AI Hedge Awards 2017

38 Acquisition International - Hedge Fund Awards 2017 Laureola Advisors, Inc. Best Life Settlements Fund Manager 2017 & Best US Fixed Income Fund (Since Inception): Laureola Investment Fund Laureola Advisors, Inc. Laureola Advisors is a specialist asset manager focused exclusively on Life Settlements. We explore the firm’s reasoning behind focusing on this niche asset class and the benefits it offers investors. Company: Laureola Advisors, Inc. Name: Tony Bremness, Managing Director Email: Tony.Bremness@ LaureolaAdvisors.com Web: www.laureolaadvisors.com HF170076 Investment goals, including safety, mean different things to different investors. For most Private HNW Investors, the key criteria are 1) achieving a consistent return, 2) generating a suitable level of income, and 3) keeping investment risks low and well managed – i.e. high levels of safety. The Laureola Fund satisfies Private Investors by providing high levels of safety combined with sustainable and reliable returns. The fund invests in Life Settlements. In the USA, it is both legal and encouraged for an individual to sell his Life Insurance Policy if it no longer needed or wanted. The investor buys the policy, pays the premiums, and eventually collects the death benefit from the insurance company. Investors pay on average 3x to 4x more for the policy than the insurance companies offer, making both the buyer and the seller winners in a Life Settlement transaction. Life Settlements currently trade at average IRRs (yield) of 14%, despite being backed by companies rated A+ or better. The combination of double digits returns, minimum credit risk, and a certain outcome, is an early indication of above average safety. In addition, these investments also offer safety by their ability to generate returns without price movements. The assets are typically bought at between 10% and 25% of final value, offering safety in two ways; 1) there is a large margin for error between 25% and the 100% eventually collected; 2) the final amount and the investment returns will be generated even in the complete absence of future buyers. Life Settlements can be traded if necessary, but unlike equities they do not need liquidity to generate returns. Safety is also provided via the investment strategy of the Fund – “don’t lose money”. Losing months are infrequent and modest. While other Funds may outperform over the short term, a steady and reliable performance will come out on top over a multi-year time horizon. The Fund’s Advisors have several competitive advantages that help make the investment safe. They have multiple sources of supply, and a unique access to the deal flow. They have multiple sources of cash to ensure there is always the necessary cash flow to pay premiums. And they are able to adapt to changing market conditions, allowing them to always search out the best assets when markets change. Additional safety is provided by the Fund structure, with world class providers for Custody, Fund Administration, Valuation, Actuarial Consulting, and Audit. There is a strong alignment of interests between the Fund Advisors and the investors; the Advisors only take performance fee on realised gains, removing any accounting risk for the investors. Overall, for investors seeking above average safety without sacrificing returns, the Laureola Investment Fund is worth considering. EOLA INVESTMENT FUND Dedicated to Life Settlements December 2016 n V ALUE OF $1,000 I NVESTED (USD) Apr May Jun Jul Aug Sep Oct Nov Dec Year - 1.9% 6.0% 3.0% 0.6% 3.9% 1.9% 1.9% 3.4% 24.8% 1.7% 1.0% 0.9% 0.7% 2.4% 0.8% 5.8% 0.6% 0.2% 18.5% 0.1% 0.5% 2.5% 5.9% 0.4% 0.8% 1.3% 7.3% 3.7% 31.9% 3.0% 1.6% 1.4% 0.1% 0.1% 0.5% 1.1% 1.0% 10.7% ) $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500 LAUREOLA INVESTMENT FUND Dedicated to Life Settlements December 2016 Investment minimum: $100,000 Follow-up Investment: $25,000 Liquidity: Monthly (90 days’ notice) Redemption fees years 1-3 Administrator: Apex Fund Services Custodian: Bank of Utah - Corporate Trust Division Valuation Consultant: Lewis & Ellis Auditor: Deloitte Regulator: The Bermuda Monetary Authority V ALUE OF $1,000 I NVESTED (USD) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 2013 $ - - - - 1.9% 6.0% 3.0% 0.6% 3.9% 1.9% 1.9% 3.4% 24.8% 2014 $ .4% 1.1 1.7% 1.7% 1.0% 0.9% 0.7% 2.4% 0.8% 5.8% 0.6% 0.2% 18.5% 2015 $ -0.3% 6.0 0. % 0.1% 0.5% 2.5% 5.9% 0.4% 0.8% 1.3% 7.3% 3.7% 31.9% 2 16 $ 0.2% 0.4 0.7% 3.0% 1.6% 1.4% 0.1% 0.1% 0.5% 1.1% 1.0% 10.7% T HE I NVESTMENT E NVIRONMENT P ERFORMANCE A NALYSIS (USD) F UND D ETAILS $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500 Performance as of 31 December 2016