range. If investors begin to value the current income of high dividend paying
stocks more than they do the variable but uncertain returns arising from capital appreciation, the
stock prices of the smaller and midcap companies could continue to appreciate more rapidly.
In addition to these developments which impact the total returns of your portfolio, a number of
mergers and acquisitions between larger and mid-cap or small companies are now taking place.
Two such proposed mergers were just recently announced. The first was between two food
companies, Kraft and Heinz, and the second between two health care companies, United Health
and Catamaran. We expect such mergers and acquisitions to become even more commonplace
in the near future.
Please call us for an appointment if you like an in depth personal review of your portfolio. The
purpose of such a review would be to see how we can better help you meet your wealth and
income needs, both now and in the future.

Sincerely,

Eugene Lerner
Managing Director, Partner

The Lerner Group is a group of investment professionals registered with HighTower Securities, LLC, member FINRA, MSRB and SIPC, and with HighTower
Advisors, LLC, a registered investment advisor with the SEC. Securities are offered through HighTower Securities, LLC; advisory services are offered through
HighTower Advisors, LLC.
This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment
opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The
investment opportunities referenced herein may not be suitable for all investors.
All data and information reference herein are from sources believed to be reliable. Any opinions, news, research, analyses, prices, or other information
contained in this research is provided as general market commentary, it does not constitute investment advice. The Lerner Group and HighTower shall not
in any way be liable for claims, and make no expressed or implied representations or warranties as to the accuracy or completeness of the data and other
information, or for statements or errors contained in or omissions from the obtained data and information referenced herein. The data and information are
provided as of the date referenced. Such data and information are subject to change without notice.
This document was created for informational purposes only; the opinions expressed are solely those of The Lerner Group and do not represent those of
HighTower Advisors, LLC, or any of its affiliates.