For more information about the GEO Monitor service please visit www.geomonitor.co.uk or contact us on sales@iirgroup.com

IIR Group has published a performance analysis for the first 80 IPO’s from around the globe that we have researched for our clients since the launch of the service. The results are compelling: GEO added significant alpha whether you held the IPOs that we recommended for 1, 5, 10 or 30 days; with an improved Sharpe ratio in all cases.

The GEO Monitor SUBSCRIBE model portfolio has outperformed the benchmark for all 1, 5, 10 and 30 days investment strategies, for 80 IPOs since Nov’07, as shown below:

Results are equally compelling based on the monthly returns generated since Nov’07:

These returns are based on real recommendations. IIR is a research provider and not a fund, and without actual investment certain assumptions have been made in our performance calculations. We believe these assumptions are reasonable – please look at the attached analysis and methodology. You are also welcome to discuss these results with our performance analyst.

How the GEO Monitor SUBSCRIBE portfolio model performance has been calculated:

1. We take the return generated by each IPO with a SUBSCRIBE recommendation, in 1 day, 5 days, 10 days or 1 month.
2. We estimate the total return generated for all the SUBSCRIBE recommendations (53).
3. We calculate the average return generated, by dividing up the total return over the # IPOs subscribed (e.g. 920.0% / 53 = 17.4% for the 1 day return investment strategy).
4. We estimate the total # of trading days for each stock from each investment strategy, assuming the investment goes in on the day of the offer price, until 1 day, 5 days, 10 days or 1 month after the debut trading day.
5. We calculate the annual return of the SUBSCRIBE portfolio, by taking the total # trading days in a year (52*5) divided by the average number of trading days required by each investment strategy, multiplied by the average return of the IPOs with a SUBSCRIBE recommendation (e.g. for the one-day strategy is 17.4% average return x 52*5 / 7 average trading days required for each IPO = 657%).
6. Sharpe ratio is calculated by taking the total return of the SUBSCRIBE portfolio less the risk free return (estimated at 4% for simplicity during the observed period) divided by the annualized standard deviation of the returns of the SUBSCRIBE recommendations.
7. The benchmark Universe calculations are carried out following exactly the same method as described from points 1-6, but taking into account all IPOs researched by GEO Monitor.
8. Alpha is calculated taking the difference between the average return of SUSCRIBE recommendations vs. average return of ALL researched IPOs (17.4%-9.8%=7.6% for the 1 day return).
9. For reference, 34% of our recommendations have been an AVOID recommendation, and 66% are a SUBSCRIBE recommendation.

GEO Monitor Disclaimer:
• The past performance shown attached using the GEO Monitor model portfolio is not an indication of future results and may result in a loss in the future.
• Actual results may significantly differ from the model returns being presented.
• The model assumes a portfolio is built by subscribing to all IPOs recommended as “SUBSCRIBE” by GEO Monitor, and holding them for 1 day, 5 days, 10 days or a month, with equal amount subscribed in each IPO in each local currency of the offering, for the period comprised between Nov, 1, 2007 and October, 23 2009.
• The benchmark Universe comprises all the IPOs researched by GEO Monitor. The selection of the IPOs researched is based on demand from our clients, gaining access to the IPO prospectus, and our ability to complete the research during the subscription period.
• Benchmark returns above are calculated following exactly the same approach as the portfolio. Note there are more trading days if you invest in ALL IPOs than in the SUBSCRIBE portfolio.
• IPO allocation may not be achievable for some countries and/or stocks as described in this model portfolio.
• Results are not based on the performance of any actual portfolio, but on the closing price 1 day, 5 days, 10 days or 1 month after the start of trading of each IPO.
• The portfolio performance does not take into account any transaction fees, trading fees, exchange rates or any other charges.
• The portfolio return does not take into account any reinvestment of capital gains, dividends or interests, neither withholding taxes generated by the portfolio itself.

I look forward to discussing further with you.

For more information about the GEO Monitor service please visit www.geomonitor.co.uk or contact us on sales@iirgroup.com