PVG Asset Management

Quick Fact Sheet

Strategy Overview: PVG is a growth-oriented investor. We refer to our strategy as Loss Averse Growth, that is, we like growth returns, but we are not willing to accept the losses of a falling market. Markets and growth investments can be volatile, and diversification alone does not protect a portfolio from markets where most asset classes rise and fall in unison. PVG believes a long-term growth investor can minimize volatility and the potential for losses by raising cash and using inverse ETF’s. Cash, which may rise to 50% or higher, and ETF’s, which are typically used during sustained downturns or periods of extended valuations, are proven effective tools to mitigate market related portfolio risk. The Loss Averse Growth Strategy will never be net short and thus has much lower risk than other strategies that may hedge or use leverage.

PVG will invest in quality US and international companies of all sizes. Our emphasis is on Innovative companies that can grow in a slow economy. In particular, we look for attractively valued securities, where strong earnings growth is supported by revenue growth, and the growth can be internally financed.

The PVG investment strategy has been successfully applied since 2002 and is offered in separately managed accounts.

Objective: PVG’s goal is to capture attractive returns, but more importantly preserve capital in falling markets. We expect to produce positive returns of 5%-15% over a market cycle.

Strategic Advantage: PVG’s risk management and investment process sets it apart from other asset managers, since it is employed on both a macro and micro level. Our process incorporates many factors such as economic indicators, valuation, company specific news, and technical analysis. PVG also incorporates numerous trading tools, such as stop loss controls, to avoid unanticipated market or stock declines. By controlling risk with a multilevel approach, large declines in portfolios can be avoided.

Management: The team is comprised of veteran portfolio managers Patrick Adams, CFA, and Joseph Pecoraro, CFA. Each manager holds advanced degrees in business or economics in addition to the Chartered Financial Analyst designation. The managers have extensive institutional money management experience with firms like Invesco, Oppenheimer, Dreyfus/Founders, The Boston Company, American Century and The Berger Funds.

Portfolio Breakout (February 2010):

Security Name	Ticker	%
iShares DJ US Healthcare	IYH	15.0%
Market Vectors NCLR	NLR	4.6%
ProShares UltraShort S&P 500	SDS	3.5%
PowerShares US Dollar Index	UUP	3.0%
iPath Natural Gas ETN	GAZ	2.5%
Total Long Positions		28.6%
Cash		71.4%
Effective Hedged Position	SDS	7.0%
Net Long		14.6%

Portfolio Statistics

	Stock Growth	ETF	S&P 500
Turnover Ratio	160%	60%	0
Sharpe Ratio – 5 yr	0.10	0.33	-0.31
Standard Deviation – 5 yr	10.74	8.78	16.46
Beta – 5 yr	0.49	0.44	1.00
Worst Quarter – 5 yr	-7.60	-4.32	-21.85

Performance disclosure: The investment objective of these composites strives for an "absolute return" rather than a "relative return." The strategy invests in individual equities and/or exchange traded funds with liquidity as a priority. The style focuses on areas of the market deemed to present growth opportunities. The Loss Averse Growth Portfolio Management -- Stock (LGPM-S) Composite includes accounts with a market value of $100,000 or more, the Loss Averse Growth Portfolio Management - ETF Composite includes accounts with a market value of $50,000 or more, all accounts are discretionary and all accounts follow the LGPM-S style. An account is included in the composite at the beginning of the first full month the portfolio manager deems it fully invested. Closed accounts are included through the last full month under management. Returns are presented net of management fees. No selective periods of performance have been used. Investors should remember that performance represents past results, and that it should never be projected forward. The fact that PVG manages for growth and loss aversion is not meant as a guarantee. Losses may occur in the short or longer-term. Calculations are made to comply with GIPS standards employing Advent software. However these have not been verified by a third party. All calculations are available for review upon request.