TIMESSQUARE CAPITAL MANAGEMENT, LLC
A Small/Mid Cap Growth
Portfolio Review Presentation To
Second Quarter 2012
1 1 7 7 A v e n u e o f t h e A m e r i c a s , 3 9 th F l o o r ● N e w Y o r k , N Y 1 0 0 3 6 ● P h o n e: 8 0 0 – 5 4 1 – 5 1 5 6
Oklahoma Municipal Retirement Fund
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TABLE OF CONTENTS
I. TimesSquare Capital Management, LLC (TimesSquare)
� Organization
� Assets Under Management
� Representative Client List
II. TimesSquare Small/Mid Cap Growth Strategy
� Team
� Philosophy
� Process
III. Portfolio Results & Characteristics
IV. Appendix
� Additional Performance Information
� Biographies
� Disclosures
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TimesSquare Capital Management, LLC(TimesSquare)
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TIMESSQUARE CAPITAL MANAGEMENT, LLC
Investment manager focused on providing superior investment solutions
exclusively to the institutional marketplace
Experienced team of international and U.S. equity professionals
Time-tested investment strategies driven by internally generated research
Significant employee ownership
We are growth equity specialists.
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TIMESSQUARE CAPITAL MANAGEMENT, LLC
Grant BabyakCEO, Portfolio Manager
Tony Rosenthal, CFAPortfolio Manager
Stephen Green, CFAHead of Business Development
Management Committee
Trading
Joshua Bischoff
Head Trader
Christina Mukofsky
U.S. Trader
Technology/Operations/
Administration
Mark AaronChief Operating Officer
& Chief Compliance Officer
Fred Kramer
Operations & Systems
John Metzner
Technology Support
Valerie Vazquez
Office Manager
Marketing &
Product Management
Carl JanoChief Financial Officer
Siobhan Flannery
Marketing &
Product Management
Brenda Le, CFA
Marketing &
Product Management
Michael Ray
Client Service &
Product Management
Jeffrey Braemer, CFA
Client Service &
Product Management
Joy Ragland
Client Service &
Product Management
Joseph DeVeraClient Service &
Product Management
Adam Salomon
U.S. Trader
International Equities
Robert Madsen, CFA
Analyst - Asia
David Hirsh
Analyst - Europe
Magnus Larsson
Head of International Equities/
Portfolio Manager
Timothy Corliss
International Trader
U.S. Equities
Kenneth Duca, CFA
Portfolio Manager/Analyst
Keith Ferguson, CFA
Analyst
Dr. Weidong Huang, CFAAnalyst
Mark Grzymski
Analyst
James Russo
Analyst
Michael Russell
Analyst
Seth Bienstock
Analyst
Matthew D’AltoAnalyst
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GROWTH EQUITY STRATEGIESAs of June 30, 2012
$14.13 BillionTotal Assets
$3,610Small Cap Growth(CLOSED)
U.S.
$4,225Small/Mid Cap Growth(CLOSED)
$5,933Mid Cap Growth(CLOSED)
$286FOCUS Growth
$68All-Cap Growth
International Total Assets ($M)
$4International Small Cap
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REPRESENTATIVE CLIENT LIST
Corporate
Allergan
American Airlines
AMETEK
Barnes Group
Baxter International
Boeing
Bombardier Trust (Canada, U.K., U.S.)
Bowne & Co.
CBS Corporation
CenturyLink
Chevron Corporation
Colgate-Palmolive Company
Cox Enterprises
Dell Inc.
General Mills
Hallmark Cards
Illinois Tool Works Inc.
Invensys
Jefferson Regional Medical Center
Blue Cross and Blue Shield of Minnesota
Nestlé
Pacific Gas and Electric Company
PCA Retirement & Benefits, Inc.
Providence Health System
St. Joseph Health System
SCANA Corporation
Textron
Underwriters Laboratories
Wells Fargo Advisors
Taft-Hartley
Laborers’ District Council & Contractors Pension Fund of Ohio
Maritime Association - I.L.A. Pension Fund
National Automatic Sprinkler Industry
Operating Engineers Pension Trust Fund of Washington, DC
San Diego Electrical Industry Trust
Twin City Iron Workers
UFCW Denver Area Meat Cutters & Employers Pension Plan
UFCW Rocky Mountain Unions & Employers Pension Plan
Public
Arizona State Retirement System
Colorado Public Employees’ Retirement Association
HEB Manitoba
Imperial County Employees’ Retirement System
Indiana Public Employees’ Retirement Fund
Manhattan and Bronx Surface Transit Operating Authority
Montana Board of Investments
Public Employees Retirement Association of New Mexico
Oakland County Employees’ Retirement System
Oklahoma City Employee Retirement System
Oklahoma Municipal Retirement Fund
Metropolitan St. Louis Sewer District
Regional Transportation Authority
South Carolina Retirement Systems
Stilllegungsfonds für Kernanlagen/Entsorgungsfonds für Kernkraftwerke
Virginia Retirement System
Worldwide Assurance for Employees of Public Agencies
Endowment/Foundation
American College of Surgeons
American Legacy Foundation
UCLA Foundation
Foundation for the Carolinas
Cook Children’s Health Foundation
Howard University
Idaho Endowment Fund Investment Board
Kansas Health Foundation
Kemper & Ethel Marley Foundation
Silicon Valley Community Foundation
Spectrum Health Foundation
Texas Tech University System
University of Arizona Foundation
Wichita State University Foundation
Sub-Advisory
GuideStone Capital Management
Managers Investment Group
Prudential Financial
Vantagepoint Funds
Please see the Appendix for important disclosures regarding this list.
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TimesSquare Small/Mid Cap Growth Strategy
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SMALL/MID CAP GROWTH INVESTMENT TEAM
9Semiconductor, Software, Internet,
Computer HardwareBS/Boston CollegeJames J. Russo
16Biotechnology, Pharmaceuticals,
Medical Devices, Healthcare Services
PhD/Harvard University
AB/Princeton UniversityDr. Weidong Huang, CFA
15Industrials, Materials & Processing,
Machinery
MBA/Fordham University
BSBA/Bucknell UniversityMark E. Grzymski
23GeneralistMBA/Columbia Business School
BA/Wesleyan UniversityTony Rosenthal, CFA
24Generalist MBA/New York University
BA/Yale UniversityGrant R. Babyak
19Consumer, Media, Marketing ServicesMBA/Harvard University
AB/Princeton UniversityMichael J. Russell
20Communications, Data Networking,
Data Storage, Lodging, Transportation
MBA/New York University
BBA/Hofstra UniversityKeith E. Ferguson, CFA
22Business Services,
Transaction Processing
MBA/Rutgers University
BA/Muhlenberg CollegeKenneth C. Duca, CFA
14EnergyMBA/University of Chicago
BA/Fairfield UniversityMatthew T. D’Alto
15Financial ServicesBS/Wharton SchoolSeth M. Bienstock
Years of ExperienceInvestment FocusCredentialsSmall/Mid Cap Analysts
Years of ExperienceInvestment FocusCredentialsPortfolio Managers
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SMALL/MID CAP GROWTH INVESTMENT PHILOSOPHY
“We believe that our proprietary fundamental Small/Mid cap
research skills, which place a particular emphasis on the
assessment of management quality and an in-depth understanding
of superior business models, enable us to build a diversified
portfolio of Small/Mid cap growth stocks that will generate
superior risk-adjusted returns.”
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PRIMARYREQUIREMENTS
� Exceptional
management
� Distinct, sustainable
competitive
advantage
� Strong, consistent
growth
WORKING
UNIVERSE
400 STOCKS
SMALL/MID CAP GROWTH INVESTMENT PROCESSResearch-Driven, Bottom-Up Discipline
FURTHERIN-DEPTHANALYSIS
� Management
scrutiny
� Financial
modeling
� Valuation
� Price
targets
PORTFOLIOCONSTRUCTION/RISK MANAGEMENT
� Sector/security
diversification
� Active
oversight
� Sell
discipline
PORTFOLIO
100
STOCKS
Market CapCriteria
≥$300 million
≤$5 billion2,500 stocks
Growth Criteria3 Yrs. ProjectedEPS/Sales growth
≥15%1,000 stocks
STEP 1 STEP 2 STEP 3
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Identifying “Superior Growth Businesses”
PRIMARYREQUIREMENTS
� Exceptional
management
� Distinct, sustainable
competitive
advantage
� Strong, consistent
growth
SMALL/MID CAP GROWTH INVESTMENT PROCESS
Exceptional management
� Clear goals and viable business model
� Alignment of interests with shareholders
� Experience and integrity
� Meaningful proportion of net worth tied
to company
� Track record of success
Distinct, sustainable competitive advantage
� Proprietary products, services,
distribution/manufacturing advantages
� Demonstrated franchise value
� High barriers to entry
� Relatively few competitors
� Brand name recognition
� Patents
Strong, consistent growth
� Both top line (revenue) and bottom line (earnings)
� Strong probability of retaining or widening margins
� High proportion of recurring revenues
� Sales to many customers in multiple markets
� Strong balance sheet, conservative accounting,
sufficient cash flow
� Visibility of earnings
� Growth rate potential unidentified
WORKING
UNIVERSE
400 STOCKS
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Establish targets for each stock
� 25-50% price appreciation potential over 12
to 18 months
� Re-evaluate based on evolving fundamentals
and current market conditions
FURTHERIN-DEPTHANALYSIS
� Management
scrutiny
� Financial
modeling
� Valuation
� Price
targets
Management scrutiny
� Approximately 1,500 management
meetings per year
� On site due diligence of manufacturing/
production facilities
� Further management discussions
Financial Modeling
� Traditional financial analysis
� Models based on internally generated
growth forecasts
Valuation tailored to industry
� Price/earnings at a discount to
earnings growth
� Attractive price/earnings relative to
industry group
� Price/revenue, price/cash flow, etc.,
as appropriate
Further In-Depth AnalysisSMALL/MID CAP GROWTH INVESTMENT PROCESS
WORKING
UNIVERSE
400 STOCKS
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SMALL/MID CAP GROWTH INVESTMENT PROCESS
Sell Discipline
� Operating objectives not met
� Management unable to sustain
competitive advantage
� Anticipated deterioration in
fundamentals
� Reasons for purchase changed
� Overvaluation
� Prudent profit-taking/trimming
Active Oversight
� Trading system with built-in
pre-trade compliance
� Daily compliance review
� Formal weekly review versus
client guidelines and peer group review
� Daily and weekly strategy/
research meetings
� Monthly attribution analysis
Sector/Security Diversification
� Approximately 100 stocks in a portfolio
� No one issue greater than 5% at market
� No one major industry greater than 2x
the index weight
� No one sector greater than 45% of portfolio
market value
� Top 15 positions targeted to represent
30% of the portfolio
Portfolio Construction/Risk Management
PORTFOLIOCONSTRUCTION/RISK MANAGEMENT
� Sector/security
diversification
� Active
oversight
� Sell
discipline
PORTFOLIO
100
STOCKS
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Portfolio Results & Characteristics
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OKLAHOMA MUNICIPAL RETIREMENT FUND
Total Returns (Gross) for the Period Ending June 30, 2012
Market Value as of June 30, 2012:
-2.3
-5.4
11.1
8.4
5.6
-3.2
22.6
19.4
26.625.2
2Q 12 YTD 1 YR 3 YR Since Ince ption
(04/01/09)
OMRF Russell 2500™ Growth Index
Per
cen
t R
etu
rn
Returns are Annualized greater than 1 YR
Defined Benefit Plan: $18,630,563
Defined Contribution Plan - Balanced: $ 3,853,797
Defined Contribution Plan - Aggressive: $ 5,928,578
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RUSSELL 2500 GROWTH INDEX BREAKDOWN
MACRO GROUP
Consumer Discretionary -8.5 8.2 18.9 11.4
Consumer Staples 2.8 18.5 3.7 1.9
Energy -13.2 -9.3 4.9 6.8
Financial Services -1.7 10.3 13.8 19.5
Healthcare 5.1 22.2 17.1 15.5
Materials & Processing -5.6 9.0 8.9 3.6
Producer Durables -6.4 5.0 14.9 23.0
Technology -9.9 7.0 16.3 18.4
Utilities -8.9 -3.2 1.5 0.0
Index Total -5.4 8.4 100 100
RUSSELL 2500
GROWTH INDEX
(AS OF 06/30/12)
OMRF
WEIGHT (%)WEIGHT (%)
INDEX2nd QTR
RETURN (%)
Y-T-D
RETURN (%)
Source: FactSet
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OKLAHOMA MUNICIPAL RETIREMENT FUNDATTRIBUTION HIGHLIGHTS: 2nd QUARTER 2012
Performance Contribution by SectorRelative to Russell 2500TM Growth Index
Source: FactSet
SECTOR STOCK ACTIVE
RUSSELL GLOBAL ECONOMIC SECTORS ALLOCATION SELECTION CONTRIBUTION
Consumer Discretionary 0.23 -0.16 0.07
Consumer Staples -0.14 0.02 -0.12
Energy 0.15 0.20 0.36
Financial Services 0.23 -0.33 -0.10
Health Care -0.14 0.33 0.19
Materials & Processing 0.02 0.28 0.30
Producer Durables -0.06 1.04 0.98
Technology 0.01 1.16 1.18
Utilities 0.05 0.00 0.05
TOTAL (Includes Cash & Equivalents) 0.53 2.56 3.09
Contrib to Equity Contrib to Equity Security Sector Return % Security Sector Return %Onyx Pharmaceuticals Health Care 0.63 Tempur-Pedic International Consumer Discretionary -0.92
Catalyst Health Solutions Health Care 0.53 Whiting Petroleum Corp. Energy -0.32
DaVita Inc. Health Care 0.45 Clean Harbors Inc. Producer Durables -0.30
SBA Communications Technology 0.39 Oil States International Inc. Energy -0.25
CoStar Group Inc. Producer Durables 0.30 Informatica Corp. Technology -0.25
Greatest Contributors Greatest Detractors
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OKLAHOMA MUNICIPAL RETIREMENT FUNDPORTFOLIO TEN LARGEST HOLDINGS
Source: FactSet
6/30/2012 Cap 2Q12 Contribution
% of Size Portfolio Portfolio
Security Name Description (Year of Initial Purchase) Total Price ($ mil) Return (%) Return (%)
DaVita Provides dialysis services in the U.S. for patients
suffering from chronic kidney failure (2000)
4.27 $98.21 9,230 8.92 0.45
SBA Communications Corp. Owns & operates wireless communications
infrastructure in the U.S. (2006)
3.25 $57.05 6,616 12.27 0.39
Alliance Data Provides transaction services, credit services, &
marketing services (2001)
2.17 $135.00 6,794 7.18 0.15
Wright Express Corporation Provides payment processing & information
management services to the U.S. commercial &
government vehicle fleet industry (2005)
1.99 $61.72 2,404 -4.66 -0.06
Genesee & Wyoming Inc. Operates short line & regional freight railroads (2012) 1.90 $52.84 2,141 N/A -0.02
Clean Harbors Through its subsidiaries, provides environmental services
in North America (2009)
1.79 $56.42 3,005 -16.35 -0.30
Solera Holdings Provides software & services to the automobile
insurance claims processing industry, collision repair
facilities, independent assessors, & automotive recyclers
(2009)
1.77 $41.79 2,902 -8.76 -0.18
Jack Henry & Associates Develops, markets, & installs integrated computer
systems for in-house & service bureau data processing
to banks & other financial institutions (2000)
1.67 $34.52 3,001 1.50 0.04
CoStar Group Inc. Provides information & marketing services to the
commercial real estate industry in the U.S. & UK
(2005)
1.66 $81.20 2,065 17.53 0.30
RenaissanceRe Holdings Provides reinsurance & insurance products & services
worldwide (2009)
1.55 $76.01 3,935 0.69 0.01
22.01 0.78
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OKLAHOMA MUNICIPAL RETIREMENT FUNDPORTFOLIO CHARACTERISTICS As of June 30, 2012
Russell 2500™
Growth IndexOMRF
1,40798Number of Holdings
17.2%15.3%L.T. Earnings Growth Forecast 1
16.8x15.4xP/E (FY1 Forecast) 1
2.73.5
Weighted Average Market
Capitalization ($ Billions)
2.52.9Weighted Median Market Capitalization ($ Billions)
0.82.7
Median Market
Capitalization ($ Billions)
¹ Source: FactSet Estimates
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Appendix
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Calendar Year Gross-of-Fee Returns
Calendar Years
Small/Mid Cap Growth Composite
Russell 2500™ Growth Index
2011 3.41% -1.57%
2010 24.68 28.86
2009 44.60 41.66
2008 -35.13 -41.50
2007 16.34 9.69
2006 14.09 12.26
2005 12.51 8.18
2004 12.75 14.59
2003 37.07 46.31
2002 -17.57 -29.09
2001 -10.71 -10.82
2000 13.20 -16.09
1999 82.72 55.48
1998 15.44 3.10
1997 27.86 14.76
1996 24.33 15.07
1995 50.99 33.56
1994 1.78 -1.28
1993 22.40 12.13
⇒ Our team has outperformed the Russell 2500™ Growth Index in 10 of the 10 negative benchmark quarters over the last seven years (100%)
⇒ Our team has outperformed the Russell 2500™ Growth Index in 13 of the 14 negative benchmark quarters over the last ten years (93%)
SMALL/MID CAP GROWTH HISTORICAL PERFORMANCE
Please see the Appendix for important disclosures regarding past performance.
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Biographies
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MANAGEMENT COMMITTEE
Grant R. Babyak 24 Years Experience
Grant is a Managing Director and Portfolio Manager in TimesSquare’s growth equity group. Prior to joining the firm, Grant managed small cap and mid cap
portfolios at Fiduciary Trust Company International. He previously worked for six years at Avatar Associates as an institutional portfolio manager and for two
years at U.S. Trust Company of New York as an analyst covering the consumer and basic industrial sectors. Grant has a B.A. in Political Science from Yale
University and an M.B.A. in Finance from the Leonard N. Stern School of Business at New York University.
Stephen Green, CFA 23 Years Experience
Stephen is a Managing Director and Head of Marketing & Product Management at TimesSquare. Prior to joining the firm, Stephen was Senior Vice President and
Head of Product Management at Fiduciary Trust Company International. In that capacity, he was in charge of Fiduciary’s product development efforts and global
client servicing in the U.S., Asia, and Europe. Stephen’s investment background also includes institutional investment consulting experience at William M. Mercer
Investment Consulting and Stratford Advisory Group. At both firms, he was a Senior Consultant & Director of Investment Manager Research and was responsible
for major client relationships in the U.S., Europe, and Australia. Stephen has a B.S. in Finance and an M.B.A. from the University of Illinois. He is a member of
the CFA Institute and the New York Society of Security Analysts.
Tony Rosenthal, CFA 23 Years Experience
Tony is a Managing Director and Portfolio Manager in TimesSquare’s growth equity group. Before joining the firm, Tony held a similar position at Fiduciary
Trust Company International. Prior experience includes three years at the Bank of New York as an equity portfolio manager and analyst and time at U.S. Trust
Company of New York, where he conducted economic research. Tony has a B.A. in Economics from Wesleyan University and an M.B.A. from Columbia
Business School. He is a member of the CFA Institute and the New York Society of Security Analysts.
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U.S. EQUITY INVESTMENT PROFESSIONALS
Seth M. Bienstock 15 Years Experience
Seth is a Director and Analyst in TimesSquare’s growth equity group and is responsible for research coverage of the financial services sector. Prior to joining the
firm, Seth was a Senior Analyst at Second Curve Capital, a financial services hedge fund. Prior experience includes eight years in private equity with Conning
Capital Partners and Securitas Capital. At Securitas, he also worked extensively on strategy and corporate development assignments for Swiss Re. Seth has a B.S.
in Economics from the Wharton School at the University of Pennsylvania, with a dual concentration in Finance and Insurance/Risk Management.
Joshua A. Bischoff 17 Years Experience
Joshua is a Director and Head of Trading at TimesSquare. Joshua joined the firm from Loomis Sayles & Co. where he held a similar position. His previous
experience includes trading for small capitalization equity products at Scudder Kemper and Dreman Value and working as a block trader for Bear Stearns where he
concentrated on trading financial and energy stocks. Joshua has a B.S. in Business Administration from Providence College and holds FINRA Series 7 and 55
licenses.
Matthew T. D’Alto 14 Years Experience
Matt is a Senior Vice President and Analyst in TimesSquare’s growth equity group, responsible for research coverage of the energy sector. Prior to joining the
firm, Matt was a Senior Vice President/Senior Equity Analyst at J. & W. Seligman on their small- and SMID-cap growth equity team for eight years. Prior to J. &
W. Seligman, Matt worked at Putnam Investments as an Investment Associate. Matt holds a B.A. in English writing with a Finance minor from Fairfield
University, and an MBA from the University of Chicago Booth School of Business.
Kenneth C. Duca, CFA 22 Years Experience
Ken is a Director and Portfolio Manager/Analyst in TimesSquare’s growth equity group, responsible for covering the business services and transaction processing
sectors. Prior to joining the firm, Ken held a similar position at Fiduciary Trust Company International. Before joining Fiduciary Trust, Ken spent 10 years with
Prudential where, at the time of his departure, he was a senior equity analyst on the small cap growth team. Ken has a B.A. in Economics from Muhlenberg
College and an M.B.A. from Rutgers University. He is a member of the CFA Institute and the New York Society of Security Analysts.
Keith E. Ferguson, CFA 20 Years Experience
Keith is a Director and Analyst in TimesSquare’s growth equity group. He is responsible for research coverage of the communications, data networking, data
storage, lodging and transportation industries. Keith joined the firm from Alkeon Capital, a technology hedge fund, where he held a similar position. His previous
research analyst experiences were as a Vice President at Loomis, Sayles and a Senior Analyst at Value Line, Inc. Keith has a B.B.A. in Banking and Finance from
Hofstra University, and an M.B.A. from the Leonard N. Stern School of Business at New York University. He is a member of the CFA Institute and the New York
Society of Security Analysts.
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U.S. EQUITY INVESTMENT PROFESSIONALS
Weidong Huang, Ph.D., CFA 16 Years Experience
Weidong is a Director and Analyst in TimesSquare’s growth equity group with research responsibilities for biotechnology, pharmaceutical, medical device, and
healthcare services stocks. Prior to joining the firm, Weidong held a similar position at Fiduciary Trust Company International since 1999. Weidong previously
held analyst positions at both PaineWebber and Hambrecht & Quist where he covered the biotechnology industry. He also was a research scientist at SmithKline
Beecham Pharmaceuticals where he conducted genomics research. Weidong has an A.B. in Molecular Biology from Princeton University and a Ph.D. in
Molecular and Cellular Biology from Harvard University. He is a member of the CFA Institute and the New York Society of Security Analysts.
Mark E. Grzymski 15 Years Experience
Mark is a Director and Analyst in TimesSquare’s growth equity group. He is responsible for research coverage of the industrial manufacturing, services, materials
and processing industries. Prior to joining the firm, Mark was a Director at RBC Capital Markets covering industrial manufacturing and services companies. His
previous research analyst experiences were as a Vice President at Needham & Company and as an associate analyst at Prospector Partners LLC. Mark has a
B.S.B.A. in Management from Bucknell University, and an M.B.A. from the Graduate School of Business at Fordham University.
Michael J. Russell 19 Years Experience
Mike is a Director and Analyst in TimesSquare’s growth equity group with research responsibilities for the consumer, media and marketing services sectors.
Before joining the firm, Mike was an Executive Director at Morgan Stanley covering media stocks since 1995 where he was a four year member of the Institutional
Investor All-America Research Team and was rated the top broadcasting analyst in the Greenwich Associates survey in his last year on the sell-side. Mike
graduated magna cum laude with an A.B. in Economics from Princeton University and has an M.B.A. from Harvard Business School.
James J. Russo 9 Years Experience
Jim is a Vice President and Analyst in TimesSquare’s growth equity group, responsible for research coverage of the semiconductor, software, internet, and
computer hardware industries. Prior to joining the firm, Jim was an Equity Research Analyst at Adage Capital Management, L.P. for four years. Prior to Adage
Capital Management, he worked at Fidelity Management and Research as an Equity Research Associate. Jim holds a B.S. in Management with concentrations in
Finance and Economics from Boston College.
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KEY BUSINESS PROFESSIONALS
Mark J. Aaron 23 Years Experience
Mark is Chief Operating Officer and Chief Compliance Officer of TimesSquare. He leads the back office and operations team supporting the investment team and
process. Mark was part of the initial team responsible for the development and implementation of TimesSquare’s systems, operations and control environment in
1999. Prior to joining TimesSquare, Mark was Senior Vice President at Credit Suisse Asset Management from 1991 to 1999 where he managed the Global
Infrastructure and Technology Group responsible for the implementation and management of their global network and technical infrastructure. Prior to Credit
Suisse, Mark worked in network management and system development roles at Applied Business Technologies, Inc. and Selectronics, Inc. Mark has a B.A. from
the University of Rochester.
Jeffrey D. Braemer, CFA 24 Years Experience
Jeff is a Senior Vice President, Product Manager in TimesSquare’s growth equity group. His responsibilities include client servicing as well as portfolio and
attribution analysis and general investment research. Prior to joining the firm, Jeff was a Director, Client Service and Marketing at Jacobs Levy Equity
Management where he co-led the client service and portfolio analysis department. In that capacity, he was a primary point person for all client needs. Prior to
Jacobs Levy, Jeff was a Product Specialist at Batterymarch Financial Management for U.S. and non-U.S. equity portfolios. Jeff has a B.A. in Political Science
from Washington University in St. Louis and an M.S. in Management from Boston University. He is a member of the CFA Institute and the New York Society of
Security Analysts. He holds FINRA Series 7 and 63 licenses.
Joseph B. DeVera 18 Years Experience
Joe is a Senior Vice President, Product Manager in TimesSquare’s growth equity group. His responsibilities include client servicing as well as portfolio and
attribution analysis and general investment research. Prior to joining TimesSquare, Joe was a Vice President, Director of Investment Strategy at Sentinel Asset
Management where he was the product specialist for the firm’s products, including their Small Cap Growth and Mid Cap Growth products. Prior to Sentinel, Joe
was a Director and Senior Client Portfolio Manager for the Small Cap and Mid Cap Growth portfolio management team at Deutsche Asset Management. He has a
B.S. in Finance, Marketing and International Business from the Leonard N. Stern School of Business at New York University and holds FINRA Series 7 and 63
licenses.
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KEY BUSINESS PROFESSIONALS
Michael B. Ray 24 Years Experience
Mike is a Senior Vice President, Product Manager in TimesSquare’s growth equity group. His responsibilities include client servicing as well as portfolio and
attribution analysis and general investment research. Prior to joining the firm, Mike was a Vice President, Client Service Manager at Goldman Sachs Asset
Management. In that position, Mike worked closely with GSAM relationship and product managers with the common goal of deepening public fund client
relationships. Prior to joining Goldman Sachs, Mike was a Vice President, Portfolio Specialist with Morgan Stanley Investment Management working with
institutional and retail clients with a focus on the firm’s US Growth products. Mike has a B.S. in Accounting from St. John’s University and holds FINRA Series 7,
63 and 3 licenses.
Brenda N. Le, CFA 9 Years Experience
Brenda is a Vice President, Marketing & Product Management at TimesSquare. Her responsibilities include consultant relations, marketing, and client servicing.
She is also involved with written commentary and attribution analysis. Prior to joining the firm, Brenda was a Press Assistant in the New York State Executive
Chamber where she assisted with media inquiries, reviewed television news summaries, and organized media requests for Governor George E. Pataki. Brenda
graduated cum laude with a B.A. in Communications and a B.S.E. in Digital Media Design from the University of Pennsylvania and holds FINRA Series 7 and 63
licenses. She is a member of the CFA Institute and the New York Society of Security Analysts.
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Disclosures
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Composite Disclosure:
TimesSquare Capital Management, LLC (“TimesSquare”) is a registered investment adviser that is owned by the former equity management team of TimesSquare Capital Management, Inc. (“TimesSquare Inc.”) and Affiliated Managers Group, Inc. TimesSquare was formed to manage TimesSquare Inc.’s growth equity investment advisory business which was sold to TimesSquare in a transaction that closed on November 19, 2004. The members of TimesSquare’s Small/Mid Cap Growth team joined TimesSquare Inc. on September 7, 2000 after working together at Fiduciary Trust Company International (“FTCI”). While employed at FTCI, the team managed the Fiduciary Special Equity Fund, an ERISA-only commingled vehicle managed in the Small/Mid Cap Growth style. The team is currently led by Grant Babyak (and Tony Rosenthal), who served as co-manager of the Special Equity Fund starting in 1996 through September 6, 2000. There has been no change in investment strategy from the prior two firms.
Effective October 4, 2000, the team began managing its first Small/Mid Cap Growth account at TimesSquare Inc. Five other Small/Mid Cap Growth accounts came to the team from the same client in the fourth quarter of 2000.
The performance record we have submitted to the recipient of this presentation as indicated on the cover consists of the following:• From 12/31/85 to 9/30/00: Gross performance of the FTCI Special Equity Fund as published in the PSN database of manager returns. TimesSquare has not independently verified the accuracy of the performance published in thePSN database, all returns in which are submitted by the participating investment management firms.
• From 10/4/00 to 10/31/00: Gross performance of the TimesSquare Inc. Small/Mid Cap Growth representative account.• From 10/31/00 to 11/18/04 and from 11/19/04 to present: Gross performance of all TimesSquare Inc. and TimesSquare, respectively, discretionary Small/Mid cap accounts with market values greater than $5 million that investedin stocks with market capitalizations generally between $300 million and $5 billion at time of purchase.
The performance of the Fiduciary Special Equity Fund reflects a number of factors, including the contributions of Mr. Babyak and other members of the TimesSquare team such as the four dedicated research analysts (present as of 9/7/00) as well as those of other persons who are not part of the TimesSquare team. Prior to September 7, 2000, the TimesSquare team also managed other accounts investing in Small/Mid cap growth stocks. Performance of those other accounts may have been higher or lower than that of the FTCI Special Equity Fund. TimesSquare, however, cannot independently verify that the Fund's performance is representative of the performance of those Small/Mid cap accounts managed by the TimesSquare team prior to September 7, 2000. Variations in performance, investments, strategies, allocation percentages among other things, can be attributed to a number of factors, including, but not limited to, cash flows, timing of purchases and sales of portfolio securities, and investment restrictions imposed by account holders. There can be no assurance that the future performance of an individual account will be the same as the performance of any other account, including those represented in the historical record we present.
The performance figures shown are calculated in U.S. dollars on a size-weighted basis and reflect the reinvestment of dividends and other earnings, and the deduction of brokerage commissions and other transaction costs. Performance is provided on a gross basis (before the deduction of management fees) as well as net of the highest management fee of 1.00% charged by TimesSquare to separately managed institutional accounts in this composite. Investment advisory fees generally charged by TimesSquare are described in Part II of its Form ADV. To illustrate performance net of fees, assume $20,000,000 is placed under management for ten years sustaining 10% compound gross total return. If an advisory fee of 1.00% of average assets under management is charged per year, for each year of the ten-year period, the resulting compound annual return would be reduced to 9.0%. The ending dollar value of the account would be $47,347,274 compared with the unreduced account value of $51,874,849.
The “linked” performance results included in this presentation are exclusively for the use of the recipient of this presentation as indicated on the cover, and are suitable for use exclusively in “one on one” institutional settings. The performance results of the Fiduciary Special Equity Fund and the TimesSquare Inc. and TimesSquare return series, for the respective time periods as represented in the linked performance results, are presented on the following pages.
The opinions and information expressed and provided are for general information only and are not intended to provide specific advice or recommendations but rather, a basis from which strategies can be built, taking into account the specific objectives of each portfolio, in terms of return, time horizon, and risk constraints, as well as diverging investment perspectives and assumptions. All material has been obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed.
Russell® Disclosure:Performance is measured against the Russell 2500™ Growth – a market capitalization-weighted index that measures the performance of those Russell 2500™ companies with higher price-to-book ratios and higher forecasted growth rates. All indexes, including the Russell 2500™ Growth Index, are based on gross-of-fee returns. Russell Investment Group is the source and owner of the Russell Index data contained or reflected in this material and all trademarks and copyrights related thereto.
Representative Client List Disclosure:The Representative Client List includes the clients of TimesSquare Capital Management, LLC that have consented to inclusion on this list, and is not based on performance criteria. Inclusion on this list does not represent an endorsement by or of these entities or of the services provided by TimesSquare or these entities.
Portfolio Holdings:The holdings and weightings displayed represent a particular point in time. It should not be assumed that the securities continue to be held and/or continue to be held in the same percentage. In addition, the holdings and percentage weights of a particular client account may differ from the information shown. The sector weightings shown for TSCM reflect the Russell Global Sectors classification system of the securities within our portfolios.
Representative Portfolio:The representative portfolio is an account that we believe most closely reflects the current portfolio management style for this strategy. Performance is not a consideration in the selection of the representative portfolio. The characteristics of the representative portfolio may differ from those of other managed accounts and from those of a start-up portfolio. The characteristics relate to the portfolio as of a particular point in time and should not be regarded as predictive.
Notice to Consultants:Consultants may provide gross performance data to prospective clients only in one-on-one presentations and such performance must be accompanied by the disclosures set forth herein.
SMALL/MID CAP GROWTH DISCLOSURES
31
Fiduciary Trust Company International Special Equity Fund, Quarterly Returns, Gross of Fees, 12/31/85 through 9/30/00
1995
1st Quarter 10.78% 8.46%
2nd Quarter 8.66 8.92
3rd Quarter 14.72 11.11
4th Quarter 9.34 1.75
Year 50.99 33.56
1994
1st Quarter -4.75 -2.94
2nd Quarter -4.36 -6.47
3rd Quarter 9.84 9.63
4th Quarter 1.72 -0.81
Year 1.78 -1.28
1993
1st Quarter 3.39 -1.26
2nd Quarter 2.15 2.44
3rd Quarter 16.51 8.06
4th Quarter -0.53 2.59
Year 22.40 12.13
1992
1st Quarter -0.05 -0.75
2nd Quarter -4.89 -10.21
3rd Quarter 3.54 2.36
4th Quarter 16.85 15.96
Year 15.01 5.78
1991
1st Quarter 27.37 28.87
2nd Quarter -0.24 -2.90
3rd Quarter 16.16 11.46
4th Quarter 20.69 11.14
Year 78.14 55.01
2000
1st Quarter 19.22% 15.15%
2nd Quarter -6.24 -6.91
3rd Quarter 6.50 -2.94
1999
1st Quarter 4.20 -1.05
2nd Quarter 8.97 16.81
3rd Quarter 2.55 -3.47
4th Quarter 56.92 39.36
Year 82.72 55.48
1998
1st Quarter 14.03 11.15
2nd Quarter 0.10 -4.88
3rd Quarter -19.18 -22.21
4th Quarter 25.14 25.35
Year 15.44 3.10
1997
1st Quarter -9.40 -8.00
2nd Quarter 18.51 16.25
3rd Quarter 16.13 16.64
4th Quarter 2.54 -8.01
Year 27.86 14.76
1996
1st Quarter 7.66 7.00
2nd Quarter 9.78 5.11
3rd Quarter 3.40 1.37
4th Quarter 1.74 0.93
Year 24.33 15.07
1990
1st Quarter -3.83% -2.88%
2nd Quarter 7.88 7.44
3rd Quarter -14.38 -24.09
4th Quarter 11.30 10.84
Year -1.13 -12.20
1989
1st Quarter 9.85 7.64
2nd Quarter 14.89 8.06
3rd Quarter 16.91 9.54
4th Quarter 0.40 -2.27
Year 48.14 24.52
1988
1st Quarter 9.72 14.09
2nd Quarter 5.58 5.73
3rd Quarter -2.94 -2.91
4th Quarter 3.37 -0.18
Year 16.23 16.91
1987
1st Quarter 26.71 25.08
2nd Quarter 2.32 0.24
3rd Quarter 6.85 4.34
4th Quarter -20.63 -27.17
Year 9.95 -4.72
1986
1st Quarter 54.13 16.06
2nd Quarter 32.84 8.85
3rd Quarter -7.05 -13.35
4th Quarter 6.24 2.37
Year 102.19 12.06
Russell 2500™
FTCI Growth
Russell 2500™
FTCI Growth
Russell 2500™
FTCI Growth
Please see the important disclosures regarding past performance.
SMALL/MID CAP GROWTH DISCLOSURES
32
Small/Mid Cap Growth Composite, Quarterly Returns, Gross of Fees, Since 9/30/00
SMALL/MID CAP GROWTH DISCLOSURES
Russell 2500™
TSCM Growth
20061st Quarter 11.74 11.83
2nd Quarter -4.12 -6.13
3rd Quarter -0.66 -1.20
4th Quarter 7.21 8.25
Year 14.09 12.26
20071st Quarter 2.31 4.03
2nd Quarter 8.23 6.99
3rd Quarter 2.91 0.66
4th Quarter 2.09 -2.09
Year 16.34 9.69
20081st Quarter -9.37 -11.08
2nd Quarter 3.43 3.62
3rd Quarter -9.33 -12.09
4th Quarter -23.68 -27.77
Year -35.13 -41.50
20091st Quarter -4.45 -5.97
2nd Quarter 17.56 21.79
3rd Quarter 18.66 17.17
4th Quarter 8.49 5.57
Year 44.60 41.66
20101st Quarter 5.57 8.81
2nd Quarter -8.44 -9.77
3rd Quarter 12.26 13.15
4th Quarter 14.90 16.00
Year 24.68 28.86
20111st Quarter 9.31 9.83
2nd Quarter -0.37 0.38
3rd Quarter -19.52 -21.35
4th Quarter 17.99 13.51
Year 3.41 -1.57
20121st Quarter 13.69% 14.60%
2nd Quarter -2.29 -5.38
Year 11.09 8.44
Russell 2500™
TSCM Growth
2001
1st Quarter -18.60 -19.91
2nd Quarter 14.92 21.27
3rd Quarter -20.42 -27.07
4th Quarter 19.94 25.90
Year -10.71 -10.82
2000
4th Quarter -4.91 -19.35
2002
1st Quarter 2.49 -2.95
2nd Quarter -11.66 -16.63
3rd Quarter -16.64 -19.06
4th Quarter 9.20 8.28
Year -17.57 -29.09
2003
1st Quarter -2.49 -3.20
2nd Quarter 19.78 -22.72
3rd Quarter 6.03 9.97
4th Quarter 10.68 12.00
Year 37.07 46.31
2004
1st Quarter 3.68 5.50
2nd Quarter 1.30 0.13
3rd Quarter -6.53 -5.61
4th Quarter 14.85 14.91
Year 12.75 14.59
2005
1st Quarter -2.84% -4.33%
2nd Quarter 5.51 3.56
3rd Quarter 6.23 6.29
4th Quarter 3.30 2.72
Year 12.51 8.18
Please see the important disclosures regarding past performance.
33
Calendar Year Net-of-Fee Returns
Calendar Years
Small/Mid Cap Growth Composite
Russell 2500™ Growth Index
2011 2.38% -1.57%
2010 23.46 28.86
2009 43.20 41.66
2008 -35.80 -41.50
2007 15.19 9.69
2006 12.97 12.26
2005 11.39 8.18
2004 11.64 14.59
2003 35.74 46.31
2002 -18.42 -29.09
2001 -11.69 -10.82
2000 12.10 -16.09
1999 81.13 55.48
1998 14.32 3.10
1997 26.65 14.76
1996 23.16 15.07
1995 49.63 33.56
1994 0.77 -1.28
1993 21.24 12.13
SMALL/MID CAP GROWTH DISCLOSURES
The Russell 2500™ Growth Index is based on gross-of-fee returns. Please see the important disclosures regarding past performance.
