Money What Works On Wall Street Presentation

osam.
com
osam.com
Founded in 2007
Based upon the principles outlined

in What Works on Wall Street
34 staff, 11 Partners
$6.2 billion AUM
Dedicated to determining the best factors for

future results from historical data
Past performance is no guarantee of future results. Please see important disclosure information at the end of this presentation.
2
osam.com
14.4%
11.1%
P/S
1st edition U.S. All
Stocks
Cheapest
Decile
(19632012)
Past performance is no guarantee of future results. Please see important disclosure information at the end of this presentation. 3
osam.com
+3.3%
annual advantage P/S
U.S. All
Stocks
Cheapest
Decile
(19632012)
Base Rates 1-yr 3-yr 5-yr 7-yr 10-yr
Cheapest P/S
68% 74% 82% 89% 95%
vs. U.S. All Stocks
osam.com
But 3 sectors were heavily favored
consumer
staples
energy
financials
health care
industrials
consumer
information technology
discretionary materials
utilities
telecoms
osam.com
15.8% +4.6%
14.4% annual advantage
11.1%
Combining
U.S. All
2 factors: Stocks
Cheapest Cheapest P/S + Cheapest P/E

Decile P/S (19632012)
Base Rates 1-yr 3-yr 5-yr 7-yr 10-yr Base Rates 1-yr 3-yr 5-yr 7-yr 10-yr
Cheapest P/S
Cheapest P/S
68% 74% 82% 89% 95% + Cheapest P/E 71% 84% 93% 96% 98%
vs. U.S. All Stocks vs. U.S. All Stocks
osam.com
multiple
factors:
Price-to-Sales
Price-to-Earnings
EBITDA-to-Enterprise Value
4th edition Free Cash Flow-to-EV

Shareholder Yield
OSAM Value
osam.com
17.3%
11.1%
4th edition U.S. All

Stocks
Cheapest
Decile
OSAM Value
(19632012)
osam.com
17.3%
11.1%
U.S. All
Stocks
Cheapest
Decile
(19632012)
Base Rates vs. U.S. All Stocks 1-yr 3-yr 5-yr 7-yr 10-yr
Cheapest Decile
82% 96% 99% 100% 100%
OSAM Value
osam.com
17.3%
11.1%
U.S. All
Stocks
1.5%
Cheapest Most Expensive

Decile Decile
(19632012)
Most Expensive Decile

28% 15% 5% 1% 0%
OSAM Value
osam.com
rolling 10-yr periods (dashed line)

Value
Composite
outperforms
85% of
the time
Annualized OSAM Shareholder U.S.

Return by Value EBITDA/EV P/E FCF/EV Yield P/S All Stocks
Best Deciles:
17.3% 16.8% 15.9% 15.8% 15.3% 14.4% 11.1%
osam.com
Financial Strength
External Financing
13.2%
Debt-to-Cash Flow
11.1% Debt-to-Equity
1-Year Change in Debt
U.S. All
Stocks
Best Decile
(19632012)
osam.com
Financial Strength
13.2%
11.1%
U.S. All
Stocks
Best Decile
(19632012)
Best
66% 80% 89% 95% 98%
Financial Strength
osam.com
Financial Strength
13.2%
11.1%
U.S. All
Stocks
5.5%
Best Worst
(19632012)
Worst
20% 11% 5% 0% 0%
Financial Strength
osam.com
GameStop Corp. Class A (GME) J. C. Penney Company, Inc. (JCP)
Financial
Strength
composite 10 100
score
The lower the number the better the score.
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Earnings Quality
15.7%
Current Accruals-to-Assets
Change in Operating Assets
11.1% Total Accruals-to-Total
Assets
U.S. All
Depreciation-to-Cap Ex
Stocks
Best Decile
(19632012)
Best
81% 87% 95% 100% 100%
Earnings Quality
osam.com
Price
osam.com
Earnings
Quality
osam.com
Earnings Quality
15.7%
11.1%
U.S. All
Stocks
Best Decile
(19632012)
Best
81% 87% 95% 100% 100%
Earnings Quality
osam.com
Earnings Quality
15.7%
11.1%
U.S. All
Stocks
4.1%
Best Worst
(19632012)
Worst
19% 11% 5% 4% 0%
Earnings Quality
osam.com

OSAM Enhanced Dividend
Large Cap Stocks Market Cap > Average
Attractively-Priced, Stocks whose prices are cheaper than their

High-Quality Value peers relative to underlying fundamentals like
earnings, cash flow, and sales.
Stocks
The direction and overall level of a
Financial Strength companys debt, as well as the companys
capability to pay it off.
Earnings Quality Real earnings, not

manipulated earnings.
Select Stocks with Dividend Yield

Stocks with strong dividend yields
Weighting the Securities: The strategys final ranking factor for security selection is dividend yield.
Securities with the highest dividend yield are given the greatest weight in the portfolio.
21
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Dividend Yield More Effective in Global Markets
Best Decile 17.5%

Dividend Yield
12.8% 12.8%
Best Decile
10.7%
Dividend Yield
All MSCI
Stocks
All U.S.
Stocks
(19702012)
Base Rates 1-yr 3-yr 5-yr 10-yr
vs. U.S. All Stocks 56% 71% 69% 69%

Best Decile Dividend Yield
vs. MSCI All Stocks 70% 85% 85% 96%
All investments carry a certain degree of risk, including the possible loss of principal. Dividend yield is one component of performance and should not be the only consideration for investment.
osam.com
OShaughnessy
Enhanced Dividend
Investable Universe
(AZN) (MRK)
(Approx.3,500 stocks)
Market cap > Universe average,

excluding Utilities
Market cap $66.1 bil $133.8 bil
Value* 10 68
Top 3/4 by composited
score of Value, Earnings Earnings Quality* 4 16
Quality, and Financial Financial Strength* 18 80
Strength Composites
Composited score of composites* 10 55
EBITDA/EV > median

EBITDA/EV* 17 76
Value Composite > median
Value* 14
Top securities with the
highest dividend yields
higher-yielding securities
Dividend yield 5.3% 3.8%
are overweighted
Selected? yes no
* The lower the number
the better the score.
osam.com

OShaughnessy Enhanced Dividend
Top 10 weighted avg. dividend yield: 5.69%
Dividend Yield* Weight
Orange 3.8% 4.9%

Telstra Corp. 5.5% 4.6%
Canadian Oil Sands Ltd. 6.9% 4.6%
AstraZeneca plc 5.3% 4.5%
CenturyLink Inc. 6.4% 4.3%
Telefonica Brasil 10.3% 4.2%
BP plc 4.9% 4.0%
BCE Inc. 5.2% 3.7%
Total S.A. 4.3% 3.7%
BAE Systems plc 4.0% 3.6%
* The Dividend Yield is the annual percentage of return earned by an investor on a common or preferred stock. The yield is calculated by dividing the
amount of dividends paid per share over the past twelve months by the current market price per share of the stock. OSAM utilizes the services of
Factset, a third party data provider vendor, to calculate portfolio characteristics and metrics. The dividend yield is a gross indicated yield. There is no
guarantee that the rate of dividend payment will continue and the income derived is subject to taxes and expenses which will impact the actual yield
experience of each investor.
osam.com
Trending Value
25
osam.com
20.4%
11.1%
U.S. All
Stocks
Trending
Value
(19632012)
osam.com
Trending Value Top 10

AAR Corp.
Alliant Techsystems Inc.
Bridgepoint Education, Inc.
Delta Air Lines, Inc.
Herbalife Ltd.
Hyster-Yale Materials Handling, Inc.
ITT Educational Services, Inc.
NN, Inc.
NTELOS Holdings Corp.
Stone Energy Corp.
For illustrative purposes only. 27

General Legal Disclosure/Disclaimer and Backtested Results
It should not be assumed that your account holdings correspond directly to any comparative indices. Individual accounts may experience greater dispersion than the composite level dispersion (which is an
asset weighted standard deviation of the accounts in the composite for the full measurement period). This is due a variety of factors, including but not limited to, the investment approach that OSAM employs
and the fact that each account has its own customized rebalance frequency. Over time, dispersion should stabilize and track more closely to the composite level dispersion. Gross of fee performance
computations are reflected prior to OSAMs investment advisory fee (as described in OSAMs written disclosure statement), the application of which will have the effect of decreasing the composite performance
results (for example: an advisory fee of 1% compounded over a 10-year period would reduce a 10% return to an 8.9% annual return). Portfolios are managed to a target weight of 3% cash. Account information
has been compiled by OSAM derived from information provided by the portfolio account systems maintained by the account custodian(s), and has not been independently verified. In calculating historical asset
class performance, OSAM has relied upon information provided by the account custodian or other sources which OSAM believes to be reliable. OSAM maintains information supporting the performance results
in accordance with regulatory requirements. Please remember that different types of investments involve varying degrees of risk, that past performance is no guarantee of future results, and there can be no
assurance that any specific investment or investment strategy (including the investments purchased and/or investment strategies devised and/or implemented by OSAM) will be either suitable or profitable for a
prospective clients portfolio. OSAM is a registered investment adviser with the SEC and a copy of our current written disclosure statement discussing our advisory services and fees continues to remain
available for your review upon request.
The dividend yield is a gross indicated yield. There is no guarantee that the rate of dividend payment will continue and the income derived is subject to taxes and expenses which will impact the actual yield
experience of each investor.
The risk-free rate used in the calculation of Sortino, Sharpe, and Treynor ratios is 5%, consistently applied across time.
The universe of All Stocks consists of all securities in the Chicago Research in Security Prices (CRSP) dataset or S&P Compustat Database (as noted) with inflation-adjusted market capitalization greater than
$200 million as of most recent year-end. The stocks are equally weighted and generally rebalanced annually.
Hypothetical performance results shown on the preceding pages are backtested and do not represent the performance of any account managed by OSAM, but were achieved by means of the retroactive
application of each of the previously referenced models, certain aspects of which may have been designed with the benefit of hindsight.
The hypothetical backtested performance does not represent the results of actual trading using client assets nor decision-making during the period and does not and is not intended to indicate the past
performance or future performance of any account or investment strategy managed by OSAM. If actual accounts had been managed throughout the period, ongoing research might have resulted in changes to
the strategy which might have altered returns. The performance of any account or investment strategy managed by OSAM will differ from the hypothetical backtested performance results for each factor shown
herein for a number of reasons, including without limitation the following:
Although OSAM may consider from time to time one or more of the factors noted herein in managing any account, it may not consider all or any of such factors. OSAM may (and will) from time to time consider
factors in addition to those noted herein in managing any account.
OSAM may rebalance an account more frequently or less frequently than annually and at times other than presented herein.
OSAM may from time to time manage an account by using non-quantitative, subjective investment management methodologies in conjunction with the application of factors.
The hypothetical backtested performance results assume full investment, whereas an account managed by OSAM may have a positive cash position upon rebalance. Had the hypothetical backtested
performance results included a positive cash position, the results would have been different and generally would have been lower.
The hypothetical backtested performance results for each factor do not reflect any transaction costs of buying and selling securities, investment management fees (including without limitation management
fees and performance fees), custody and other costs, or taxes all of which would be incurred by an investor in any account managed by OSAM. If such costs and fees were reflected, the hypothetical
backtested performance results would be lower.
The hypothetical performance does not reflect the reinvestment of dividends and distributions therefrom, interest, capital gains and withholding taxes.
Accounts managed by OSAM are subject to additions and redemptions of assets under management, which may positively or negatively affect performance depending generally upon the timing of such
events in relation to the markets direction.
Simulated returns may be dependent on the market and economic conditions that existed during the period. Future market or economic conditions can adversely affect the returns.
osam.com
Contact Information
Six Suburban Avenue

Stamford, CT 06901
203.975.3333 Tel
info@osam.com
OSAM.COM WWOWS.COM WHATWORKSONWALLSTREET.COM OSFUNDS.COM

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osam.

Based upon the principles outlined

$6.2 billion AUM

Dedicated to determining the best factors for

Base Rates 1-yr 3-yr 5-yr 7-yr 10-yr

But 3 sectors were heavily favored

Cheapest Cheapest P/S + Cheapest P/E

4th edition Free Cash Flow-to-EV

4th edition U.S. All

Cheapest Most Expensive

Most Expensive Decile

rolling 10-yr periods (dashed line)

Annualized OSAM Shareholder U.S.

GameStop Corp. Class A (GME) J. C. Penney Company, Inc. (JCP)

Large Cap Stocks Market Cap > Average

Attractively-Priced, Stocks whose prices are cheaper than their

Earnings Quality Real earnings, not

Select Stocks with Dividend Yield

Dividend Yield More Effective in Global Markets

Best Decile 17.5%

Base Rates 1-yr 3-yr 5-yr 10-yr

vs. U.S. All Stocks 56% 71% 69% 69%

Market cap > Universe average,

EBITDA/EV > median

Dividend Yield* Weight

Orange 3.8% 4.9%

Trending Value Top 10

Alliant Techsystems Inc.

Bridgepoint Education, Inc.

Delta Air Lines, Inc.

Hyster-Yale Materials Handling, Inc.

ITT Educational Services, Inc.

NTELOS Holdings Corp.

Stone Energy Corp.

For illustrative purposes only. 27

Six Suburban Avenue

OSAM.COM WWOWS.COM WHATWORKSONWALLSTREET.COM OSFUNDS.COM

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