Subject: Re: follow-up
From: "Arlene Busch" <[email-masked]>
To: "Zac Wydra" <[email-masked]>, "Eric Schwerin" <[email-masked]>
Cc: "Hunter Biden" <[email-masked]>, "Anne Marie Person" <[email-masked]>
Date: Tue, 9 Aug 2011 20:09:52 +0000

Works for me....
Arlene Busch
202-333-1880
[email-masked] 

-----Original Message-----
From: "Zachary Wydra" <[email-masked]>
Date: Tue, 9 Aug 2011 16:08:54 
To: Eric Schwerin<[email-masked]>
Cc: Hunter Biden<[email-masked]>; Arlene Busch<[email-masked]>; Anne Marie Person<[email-masked]>
Subject: RE: follow-up

The last few days have been amazingly busy.....good news is that we held

up well yesterday and the fund was up 5.28% today........not going to be

able to make the 4:30 call today....can we move it to 4 pm on Thurs?

 

Zachary A. Wydra

Partner

Beck, Mack & Oliver

360 Madison Ave.

NY, NY 10017

212-661-2640

 

________________________________

From: Eric Schwerin [mailto:[email-masked]] 

Sent: Monday, August 01, 2011 10:53 AM

To: Zachary Wydra

Cc: Hunter Biden; Arlene Busch; Anne Marie Person

Subject: Re: follow-up

 

Zac-

 

First and most importantly, congrats on the success you are having.

Great to hear.

 

Wednesday at 3pm EDT works great for Arlene and me.   If it works for

you, let's use the following call-in number:  202-446-0483, passcode

333188.

 

Look forward to catching up.

 

Best,

 

Eric

 

 

Eric D. Schwerin

Rosemont Seneca Partners, LLC

1010 Wisconsin Ave., NW

Suite 705

Washington, DC 20007

(202) 333-1880

[email-masked] <x-msg://59/[email-masked]> 

P Consider the environment before printing this email.

 

On Aug 1, 2011, at 9:05 AM, Zachary Wydra wrote:

Eric,

 

Thanks for getting back to me.....I'm around this week....would a call

at 3 pm on either Wed. or Thurs. afternoon work for you.....if so, let

me know which you prefer.

 

Strong momentum continues.....BMPEX is still ranked in the top 1% YTD

and over the past 12 mos as of this morning.  We are in the 8th inning

of winning a new $150 mm institutional account from a large publically

traded insurance company and last night Morningstar Magazine contacted

me and indicated that they wanted to do a profile of both me and the

Fund (should be a nice piece to put in front of prospects)....

 

My point here is to not express hubris at all, but just to say that I'm

hopeful that we can work something out.....working together I believe

that we can translate the momentum into significant success.....

 

Best,

 

Zac

 

 

 

Zachary A. Wydra

Partner

Beck, Mack & Oliver

360 Madison Ave.

NY, NY 10017

212-661-2640

 

________________________________

From: Eric Schwerin [mailto:[email-masked]] 

Sent: Friday, July 29, 2011 4:12 PM

To: Zachary Wydra

Cc: Hunter Biden; Arlene Busch

Subject: Re: follow-up

 

Zac-

 

Thanks for your response.  Sorry for the delay on our end replying to

your email - Hunter has been traveling and Arlene and I wanted to sit

down with him and discuss with him in person.

 

If you have time next week, perhaps Arlene and I could get on a call

with you and give you our thoughts on the below arrangement.

 

Let us know what your schedule is like.

 

Best,

 

Eric

 

 

Eric D. Schwerin

Rosemont Seneca Partners, LLC

1010 Wisconsin Ave., NW

Suite 705

Washington, DC 20007

(202) 333-1880

[email-masked] <x-msg://59/[email-masked]> 

P Consider the environment before printing this email.

 

On Jul 22, 2011, at 2:43 PM, Zachary Wydra wrote:

Hunter / Eric,

 

Apologies for the delay in getting back to you....things have been busy

on this end....but a good kind on busy.

 

I remain very hopeful that we can find a way to work together as I am

confident that our approach to investing will be compelling to your

contacts.

 

As an update, our recent performance has been outstanding.  Year-to-date

(thru 07/21/11) BMPEX  (the Beck, Mack & Oliver Partners Fund on which I

am the lead portfolio manager) is up 13.8% and is ranked in the top 1%

of the Large / Blend Category by Morningstar and over the past 12 months

BMPEX also is in the top 2% relative to its peer group of almost 2,000

mutual funds.  This Fund is a proxy for our separate account portfolios.

 

As you know our long term equity investing track record is exceptional

(see attached).  Over the past 24 rolling 5 year periods we have

outperformed the S&P 500 18 times (11 straight years ending 12/31/10)

and had zero negative 5 year periods vs. the S&P 500 which has had 4

negative rolling 5 year periods.  Our batting average is better over

rolling 10 year periods, having outperformed the S&P 500 17 out of 19

years (our two years of underperformance coming during the peak of the

internet bubble).  Our lowest rolling 10 year return is up 42% vs. the

S&P 500 which is down 13%. 

 

After having done some research on payout structures for marketing

professionals I have learned that the industry standard is 20% of the

first year revenue, 10% of the second year revenue and 5% for each year

following, as long as the account remains.  Clearly, this is a departure

from our originally discussed $300,000 annual flat fee.  

 

While I'm not going to be able to sell a flat fee structure here amongst

my partners, I'm willing to meaningfully increase the incentive based

compensation after an account is earned.  Meaning, I would advocate for

a 30%, 20% and then 10% into perpetuity structure on the revenue from

all assets raised.

 

I feel confident that we can have success working together and I would

expect that your contacts will appreciate our fundamental approach to

allocating capital.  

 

Let me know if this structure is agreeable to you both.....I'm hopeful

that we will have an opportunity to work together.

 

Best,

 

Zac

 

 

 

Zachary A. Wydra

Partner

Beck, Mack & Oliver

360 Madison Ave.

NY, NY 10017

212-661-2640

 

	 

 

________________________________

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Any use of this information by anyone other than the addressee(s) of

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error, please notify Beck, Mack & Oliver LLC by e-mail

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________________________________

CONFIDENTIALITY NOTICE: The information contained in this electronic

mail message and any attachment is confidential, privileged and/or

proprietary and is intended for the exclusive use of the addressee(s).

Any use of this information by anyone other than the addressee(s) of

this message is strictly prohibited. If you receive this transmission in

error, please notify Beck, Mack & Oliver LLC by e-mail

[email-masked] or telephone 212-661-2640 and destroy the

original transmission.

 

CONFIDENTIALITY NOTICE: The information contained in this electronic mail message and any attachment is confidential, privileged and/or proprietary and is intended for the exclusive use of the addressee(s). Any use of this information by anyone other than the addressee(s) of this message is strictly prohibited. If you receive this transmission in error, please notify Beck, Mack & Oliver LLC by e-mail [email-masked] or telephone 212-661-2640 and destroy the original transmission.