Multi-Cap Equity
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Akros Multi-Cap Equity Portfolio Investment Process Security selection is achieved by evaluating a universe of over 4,400 equities using value-oriented criteria based on strong fundamental research. The model utilizes factors such as return on equity (ROE), price/earnings ratio (P/E), price/value ratio (PVA), price/sales ratio (PSA) and price momentum to assign a proprietary ranking to each security. Quality ratings and projected cash-flow streams are used to calculate the intrinsic value of each stock. This calculation embodies our investment philosophy that a stock's share price will, over time, reflect the present value of its future dividends and earnings. The net result of our process is a portfolio focused on high-quality companies that are diversified across several sectors. The portfolio is generally composed of 15 to 35 mid-to large-cap stocks (stocks with a market capitalization over $3 billion) and 5 to 15 small-cap stocks (stocks with a market capitalization between $150 million and $3 billion). The portfolio is reviewed on an ongoing basis, with rebalancing occurring periodically for mid-to large-cap stocks and annually for small-cap stocks. Rebalancing may deviate from the quantitative model due to factors such as the attempt to limit transaction costs and to manage for tax efficiency, which may differ by client. Deviations from the quantitative model may also occur as the portfolio manager reviews each stock for fundamental and technical considerations prior to purchase or sale. From time to time, the portfolio manager may, on a discretionary basis, make adjustments to the portfolio as risk- control measures. For example, a stock is often sold if it reaches its price target, if its price/value ratio nears 1.0 or if the company is subject to a buyout. The proceeds from these sales may be held in cash until the next rebalancing, or may be reinvested in more attractively priced stocks. The portfolio manager may also attempt to take advantage of market conditions or tax considerations by accelerating or delaying stock transactions. These adjustments may result in variations in the rebalancing methodology, and performance will differ accordingly. In addition, these adjustments may cause the number of stocks in the portfolio to vary over time. The quantitative portfolio-management model may be enhanced based on ongoing research. And the number of stocks held by the portfolio may change due to these enhancements or due to market conditions. Net Investment Returns as of September 30, 2009 Performance is unaudited. Performance reflects the reinvestment of dividends and other earnings, and the deduction of portfolio fees and expenses. Performance includes reinvestment of dividends for the S&P 1500. Past performance is no guarantee of future results. Net Investment Returns Performance is unaudited. Performance reflects the reinvestment of dividends and other earnings, and the deduction of portfolio fees and expenses. Performance includes reinvestment of dividends for the S&P 1500. Past performance is no guarantee of future results. Sector Allocations Sector allocations are unaudited, are subject to change at any time and are not recommendations to buy or sell any security. Sector allocations are for one representative Akros Multi-Cap Equity account. This one respresentative account was because it was the inaugural account to use the Akros Multi-Cap Equity approach. Portfolio Characteristics Source: Ford Equity Research Portfolio Statistics as of September 30, 2009 Source: PSN Enterprise This document is for informational purposes only. It does not constitute investment advice or an offer to sell or a solicitation to invest in any security. Under no circumstances should this document be duplicated or transmitted to anyone other than the investors and prospective investors to whom it was provided. All material presented in this document is believed to be reliable, but no representation or warranty (express or implied) is made or given by any person as to the accuracy or completeness of the information contained herein and no responsibility or liability is accepted for any such information or opinions. Information and opinions expressed may change without notice, and should not be considered recommendations to buy or sell any particular security. Past performance is not indicative of future results, and there is no assurance that the Akros Multi-Cap Equity approach or any other investment product will achieve their objectives. Current performance of the Akros Multi-Cap Equity composite may be lower or higher than the performance quoted. There is the risk of loss as well as the opportunity for gain when investing with Akros Capital, LLC. Performance of the S&P 1500 includes reinvestment of dividends. The S&P 1500 is a broad-based unmanaged index, which combines the S&P 500, the S&P MidCap 400 and the S&P SmallCap 600 indexes portfolio representing 90% of U.S. equities. You cannot invest directly in an index. The portfolio generally uses periodic selection of the mid-and large-cap stocks, and annual selection of the small-cap stocks. To minimize transaction costs, the portfolio generally uses periodic (rather than continual) rebalancing of all the stocks. To further limit transaction costs, a stock may not be rebalanced if the costs are deemed by Akros Capital to be excessive. Rebalancing may also be customized to the client's tax situation. Performance reflects the reinvestment of dividends and other earnings, and is net of portfolio transaction costs, management fees and other expenses. A client's returns will be determined by the portfolio's performance, less transaction costs, management fees and otherexpenses that are specific to the client's individual account. Akros Capital, LLC's management fees are described in Part II of Form ADV, which is available upon request. Copyright © Akros Capital, LLC. All rights reserved. 10/2009 Akros Capital, LLC Click here to download the PDF of this document. You will need Acrobat Reader to view the PDF. Click on the following icon to download the required program: 
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