Why MCS?

METROPOLITAN CAPITAL STRATEGIES, LLC
Managing Investment Risk

Why MCS?

RISK MANAGEMENT

MCS has always focused on managing investment risk. Risk management is employed by utilizing cash and cash equivalents when market volatility increases, especially when market movement, in either direction, is not based on fundamental soundness. Buy decisions are largely based on whether a potential security is undervalued, sell decision are largely based on whether a security is overvalued. If the fundamentals of a certain security cannot accurately dictate whether or not it is valued correctly, that security is ineligible for consideration.

By moving into a cash/cash equivalent position during high risk market environments, MCS is able to realize profits while minimizing downside exposure and risk. Consistency in security selection and risk management are among the leading factors contributing to MCS products’ low standard deviation and high alpha.

FACT FUNDS^®

MCS employs a proprietary strategy defined as Flexible Asset Class Trading, or FACT Funds^®. FACT is a style of investing that allows MCS to invest anywhere at any given point in time, in any given market environment as long as risk levels are at an appropriate low. This ability is an integral aspect of MCS FACT Funds^®, the “flexibility” that money managers should afford their clients. MCS uses cash and equivalents as an asset class to minimize market risk exposure and to protect both principal and realized profit during high risk market cycles. During periods of low risk and strong fundamentals, MCS takes positions in the securities they deem suitable

DEFINED TIME HORIZON

Traditional asset managers and investment products many times seek to outperform a benchmark in the short term instead of focusing on where they will be in 5, 10, or even 20 years down the road. Rather than viewing investing as short term, MCS assigns a time horizon of 5 years to each account, in which time our goal is to double the account value with minimal risk. Ideal clients for such a time horizon are individual investors and institutions with a defined and committed long term investing time horizon.

GIPS^® COMPLIANCE

MCS GIPS Firmwide Verification Report

Since inception, MCS has been a GIPS^® (Global Investment Performance Standards) compliant and verified firm. GIPS^®, the highest level of performance measurement and is an established standard for investment performance and presentation that is recognized worldwide. The standard requires investment management firms to adhere to performance standards that help assure investors that the performance is both complete and fairly presented. GIPS^® aims to help ensure that results are readily comparable among investment management firms without regard to geographical location and provides a fair format that provides full disclosure. The objectives of GIPS^® include accurate and consistent investment performance data for reporting, record keeping, marketing and presentation.

To claim compliance with GIPS^®, the firm must adhere to ethical standards to help ensure fair representation and full disclosure of the firm's performance. All fee paying portfolios are included in MCS composites.

Third party verification brings credibility to the claim of compliance and supports the overall guiding principles of full disclosure and fair representation of investment performance.

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