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return true;" onMouseOut="changeImages('sn_about', sn_about_over ,'button_inside', button_inside_over , 'sn_mission', sn_mission_out ); return true;"><IMG height=14 alt="Technology" src="images/sn_mission.gif" width=105 border=0 name=sn_mission></a><A onmouseover="changeImages('sn_about', sn_about_out ,'button_inside', button_inside_over, 'sn_our_people', sn_our_people_over ); return true;" onmouseout="changeImages('sn_about', sn_about_over ,'button_inside', button_inside_over, 'sn_our_people', sn_our_people_out ); return true;" href="people.html"><IMG height=14 alt="Our People" src="images/sn_our_people.gif" width=104 border=0 name=sn_our_people></A><IMG height=14 alt="" src="inside_files/sn_spacer_right.jpg" width=25></TD> </TR> <TR> <TD height="28" colspan="8" class="paragraphpadding"><font color="#336666"><b><font size=+1><strong> About SCA</strong></font></b><br> </font></TD> </TR> <TR> <TD colspan="8" class="paragraphpadding"><font size="-1" face="Times New Roman,Georgia,Times"><br>Founded in 2000, Strategic Capital Allocation Group, LLC (SCA) is an investment strategy firm catering to some of the most influential institutions, endowments, foundations, corporations, public pension funds and ultra high net-worth individuals in the world. SCA s investment philosophy has fundamental macroeconomic underpinnings combined with patented, state-of-the-art analytical processes. The investment discipline seeks to capture the optionality offered by asset classes and strategies that are poised to offer attractive, uncorrelated risk/return potential. SCA strives to deliver absolute-return oriented strategies through client-driven policy formation and customized, dynamic portfolio allocations that seek to attenuate downside risk.</font><font size="-1" face="Times New Roman,Georgia,Times"> </font> <p><font size="-1" face="Times New Roman,Georgia,Times" color="#336666"><b>SCA attributes its success to four principal components:</font></b><br></p> <ul> <li type=square><font color="#006666" size="-1" face="Times New Roman,Georgia,Times"><a href="#Clients">Dedication to our Clients</a><br> </font> <li type=square><font color="#006666" size="-1" face="Times New Roman,Georgia,Times"><a href="#Macro">Macroeconomic Perspectives and Fundamental Views</a><br> </font> <li type=square><font color="#006666" size="-1" face="Times New Roman,Georgia,Times"><a href="#Tech">Technological Advantage</a><br> </font> <li type=square><font color="#006666" size="-1" face="Times New Roman,Georgia,Times"><a href="#Network">Established Network and Forensic Due Diligence</a> </font> <!-- <li type=square><a href="#uncertainty"><font color="#006666" size="-1" face="Times New Roman,Georgia,Times">Managing Uncertainty to Absolute, Reliable Advantage</font></a> <li type=square><font color="#006666" size="-1" face="Times New Roman,Georgia,Times"><a href="#flexibility">Managerial Flexibility</a></font> <li type=square><font color="#006666" size="-1" face="Times New Roman,Georgia,Times"><a href="#duediligence">Ongoing, On-site, Worldwide, Manager Due Diligence</a><br> </font> --> </ul> <hr /> <p><font size="-1" face="Times New Roman,Georgia,Times" color="#336666"><a name="Clients"></a></font><font face="Times New Roman,Georgia,Times" color="#336666"><b>Dedication to our Clients</b></font></p> <p><font size="-1" face="Times New Roman,Georgia,Times">At SCA, we put a constant effort in the creation and nurturing of a close relationship with our clients. We believe that transparent communication and constant education are paramount to a successful collaboration. It is our constant dedication to understand client needs and respond to them in the form of a customized solution that drives our success. Beyond their investment experience with us, our clients trust in SCA is the best testament of our commitment to them.</font> <br> <hr /> <p><font size="-1" face="Times New Roman,Georgia,Times" color="#336666"><a name="Macro"></a></font><font face="Times New Roman,Georgia,Times" color="#336666"><b>Macroeconomic Perspectives and Fundamental Views</b></font></p> <p><font size="-1" face="Times New Roman,Georgia,Times">SCA leverages its expertise across asset classes and non-traditional strategies, as well as conviction in our macroeconomic views to identify and exploit investment opportunities in global markets. SCA s strategic perspectives distill from macroeconomic themes and associated inflection points and tactical drivers.</font> <br> <hr /> <p><font size="-1" face="Times New Roman,Georgia,Times" color="#336666"><a name="Tech"></a></font><font face="Times New Roman,Georgia,Times" color="#336666"><b>Technological Advantage</b></font></p> <p><font size="-1" face="Times New Roman,Georgia,Times">For the last decade, SCA's fundamental expertise has been leveraged with Quatrain, SCA s proprietary, dynamic portfolio allocation and risk management platform. Since 1Q 2010, SCA has begun licensing this proprietary portfolio management platform to financial institutions including endowments, pensions, multi-strategy hedge funds and fund of funds, corporations and private wealth management entities. Quatrain is a comprehensive portfolio management solution offering a proprietary framework that goes beyond traditional asset allocation techniques. It offers a centralized platform and proprietary algorithms for dynamic portfolio allocation and risk management, customized to specific investor risk preferences and time horizons. </font></p> <p><font size="-1" face="Times New Roman,Georgia,Times">The Quatrain platform continues to evolve constantly, but its core portfolio optimization algorithms have been used by SCA since its inception in 2000 and have allowed SCA clients to enjoy meaningful upside capture with effective downside protection over the last decade.</font></p> <hr/> <p><font size="-1" face="Times New Roman,Georgia,Times" color="#336666"><a name="Network"></a></font><font face="Times New Roman,Georgia,Times" color="#336666"><b>Established Network and Forensic Due Diligence</b></font></p> <p><font size="-1" face="Times New Roman,Georgia,Times">SCA is constantly looking for new investments, asset classes and managers that best fit our clients goals and expectations given our short, medium and long term views on macroeconomic trends.</font></p> <p><font size="-1" face="Times New Roman,Georgia,Times">Over the years, SCA has established a broad network of some of the best asset managers in the hedge fund industry and can offer its clients access to strategies that might otherwise be inaccessible to them.</font></p> <br/> <!-- </font><font size="-1" face="Times New Roman,Georgia,Times" color="#333333">With proven experience and unparalleled judgment, SCA consistently delivers </font><font size="-1" color="#333333">on these instincts.</font></p> <hr> <p><font size="-1" face="Times New Roman,Georgia,Times" color="#336666"><a name="sym_edu_and_com"></a></font><font face="Times New Roman,Georgia,Times" color="#336666"><b>Symbiotic Education and Communication</b><br> </font></p> <p><font size="-1" face="Times New Roman,Georgia,Times">Creating a unified and equal leadership between the</font><font color="#336666" size="-1" face="Times New Roman,Georgia,Times"> </font><font color="#006666" size="-1" face="Times New Roman,Georgia,Times">client and the advisory team</font><font size="-1" face="Times New Roman,Georgia,Times"> radically minimizes miscommunication. Potential, unnecessary convolutions of both the structure and operation of the portfolio are minimized. SCA employs shuttle diplomacy to unify consensus thinking among the various components of the client-advisory team. SCA strives to eliminate esoteric jargon while clarifying often complex entities such as &quot;Traditional Money Managers&quot;, &quot;Private Equity&quot;, &quot;Legal Advisors&quot;, &quot;Hedge Funds&quot;, &quot;Tax Structure &amp; Implication Advisors&quot;, &quot;Trading &amp; Execution&quot;, &quot;Custody &amp; Maintenance&quot; and, most importantly, both SCA and the client's relationship to all of the above.<br> </font></p> <p><font size="-1" face="Times New Roman,Georgia,Times">We assure full comprehension and sustain successful implementation through ongoing, interactive, one-on-one meetings. Client education is a constant discipline - not a one-time event. Equally important is SCA's own education, as part of an advisory team able to sustain client satisfaction by remaining fully informed. This perpetual and symbiotic education culminates in a more cohesive, </font><font size="-1" face="Times New Roman,Georgia,Times" color="#336666">client-driven investment strategy</font><font color="#006666" size="-1" face="Times New Roman,Georgia,Times">, </font><font size="-1" face="Times New Roman,Georgia,Times">and the client's confidence in the investment process as a whole.<br> </font></p> <hr> <p><font size="-1" face="Times New Roman,Georgia,Times" color="#336666"><a name="cli_technology"></a></font><font face="Times New Roman,Georgia,Times" color="#336666"><b>Patent-Pending, State-of-the-Art, Client-Driven Technology</b></font></p> <p><font face="Times New Roman,Georgia,Times" size="-1">SCA has developed proprietary tools </font><font size="-1" face="Times New Roman,Georgia,Times">delivering bottom-line impact :</font></p> <blockquote> <p><font color="teal" size="-1" face="Times New Roman,Georgia,Times"><a href="tech.html#rde">SCN Reliability Decision Engine</a></font><font face="Times New Roman,Georgia,Times" color="#336666" size="-2"><sup>TM</sup></font><font size="-1" face="Times New Roman,Georgia,Times"><br> </font><font color="teal" size="-1" face="Times New Roman,Georgia,Times"><a href="tech.html#profiler">SCN Dynamic Manager ProFiler</a></font><font face="Times New Roman,Georgia,Times" color="#336666" size="-2"><sup>TM</sup></font><font color="teal" size="-1" face="Times New Roman,Georgia,Times"><br> <a href="tech.html">SCN Performance Evaluation System</a> </font><font face="Times New Roman,Georgia,Times" color="#336666" size="-2"><sup>TM</sup></font></p> </blockquote> <p><font size="-1" face="Times New Roman,Georgia,Times"><br> </font><font color=teal size="-1" face="Times New Roman,Georgia,Times"><a href="tech.html#rde">Strategic Capital Network Reliability Decision Engine</a></font><font face="Times New Roman,Georgia,Times" color="#336666" size="-2"><sup>TM</sup></font><font color="#336666" size="-1" face="Times New Roman,Georgia,Times"><br> </font><font size="-1" face="Times New Roman,Georgia,Times">SCN's patent-pending innovations have unleashed the power of </font><font color="teal" size="-1" face="Times New Roman,Georgia,Times"><a href="tech.html#real-options">Real Options</a></font><font size="-1" face="Times New Roman,Georgia,Times"> as a portfolio asset/liability allocation tool. With our SCN Reliability Engine we:</font></p> <ul> <li type=square><font size="-1" face="Times New Roman,Georgia,Times">Provide a technique for optimizing (both linearly and non-linearly) a portfolio of asset/liability real options over a period of time</font> <li type=square><font size="-1" face="Times New Roman,Georgia,Times">Quantify and capture the effects of diversification through the notion of </font><font color="teal" size="-1" face="Times New Roman,Georgia,Times"><a href="tech.html#reliability">Reliability</a></font><font size="-1" face="Times New Roman,Georgia,Times">.<br> </font> </ul> <p><font size="-1" face="Times New Roman,Georgia,Times" color="#336666">In other words, we can optimize an asset/liability allocation that meets a minimum reliability for the return on the portfolio with regard to the aggregate uncertainty faced by the portfolio</font><font color=teal size="-1" face="Times New Roman,Georgia,Times">.</font><font size="-1" face="Times New Roman,Georgia,Times"><br> </font></p> <p><font size="-1" face="Times New Roman,Georgia,Times"><br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<img src="images/AC_RDE_Reliability.gif" width="500" height="248" border="0"></font><font size="-1" face="Times New Roman,Georgia,Times"><br> <br> </font><font color="teal" size="-1" face="Times New Roman,Georgia,Times"><a href="tech.html#profiler">SCN Dynamic Manager ProFiler</a></font><font face="Times New Roman,Georgia,Times" color="#336666" size="-2"><sup>TM<br> <br> </sup></font><font size="-1" face="Times New Roman,Georgia,Times">In addition, our SCN Dynamic Manager ProFiler</font><font size="-1" face="Times New Roman,Georgia,Times"> facilitates the selection of portfolio managers to ensure compatible diversification of uncorrelated risk. The system utilizes a two-stage process: </font><font color="teal" size="-1" face="Times New Roman,Georgia,Times"><a href="tech.html#screening">Screening</a></font><font size="-1" face="Times New Roman,Georgia,Times"> and </font><font color="teal" size="-1" face="Times New Roman,Georgia,Times"><a href="tech.html#fitting">Fitting</a></font><font size="-1" face="Times New Roman,Georgia,Times">. This process enables effective assessment of managers via comparative statistical tools.<br> </font></p> <p><font color="teal" size="-1" face="Times New Roman,Georgia,Times"><a href="tech.html#screening">Screening</a></font><font color="#336666" size="-1" face="Times New Roman,Georgia,Times"><br> </font><font size="-1" face="Times New Roman,Georgia,Times">Analysis of long-term performance and short-term resilience in the face of convulsive market shocks.<br> </font></p> <p><font color="teal" size="-1" face="Times New Roman,Georgia,Times"><a href="tech.html#fitting">Fitting</a></font><font color="#336666" size="-1" face="Times New Roman,Georgia,Times"><br> </font><font size="-1" face="Times New Roman,Georgia,Times">Assessment of Portfolio </font><font size="-1" face="Times New Roman,Georgia,Times" color="#336666"><a href="#diversification">Diversification</a></font><font size="-1" face="Times New Roman,Georgia,Times"> and </font><font size="-1" face="Times New Roman,Georgia,Times" color="#336666"><a href="#blendanxiety">Blend Anxiety</a></font><font face="Times New Roman,Georgia,Times" size="-2" color="#333333"><sup>TM </sup></font><font size="-1" face="Times New Roman,Georgia,Times">in a potential manager mix.<br> </font></p> <font size="-1" face="Times New Roman,Georgia,Times"><br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<img src="images/Profiler.gif" width="500" height="114" border="0" alt="ProFiler"><br> </font> <hr> <p><font face="Times New Roman,Georgia,Times"><a name="uncertainty"></a></font><font face="Times New Roman,Georgia,Times" color="#336666"><b>Managing Uncertainty to Absolute, Reliable Advantage</b></font></p> <p><font size="-1" face="Times New Roman,Georgia,Times">SCA firmly believes that diversification begets stability by greatly minimizing volatility. We seek to create a "Best Fit" portfolio, which we define as having maximum diversification benefits and minimum anxiety.<br> </font></p> <p><a name="blendanxiety"></a><font size="-1" face="Times New Roman,Georgia,Times" color="#336666"><b>Blend Anxiety</b></font><font face="Times New Roman,Georgia,Times" color="#336666" size="-2"><sup>TM</sup></font><font size="-1" face="Times New Roman,Georgia,Times"> is our term for covariance; it measures the tendency of two managers or asset classes to vary together to the disadvantage of the portfolio. <a name="diversification"></a></font><font size="-1" face="Times New Roman,Georgia,Times" color="#336666"><b>Diversification</b></font><font size="-1" face="Times New Roman,Georgia,Times">, in contrast, is the correlation coeffecient; this measures the degree to which two managers are linearly related. Two managers, each with a high level of volatility, might surprisingly produce a low and desirable covariance, or, rather, a low level of Blend </font><font size="-1" face="Times New Roman,Georgia,Times" color="#333333">Anxiety</font><font face="Times New Roman,Georgia,Times" size="-2" color="#333333"><sup>TM</sup></font><font size="-1" face="Times New Roman,Georgia,Times"> due to the fact that they are diverse enough in their historical patterns to create a balance within a given portfolio. The </font><font color="teal" size="-1" face="Times New Roman,Georgia,Times"><a href="tech.html">Technology</a></font><font size="-1" face="Times New Roman,Georgia,Times"> section of the site will illustrate this more thoroughly.<br> </font><font size="-1" face="Times New Roman,Georgia,Times"><br> </font><font size="-1" face="Times New Roman,Georgia,Times" color="#336666"><b>The Value Added of Asset Class Diversification and Manager Selection<br> <br> </b></font><font size="-1" face="Times New Roman,Georgia,Times">The greater the diversification among asset classes, the greater the likelihood of a positive, absolute return, with minimum risk.<br> <br> </font><font size="-1" face="Times New Roman,Georgia,Times" color="#333333">Here is an illustration comparing the </font><font size="-1" face="Times New Roman,Georgia,Times">traditional</font><font size="-1" face="Times New Roman,Georgia,Times" color="#333333"> 60% Equities / 40% Bonds allocation versus the typical SCA allocation suggested by SCA</font><font size="-1" face="Times New Roman,Georgia,Times" color="#336666"><br> <b><br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></font><font size="-1" face="Times New Roman,Georgia,Times">&nbsp;<img src="images/OldNewAllocation.gif" width="500" height="839" border="0"><br> <br> The targeted risk-return characteristics of the typical SCA allocation are far superior to the traditional 60/40 mix.</font></p> <p><font size="-1" face="Times New Roman,Georgia,Times" color="#336666"><b><br> </b><b>SCA insists upon not only positive absolute returns, but consistent, positive absolute returns.</b><b><br> </b></font><font size="-1" face="Times New Roman,Georgia,Times"><br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<img src="images/PortfolioAB.gif" width="500" height="210" border="0" alt="Diversification"><br> <br> </font><font size="-1" face="Times New Roman,Georgia,Times" color="#336666"><b>The Risk-Attenuated Portfolio A has more stable future cash flow which would allow a broader range of future growth options, hence greater portfolio reliability in achieving future goals</b></font><font size="-1" face="Times New Roman,Georgia,Times">.</font><br> <br> <font size="-1" face="Times New Roman,Georgia,Times">In other words, SCA, through broad diversification, selects managers in asset classes that demonstrate a propensity to </font><font size="-1" face="Times New Roman,Georgia,Times" color="#336666">Manage Uncertainty to Absolute, Reliable Advantage.<br> </font></p> <p><font size="-1" face="Times New Roman,Georgia,Times" color="#336666">The bottom line:<b><br> </b><b>To preserve bull market success through bear market challenges, and reinforce portfolio reliability.</b></font><font size="-1" face="Times New Roman,Georgia,Times"><br> </font></p> <hr> <p><font face="Times New Roman,Georgia,Times" color="#336666"><a name="flexibility"></a><b>Managerial Flexibility</b><br> </font></p> <p><font size="-1" face="Times New Roman,Georgia,Times">SCA empowers its clients through the managerial flexibility of </font><font color="teal" size="-1" face="Times New Roman,Georgia,Times"><a href="tech.html#real-options">Real Options</a></font><font size="-1" face="Times New Roman,Georgia,Times"> and the rigorous portfolio discipline of </font><font color="teal" size="-1" face="Times New Roman,Georgia,Times"><a href="tech.html#reliability">Reliability</a></font><font size="-1" face="Times New Roman,Georgia,Times"> Analysis. We capture the advantage by embracing - not fearing - both </font><font size="-1" face="Times New Roman,Georgia,Times" color="#336666">Uncertainty</font><font size="-1" face="Times New Roman,Georgia,Times"> and </font><font size="-1" face="Times New Roman,Georgia,Times" color="#336666">Time</font><font size="-1" face="Times New Roman,Georgia,Times">.<br> </font></p> <p><font size="-1" face="Times New Roman,Georgia,Times">Options equal power. They have intrinsic value because they can reduce risk. The closer we come to a specific future event the more we know about our actions' potential risks and returns. There is an advantage to uncertainty: if we don't know what will happen in the impending future, then isn't it just as valid to assume that there is a wealth of potential of which we can be poised to take advantage, as it is to fear that which we cannot predict?<br> </font></p> <p><font size="-1" face="Times New Roman,Georgia,Times">Why not proactively empower </font><font size="-1" face="Times New Roman,Georgia,Times" color="#336666">management flexibility</font><font size="-1" face="Times New Roman,Georgia,Times"> by recognizing the value of learning:<br> </font></p> <div align="left"> <blockquote> <blockquote> <p><font size="-1" face="Times New Roman,Georgia,Times" color="#336666">- Maximize Opportunity<br> - Minimize Obligation<br> </font></p> </blockquote> </blockquote> </div> <p><font color="#333333" size="-1" face="Times New Roman,Georgia,Times"><br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<img src="images/RealOptionsFlex.gif" width="500" height="314" border="0"></font></p> <p><font color="#333333" size="-1" face="Times New Roman,Georgia,Times"><br> In other words, shift our outlook:<br> </font></p> <blockquote> <p><font face="Times New Roman,Georgia,Times" color="#336666" size="-1"><b>From&nbsp;: &quot;Fear of uncertainty/minimize investment&quot;<br> To&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;: &quot;Seek gains from uncertainty/maximize learning&quot; <sup><a href="../references.html#mckinsey-quarterly">1</a></sup><br> </b></font></p> </blockquote> <p><font size="-1" face="Times New Roman,Georgia,Times">We can think of reliability-driven </font><font size="-1" face="Times New Roman,Georgia,Times" color="#336666"><a href="tech.html#real-options">Real Options</a></font><font size="-1" face="Times New Roman,Georgia,Times"> valuation as flexibility to impact positively the investment outcome through effective risk management:<br> </font></p> <hr> <p><font face="Times New Roman,Georgia,Times" color="#336666"><a name="duediligence"></a><b>Ongoing, on-site, Global Due Diligence<br> </b></font></p> <p><font size="-1" face="Times New Roman,Georgia,Times">Data for the SCN Dynamic Manager </font><font size="-1" face="Times New Roman,Georgia,Times" color="#333333">ProFiler</font><font face="Times New Roman,Georgia,Times" size="-2" color="#333333"><sup>TM</sup></font><font size="-1" face="Times New Roman,Georgia,Times"> is continuously updated for accuracy and timeliness via ongoing, on-site, global, manager due diligence. SCA holds that we are represented by the quality, integrity and reliability of every manager to whom we suggest a client allocate its assets. While there are no perfect tools available to protect against consummate illusionists, it is imperative that every manager be reevaluated as often as necessary, on-site, to assure the reliability and potential for each and every portfolio.</font></p> <hr> </TD> --> </TR> <TR bgcolor="#336666"> <td colspan="9" bgcolor="#336666"><font face="Times New Roman,Georgia,Times">&nbsp;</font><font size="-1" color="white" face="Times New Roman,Georgia,Times">© 2011 Strategic Capital Allocation Group <tr bgcolor="#b0b0b0"> <td colspan="9" bgcolor="#b0b0b0"><font face="Times New Roman,Georgia,Times">&nbsp;</font><font size="-1" color="white" face="Times New Roman,Georgia,Times"><a href="../disclaimers.html">Disclaimers</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="../privacy.html">Privacy</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="../terms.html">Terms of Use</a></font></td> </tr> </TBODY> </TABLE> <!-- End ImageReady Slices --> </BODY> </HTML>