STANSBERRY ASSET MANAGEMENT, LLC
WESTLAKE, TX

Stansberry Asset Management is an independent registered investment advisory firm with offices in New York and the San Francisco Bay Area. We are dedicated to giving individual investors access to investments and risk management tools typically reserved for institutional investors, while avoiding conflicts of interest like proprietary products and hidden fees. Who We Are Stansberry Asset Management (SAM) is an independent registered investment advisory firm with offices in New York, NY and San Mateo, CA offering managed accounts for high net worth investors SAM is dedicated to giving individual investors access to investments, portfolios, and risk management tools typically reserved for institutional investors while avoiding proprietary products, hidden fees and other “Wall Street” conflicts of interest Stansberry Asset Management (SAM) manages accounts for a wide variety of clients. Some are experienced investors who enjoy managing one area of their own investments – like options or commodities – but who prefer to have other parts of their portfolio taken care of for them by a money manager who shares the philosophy. Other clients simply do not have the time or interest to manage their own investments, or struggle each year to get the results they’re looking for, and choose SAM to manage their portfolios for them. SAM provides these services to all of our clients: CEO and Co-founder, Stansberry Asset Management Prior to joining Stansberry Asset Management, Erez Kalir co-founded Sabretooth Capital, an event-driven fund that invested in distressed credit and equities, and managed $1 billion in assets for investors including Julian H. Robertson, the Rockefeller family, and several highly-regarded endowments. He also worked at Eton Park Capital Management, a large hedge fund spun out of Goldman Sachs, as the first analyst hired into the Special Situations Group. Erez’s experience includes time spent as an Engagement Manager at McKinsey & Co., a Special Counsel to FCC Chairman Bill Kennard, and a law clerk on the Federal Court of Appeals for the Second Circuit in Manhattan. Stansberry Asset Management will be giving presentations at the following events; if you’d like to attend please When did Stansberry Asset Management (SAM) begin managing portfolios? SAM fees are based on assets under management, aligning our incentive with our clients’ best interests. SAM doesn’t earn commissions on trades or have an incentive to “churn” your account. *Stansberry Asset Management is not a tax adviser and will not provide tax advice. All accounts with Stansberry Asset Management are custodied at Pershing/Bank of New York Mellon (BONY). We chose this custodian carefully; it is the oldest bank in the United States and has a strong balance sheet. How does Stansberry Asset Management use At Stansberry Asset Management (SAM), we believe that how we approach investing matters in the long run far more than any specific security in our clients’ accounts. For this reason, the most important way we use is by starting with its distinctive investment philosophy. We would describe that philosophy as a disciplined, opportunistic approach to value that cuts across geographies, industries, and asset classes, with a strong emphasis on capital preservation and risk management. Anyone who has read (PSIA) is familiar with that newsletter’s search for investment opportunities in the world’s most capital efficient businesses. Similarly, any regular reader of Steve Sjuggerud’s Stansberry Asset Management believes in constructing simple, relatively concentrated portfolios that generally consist of no more than ~30 – 40 positions (for example, 20 U.S equities and 10 – 20 other securities), and are therefore digestible on a page or two. We believe that significantly larger portfolios can be unnecessarily complex, and dilute the impact of our best ideas. We also believe in constructing portfolios that aim to be resilient to different economic and market outcomes, i.e., that seek to avoid strong “one way” bets. Finally, SAM also believes in allocating to value – that is, in scanning across different industries, geographies, and asset classes on a regular basis to search for the most favorably asymmetric risk/rewards, or the largest margins of safety. We rely on all of these principles to guide us in helping us navigate the many ideas and themes that appear in Do you think of Stansberry Asset Management as more of an “investor,” “trader,” or both? Our study of the greatest money managers of all time – for instance, Buffett & Munger, Carl Icahn, David Tepper, and others – reveals to us a predominance of patient, long-term investors who exploit the power of compounding and have the “stomach” to wait out short-term volatility or paper losses. There are, of course, exceptions: short-term traders, such as Paul Tudor Jones, have also made fortunes. But we do not believe their approach is easily understood or emulated. Furthermore, in an environment today in which algorithmic, high-speed trading by computers drives short-term price action in so many markets, we are wary of being “suckers at the card table” making short-term bets. For these reasons and others, Stansberry Asset Management focuses on long-term investing, which we define as investing with at least a three-year horizon to judge performance. We seek like-minded partners. Prospective clients who place an emphasis on performance over shorter time frames are better served looking for different money managers. To paraphrase Warren Buffett, the first rule of investing is don’t lose money, and the second rule is don’t forget rule number one. Stansberry Asset Management takes capital preservation as a paramount priority. We believe stop losses – and more specifically, volatility-adjusted, trailing stop losses – are generally a very useful risk management tool to preserve capital. We expect to use them for most of our positions. There may be a small handful of positions in our client accounts – for example, small cap, early stage biotech stocks recommended in