Bruder Capital

Analytics Applied to a World of Risks

About Bruder Capital

Approach.

We like to "get paid along the way" through either dividends or some other form of regular payment - fixed coupons, variable but regularly timed interest payments, production payments on limited partnership interests, declared share repurchases. There is a great deal of historical evidence to support our preference for regular payments. For example, stock dividends accounted for 52% of the total return on S&P 500 stocks between 1988 and 2009. It's the other 48% component of that return which often proves problematic, namely, price appreciation. Our objective is to garner as much of the first component while removing exposure to the second. We use a primarily quantitative approach to find these situations, fundamental analysis to analyze them and hedges to reduce their risk.


Under certain circumstances - and they have to be pretty compelling - we will place a directional bet using fundamental analysis as our primary tool. But those directional bets are typically associated with a predictable event: a takeout, spinoff, resumption or cancellation of dividend payments, reorganization, recapitalization, bankruptcy.


Funding.

Bruder Capital was established as a limited liability corporation in March 2009. Funding commenced in Q2 '09 with partners investing $780,000 for 156 Class A Common Share Units at a price of $5,000.00 per share. A second round of financing was completed in Q1 '10 totaling $125,000 when Bruder issued 15.6 Class A Common Share Units at a price of $8,229.04 per share. Bruder completed a third round of financing in Q1'11 totaling $400,000 when it issued an additional 44.26 Class A Common Share Units at $9,038.41 per share. In January 2015, Bruder completed a fourth round of financing totaling a net $728,399 by issuing 66.27 net Class A Common Share Units at $10,990.79 per share. Funding to date totals $2,033,399. There are presently 281.59 Class A Common Share Units outstanding.