Dutchmen Capital

Outperformance in good & bad times

...When the financial Titanic sinks, one wants to be able to pay, under all circumstances, for the life boat (November 3, 2008 by Catherine Hennessy)

Dutchmen Absolute Return

Gaining in stock markets is important. But not losing, with increased volatility & uncertainty and reduced growth perspectives, has become 'a conditio sine qua non'. PIMCO, largest US bond investor: "Manage risk, deliver returns and repeat. Controlling risk exposure is an investment manager's most important job".

Dutchmen Capital brings to you a professional investment strategy (market-makers) based on high dividend stocks, using derivatives defensively whereby downside risks are hedged permanently.

A conservative & innovative AEX-index value added portfolio for managed accounts focussing on;

* absolute returns; positive results per year; dividends, option premiums, by investing in selected AEX-stocks,

* downside risk protection; hedging permanently for downside risks,

* liquid investments; enabling to buy back participations at all times,

* transparency; AFM compliant, independent custodian accountant etc.,

* low volatility; the portfolio has a lower volatility than its benchmark, the AEX-index (lower risks profile than this index)

"The difficulty lies not so much in developing new ideas as in escaping from old ones". ~ John Maynard Keynes.

* Managed accounts: minimum 300.000 Euros

* Fund: minimum 100.000 Euros

Asymmetric performance profile (dubble click for better grafics):

these graphs clearly demonstrates the asymmetric performance profile of the fund over the years. The second shows the relative stable returns every month over the years.

overall gross performance vs. AEX-index /  Profit-loss % per month 06-09

*

Additional spreadsheet fund info:

http://spreadsheets.google.com/pub?key=p4RvIBSekiA8W_zjIrbQ0QA&gid=3

 

Dutchmen Absolute Return:

AEX (Year-to-date): 246 > 240,7 =  -2,1%

 

	jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Total
2006								8,7	2,6	5,6	-1,3	5,3
Cum								8,7	11,3	16,9	15,6	20,9	21
2007	2,3	4,5	1,8	10,5	3,1	0,7	2,6	8,8	1,7	6,2	-7,5	2,6
Cum	2,3	6,8	8,6	19,1	22,2	23	25,6	34,4	36,1	42,3	34,8	37,4	37
2008	11,4	0,4	-1	-2,59	9	0,5	13,9	8,3	14,6	30,8	6,5	8,5
Cum	11,4	11,8	10,8	8,25	17,3	17,8	31,7	40	54,6	85,5	92	100,5	100,5
2009	10,5	-5,7	0,6	-1,4
Cum	10,5	4,8	5,5	4									4

Portals - video reports - charts

PORTALS / Video reports:

• CityWire: www.citywire.co.uk/professional/video/home.aspx
• Bloomberg Video's: www.bloomberg.com/news/av/
• Forbes.com: www.forbes.com/video
• Financial Times: www.ft.com/cms/bfba2c48-5588-11dc-b971-0000779fd2ac.html
• MarketWatch: www.marketwatch.com/video 
• Fintag: www.fintag.com

Investment Philosophy

Markets are generally efficient but systematic gaps appear from time to time

The gap we perceive is the mis-estimation future volatility. This has a direct knock-on effect on asset valuations and their derivatives, leading to opportunities.

Sometimes these assets become mis-valued for other reasons, including model assumption flaws, structural flaws in the way options are marked-to-market and incentive biases.

We need an edge to exploit it

Our edge is in our personel. We have had considerable experience running large option books and have seen all the afore-mentioned phenomena at first hand.

We need to risk manage positions to produce superior returns for a given level of risk

Experience running derivatives has given us a deep knowledge of how to manage these kinds of risk assets.

Dutchmen Absolute Return Portfolio

When driving we accept the need to have an insurance. With investing most investors still enter the markets without downside protection.

The AEX Absolute Return Portfolio exploits particular characteristics of derivatives to capture additional income. Stocks & derivatives are selected with quantitative analysis. The trading system does not predict or forecast future market prices, but seeks to participate in markets through a systematic, pre-defined and dynamic way. The strategy is applied across a diversified but concentrated portfolio of liquid AEX-index stocks. The portfolio is positioned long with a permanent defense hedge providing a market neutral behavior. Position holding periods have averaged a year (low turnover portfolio), providing low drawdowns of maximum 7% on average.

Paper-portfolio: is performed in real-time (no backtesting) and outperformed the AEX substantially (Alpha & Absolute Return) with a lower volatility or risk profile than its benchmark, the AEX-index. Managed accounts are copies of this portfolio.

Leverage: the portfolio is leveraged moderately (max 3x).

Volatility -Risks: the strategy has a lower overall risk profile than the AEX-index.

Market-Neutral: portfolio (long) is permanently hedged.

Alpha: the portfolio has a positive alpha with substantial outperformance.

Correlation: the performance has no correlation with the AEX-index, outperforming both in rising and falling markets.

Back testing: the strategy cannot be back-tested because of the options used. The performance track record is realised in real-time during the last 2 years.

Net results: slightly higher leveraged can be used which enhances performance. Afther deduction of (performance) fees (2/20) these results would have been a net result for investors.

AFM: managed accounts will be surpervised by ROI Asset Management (www.roiam.nl) which has an AFM registration.

Order execution: Goldman Sachs Clearing in London.

Custodian: Van Beemen Beheer (AFM certified) / KAS Bank Trust.

Administration: de Amstellanden

Accountant: Deloitte Touche

Participation: minimum accounts 500.000 Euro.

Redemptions: by investing in liquid index-stocks and options and availability of a monthly cash inflow the fund will be able to buy back participations at all times.

Fees: management fee 2%, performance fee 20% with high water level.

Prospectus: a Dutch prospectus and an English Flyer (mini-prospectus) are available.

Contact:

K. Beelaerts van Blokland - 0031655951571 -

kacobeelaerts@zonnet.nl

.

Dutchmen AEX Absolute Reurn Portfolio (mini-prospectus):

Download aex_hedge_fund_english_flyer.doc

2007 january report: Download dutchmen_aex_hedge_fund_01_january_2007.doc

2007 december report: Download dutchmen_aex_hedge_fund_12_dec_2007_report.doc

2008 january report: Download dutchmen_aex_hedge_fund_2008_01_report.doc

2006 - 2009 overview:Download aex_absolute_rutrn_fund_2006_2009.ods

2006 - 2009 graphics: Download grafieken_2006_2009.odt

News

2012 - The real meaning

The real cause of our current meltdown is predatory capitalism -- the mutant form of an economic system that encourages widespread exploitation to benefit a small number of already very wealthy people. A new geo-political system has emerged; today the CEOs of big corporations, rather than governments, control human and natural resources around the globe, as well as politicians and the media. Their arrogance, gluttony, and mismanagement have brought us to the perilous edge. In their relentless drive to amass ever greater fortunes, they have polluted our air, water, and earth, relegated countless numbers to the ranks of the unemployed, and doubled the gap between the few who live in mansions and the many who are malnourished or starving. They exemplify that egotistical regime described in the Popul Vuh.

We have indeed re to visit the incredible cities these ancient people built, I realize that in an odd sort of way my writing is part of a tradition that stretches back to those Mayan visionarieentered a critical time in human history. A tsunami is rapidly building on the horizon. Every person on earth is connected like never before, through the Internet and cell phones. Most of us have come to understand that we are perched on a shore that is threatened by a mounting wave of economic and environmental disaster.

We have only three years left until December 21, 2012. Whether or not you believe in this Mayan prophecy, we can all agree that we must turn things around. We must abandon our gluttonous, exploitative ways in favor of lifestyles and systems that will bequeath to our children and grandchildren a world they will want to inhabit. By definition, we simply must become sustainable.

You may want to take a moment, next time you pass by 2012 on a theater marquee, to reflect on the true message symbolized by those numbers. The real message is a call to action based on the knowledge that we can transform ourselves. It echoes down through the centuries from a people who built the magnificent pyramids that continue to enthrall and mystify visitors to the Yucatan Peninsula and who also created one of history's most accurate calendars -- the one that ends in 2012.

John Perkins is former chief economist at a major international consulting firm. He is the New York Times bestselling author of Confessions of an Economic Hit Man and Hoodwiniked and has written many books about the Maya and other indigenous cultures, including Shapeshifting, The World Is As You Dream It, and Psychonavigation. His website is www.johnperkins.org.