Zeus Asset Management Inc.

TEAM 1
Gouri Sankar Sahoo
Anshuman Ashit
Abhishek Gaurav
Janardan Sekhar

ZEUSs Investment Philosophy

The investment philosophy of the management of Zeus is based on the fact
that the results of the investment or the return over the investment could be
only achieved over the years by following a risk averse and conservative
approach to the management of the risk. This ensures that the portfolio
manager of the company works hard to deliver the best performance that is
relatively the same as compared to the benchmarks performance.
ZEUSs Primary Investors
The primary investors of Zeus consist of both the individuals and the
institutional investors. The institutional investors come from corporations,
endowments and foundations. On the other hand, the individual investors
consist of high net worth and the risk averse investors that want to invest
their assets for long periods and achieve growth.
The minimum requirement for the individually managed accounts is $ 2
million. Zeus used to customize the portfolios for these clients according to
the investment objectives of these clients and afterwards it balanced the
volatility and the time horizon of these investments. For other types of
people or groups that did not have the minimum capital requirement, then
these individuals could invest in the specialty funds. Zeus had established
multiple mutual funds because of the domestic equity, bond and the
international equity market. Apart from this, Zeus also provided fixed income
securities and high quality equities both combined in balanced fund.
Stand out Feature
The investment philosophy of Zeus is very much different and unique from
all of the investment management firms. Zeus does not believe in earning
high returns by investing in high frequency trading in the short term. The

belief of the management of Zeus was based on the minimization of the risk
and the long term investment which will ultimately give its investors higher
returns. They use strategic asset allocation process to invest in different
areas. Apart from that, the company also invests in the large caps because of
the lower risk of the overall portfolio. In addition to this, the management of
the company also invests in the medium and large caps due to the low risk
profile of the individual investors as compared to the smaller caps in which
the risk is very high. The customer base of Zeus was also high due to good
strategic investments made by the company. The strategy of the company is
based on the fact that the company has to pay special attention to satisfy
the needs of the client. One of the issues in this matter is how much tax
different individuals pay based on their respective tax brackets. The
company is performing well and it should continue the same strategy for its
future as well.
Performance of ZEUSs Equity, Bond & Balanced Funds
The performance of the equity fund was below S&P 500 and the Lipper
growth index during the first sub period. This was because of a week cash
policy. However, at the end of the sub period 1 new investment policies and
stricter process to screen the stocks were developed which improved the
performance of the stocks and improved the controlling and the monitoring
process of the core holdings of the company. Due to these changes the
equity funds of Zeus achieved higher returns in the second period as
compared to the first period. The Zeus equity fund had a higher annualized
return of 16.88% than the Lipper growth index with the return of 16.83%.
This annualized return for Zeus was also better than the return of S& P 500.
On the basis of the Sharpe ratio and Treynors measure, Zeus ratios
outperformed the ratios of Lipper growth index. Altogether, the Zeus equity
funds outperformed the Lipper growth index on the risk adjusted basis and
also on absolute terms.

The performance of the bond fund compared to the Lehman Brothers

Aggregate Index was slightly lower. However, despite this low return, Zeus
decided to stick to its conservative investment strategies which would result
in constant and stable returns as compared to the returns of Lehman
Brothers Aggregate Index
Performance Measures that Can be used in such cases are:1) Sharpe Ratio: Performance Measure Shows the risk premium earned per
unit of standard deviation. Sharpe ratios greater than the ratio for the market
portfolio indicate superior performance
2) Treynor Ratio:-Treynor portfolio performance measure market risk,
individual security risk introduced characteristic line, Considers Systematic
Risk of Portfolio. Focuses on the portfolios un-diversifiable risk assumed for
generating risk premium
3) Jensons Measure: - Jensens alphas are computed relative to: A threefactor model including the market (Rm - RFR), firm size (SMB), and relative
valuation (HML) variables A four-factor model that also includes the return
momentum (MOM) variable. The one-factor (single index) and multifactor
Jensen measures produce quite similar but distinct performance rankings