Lone Wolf Asymmetric

Finding Alpha with State-of-the-Art Risk Management

Alpha is an Option

We believe options
are a greatly
misunderstood
investment tool.

They can provide

investors with
exceptional
asymmetric
opportunities.

They are flexible,

self-adjusting, and
The Great Recession has changed the hedge fund industry as well as the investment can be tailored to
landscape and we all must learn to adapt. The impact of this change on the industry any investor's
has created a myriad of problems - everything from illiquidity to a talent drain.
individual risk
Throw in the fact that institutional investors are dissatisfied with existing managers
for their lack of performance and high fees and you have the catalyst for a major appetite.
transformation.
They can provide
Several questions are going to arise that well have to ask ourselves. What changes upside gains while
are needed? How are they going to come about? Can you identify the maverick out
there that is going to come up with an innovative solution? Finally, do you want to limiting losses to a
be part of his or her solution? quantifiable
amount.
We see a new wave of managers coming into their own. It will be tough for
institutional investors to make the decision as who to fund. But the old guard will be They can be used
replaced. The new managers will be much more nimble, thoughtful and innovative
going forward. They will revise or replace existing ideas and will lead the to replicate the
investment industry into a new era. Institutional investors would be smart to seed a original Hedge
few of these more promising managers to get in on the ground floor. Fund's intent.
Our investment management firm of Lone Wolf Asymmetric believes its time has
come to lead this change. We are unique in that we use options to express our
investment ideas rather than using them defensively as hedges. This allows us to
create asymmetric strategies - limited downside risk and unlimited upside returns.
And isn't that what hedge funds were initially designed to do?

Lone Wolf Asymmetric Intro Page 1

Lone Wolf Asymmetric has created a unique investment process. We have melded
macro-economics, computer back-tested strategies, option derivatives and cutting-
edge risk management into a cohesive quant package that is different from all
others. We compound capital at an above rate of return through option asymmetric
strategies. The asymmetric process starts when investment signals are generated Change is in the
from our back-tested trading systems. We then filter those signals out to find ones Wind
that are sympathetic to the current macro-economic environment. In essence we try
and stay with the major trend. However, we do use a similar philosophy that we
learned from our association with Commodities Corporation.

We can deviate from the trend but it will cost us in a variety of risk management Wave of new
ways - time, leverage, rate at which capital is employed, etc. The asymmetric managers with
strategies are then expressed through the use of optimized option strategies, new nimble,
leverage, market timing, and rigorous risk management. It's through our use of thoughtful
options that we are able to have strong hands and weather whatever storms that may innovative ideas
occur in the bond, currency, commodity and equity markets. While others may
will lead.
refrain from certain markets, it's our ability to design strategies that conform to
whatever environment that exists at the current time that sets us apart from other Astute investors
managers. We can go where others fear to tread. The unique characteristics of
who see the
options allow us to feel safe and confident even in extremely volatile markets.
benefit of such
We have an absolute return focus that is active, dynamic and protective of its programs will
investors' capital. While, the asymmetric option strategies limit the downside they want to establish a
do allow for unlimited upside gains. This combination of smaller losses and bigger
long-term working
gains then allows for better and faster compounding of returns so that our investors
can achieve their long-term goals and objectives.
relationship.

In addition, our asymmetric investment process can be custom tailored to individual Seed the promising
risk preferences. Overall, we believe this strategy is flexible and robust as it can new managers
handle a variety of economic cycles and market environments. Large gains can laying the
come about because of the underlying moves and the leverage the option carries. In foundation for the
addition, this is an investment that can be maintained even during retirement as it
new era.
provides equity like returns with the risk of bond.
Think outside the
See additional material carrying the Barry Ritholtz article on missing the best and
the worst days of the market and its impact to your returns. box and look for
the most robust
strategies given
any environment

Lone Wolf Asymmetric Intro Page 2

We believe that this is the perfect time to launch ourselves. A combination of central bank policies and
political uneasiness can be a recipe for disaster for those not prepared. Their mantra of "low rates for
longer" have driven most markets participants to search for yield in all types of markets in which they are
unfamiliar and ill-prepared. The ensuing consequences of a bubble burst could wipe out years of potential
gains in a matter of
hours. Illiquidity which
is already drying up due
to regulatory rules and
cut backs in prop
trading desks could see Alpha is an Option
volatility devastate ill-

equipped portfolios.
Therefore, in such an Despite whatever chaos comes our way, it's the use of options in
environment with the
our investment process that allows us to keep risk low, allows for
possibility of major
trend changes on the higher leverage and limits our losses while staying liquid.
horizon; it is defensive
strategies like our short-term and intermediate ones that can work well. The creation of asymmetric return
strategies is perfect for investors looking for diversified equity-like returns but with limited downside
risks - basically a return to the original hedge fund idea. The benefit of our asymmetrical strategy is that
we can trade the shorter term moves, leverage more and still keep risk contained to acceptable levels
while getting above average returns for investors.

Modern Portfolio Theory - Really?

It's has been more
than sixty years since
Harry Markowitz,
Eugene Fama and
others developed what
was thought of as the
Modern Portfolio Theory core of modern
financial theory.
Back then, Markowitz
We question the financial theories of the 1950s. We believe the and fellow
prudent thing to do is for the investment community to open their contemporaries
minds and question the veracity of some of these assumptions in searched for a logical
way to think about
light of all that has happened over the last six decades. what were often
chaotic financial
markets. Hindering
their efforts was their limited computational ability to back-test their ideas and assumptions on high
frequency data and their distributions. For individuals at that time it was virtually impossible to get main-
frame computer time due to the cost. Consequently, the personal computer hadn't been built yet.
Likewise, certain derivatives such as equity option markets (1973) hadn't been established so Markowitz
couldn't model their effects on portfolios. Since that time, some of the original financial theories have
come under scrutiny in light of experiences and actual observations. The various financial calamities (the
1987 Black Monday stock melt-down, 1994 Mexico / Tequila crisis, 1997 Asian financial crisis, 1998
Russian financial crisis, the US Dot-com bubble, the sub-prime housing bubble, the Great Recession and
the Greek government debt crisis to name a few) have led many investors to reexamine some of the key
assumptions that lie at the heart of modern financial theory.

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In the 1950s and 60s, financial theories tried to provide a concise, logical way to think about financial
markets. However, many contained unreal assumptions. Since that time one empirical study after another
has cast doubts on its ability to explain real world markets. Yet, many professionals and academics have
decided to hold on to it anyway. Just a few years ago some professionals and academics came up with an
alternative theory - behavioral finance. In an ideal world, a model lives or dies based on the empirical
evidence. But in the case of MPT, many still choose to reject the real world rather than to discard the
model in light of the overwhelming evidence against it.

Our experience and education can be put to work on behalf of your portfolio in a logical way, while still
keeping alert for the illogical factors that influence not only investors' actions, but market prices as well.
By paying attention, learning the theories, understanding the realities and applying the lessons we've
learned, we can make the most of the knowledge that surrounds both traditional financial theory and
behavioral finance.

We deal in the real World

We believe that the new ways are here. It's the unification of state-of-the-art risk
management techniques and derivatives that better reflects the real world and its investor
preferences of more upside gains with less downside risk.

The Next Step in the Evolution of Portfolio Management

I have been trading and managing risk for more than thirty-five years. During those years, I have
continued to question all of those modern finance and Wall Street tenets. Subsequently, I have revised a
lot of my thinking on how to manage risk and investments. It is my desire to take those years of
experience and adaptations to financial theory and show the world that "there is a better way to manage
money and risk."

Research from psychologists Amos Tversky and Daniel Kahneman show investors feel that the
pain of losses are twice as powerful as the benefits of gains. Sure, investors want returns, but
they also want to minimize losses. We see investors moving away from asset allocation and
benchmarks and instead moving toward outcomes that work.

What we saw in prior years was style-box investing, with an allocation framework built around
an investors market and risk expectationsnot liabilities, risk tolerance or funding objectives.
These objectives did not correlate with investors actual goals or maximize the probability of
reaching a stated objective. So, what is occurring?

I believe a paradigm shift is occurring to the investment industry. First there was the dot-com
collapse, bringing a painful end to the go-go 1990s, with technology stocks hit particularly hard.
It took more than 15 years for the Nasdaq Composite Index to recover to a new high. Currently,

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the industry is being re-shaped by fear, politics and regulations such as Dodd-
Frank, the Volcker Rules, Basel III, etc. which will have profound and
unintended consequences on risk-taking, leverage, liquidity, volatility and
possibly where you trade. In the not too distant future, we will see further
taper tantrums, flash crashes and bankruptcies. Asymmetrical
Portfolio
As this shift occurs, street-smart individuals will realize that their investment
Management
processes are no longer working and possibly dysfunctional. Certain men
and women who are more adaptable will see that the old rules no longer
apply to the game and will then devise new processes to take advantage of The essence of
the environment. As we see it, money management will embrace risk investment
management to form the new paradigm or as we like to say it, "Asymmetric
portfolio management - finding alpha with state-of-the-art risk management." management is the
management of
We believe our approach captures this behavioral shift by moving to a risks, not the
dynamic approach that attempts to potentially generate higher returns not by management of
seeking even more alpha, but by seeking to minimize losses. Our investments
returns -
are diversified across asset classes, regions and countries. Our asymmetric
strategies of long and/or short positions depend on the combination of the Benjamin Graham
macroeconomic and market environments. We focus on flexibility and legendary investor
navigate the markets as circumstances change.
The investment
Our goal is to better serve our investor clients, not discourage him or her. community is
Benjamin Graham and David Dodd actually promoted this type of portfolio
management in 1934 when they wrote in their groundbreaking book looking for the
Security Analysis that the essence of investment management is the newest investment
management of risks, not the management of returns. We agree. We believe type. It's the same
it is better to lose less and compound more and at a faster rate than to reach old mantra as
for excess returns and fail to reach your objective
expressed by Ben
The essence of investment management is the management of risks, not the Graham - just done
management of returns. - Benjamin Graham legendary investor a different way.
As researchers rethink theoretical models of the investment world, we anticipate that We believe
a key trend in portfolio management will be a focus on asymmetric returns
investment strategies that maximize upside potential while capping downside risks. investors have
The key to such strategiesand to achieving sustainable positive returns over used options as
timeis a dynamic risk-management process that limits the probability of large defensive strategy
portfolio losses.
rather than as an
offensive one. It's
seeing the problem
from a different
perspective.

Lone Wolf Asymmetric Intro Page 5

Business Description
The idea for Lone Wolf Asymmetric came about from my thirty-five plus years of trading and managing
risk in bonds, commodities, currencies and equities in the cash, futures and derivative markets.
Fortunately, in my early formative years I learned from the best at Commodities Corporation (Mike
Marcus, Bruce Kovner, Morry Markovitz, Grenville Craig, Craig Witt, Glen Olink, etc) which set the
foundation for my future. They taught me how to look at markets and to test everything before
implementing new trading ideas. They taught me that trading contains a good deal of psychology
therefore my personal trading style must be in agreement with my own personality or it wouldn't work.
They also taught me to have balance in my life.

I then improved on those lessons over the years as my career progressed and as I added more tools to my
arsenal. Basically the system was designed because most of the institutions that I worked at had limited
risk appetites and limited trade flows in which to take advantage. The system helped me to understand the
market's psychological impediments as well as the global macro events that drove markets. In this way I
was able to generate my own proprietary trading ideas while still staying within the risk parameters set by
the institutions.

The system is a conservative one that is built to trade from both the long and short sides. It's a low risk
trading strategy that creates steady gains but from time to time it has some large returns. The system likes
to hold on to its gains and can handle a variety of economic cycles. It holds up much better than a buy and
hold strategy. If you're risk averse like I am, then it's the perfect system. It allows you to (1) sometimes
take large positions while allowing you to (2) sleep at night knowing that you have strong hands and can
weather all storms. It (3) can allow you to hold in there during temporary market disruptions (market
flashes) while others are forced out.

"Alpha is an Option" from Alexander Ineichen's book Asymmetric Returns

The heart of Lone Wolf Asymmetric is its ability to use options in its investment management process.
But it is not a structured product in which you buy a zero coupon bond and invest the rest in options. It is
a lot more sophisticated than that. The use of options allows us to limit our risk to a known predetermined
level while maintaining an appropriate amount of leverage. This is an important advantage in today's
environment whereby regulatory bodies are forcing a de-risking of participants. Their exit from the
marketplace has the unintended consequence of reducing liquidity which could make future investment
endeavors even more challenging for some managers. Option usage allows us to create favorable
asymmetric (uneven gain to loss) returns that are able to be expressed in a variety of options strategies.
The optimized option strategies are generated from a proven trading system.

Lone Wolf Asymmetric has developed several technical signals that form the basis of our trading system.
The system signals have been back tested over a forty year span in a variety of markets and over a variety
of economic environments. The system generates signals that include a number of trade signal parameters
(i.e. number of winners / losers, average holding time, average profit /loss, max profit /loss etc).

The second part of the Lone Wolf Asymmetric process starts when we plug-in all the current option
inputs into the appropriate pricing models. The models then generate the current prices and Greeks for all
of our option strategies (outrights, spreads, in-the-money, at-the-money and out-of-the money options and
various ratio combinations). This sets the baseline for the option costs from which comparisons and
optimization will be based.

We then do a "modified what if" scenario. This is done by plugging in those particular individual trade
signal parameters such as "the average holding time for a winner" and "the average profit" and re-

Lone Wolf Asymmetric Intro Page 6

calculating the option strategies results. In this way we are able to ascertain the option strategy which best
optimizes the trade signal's parameters given the current market environment and pricing.

Optimization maximizes expected results by matching that trade signal parameters with the appropriate
option strategy given the current market environment. These profit parameters are "robust" meaning there
is a lot of room for error even if the parameter isn't perfectly timed or hit. However, in the event that we
are wrong - wrong direction, taking too much time, volatility dropping more than forecast - we are able to
make adjustments to either eliminate or reduce our risks with follow-up tactics or strategies. The risk
management of our option portfolios is crucial to the overall success of the program.

Our investment and risk management philosophy is simple. We believe we have a trading edge.
Therefore, in a game where you have an edge you are supposed to play steady, limit losses and play for
the long-term so as to maximize the results of that edge. Basically we grind it out, it's not glamorous.
Thus, we are happy to take small losses so that we can continue playing the game. However, we never
want to take large catastrophic losses and get removed from the game. When you take large losses it's too
hard to make it back. And you're then sometimes limited in what you can do and what markets you can
trade. In addition, large losses can have an adverse psychological impact. Thus we are in business to
manage two types of capital - monetary and mental capital. A drain of our monetary and mental capital
is something that we strive to avoid. We are big believers in having a strong mental discipline when
managing money.

"Compounding is the eighth wonder of the world" Albert Einstein.

Dynamic Risk
Management: Winning
by Not Losing
While the strategies that we
have outlined all offer
compelling return profiles, Volatility Matters -When a Correction Occurs and How Deep - Impacts
they are not without risk. A Your Ultimate Outcome
sound, active risk-
management process is an
essential component of any
250
trading strategy, as large
losses can have a
catastrophic effect on the 200
long-term returns of
investment portfolios.
Although a great investor 150
Series1
may have a long stretch of
winning years in a row, a Series2
100
handful of large losses Series3
could wipe out all these
gains if there were no 50
strategy to protect profits
and limit losses. After all, a
loss of 50% in a portfolio 0
requires a subsequent gain 1 2 3 4 5 6 7 8 9 10 11
of 100% just to break even again. Furthermore, as the recent financial crisis illustrates, the downside risk
of the market is much greater than what one would expect from theory. At the heart of modern portfolio

Lone Wolf Asymmetric Intro Page 7

theory is a bell-shaped curve that shows a symmetrical normal distribution of portfolio returns around a
mean. However, in reality, the tails of the distribution are much fatter than what theory predicts.

Table shows various Percentage Losses, Actual Losses and Values after Losses in first three columns.
Columns four and five show the subsequent Percentage Gains and the Time (in years) needed to recover from
loss levels while growing at historic 8% rate. Table shows the effect of keeping losses to a minimum.
Volatility Matters

Starting Value Time (Years) Needed

100 Gain needed to to Recover to 100
Percent Loss Value After Loss get back to even Assume 8% per year
10.00% (10) 90 11.11% 1.369
20.00% (20) 80 25.00% 2.899
30.00% (30) 70 42.86% 4.634
40.00% (40) 60 66.67% 6.637
50.00% (50) 50 100.00% 9.006
60.00% (60) 40 150.00% 11.906
70.00% (70) 30 233.33% 15.644
80.00% (80) 20 400.00% 20.912
90.00% (90) 10 900.00% 29.919
100.00% 0 100

A dynamic risk-management strategy to limit the impact of extreme events is therefore a key component
of portfolio management. As sports fans are aware, it is often a good defense that wins championships.
Ideally, it is desirable to obtain an early warning signal before a crisis takes place. Therefore, we are
always reading reports and checking our technical indicators for inconsistencies and possible reversals.
However, tail events tend to be triggered by unpredictable factors, and market crashes all follow different
paths. The beauty of using options is that they can automatically self-correct (delta changes) when hit by
a sudden Black Swan event. Furthermore, once a crisis occurs and investors are rushing for the exits, it is
too late to buy insurance, as the cost of protection becomes prohibitive.

It is our firm belief that a strong risk management approach to loss control will win out in the long run
even if we don't produce the highest returns in a particular year. The ability to not lose large sums but
instead to keep what we have while using our edge to build upon our winners helps us to compound
growth faster than other managers over time. Eventually the way the asymmetric process works is
that we'll eventually get some very large winners that will put us as the top of the rankings very much like
when we managed money for Commodities Corporation in their Trader Evaluation Program (TEP)
coming in second to Paul Tudor Jones with our 300% return.

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Lone Wolf Asymmetric Provides Several Investment Programs

Lone Wolf Asymmetric provides several investment programs that can hopefully fit a
variety of client objectives and risk appetites. We believe we are a very good Alpha is an Option
diversifier for most portfolios who have a long-term approach but need a manager to
balance that interim shorter investment horizon. See section below on "Time is a
Precious Asset." As researchers rethink theoretical models of the investment world, We firmly believe in
we anticipate that a key trend in portfolio management will be a focus on active management
asymmetric returnsinvestment strategies that maximize upside potential while or more precisely
capping downside risks. The key to such strategiesand to achieving sustainable "active risk
positive returns over timeis a dynamic risk-management process that limits the
management."
probability of large portfolio losses.
Market participants
While Asymmetric and Behavioral Portfolio Management reject the basic tenets of
Modern Portfolio Theory (MPT), the careful and rigorous statistical analysis of have different
historical data remains. objectives, time
horizons, skill and
The traditional long-only investor looks at the investment universe and sees distinct other risk
opportunities within different asset classes such as stocks, bonds and currencies.
Investors in each of these asset classes typically focus on different fundamentals. constraints that can
Equity investors are generally most concerned with the ability of the firm to grow its produce
earnings over time; corporate debt investors are more interested in the strength of the inefficiencies.
firms balance sheet and its capacity to repay its debts; and currency investors look
carefully at macroeconomic indicators such as interest-rate differentials and inflation. What this means is
We at Lone Wolf Asymmetric are concerned with the Systemic factors that impact that certain
global markets or at least country markets and see opportunities from shifting among
inefficiencies can be
them. We believe that understanding and following these monster tides ensures a
better probability of success than some individual factor related to a particular exploited by savvy
company or industry. We believe that understanding what sectors /assets are impacted investors who are
the most, makes it a little easier to generate profitable and more stable returns. willing to reflect and
reconsider how the
As recent events illustrate, volatility is a common link between asset classes, and the
returns on these different asset classes can be highly correlated in times of crisis. investment process
There are several reasons for this. For one, the prices of most assets are influenced by works.
macroeconomic factors such as interest rates and GDP growth. Changes in market
liquidity can also affect multiple asset classes at once, particularly in crises. Whether We believe options
exploiting the value premium in equities or the interest-rate differentialor carry can provide
between currencies, the returns from most active strategies suffer when volatility investors with a tool
spikes.
that is flexible, self-
Since volatility is highly correlated across asset classes, in some cases investors can adjusting, and can
replicate an asset by assembling puts and calls from different underlying assets. be tailored to any
Viewing the world through option lens opens us up to a wide range of investment investor's individual
opportunities to profit from pricing anomalies across markets. risk appetite.

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Improving the Odds

Charts below show Monte Carlo simulations. The first 19 weeks of each chart have identical paths but after that their
paths change dramatically. This reflects the theory of many possible outcomes but only one that we finally realize
after looking in retrospect. This also shows that we need to be flexible thinkers and adept as markets change.

Nearly halfway through this presentation and now I get to interject a couple of stories related to time and
investing. The first deals with current events. Presently, it's 2015 the equity markets are dealing with a
variety of issues, China is slowing down, commodities are falling, oil is falling, the dollar is gyrating all
over the place, bonds are trading within a range and the Fed is still trying to decide whether it wants to
raise rates. I see on Bloomberg TV a professional equity manager telling me that he can't predict what's
going to happen in the next couple of months but he can reassure me that in two to three years I'll be
happy that I invested today. My interpretation is that you're crazy! Did you understand what you just said
to us all? First, you have no clue as to what's going on right now. Secondly, you have no clue as to what is
even a safe haven. Thirdly, how do you know things are going to get any better if you don't understand
what's going on presently? Basically you're relying on hope. And for anyone trading the markets for any
length of time they will tell you "Hope" is not a good plan. Basically, this gentleman wanted us to catch
a falling knife without any clue as to what we were getting into (risk/reward potential). How irresponsible
is that? Just because something is cheap doesn't make it a value play and an automatic good investment.
Sometimes prices fall for a valid and sustainable reason. In other cases, it may take years for a company
to turn itself around if at all. Currently, in the news are the firms VW, Glencore and Valeant. The
fundamentals are fuzzy at best and still a lot needs to clear up before a rationale decision can be made on
their prospects. We'll have to wait and see.

The second story relates to a debate that I had with one of my bosses years ago. If you have a background
in technical analysis you'll understand this debate. It has to do with a formation called a rounded bottom.
Normally these are seen in raw metals markets where supply is heavy and weighs on demand for a period
of time. In some of these markets it can literally take years for unproductive mines to shutdown before
demand pick-ups and overtakes the supply again. But when it does occur, it usually is a rocket launch

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move to the upside. So the debate raged around the idea of "yes" you can easily pick
the bottom of this formation but does that really help you any if the move doesn't
occur until three years from now? Aren't you just tying up capital that could have
been used more productively in other investments? And can't you come back later at
a more appropriate time to catch the move? Time is a Precious
Asset
"Time" Is a Precious Asset That Needs to Be Managed As Well
It's my belief that a lot of professional asset managers and individual investors don't We firmly believe
understand the importance of time let alone its role in the investment process. Let me the investment
explain the significance of time and how it relates to not only our investments but to
us as humans. Two years ago my brother died of cancer. He lived an extra eighteen community doesn't
months from the time he was diagnosed with stage four pancreatic cancer to the day truly understand
he passed away. He was originally given six months to live but that was extended the importance of
because he entered an experimental cancer treatment program. I remember as the one
treatment was shrinking his tumors he was hopeful. But a little time later the tumors time nor its role in
weren't shrinking anymore. The doctors told him that program had done as much as it the investment
could. They then asked him if he would be willing to try another program and if process.
willing would he read over the new agreement documents and sign them. He said, "I
don't need to read them, I'll sign". I believe the piece
Those two programs gave him hope and added an extra year to his life. Everyone was written to the left
grateful. The doctors learned a lot from his treatment and some of the methods that best summarizes
they used on him are being used nationally today. We - the family were extremely our thoughts and
appreciative because we got to spend extra time with him in his role as son, brother,
father and husband. We were all grateful to spend extra time with him to see his emotions when it
courage and his optimism despite the long odds. During those last eighteen months I comes to investing.
never saw him have a down day. In those precious eighteen months he did
everything he could imagine. Despite the sick days from the chemo treatments and
the intense pain especially near the end he never complained. He did as much as
could - he went to his one son's wedding in the Bahamas, he saw the birth of his first
grand-child and he beat me in a round of golf. He also wanted a Mercedes-Benz and
he got that as well. He drove it only once with a friend to lunch who was also
suffering from cancer. So the point that I am try to get to is that "Time" is precious
let's not squander it. "Time" is something that we never have enough of and lost
"Time" can never be found again.

So squaring the circle, let me relate this back to investing. So when it comes to your
money and your investments don't squander the little time that you may have. Yes,
you may think you have a lot of time to work with but then again as we saw above
depending on what happens to your investments (significant losses) you may not.
Instead try and make the most of all the time that you are given. Remember someone
like my brother, who wasn't going squander what little time he had but instead was
going to be as productive as he could be with the little time he had left.

Conclusion
We need to have an investment philosophy in which our money should be as
productive as possible in the time that we have it and exposed to limited downside
fluctuations. Because we don't know exactly how much time we'll have to build our
nest eggs and exactly when our money and investments will be needed. The vast

Lone Wolf Asymmetric Intro Page 11

majority of us can't be like Warren Buffett. We just don't have endless streams of cash for investments
that never get disrupted and are allowed to compound endlessly. Instead most of us have real lives with
real factors (births, deaths, sickness, marriages, divorces, educational bills, home purchases, job losses,
etc.) that impact our investments. Therefore, your money should be as productive as it can be while you
have it. Accordingly, it should be able to pick-up right were you left off when you return to investing. If
you're sitting waiting several months to several years for an undervalued move to occur that's lost time
that you can never recover. Instead your money could have been working on some other more time
favorable opportunities. Investors should be trying to get out of life and their investments as much as
they can every day. Remember you can always find another investment opportunity but you can never
find more time.

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