NEoWave Equity Fund Wealth Management Welcome, MAY 2014
Legal Notice Performance results are based on the NEoWave Equity Fund LLC (“NEF” or the “Fund”). A Limited Liability Company with Interests (the "Interests"), which the Fund commenced offering in June, 2009. Performance results are based on the actual performance of the Fund and are calculated by holding‐period return formula and are unaudited. The Fund is managed using one method, policy and investment strategy, and are unaudited. All metrics described above are estimated and unaudited, and the performance results themselves have not been audited. Past performance is not necessarily indicative of future results. The S&P 500 Index is a capitalization‐weighted index of 500 stocks published by Standard & Poor’s and designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. This index is unmanaged and is provided for comparison purposes only and are comprised of securities and other investments that are not necessarily a part of the Fund’s investment program. It is not meant to be indicative of performance, asset composition or volatility of the Fund. The investment performance data provided in this summary is solely for the information of current or prospective investors in the Fund. Investors should not assume that an investment in the Fund will be profitable. This is neither an offer to sell nor a solicitation of an offer to buy interests in the Fund, nor shall there be any sale of a security in any jurisdiction where such an offer, solicitation or sale would be unlawful. The offering is made only by the Fund's Confidential Private Placement Memorandum and related offering documents, which prospective investors should read carefully in their entirety before investing. No offer to purchase interests will be accepted prior to receipt by the offeree of these documents and the completion of all appropriate documentation. Neither the U.S. Securities and Exchange Commission nor any other securities regulator has passed on, or endorsed, the merits of these instruments. An investment in the NEoWave Equity Fund LLC involves significant risk factors and is suitable only for persons who can bear the economic risk of the loss of their entire investment, who have a limited need for liquidity in their investment and who meet the conditions set forth in the Confidential Private Offering Memorandum. There can be no assurances that the Fund will achieve its investment objectives. Investment in the Fund carries with it the inherent risks associated with investments in securities, as well as additional risks including, but not limited to, investments in private placements, the use of short sales. Each prospective limited partner should carefully review the Confidential Private Offering Memorandum and the agreement referred to therein before deciding to invest in the Fund. Securities offered through Emerson Equity LLC, member FINRA/SIPC.
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Agenda • • • • • • • • • • •
Introduction to the NEoWave Equity Fund Opportunity What is NEoWave What is Neely River Theory Who is the Fund Manager Historical Track Record Markets Traded ETF Trading Track Record Forecasting and Trading Services examples and results Offering Memorandum and Subscription Agreement NEoWave Equity Fund Key Facts Frequently asked questions
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Introduction to the Fund • A natural evolution of proprietary methods: – NEoWave Forecasting Technology – Neely River Trading Technologies
• Neely Investments is believed to be the world's first and only portfolio management firm based on these principles • The NEoWave Institute formed Neely Investments LLC to manage capital for private investors • Culmination of Glenn Neely's successful 30‐year career in technical innovation and forecasting • World‐wide launch – now open for subscriptions www.neowave.com
NEoWave Equity Fund ‐ Phased Roll Out • Phase One (completed) – Establish the fund, brokers, custodians and raise initial capital (completed, including the Fund Manager)
• Phase Two (completed) – Begin a series of trades that demonstrates a track record, required by new and international investors (completed, profits and trades published)
• Phase Three (in process) – Objective to substantially expand capital base internationally
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Investment Opportunity • We believe the NEoWave Equity Fund is an efficient way to be invested in actively traded markets • Investors potentially benefit from the skills of NEoWave Founder, Glenn Neely, and his proprietary methods • Trades long and short positions with the guidance of NEoWave and Neely River trading technologies • Completed establishment phase and trading record phase • Now open to Subscribers
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What is NEoWave? • A forecasting tool that seeks to predict market behaviour – Based on the principles R. N. Elliott discovered in the 1930’s, well‐known technical analysis tool
• Elliott Wave has three core elements: – Fibonacci, Pattern Recognition, Golden Ratio
• NEoWave uses Elliott’s Wave principles but adds three additional and important concepts: – Logic (strong corrections must produce strong events) – Self‐defining limits (based on price, time, complexity) – Self‐Confirmation (market “grades” your analysis) www.neowave.com
What are Neely River Trading Technologies? • Proprietary technology for trading and understanding (not Forecasting) markets • Neely River is the foundation of all strategies • Neely River trading technology provides the rules for entry, exit, stop movement • Neely River trading technology’s objective is to provide an edge by adapting to various market environments
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Who is the Fund Manager • Glenn Neely: – Spent 30 years studying Elliott Wave – Founded NEoWave Institute – Inventor of Neely River theory, what we believe to be a new trading paradigm – Developed the interaction between the Wave principle and Neely River Trading Technologies • Uses proprietary technology that attempts to provide a step‐by‐ step method to apply Wave theory • Based strictly on price action, it seeks to analyse individual swings and group them correctly into wave patterns
– Timer Digest ranked Mr Neely as a Top 10 S&P Timer for the past 20 years
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Author of: • Technical Reference work ‐ Mastering Elliott Wave • Scientific, objective approach to market forecasting with Elliott Wave Theory • Based on over a decade of exhaustive research • Real‐time trading and teaching, author Glenn Neely expanded upon and refined the concepts first discovered by R.N. Elliott • Applies wave theory to trading and investments
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Track Record – 2014 The Success Continues Recognition in 2014
February 3, 2014, issue (Special Annual Report):
January 16, 2014, issue:
#1 Bond Timer for the last 3 years #1 Bond Timer for the last 5 years Top 10 S&P Timer for the last 3 years Top 5 S&P Timer for the last 8 years Top 5 S&P Timer for the last 10 years
Top 5 S&P Timer for the last 6 months Top 5 S&P Timer for the last 3 months
S&P Honor Roll: Top 10 Timer in 2001 and Top 5 Timer in 2011
Top 5 S&P Timer for the last 3 months
January 2, 2014, issue:
Gold Honor Roll: Top 5 Timer in 1999, 2000, and 2004 Bond Honor Roll: Top 5 Timer for 2003
Past performance is not necessarily indicative of future results and there can be no assurance that the Fund will achieve its objective.
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Track Record – 2013 The Success Continues Recognition in 2013
January 14, 2013, issue: Top 5 Bond Timer for last 12 months
January 28, 2013, issue (Special Annual Report): #1 Bond Timer for the entire year of 2012 Top 5 S&P Timer for last 3 years Top 5 S&P Timer for last 5 years Top 10 S&P Timer for last 8 years
January 28, 2013, issue (Special Annual Report): S&P Honour Roll: Top 10 Timer for 2001 and Top 5 Timer for 2011
January 28, 2013, issue (Special Annual Report): Gold Honour Roll: Top 5 Timer for 1999, 2000, and 2004 Bond Honour Roll:Top 5 Timer for 2003
February 18, 2013, issue #1 Bond Timer for last 12 months
March 11, 2013, issue: Top 5 Bond Timer for last 12 months
April 1, 2013, issue: Top 10 S&P Timer for last 3 months
May 13, 2013 Top 5 Bond Timer for last 12 months
June 3, 2013, issue: Top 5 S&P Timer for last 3 months
October 7, 2013, issue: Top 5 Bond Timer for last 12 months
October 28, 2013, issue: Top 5 S&P Timer for the last 3 months
November 18, 2013, issue:
Top 5 S&P Timer for the last 3 months
December 9, 2013, issue: Top 5 S&P Timer for the last 3 months Past performance is not necessarily indicative of future results and there can be no assurance that the Fund will achieve its objective.
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Track Record – 2012 The Success Continues Recognition in 2012 February 20, 2012, issue: Top 5 S&P Timer last 12 months
March 12, 2012, issue: Top 5 S&P Timer last 12 months
April 2, 2012, issue: Top 5 S&P Timer last 12 months
May 14, 2012, issue: Top 5 S&P Timer last 12 months Top 10 S&P Timer last 6 months
June 4, 2012, issue: Top 5 S&P Timer last 12 months Top 5 S&P Timer last 3 months
June 25, 2012, issue: Top 5 S&P Timer last 12 months
July 16, 2012, issue: #1 Bond Timer for the 2012 Mid‐Year Review Top 5 S&P Timer last 12 months Top 5 S&P Timer last 3 months
August 27, 2012, issue: Top 5 S&P Timer last 6 months Top 5 S&P Timer last 3 months Top 5 Bond Timer last 12 months
September 17, 2012, issue: Top 5 S&P Timer last 6 months #1 S&P Timer last 3 months #1 Top 5 Bond Timer last 12 months
October 8, 2012, issue: Top 5 S&P Timer last 6 months Top 5 S&P Timer last 3 months Top 5 Bond Timer last 12 months
October 29, 2012, issue: Top 10 S&P Timer last 12 months Top 5 S&P Timer last 6 months Top 5 S&P Timer last 3 months #1 Bond Timer last 12 months
November 19, 2012, issue: Top 5 S&P Timer last 12 months Top 5 S&P Timer last 6 months Top 10 S&P Timer last 3 months
Past performance is not necessarily indicative of future results and there can be no assurance that the Fund will achieve its objective.
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Track Record – 2011 The Success Continues Recognition in 2011 May 16, 2011, issue: Top 10 S&P Timer last 3 months Top 5 Bond Timer last 12 months
June 6, 2011, issue: Top 5 S&P Timer last 3 months Top 5 Bond Timer last 12 months
June 27, 2011, issue: Top 5 S&P Timer last 3 months Top 5 Bond Timer last 12 months
July 18, 2011, issue: Top 5 S&P Timer last 3 months Top 5 Bond Timer last 12 months
August 8, 2011, issue: Top 5 S&P Timer last 12 months Top 5 S&P Timer last 6 months #1 S&P Timer last 3 months
August 29, 2011, issue: Top 5 S&P Timer last 12 months Top 5 S&P Timer last 6 months Top 5 S&P Timer last 3 months Top 5 Bond Timer last 12 months
September 19, 2011, issue: Top 5 S&P Timer last 6 months Top 10 S&P Timer last 3 months
October 31, 2011, issue: Top 10 S&P Timer last 6 months
October 10, 2011, issue: Top 5 S&P Timer last 6 months
November 21, 2011, issue: Top 5 S&P Timer last 6 months
Past performance is not necessarily indicative of future results and there can be no assurance that the Fund will achieve its objective.
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Markets Traded • NEoWave Equity Fund’s strategy is focused on the following ETF’s: – S&P 500 (SPY) – Gold (GLD) – 10‐year Treasury (TLT) – Euro vs. Dollar (FXE)
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ETF Trading Performance 2007 ‐ 2013 • $100,000 invested, December 2013 now worth: – $358,399 (2% risk, reinvested) – $256,345 (Fixed $15 trade size per point/pip) – $203,621 (1% risk, reinvested) – $261,513 (fixed 2% risk from starting capital) – $487,901 (3% risk, reinvested)
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S&P 500 ‐ Forecasting & Trading
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GOLD‐ Forecasting & Trading
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EURO ‐ Forecasting & Trading
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T Notes ‐ Forecasting & Trading
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Offering Memorandum Documentation
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NEoWave Equity Fund Key Facts Brokers
Emerson Equity. Emerson Equity LLC (the “Investment Manager”), a California limited liability company organized on October 10, 2003, will direct the Fund’s investment activities as the Investment Manager to the Fund. The principal office of the Investment Manager is the 155 Bovet Road, Suite 725, San Mateo, CA 94402
Investment Advisor
The investment advisor to the Fund is Emerson Equity LLC (the “Investment Advisor”), a California limited liability company. The Investment Advisor’s principal office is 155 Bovet Road, Suite 725, San Mateo, CA 94402, United States of America. Telephone: +1 (650) 312‐0200.
Administrators
If you have any questions concerning these Subscription Documents or would like assistance completing them, please contact Kathy Morrissey at +1 (650) 312‐0236 or Stephen Cole +44 790 601 7380
Custodians
Pershing LLC, One Pershing Plaza, Jersey City, New Jersey 07399, United States of America
Managing Member
The managing member of the Fund is Neely Investments LLC (the “Managing Member”), a Delaware limited liability company. The Managing Member’s principal office is located at 300 Park Avenue, 17th Floor, New York, New York 10022, telephone: +1 (212) 672‐1863. The managing member of Neely Investments is Glenn A. Neely, founder of the NEoWave Institute. Mr Neely will serve as portfolio manager of the Fund and is responsible for all investment decisions regarding the Fund.
Banking Instructions
Bank: Bank Address: SWIFT CODE: A/C: Name:
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BANK OF AMERICA 26831 ALISO CREEK ROAD, ALISO VIEJO, CA 92656, United States of America. BOFAUS3N 3250 2476 3794 NEOWAVE EQUITY FUND LLC
Investment Summary • • • • • • • • • • • • •
Minimum Investment Amount: $25,000 Currency denominated in USD Open to Qualified investors, IRA’s, Trusts, Entities, Limited Partnerships Tax form W8 for non US residence for tax treaty purposes, K‐1 for all investors NEoWave Equity Fund is a Direct Participation Program (DPP) where tax flows through to the interest holders. Investment Management: Emerson Equity LLC Fund incorporating proprietary trading technologies NEoWave Equity Fund LLC is a New York Limited Liability Company structured as a hedge fund Redemptions: withdraw all or any part of investment capital ‐ 30 days’ notice Strategy attempts to provide maximum returns while seeking minimum risk exposure Management fee 2% per annum, 20% high watermark performance, one off 3% placement administration. The Fund does not invest in levered ETFs, nor does it employ leverage of capital to produce or enhance returns Positions typically keep risk of capital at 1‐2% (frequently less) while seeking to exploit market opportunities
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Frequently Asked Questions • How do I invest? • Complete the Subscription agreement available on request from Stephen Cole
[email protected] • Contact by phone: International telephone +44 790 601 7380 (cell ‐ London based), +44 1494 448 782 (UK) if required • Transfer funds by wire transfer • Receive confirmation of receipt • Your interest issued www.neowave.com
Frequently Asked Questions • Will the NEoWave Institute automate some of the mechanical aspects described in Mastering Elliott Wave? This could allow multiple markets to be traded (say 10‐15) rather than the current 4 and potentially offer alerts for further human analysis. The NEoWave Institute does not believe that technology has advanced to an extent where ‘computers’ are able to substitute the skills that human beings are capable of in terms of being able to examine and investigate potential wave behaviour over multiple time frames, a skill that we believe is absolutely necessary for good wave analysis.
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Frequently Asked Questions • Is this a hedge fund where the fund manager can short the market? Or is it just a purely "buy" only as per other funds. The NEoWave Equity Fund is a fully operational long and short positional fund in all four of its markets. The fund manager takes short and long positions based on NEoWave principles and Neely River Trading. www.neowave.com
Frequently Asked Questions • Will the fund follow strategies and futures trading recommendations listed in the hourly, daily and weekly NEoWave trading services? The NEoWave Equity Fund closely follows only the weekly ETF trading positions, not the hourly and daily futures, trading recommendations regularly published in NEoWave services. www.neowave.com
Frequently Asked Questions • What is the maximum monthly draw down during the trading period while being established? The maximum monthly draw down between June 2009 and July 2013 was 2.64% in December 2011. From 2007 the maximum drawdown was 8.38%. • What was the maximum monthly gain during the trading period while being established? The maximum gain between June 2009 and July 2013 was in April 2013 at 13.10%. From 2007, the maximum gain was 38.19%. Past performance is not necessarily indicative of future results and there can be no assurance that the Fund will achieve its objective.
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Frequently Asked Questions • What markets will the Fund invested in? The NEoWave Equity Fund will invest in the four main markets covered by the NEoWave Institute’s Trading and Forecasting services. Those are the SPY (S&P), TLT (T‐Notes), GLD (Gold) and FXE (Euro). On rare occasions, when the above ETF’s are not available for shorting, the Fund Manager may decide to buy inverse ETFs directly related to the above, four ETFs (SH, TBF, DGZ and EUO, respectively).
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Frequently Asked Questions • What does the Fund Manager do to limit risk of capital loss? On the vast majority of trades, the NEoWave Equity Fund endeavours to limit risk of loss to 1% per trade (sometimes even less). On rare occasions, when potential return is deemed larger than normal, risk per trade/per market may approach 2% of trading capital. Closely adhering to these guidelines has allowed the Fund to historically cap maximum drawdown (so far) to 3% during our worst trading month period.
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Frequently Asked Questions • What’s the average number of market positions your fund holds? How long do you hold a typical position? What’s the level of portfolio turnover? The maximum number of market positions will virtually never exceed four, which are the SPY, TLT, GLD and FXE. It is rare to have positions in all 4 markets simultaneously; normally, positions are held in 1‐2 markets at a time. The holding period is completely dependent on whether trade is working or not. The general plan is for weekly ETF trades to last weeks or months (rarely years). Since trades are intended to take advantage of perceived market events, the positions taken are not for “investment” purposes but to exploit unusual market conditions. Frequently, the Fund may hold no market positions, which keeps investor capital more protected than in your typical fund.
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Frequently Asked Questions • Can I invest in the NEoWave Equity Fund using funds held in my IRA? Yes, the NEoWave Institute is a Direct Participation Programme (DPP) where tax flows through to the investor not the DPP. • Can I invest in the NEoWave Equity Fund using a trust? Yes, the NEoWave Institute is a Direct Participation Programme (DPP) where tax flows through to the investor not the DPP. This can include trusts. Some additional documentation is required such as a Trustee Certificate.
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Frequently Asked Questions •
What do investors receive and what is the cost of investing in the NEoWave Equity Fund? Each new investor who invests $50,000 or more receives a 12 month free of charge subscription to NEoWave Forecasting and Trading Services. This is issued three times weekly plus interim updates. This is charged to subscribers at $1.580 per annum. There is an administration placement fee of $750 for each $50,000 investment (3%) The total attributed value of the subscription is therefore $3,160 when remaining invested for 24 months. The administration placement fee is charged in order to cover costs for investor support services, investment administration, reporting and non charged support services for the period invested.
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Frequently Asked Questions • What information and services does an investor receive while invested in the NEoWave Equity Fund? Annual subscription to NEoWave Forecasting services – The application of advanced NEoWave concepts to orthodox Elliott Wave theory on real‐time price charts (short, intermediate and long‐term) – Every week, subscribers receive charts presenting NEoWave forecasts on the markets of your choice, along with Glenn Neely's insightful market analysis
Annual subscription to NEoWave Trading services – This service seeks to eliminate the need to spend time analysing markets. The objective is subscribers will notice an uncommon level of detail and specificity. – The service is ideal for traders seeking guidance and for busy professionals (including money managers and brokers) with limited time. There is a strong focus on capital preservation Subscribers normally charged $1,580 per annum for these combined services
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Frequently Asked Questions • What are this costs associated with the Fund? NEoWave Equity Fund’s charges are a 2% annual management fee paid quarterly at the rate of 0.5% per quarter. A performance fee is 20% of realised gains above initial investment value, which is referred to as a high watermark model where no performance fee is charged until the original investment’s value has realised a gain.
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Frequently Asked Questions • What reporting do investors receive after investing in the NEoWave Equity Fund? Investors receive a monthly valuation report delivered by email containing your investment valuation. In addition, the report discusses allied subjects, e.g. market conditions, trading record, performance metrics, market statistics and extracts from trade Forecasting and Trading services. The report also contains updated Fund technical analysis, e.g. Calmar ratio, Sharpe ratio, Standard Deviation and Value Added Monthly Index.
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What Metrics are available?
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