Jeff Derner

Functions as a College/University

Valentine Capital Advisors is a value investor that invests in quality businesses that are trading below what the firm believes is their potential value as measured by metrics such as future cash flows, return on capital and/or tangible book value. They seek to identify a potential catalyst that may enable the stock to achieve the firm's expected value within a certain time horizon. The firm allocates capital to outside money managers and to their proprietary equity portfolios based on each client's situation and their assessment of the capital market. The allocation among asset managers depends on Valentine's views of macroeconomic trends, global market trends and current risk assessment. Valentine combines proprietary research with Wall Street research to conduct valuation analyses and total return parameters. They evaluate macro economic trends, global market insights, specific industry insights and ultimate return potential along with potential downside risks. They develop a risk/reward profile and fair value for each potential investment. They also seek to determine the appropriate asset allocation and target investments within each asset class and then wait to purchase the investment when they believe the risk/reward characteristics are in the client's favor. Valentine is more willing to pair fair market value for fixed-income investments. Their main consideration is the fixed-income investment's ability to generate sufficient cash flow and the future return of principal. The firm allocates the fixed-income portion of clients' portfolios to meet specific needs for liquidity, cash flow and diversification. The allocation between fixed-income asset classes depends on the credit risk, duration risk and the after-tax yield of each investment. Credit risk is crucial to the firm's selection process especially in the corporate bond and preferred stock sectors. Valentine only invests directly in investment grade securities (rated BBB+ or higher by Standard & Poors). They may employ outside fixed-income managers to invest in the high-yield or global bond markets when an opportunity presents itself. Valentine also offers access to investments in private equity/debt capital, hedge funds, managed futures, REITs, structured products/derivative products, alternative mutual funds and equipment leasing strategies.