Why Invest in VEGA?

• VEGA seeks to offer returns in the form of quarterly option premiums. These premiums accrue independently of the underlying investments and are not subject to equity risk, allowing VEGA to generate additional income despite market volatility.
• VEGA offers portfolio protection in 3 ways: First, as markets drop, the levels of implied volatility increase. Higher implied volatility results in higher than average option premiums that can offset downside moves. Second, when volatility is low, long term protective put can be employed to protect in severe downward spikes. Third, Volatility-based reinvesting insures a buy low, sell high discipline using a portion of the earned option income.
• VEGA may help repair a portfolio after a market decline by generating additional income independent of market direction.

About the Portfolio Managers

James G. Herrell, CFA, Director of Investments
Mr. Herrell has spent 21 years in the asset management industry. He specializes in alternative assets, particularly hedged and absolute return strategies. In 1991, he became a partner and head trader at Strome & Co. in Santa Monica. In addition, he helped manage $25 million for George Soros’ Quasar Fund. Management expertise coupled with opportunistic investing across a broad spectrum of global markets enabled the fund to grow its assets from $50 million to more than $1.1 billion by the end of 1994. Relocating to Santa Barbara, Mr. Herrell managed $250 million for the Trust & Investment division at Pacific Capital Bancorp, covering high net worth and institutional clients. He joined Partnervest in July 2008, and developed and manages the Structured Target Return Program.

Kenneth R. Hyman, President and Chief Executive Officer
Kenneth R. Hyman founded Partnervest in 2001 and is responsible for the direction and oversight of Partnervest’s business, financial, and operational affairs. He also serves as Co-Portfolio Manager and member of the Investment Management Committee overseeing the STAR Asset Management program. Established in 2001, the Sub-Advisor provides investment management solutions to investors and the advisors that serve them. Prior to establishing Partnervest, Mr. Hyman was the Senior Executive and Financial Officer for Integral Securities, Inc. and Integral Securities Europe Ltd. Prior to Partnervest and Integral, Mr. Hyman was the Managing Principal and Chief Operating Officer of Mercer Global Securities and the Director of Operations for Mercer Global Advisors, one of the nation’s largest fee-only financial planning and investment management firms. He was also the Vice-President of Trading for Associated Financial Group, a financial services company providing support to more than 328 representatives in over 179 branch and satellite offices.