Performance for Dorato Capital Management, LLC

Taxable Core Portfolio Composite

April 30, 2000 through December 31, 2009

Year

Total Return

(%)

S&P500 Return

(%)

Number of Portfolios

Composite Dispersion

Total Assets at End of Period

Percentage of Firm Assets

Total Firm Assets

 

Pre-tax

Post-tax

Pre-tax

Post-tax

         

2000

(May-Dec)

20.51

20.09

-8.38

 

2

NA

$683,072

77%

$887,214

2001

4.45

3.91

-11.90

-12.45

4

NA

$976,315

79%

$1,243,380

2002
-9.52
-9.54
-22.10
-22.10
6
NA
$1,170,171
66%
$1,785,311
2003
28.16
28.03
28.69
28.20
8
NA
$1,847,265
61%
$3,018,435
2004
12.78
12.05
10.88
10.44
10
2.2
$2,504,026
67%
$3,762,171
2005
3.96
3.83
4.91
4.50
11
3.0
$3,108,489
71%
$4,376,025
2006
14.64
13.82
15.79
15.49
11
4.0
$3,628,740
60%
$6,074,891
2007
1.36
0.88
5.49
5.20
11
2.9
$3,670,826
52%
$7,075,808
2008
-32.14
-31.80
-37.00
-37.25
10
2.9
$2,224,115
42%
$5,291,363
2009
23.10
23.30
26.46
26.04
11
3.2
$3,035,427
39%
$7,867,886

Please read this Disclosure Statement:

Compliance Statement
Dorato Capital Management, LLC has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®).

Definition of Firm
Dorato Capital Management, LLC is an independent investment management company established in 2000. Dorato manages equity portfolios for individual clients. Additional information regarding the firm's policies and procedures for calculating and reporting performance figures is available upon request. Please note that Total Firm Assets includes non-discretionary and non-fee-paying accounts.

Benchmark
The S&P500 is a market capitalization-weighted index of 500 stocks maintained by Standard and Poors.  Dorato uses the S&P500 as a benchmark because it is an inexpensive, diversified alternative to the Core Portfolio.

Composite Description
The Core Portfolio consists of 20-35 stocks across a range of industries and market capitalizations.  Returns for both the Core Portfolio and the S&P500 include dividends.  Returns for the Core Portfolio are calculated in $US on a time-weighted basis, and are net of fees and trading costs.  The management fee was approximately 1% of assets under management until Jan. 2008, when it was lowered to 0.8%.

Composite Dispersion
The dispersion of returns is measured by the standard deviation across portfolio returns represented within the composite for the full year.  Given the small number of portfolios in the sample, a dispersion calculation is not relevant for 2000-2003.  In 2001, the range of returns within the composite was .85%; in 2002 the range was 10.54%; in 2003, the range was 5.06%.

List of Composites
This composite was created in April 2000, which is also the date Dorato Capital Management, LLC was formed.  A complete list and description of the firm’s composites is available upon request.

Taxes
After-tax returns for the taxable portfolios are calculated at the end of each calendar year to allow for tax strategies to take effect. For years 2000-2002, taxes are calculated at the maximum federal rate of 39.6% for dividends, interest, and short-term capital gains, and at 20% for long-term capital gains. In 2003-2009, tax rates are 35% and 15%, respectively. The after-tax return for the benchmark is the after-tax return for Vanguard's S&P500 Index Fund, as calculated by Vanguard. Tax losses are not limited and are not carried to other years.

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