Core Momentum Growth Investing

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Core Momentum Growth Investing
One Metropolitan Square 211 North Broadway, Suite
2080 Saint Louis, Missouri 63102 (314)
725-5445 www.bdhscapital.com
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People
William H. Young President COO
Reginald D. Dickson Chairman of the Board
Alex Ramos Securities Analyst and Portfolio
Manager
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Company Profile

• St. Louis based
• Founded 1995
• MWBE Certified
• State of Missouri City of St. Louis
• St. Louis Minority Business Council
• 139.5 million under management
• Board of Directors
• Sharnia Tab Buford
• Reginald D. Dickson
• David Harper
• William H. Young

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Representative Clients

• ATT
• Enterprise Rent A Car
• First State Bank Henderson, TN
• Illinois State Board of Investments
• Missouri Foundation for Health
• The Public School Retirement System of The City
  of St. Louis
• Shelby County, TN Retirement System
• SSM Healthcare

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Momentum Growth Style
Our Investment Philosophy

• Momentum - Invest in stocks with earnings
  momentum (e.g. positive surprises)
• Growth - Invest for capital appreciation

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Process
Determine Buy and Sell Points

• A stock must be sold in order for a stock to be
  purchased. Stocks are bought and sold according
  to the following rigorous buy and sell
  disciplines.

• BUY CRITERIA A stock is purchased when
• Earnings are revised up
• A positive earnings surprise has occurred
• It has positive relative price strength

• SELL CRITERIA A stock is sold when
• Earnings are lowered
• A negative earnings surprise has occurred
• It has negative relative price strength
• A holding grows to represent more than 10 of
  the overall portfolio (partial sale)
• The management team identifies a better
  investment option for the portfolio

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Portfolio
BDHS Portfolio Sector Weightings

• BDHS's portfolios tend to resemble the
  capitalization mix found in general stock market
  indexes, and BDHS maintains the flexibility to
  invest in momentum opportunities of any
  capitalization size.

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Portfolio
BDHS Representative Holdings (9/30/2008)

• AFLAC INC
• ALTERA CORP
• HEWLETT PACKARD CORP
• JOHNSON JOHNSON
• MCDONALDS CORP
• NIKE INC CL B
• PUBLIC STORAGE
• SAP AKTIENGESELLSCHAFT
• ST JUDE MEDICAL INC
• TJX COS INC NEW

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Performance
Effective Annual Return

• The investment results for BDHS Large Cap
  Portfolio begin 1/1/96.
• The rate of return presented above depicts the
  dollar weighted rate of return of all actual
  fully discretionary equity funds under management
  on a calendar year basis. Deviations within the
  individual accounts do occur on a yearly basis,
  however, these averages are generally indicative
  of our equity investment results generated over
  time.
• The rate of return considers the following. a)
  All money flows into or out of the funds b) All
  realized gains and losses c) All unrealized gains
  or losses d) All dividend and interest income.
• There is no statistical correlation between past
  and future performance. As such there is no
  assurance that results approximating these
  returns will continue in the future.
• Gross means before fees and commissions. Net
  returns are after fees and commissions.
• The Wilshire Large Growth Index is a market cap
  weighted index, selected by Wilshire Associates
  Incorporated, including a selection of securities
  from the Wilshire Large Cap 750 Index that meet
  Wilshire's definition of growth.
• The SP500 is an unmanaged index of 500 stocks
  selected by Standard Poors.
• The Russell 1000 Growth Index is an unmanaged
  index of 1000 stocks selected by the Frank
  Russell Company.
• Returns are calculated using AIMR/GIPS
  guidelines.

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Performance

• The investment results for BDHS Large Cap
  Portfolio begin 1/1/96.
• The rate of return presented above depicts the
  dollar weighted rate of return of all actual
  fully discretionary equity funds under management
  on a calendar year basis. Deviations within the
  individual accounts do occur on a yearly basis,
  however, these averages are generally indicative
  of our equity investment results generated over
  time.
• The rate of return considers the following. a)
  All money flows into or out of the funds b) All
  realized gains and losses c) All unrealized gains
  or losses d) All dividend and interest income.
• There is no statistical correlation between past
  and future performance. As such there is no
  assurance that results approximating these
  returns will continue in the future.
• Gross means before fees and commissions. Net
  returns are after fees and commissions.
• The Wilshire Large Growth Index is a market cap
  weighted index, selected by Wilshire Associates
  Incorporated, including a selection of securities
  from the Wilshire Large Cap 750 Index that meet
  Wilshire's definition of growth.
• The SP500 is an unmanaged index of 500 stocks
  selected by Standard Poors.
• The Russell 1000 Growth Index is an unmanaged
  index of 1000 stocks selected by the Frank
  Russell Company.
• Returns are calculated using AIMR/GIPS
  guidelines.

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BDHS Consistently Ranks HighAmong The Worlds
Best Money Managers

• Money Manager Review
• (Rank 7) - US Equity Large-Cap Growth Mgrs.
  Ranked by 5 Year Ann. Return/Risk (1Q01)
• (Rank 13) - US Equity Large-Cap Growth Mgrs.
  Ranked by 5 Year Ann. Returns (2Q01)
• (Rank 17) - US Equity Large-Cap Growth Mgrs.
  Ranked by 5 Year Ann. Return/Risk (3Q01)
• (Rank 10) - US Equity Large-Cap Growth Mgrs.
  Ranked by 5 Year Ann. Return/Risk (4Q01)
• (Rank 10) - US Equity Large-Cap Growth Mgrs.
  Ranked by 5 Year Ann. Returns (1Q02)
• (Rank 10) - US Equity Large-Cap Growth Mgrs.
  Ranked by 5 Year Ann. Returns (2Q02)
• (Rank 17) - US Equity Large-Cap Growth Mgrs.
  Ranked by 5 Year Ann. Returns (3Q02)
• (Rank 22) - US Equity Large-Cap Growth Mgrs.
  Ranked by 5 Year Ann. Return/Risk (4Q02)
• (Rank 32) - US Equity Large-Cap Growth Mgrs.
  Ranked by 5 Year Ann. Returns (1Q03)

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Benefits of Using BDHS

• Systematic, disciplined investment process
• Quality portfolio management and risk controls
• Professionals with a track record of successful
  investing
• Superior performance since inception of company
• Personalized client service

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Contact Us
One Metropolitan Square 211 North Broadway, Suite
2080 Saint Louis, Missouri 63102 (314)
725-5445 www.bdhscapital.com