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SAB Moderate Equity, L.P. (ESTABLISHED 2000)


Portfolio Characteristics

MANAGER (since 2000) Scott A. Barnes
CURRENT STANCE Defensive
FOCUSED Publicly Traded Community Bank Investment Management
LOW BETA: 0.33%

Short-Term Performance (NAV as of 08/16/2018)

PRICENET CHG YTD
SAB Moderate Equity L.P.$1,257.10 +4.34%

Historical Performance Net of Fees & Expenses
(updated as of 07/31/2018)

CURRENT PORTFOLIO COMPOSITION AS OF 07/31/18 (updated monthly)
Equities45.55%
Inversely Correlated Positions0.00%
Options-0.09%
Cash or Equivalents54.54%
100.00%
TOP HOLDINGS AS OF 07/31/18 (updated monthly)
Limestone Bancorp (LMST)8.30%
MBT Financial Corp (MBTF)7.90%
United Community Financial (UCFC)5.90%
Prosperity Bancshares (PB)5.16%
First Financial Corp (THFF)5.04%

SAB Moderate
Long-Term Performance Updated as of 07/31/18

20002001200220032004200520062007200820092010
SAB Moderate Equity, L.P.
(Inception 01/01/2000)
SAB
Moderate
19.51%8.57%-9.80%25.67%6.99%2.72%14.94%-27.93%-5.00%21.06%18.34%
Index Benchmark1
Index Benchmark1
-9.10%-11.89%-22.10%28.68%10.88%4.91%15.79%5.49%-37.00%26.46%15.06%

2011201220132014201520162017YTDNet Total Return2Growth of $250,0003
SAB Moderate Equity, LP
SAB
Moderate
15.93%5.84%-6.40%6.69%-26.36%42.68%2.71%4.23%151.16%$627,890
Index Benchmark1
Index Benchmark1
2.11%16.00%32.39%13.69%1.38%11.96%2.57%6.59%131.41%$578,525

 

1Benchmark: 1/1/2000 – 12/31/2016 is the S&P 500 Total Return Index. (Total Return for the S&P 500 Total Return Index for the period 1/1/2000 – 12/31/2016 is 111.67%). 1/1/2017 – to present is the NASDAQ OMX ABA Community Bank Total Return Index. (Total Return for the NASDAQ OMX ABA Community Bank Total Return Index for the period 1/1/2017 to 12/31/2017 is 2.57%). Source: Bloomberg

2,3Benchmark Net Total Return and Benchmark Growth of $250,000 figures represent a blend of the S&P 500 Total Return Index and the NASDAQ OMX ABA Community Bank Total Return Index for the representative periods stated above.

SAB Capital Markets (ESTABLISHED 2011)


Portfolio Characteristics

MANAGER (since 2011) John Sacchetti
DISCIPLINED Municipal Fixed Income Trading Program
OUTPERFORMED the S&P AMT-Free National Muni Index Since Inception with Lower Volatility
TARGETS MARKET INEFFICIENCIES and Pricing Advantages of Small to Medium Lot Tax Free Bonds

Short-Term Performance (NAV as of 08/16/2018)

PRICENET CHG YTD
SAB Capital Markets L.P.$1,501.30+0.57%

Historical Performance Net of Fees & Expenses vs. S&P National AMT-Free Municipal Bond Index
(updated as of 07/31/18)

PORTFOLIO SUMMARY AS OF 07/31/18 (updated monthly)
Average Current Yield3.52%
Average S&P RatingAA-
Average Moody RatingAa3
Average Maturity (Years)14.55
Portfolio Duration to Worst8.40
MUNICIPAL DIVERSIFICATION AS OF 07/31/18 (updated monthly)
Municipal Bonds64.80%
Cash and Equivalents35.20%
General Obligations54.80%
Revenue Bonds43.80%
Other1.40%
Number of States46

SAB Capital Markets
Long-Term Performance Updated as of 07/31/18

2011201220132014201520162017YTDNet Total
Return
Growth of
$1,000,000
SAB Capital Markets, L.P.
(Inception 01/01/2011)
11.67%7.40%5.71%8.25%3.11%1.86%3.57%0.51%50.03%$1,500,310
S&P National AMT-Free
Municipal Bond Index
11.19%6.52%-3.28%8.92%3.26%-0.36%5.09%-0.09%35.77%$1,357,713

Structural Advantages of Investing with SB Value Partners, L.P.

  1. General Partner receives no commissions, nor does it charge asset management, marketing or distribution fees.
  2. General Partner participates in a percentage of net new profits after expenses. We Don’t Make Money Unless You Do.
  3. General Partner and employees are significant owners. We Eat Our Own Cooking.

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. The performance of the SAB Partnerships should not be relied upon in making a decision on investment in the Partnerships and should not offer any assurances of the performance of an investment in the Partnerships. Performance results are net of all fees and expenses. Net Total Returns are since inception of the partnership and through the date shown.  Individual returns will vary based on your initial date of purchase for any of the SAB Partnerships.

SAB Moderate Equity, LP investment strategy, since inception through Q4 2016, focused investments in concentrated positions across a variety of industry sectors. During Q4 2016, SAB Moderate Equity investment strategy shifted to a focus on investments in community banks.

The Standard & Poor’s 500 Total Return Index is a capitalization-weighted, unmanaged index of 500 major U.S. corporations, calculated by S&P based on the prices changes and reinvested dividends of the S&P 500 Index. The references to the S&P 500 are for comparison purposes only and meant to show the performance of the broader market. The SAB Moderate Equity portfolio is significantly less diversified and carries cash balances, which can be substantial at times.

The NASDAQ OMX ABA Community Bank Index is a market capitalization-weighted index designed to track the performance of banks and thrifts, or their holding companies, listed on The NASDAQ Stock Market® The references to the NASDAQ OMX ABA Community Bank Index are for comparison purposes only.  The SAB Moderate Equity portfolio is significantly less diversified and carries cash balances, which can be substantial at times.

Beta is the measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Implicitly, the market has a beta of one because the market index chosen is the measure of the market’s movement. A beta of less than one results in lower highs and lows than the market. The opposite is true for a stock which has a beta of greater than one. Beta does not represent a guarantee, only a tendency. Beta defines an inexact relationship with the market that works more on the law of averages than the law of physics. SB Value Partners, L.P. generally applies the beta calculation methods contained in: “Practicing Financial Planning for Professionals, Practitioners’ Edition” By Sid Mittra, Ph.D., et al RH Publishing, Rochester, Michigan Ninth Edition, 2005. A negative beta might occur even when both the benchmark index and the stock under consideration have positive returns. It is possible that lower positive returns of the index coincide with higher positive returns of the stock, or vice versa. The slope of the regression line, i.e. the beta, in such a case will be negative. Calculated annually as of 12/31/2016.

The S&P National AMT-Free Municipal Bond Index is a broad, market value-weighted index designed to seek to measure the performance of the tax-exempt, investment-grade U.S. municipal bond market. The references to the S&P National AMT-Free Municipal Bond Index are for comparison purposes only and meant to show the performance of the broader market. The SAB Capital Markets portfolio is significantly less diversified and carries cash balances, which can be substantial at times.

Certain market indexes are unmanaged and, therefore, have no expenses or fees. Investors cannot invest directly in an index. SAB Moderate Equity, LP is managed, so holdings will change. SAB Capital Markets, LP is managed, so holdings will change.

YTD (year to date return) is the return for the partnerships for the period of January 1, 2018 thru the current date shown above, net of all fees and expenses.