Capstone Global Investments claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards for the period December 1, 2015 through December 29, 2017. Capstone has not been independently verified for GIPS compliance.

  1. Capstone Global Investments is an independent investment adviser registered with the State of Georgia. Capstone was founded in December of 2015, and manages small-cap equity strategies. For composite reporting purposes, the Firm is defined as all equity portfolios managed by Capstone.
  2. Beginning December 2015, the composite includes only (SMA) portfolios benchmarked to the Russell 2000 Small Cap Index.
  3. The Capstone U.S. High Quality Small Cap Equity SMA Composite is composed of portfolios invested in US equities which have a market capitalization greater than $50 Million and less than $10 Billion. The investment goal is to find high quality investment opportunities that are trading at a discount to the market and have a catalyst to help propel their relative valuation up to fair value. A complete description of the composite is available on request.
  4. The composite was created in January 2016. A complete list and description of firm composites and performance results is available upon request.
  5. All returns are expressed in US dollars. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.
  6. The primary benchmark for the U.S. High Quality Small Cap Equity composite is the Russell 2000 Small Cap Index (Net). The Russell 2000 Small Cap Index returns are provided to represent the investment environment existing during the time periods shown. For comparison purposes, the index is fully invested and includes the reinvestment of income. The returns for the index do not include any trading costs, management fees, or other costs. Index returns have been taken from published sources.
  7. “Pure” gross returns, presented below as supplemental information. The SMA fee includes all charges for trading costs, portfolio management, custody, and other administrative fees. Net returns are calculated by subtracting the highest applicable SMA fee (1.00% on an annual basis, or 0.083% monthly) on a monthly basis from the “pure” gross composite monthly return. The standard fee schedulein effect is as follows: 1.00% on total assets.
  8. The minimum portfolio size for the U.S. High Quality Small Cap Equity composite is $75,000.
  9. Past performance is not indicative of future results and no investment is guaranteed for return of principal and/or return on investments. All information provided and used in calculations is believed to be correct, but accuracy cannot be guaranteed. Please consult with a financial professional before investing.
  10. Composite dispersion is measured as the average of monthly standard deviations for the periods shown.

Investment process, strategies, and procedures detailed in this presentation are intended to be general guidelines, subject to market conditions and client-specific investment guidelines and restrictions, and are measured at time of purchase. Capstone Global may deviate from these guidelines if market conditions warrant, or if the investment professionals deem doing so would be in the clients’ best interests. Guidelines do not guarantee any reduction of risk or loss.

The information provided in this report should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in an account’s portfolio at the time you receive this report or that securities sold have not been repurchased. The securities discussed do not represent an account’s entire portfolio and in the aggregate may represent only a small percentage of an account’s portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein.

Past performance is not indicative of future results.  See Capstone Global Form ADV, Part 2 for a description of investment advisory fees. 
Fees have a compounding effect on cumulative results. For example, assume the account achieves a 10% annual return prior to the deduction of fees each year for a period of 10 years. If an annual fee of 0.5% of assets under management were charged each of the ten years, the resulting annual average return net of fees would be reduced to 9.48%.

The sector weightings and portfolio characteristics are presented as of the date shown on this presentation, and may change without notice.  A complete list of sector weightings and individual security positions are available upon request.

The Russell 2000 Small Cap Net Return Index is a stock index designed to measure the performance of U.S. Small Cap equities.

Investors cannot directly invest in an index.