Intelledgement, L.L.C.

Intelligently hedged investment

Portfolio Diagnosis Frequently Asked Questions

Why would I want to do this?

A. Well of course until we talk with you, we can’t be sure it would be useful…but if you suspect you’d benefit from better control over your future in general and over the performance of your investments in particular, we can probably help. In any event, the main objective of our preliminary discussion will be to determine whether or not it’s likely that a Portfolio Diagnosis would be helpful for you.

Who performs the diagnosis?

A. Our senior consultant Brad Hessel, who is registered by the State of North Carolina as an investment advisor, will work with you.

Where is it done?

A. We are flexible. Our preference is to meet with you in person at least once but we can work via Skype or phone or IM or e-mail or any combination thereof.

How does it work?

A. We start with a preliminary discussion to ensure that you would benefit from a Portfolio Diagnosis. If both you and we agree it make sense to move forward, then we will ask you a lot of questions about your finances, help you define (or confirm) your needs and objectives, analyze the past performance of your investments, evaluate how well that performance matches your objectives, and provide some recommendations for the future.

When does all this happen and how much time will it take?

A. The preliminary discussion can take up to an hour. If we decide to move forward at that point, we will need to agree on a contract to delineate the services Intelledgement will provide you and any associated costs. (North Carolina law requires investment advisors, who have a fiduciary duty to act in the best interests of their clients, to execute a written contract with each client; this ensures there is no question about whether or not a client relationship exists.) Once a contract is in place, we will ask you to fill out our Investor Profile, which—including reviewing it with us—will probably take another hour. Then following our review of your portfolio performance, we will need up to an hour to review our analysis and any recommendations with you. So, bottom line, you are looking at investing one to three hours most probably spread out over a few days.

What do I need to provide to Intelledgement?

A. A Portfolio Diagnosis is a lot like an appointment with a general practitioner: expect a lot of intrusive questions. The quality of our analysis and recommendations depends on both the quantity and quality of the information you provide us with. In addition to the information you provide when you fill out the Investor Profile info, we will need access to your portfolio’s historical records to analyze and report performance data. In providing us with this information, please keep in mind that [a] as our client, we have a legally mandated fiduciary duty to act in your best interests and [b] Intelledgement has a Privacy Protection Policy that applies to any confidential client data.

What do I end up with?

A. You will end up with a copy of our Investor Profile spreadsheet which in addition to compiling information about your finances in one place will document your investment needs, preferences, and goals. You will also get a spreadsheet analysis of the performance of your current investment portfolio—based on the data you provide us—in comparison with the USA stock market (S&P 500) overall and the Greenwich Alternative Investments Macro Hedge Fund Index (which is the benchmark for our virtual model Intelledgement Macro Strategy Investment Portfolio). You will be able to use these spreadsheets to maintain a current summary of your financial profile and investment goals and also to track the performance of your investments going forward, if you wish. And you will receive a diagnosis (check out a sample diagnosis) from us as to how well your portfolio performance is meeting your needs and objectives and—if improvements are called for—recommendations as to how to proceed.

How much will this cost me?

A. Actually, that is up to you. There is no charge for a preliminary discussion. If we mutually determine it makes sense to proceed with a Portfolio Diagnosis, Intelledgement will bill you $100/hour for the time we spend conducting it. Generally, this is one-to-two hours; in any event, Intelledgement will not bill you for more than $200 unless we mutually determine that it makes sense—and you so instruct us—to spend more than a couple of hours on the Portfolio Diagnosis. However, at the end of the day, we leave it up to you to determine whether or not you got your money’s worth. We will accept whatever you decide to pay us from $0 up to the amount we invoice you. (We won’t accept overpayments. Well, OK, we will deposit the funds, but the amount of any excess payment will be credited to that client’s account to be applied to the cost of future services or, if not used within a reasonable time frame, refunded.)