Past performance does not guarantee future results. Investments with Kopion may lose value.
Terry Ledbetter, Jr. began managing his first diversified investment account on 2/4/04 while employed by Friedberg Investment Management (FIM). Mr. Ledbetter left FIM on 7/31/09 and founded Kopion Asset Management, LLC (Kopion) which became a legal entity on 8/24/09. Importantly, when Mr. Ledbetter founded Kopion, he continued to manage the same accounts that he had been managing while employed by FIM. The accounts and investment process remained the same. The performance information cited in this presentation includes all of the diversified investment accounts managed by Mr. Ledbetter since 2/4/04 which is when he began managing his first diversified investment account. This information is provided for both Mr. Ledbetter’s entire performance history as well as for the portion of Mr. Ledbetter’s performance history that occurred after Kopion was founded.
The performance information cited in this presentation has been thoroughly documented, and it has been calculated using normal industry protocols which are described in more detail below. This information has not, however, been audited by an independent third party. Dividend and interest income in these accounts was reinvested. Returns for these accounts have been asset-weighted to calculate historical returns. Said another way, the accounts were aggregated into a single group and then performance was calculated for that single group. This group includes some sub-accounts which were carved out of larger accounts in order to exclude assets such as mutual funds that Mr. Ledbetter did not manage directly.
The performance figures cited in this presentation represent Mr. Ledbetter’s Time Weighted Return (TWR). The TWR makes adjustments for deposits and withdrawals so that those transactions do not influence performance results. Consequently, deposits do not increase the return, and withdrawals do not decrease the return. The TWR thus allows for performance comparisons between Mr. Ledbetter’s history and market indices.
The performance figures cited in this presentation include both “gross returns” which are returns before Kopion’s management fee and “net returns” which are returns after deducting Kopion’s management fee. Kopion's fee rates are available upon request. Mr. Ledbetter was employed by Friedberg Investment Management (FIM) from 7/1/02 through 7/31/09, and FIM’s management fee rates were different from Kopion’s. In order to provide a better depiction of the impact of Kopion’s fees, this presentation uses Kopion’s maximum fee rate of 1.25% for all periods presented including those during which Mr. Ledbetter was employed by FIM.
Kopion has provided the returns of the S&P 500 and the Russell 2000 indices in order to provide the broader market context of Mr. Ledbetter’s returns. The S&P 500 tracks the performance of relatively large publically traded companies, and the Russell 2000 tracks the performance of relatively small ones. Kopion does not “benchmark” its portfolio against indices in the traditional sense of carefully managing the portfolio for comparison against a specific index. Instead, these two indices are used as broad indicators of the market’s performance. Mr. Ledbetter has primarily focused on small and medium sized firms, but he has also invested in some large companies as well. This is why Kopion has provided the results of both the S&P 500 and Russell 2000. From 2/3/04 through 12/31/19, Mr. Ledbetter's monthly net returns were 44% and 6% more volatile than the S&P 500’s and Russell 2000’s, respectively. For the three years ending 12/31/19, Mr. Ledbetter's monthly net returns were 55% and 18% more volatile than the S&P 500’s and Russell 2000’s, respectively.
Indices’ performance figures have been obtained from sources believed to be reliable.