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Investment Highlights

Shaker has created an outstanding investment track record since inception, October 1, 1991. Some of the highlights include:

• Shaker has outperformed the S&P 500 in seven of the last nine calendar years.
• Since inception, Shaker has outperformed the S&P 500 by 8.6% on an average annual basis.
• Shaker’s annual calendar return since inception has averaged 21.3%.

Shaker’s Investment Philosophy and Process

Shaker analyzes stocks as if it were buying the entire business, with an emphasis on minimizing investment risk. The investment process consists of the following:

• Top Down View
  Shaker analyzes short and long-term macroeconomic conditions to identify industries achieving above average growth rates. This requirement reduces macroeconomic risk.
• Identifying Superior Companies
  Within a given industry, Shaker identifies dominant growth companies whose competitive positions are likely to strengthen further. This minimizes company specific business risk.
• Buying at the Right Price
  Shaker insists on buying stocks at low prices relative to the future earnings growth rate and selling stocks that are overvalued relative to earnings. This minimizes the risk of large stock price declines due to market fluctuations.
• Portfolio Diversification
  Shaker typically holds 35-55 stocks in a portfolio. A typical stock position at cost ranges from 3% to 5% of the total portfolio. This reduces portfolio exposure to individual stock fluctuations.
• Tax Efficiency
  Profits are often either deferred or of a long-term capital nature.