Blue Point Investment Management

Way Points

Third Quarter 2012 Page 1

News In Brief
Portfolio Statistics as of 9/30/12:
35 Equity positions 17% International equities Core portfolio average holding period 2-3 years

Performance Summary
Blue Point seeks equity-oriented growth at a reasonable price with a global perspective. During the third quarter Blue Point, which is based on a model portfolio applied to separately managed accounts, returned 5.78% after advisory fee. The Total Return of the S&P 500 during the second quarter was 6.35%. Blue Point underperformed the Total Return of the S&P 500 by -0.57% during the third quarter. The Blue Point portfolio saw gains in healthcare and technology companies, while share price declines in manufacturing and commodity related companies negatively impacted the portfolio.

Year-to-date the Blue Point portfolio returned 15.93% after advisory fee. The year-todate Total Return of the S&P 500 was 16.44%, Blue Point underperformed by 0.51%.
$170,000 $160,000 $150,000 $140,000 $130,000 $120,000 $110,000 $100,000 S&P 500 TR $114,990

Top 5 Equity Holdings:

5.7% Gilead Sciences
Total Return on $100,000
Blue Point $157,043

4.7% Amazon 4.7% Pall Corp 4.7% FMC Technologies 4.3% CostCo 24.2% Net Assets

Blue Points Cumulative Return

Since inception 12/31/06 Blue Points cumulative return after advisory fee has was an impressive 57.04%. During the same period the Total Return of the S&P 500 has been 14.99%. On a $100,000 investment the dollar value of Blue Point's cumulative return after advisory fee was $57,043.

$90,000 $80,000 $70,000 $60,000 $50,000 2006

1Q07

2Q07 3Q07

2007

1Q08

2Q08

3Q08 2008

1Q09 2Q09 3Q09

2009 1Q10

2Q10 3Q10 2010 1Q11 2Q11 3Q11 2011 1Q12 2Q12 2Q12

S&P 500 Index TR*

Blue Point

*Total Return (TR) calculations above include the reinvestment of dividends

Disclosures: Performance of the separate accounts can differ substantially from the actual performance of Blue Point, the model portfolio, due to timing of entry, whether account is taxable or non-taxable, and the timing of withdrawals. Past performance does not guarantee future results. The management fee schedule is as follows: 1.2% on first $1 million, 1.0% on the next $3 million, 0.85% on next $5 million. Accounts under $0.5 million are 1.5% annually. Depending on circumstance, institutional fee schedules may be negotiated. Blue Point Investment Management, LLC, is a Maryland registered investment advisor, founded in 2006. To receive a copy of the firm's Form ADV Part II, contact us at 443-600-8050.

Time Weighted Return as of 12/31/11:

1 Year Blue Point -5.35% 1 Year S&P 500 TR 2.11% 3 Year Blue Point 58.65% 3 Year S&P 500 TR 48.59% Portfolio Manager Niall H. OMalley (443) 600-8050 niall.omalley@bluepointim.us Web site www.bluepointim.us

Market Outlook
Quantitative Easing The printing of money is the almost universal response of developed world central banks with independent currencies. While a tempting offset to excessive debt and deleveraging, the seeds of future inflation are being sown. Equities Favored Asset Class Equities offer a claim on the earnings of real assets which cannot be duplicated like currency. Slow But Steady The U.S. continues to experience the first manufacturing led recovery in over two decades. The surprising resilience of the U.S. consumer has softened of late but the fundamental trends in the U.S. are still marginally positive. Low Growth Creates a Cost Focus In the absence of revenue and wage growth, companies and consumers are very cost sensitive. This creates demand for low price leaders, software and automation. This, in turn, is enhancing U.S. competitiveness. Emerging Markets Stresses in the developed world have spilled over to the emerging markets. China has the most dry powder to reengineer its economy, if the November 8th leadership engages stalled economic and judicial reforms. Energy and Natural Resources Selective opportunities exist as supply and demand dynamics change.

Copyright 2012 Blue Point Investment Management, LLC

Blue Point Investment Management

Way Points
Blue Point's five year performance
Blue Point (after advisory fees) S&P 500 Total Return* Performance vs. Benchmark 2007 22.33% 5.49% 16.84% 2008 -29.73% -37.00% 7.27% 2009 42.92% 26.46% 16.45% while actively managing the downside risk. Under normal circumstances, Blue Point invests at least 60% of its net assets in domestic U.S. securities. This global approach offers significant investment

Third Quarter 2012 Page 2

A Global Perspective
Blue Point Investment Management offers equity-oriented growth with a global perspective. The investment discipline seeks Growth at a Reasonable Price. Each client account is managed separately. The Growth At a Reasonable Price (GARP) investment strategy is a blend of active growth and value investing. As a rule, value investors focus on the price of the security, the numerator of the P/E ratio, while growth investors focus on earnings offered by the security, the denominator of the P/E ratio. GARP represents a blended approach and is often referred to as a market-oriented investment strategy. Through macro-economic research sustainable long-term trends are identified. Then fundamental research is used to identify the best companies that stand to benefit from favorable trends. Investments are geared towards long-term value creation while preserving capital. Blue Point seeks equity-oriented growth 2010 17.28% 15.06% 2.22% 2011 -5.35% 2.11% -7.46%
*Total Return includes the reinvestment of dividends

Client Profile
Individuals/Institutional (100%) Individuals Institutional Total Count % 94% 6% 100% Dollar % 86% 14% 100%

opportunities here and abroad. In times of market crisis, adjustments to portfolio holdings will be made that best serve the preservation of capital while seizing investment opportunities. Each separately managed account stays in the clients name providing complete transparency. Blue Point receives no commissions or compensation that create conflicts of interest. To further ensure the alignment interests Blue Points portfolio manager invests in the same model portfolio as clients. Blue Point seeks equity-oriented growth with a global perspective, while offering a portfolio manager you know and trust.

THE MANAGERS CORNER

PORTFOLIO MANAGER: Niall H. OMalley (pictured) is the founder and Managing Director of Blue Point Investment Management, LLC, which manages accounts on a separate account basis. Mr. OMalley has an MBA from George Washington University in Finance and Investments with minors in Business Law and Taxation. All of these activities build on strong professional experience working for buy-side firms, consulting and over seven years with a top ten U.S. commercial bank. Prior to starting Blue Point, Mr. O'Malley was a Vice President of Credit & Risk Management at SunTrust Bank. Mr. O'Malley passed Level II of the Chartered Financial Analyst examination in 2005 and holds the Series 65 License from FINRA. Mr. OMalley serves on the Board and on the Program Committee for the Baltimore CFA Society which has over 600 members. He has served as President of the Baltimore CFA Society and continues to serve as Co-Editor of the Baltimore Business Review. Mr. OMalley has taught Investments and Equity Security Analysis as adjunct faculty at Towson University, College of Business and Economics. Freelance Equity Research Analyst Sam Chang, CFA, previously the technology security analyst for Turner Investment Partners mid and small cap value portfolios which had over $3 billion of combined assets under management. Research Interns Deanna Domingue, Candidate Bachelor of Science in Business Administration with a Finance Concentration Ross Eagles, Towson University, Candidate Bachelor of Science in Business Administration with a Finance Concentration and a minor in Economics Blue Point Investment Management seeks equityoriented growth while seeking to minimize downside risk. A copy of the firms ADV Part II is available upon request. Additional Information is available at www.bluepointim.us Niall H. OMalley Blue Point Investment Management 722 Dulaney Valley Road #330 Towson, MD 21204 (443) 600-8050 niall.omalley@bluepointim.us www.bluepointim.us

Copyright 2012 Blue Point Investment Management, LLC