e.b. capital presentation

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Idea Generation Simplified

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An overview of the Power 7 research methodology of E.B. Capital Markets, LLC, an independent equity research firm serving institutional investment managers.

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Page 1: E.B. Capital Presentation

Idea GenerationSimplified

Page 2: E.B. Capital Presentation

Portfolio Manager: Benefits

•Save time: too many stocks too little time…• Beat peer group

• Grow AUM• Improve Win/Loss Ratio

•Increase velocity of turns, avoid dead money• Capture the bulk of a move, early

actionable…

Page 3: E.B. Capital Presentation

Power Seven Model

Born in 2003 and unchanged since, our methodology has been helping some of the largest funds find winners and adjust sector/industry weights early.

1800 stocks screened weekly to make sure you don’t miss emerging trends and potential winners.

Page 4: E.B. Capital Presentation

Flooded Inboxes

Far too many voices competing for manager attention.

Far too little action oriented idea generation.

Bulge bracket research often late to the punch and prone to up and downgrades far after the move has been made.

Page 5: E.B. Capital Presentation

A Better ApproachOne daily email distilling all you need to know about market, sector, industry and stock direction.

An action oriented format allowing you to quickly find new Alpha generating ideas.

Page 6: E.B. Capital Presentation

The Distilling Process

Our Power Seven model cuts across fundamental and technical analysis to find names early in accumulation or distribution.

Simple. Intuitive.

Page 7: E.B. Capital Presentation

Earnings Growth and Beats

Good management understands Wall Street rewards excess.

Since stocks follow earnings over time, those companies with earnings growth and a history of beating Street estimates will benefit from upward revision tailwinds.

Page 8: E.B. Capital Presentation

Insider Buying

The best gauge of management confidence is their willingness to commit at market prices.

We look for key executive insider at-the-market buying activity as proxy for future catalysts.

Page 9: E.B. Capital Presentation

Money Flow

Tracking price and volume over multiple periods provides managers with insight into tipping points.

Our model finds money flow winners by discovering those with both positive short and long term accumulation trends.

Page 10: E.B. Capital Presentation

Short Interest

Too many pessimists offer upside opportunity in strong stocks.

Short sellers with out-sized positions in names with positive earnings growth, EPS beats, money flow and other model components are historically punished and forced to cover.

Page 11: E.B. Capital Presentation

Valuation

The best measure of valuation comes from company specific comparisons rather than broad generalizations.

Our model finds value by identifying strong stocks trading at or near their 5 year PE lows on forward EPS estimates. Since our top scoring stocks are growing EPS and beating consistently, those passing our value screen offer considerable upside leverage.

Page 12: E.B. Capital Presentation

Seasonality

Seasonal spending patterns differ across sectors, industries and stocks, creating inefficiency managers can exploit.

Evaluating seasonal tendencies improves entry and exit points, reducing dead money and protecting returns. It provides granularity into sector and industry over and underweights.

Page 13: E.B. Capital Presentation

Action Oriented Reporting

• Quickly see sector trends by market cap or across the entire universe.

Page 14: E.B. Capital Presentation

Best & Worst Reports

See the strongest and weakest scoring names by market cap, sector, industry or across the entire universe.

Page 15: E.B. Capital Presentation

Industry Intelligence

See the strongest and weakest industries in each sector by market cap or across the entire universe.

Page 16: E.B. Capital Presentation

Quickly See Head and TailwindsRolling 3 month seasonality across 1800 widely traded equities and 25 of the most heavily traded ETFs provides actionable insight into seasonal tendencies. 10 year history by year, with pre calculated average and median returns and standard deviation for convenience.

Page 17: E.B. Capital Presentation

Action Oriented Commentary

• Whether it’s telling you to buy autos and retail in early 2009, financials in 2011 or housing in 2012, our results driven commentary is designed for managers seeking quick, decisive views on markets, sectors, industries and stocks.

Page 18: E.B. Capital Presentation

Contact us at:603.742.7100

Visit us online:www.ebcapitalmarkets.com

Or reach us via email:[email protected]