Fairport in Fifteen

April 2011

J.T. MullenChief Investment Strategist J. T. Mullen joined Fairport Asset Management in 2011, bringing more than 30 years of experience as a highly regarded investment and finance professional. As Chief Investment Strategist, J.T. provides leadership and strategic oversight to Fairport’s Investment Committee.  J.T. is widely known in the investment community as a creative problem solver, superb listener and effective leader. Among other accolades, he was named ‘Chief Financial Officer of the Year’ in 2007 for charitable organizations by Crain’s Cleveland Business. Prior to joining Fairport, J.T. was Senior Vice President and Chief Financial Officer at The Cleveland Foundation, the second largest community foundation in the country. During his 23 year tenure, he crafted an investment philosophy that led to substantial growth of the foundation's endowment – from $400 million to $1.8 billion. As Chief Financial Officer, he was responsible for managing both the Foundation's investments and its internal financial function. J.T. joined the Cleveland Foundation in 1987 as Controller and was named Chief Financial Officer five years later. He retired from the Foundation in 2010. Earlier in his career, J.T. was a manager with Arthur Young & Company and also with the Cuyahoga County Board of Commissioners. He holds a B.S. in Business Administration from Cleveland State University.Throughout his career, J.T. has been actively involved as an advisor, board member and volunteer for local and national nonprofit organizations. He served on several highly visible national committees addressing community foundation issues, such as investment practices, accounting standards, and alliances with the marketing, technology and financial services industries. He currently serves on the investment committees of United Way of Greater Cleveland, the Catholic Diocese of Cleveland Foundation and CSA Health Systems.

J.T. and his wife, Mary, are the proud parents of five children and four grandchildren. An avid sports fan, J.T. follows many teams and players with a statistical acumen that is impressive. He also enjoys playing golf and reading.

John M. Silvis, CFA Director of Investments 

John Silvis, a CFA charterholder, serves as Fairport Asset Management’s Director of Investments. As such, John oversees the research of the Investment Team, determines the asset allocation of Fairport’s model portfolios and directs investment decisions and implementation on a day-to-day basis. John provides clients, prospects and internal staff with guidance about Fairport’s investment philosophy, process and performance.  John brings over 15 years of experience to the Investment Team and has been with the firm since 2000. Prior to Fairport, he was a Portfolio Manager at National City Bank. John began his career at Mellon Bank.  John obtained his B.A. in Economics at Penn State and his MBA at Baldwin Wallace College. He is a member of the CFA Institute, as well as the CFA Society of Cleveland. John lives in Strongsville with his wife Lori and has three children.  

Richard D’Amico, CFAManager of Investments

Richard D’Amico, a CFA charterholder, serves as Fairport Asset Management’s Manager of Investments. In this role, he oversees the implementation of the firm’s fixed income models and is responsible for the review and oversight of Fairport’s alternative investments and strategies. Rick brings over 10 years of experience to the Investment Team and has been with the firm since the summer of 2009. Rick most recently served as a market risk review analyst at KeyBank.  Prior to KeyBank, he worked as a licensed equity research analyst at Great Lakes Capital Partners, LTD, covering regional bank and thrift companies.   He is a graduate of Mount Union College where he obtained his B.A. in Business Administration with a Finance concentration.  He is also a member of the CFA Institute, as well as the CFA Society of Cleveland.   Rick lives in Rocky River with his wife Shannon and son.  In his free time, he enjoys playing baseball and spending time outdoors.

Quarterly Data 3/31/1949 - 12/31/2010 (Log Scale)

(E0055)

Billions of Chained $

Potential GDP Using CBO Estimates

12/31/2010 = 14109.8( )

Actual GDP 12/31/2010 = 13380.7

( )

Output Gap = Potential GDP Less Actual GDP12/31/2010 = 729.11961

218124272700300333413717413646015119569563367049784287249706

10798 12013 13365

1961218124272700300333413717413646015119569563367049784287249706

10798 12013 13365

Real GDP -5.2% Below PotentialEconomy Below Potential

Economy Above Potential

-7

-6

-5

-4

-3

-2

-1

0

1

2

3

4

5

-7

-6

-5

-4

-3

-2

-1

0

1

2

3

4

5

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Actual GDP vs Potential GDP using CBO Estimates

Output Gap Copyright 2011 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved.

. www.ndr.com/vendorinfo/ . For data vendor disclaimers refer to www.ndr.com/copyright.htmlSee NDR Disclaimer at

Utilities

Telecomm

Materials

Information Technology

Indust

Health Care

Financials

Consumer Staples

ConsumerDisc

Energy

Fairport Large Cap Model vs. S&P 500

underweight S&P overweight 500

Index

Source: ISI Group, Inc.

Monthly Data 1/31/2000 - 1/31/2011

(E0760H)

1/31/2011 = 141.9

The indexes measure weighted-average changes in values of residential housing markets across select major regional metropolitan areas.

104 110 116 123 130 137 145 153 161 170 180 190 201

104 110 116 123 130 137 145 153 161 170 180 190 201

Monthly % Change

1/31/2011 = -0.2%

Home Prices Rising

Home Prices Falling

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

Year-to-Year Change 1/31/2011 = -3.0%

Home Prices Rising

Home Prices Falling

-18 -15 -12

-9-6-30 3 6 9

1215

-18 -15 -12

-9-6-30 3 6 9

1215

M J S D 2001

M J S D 2002

M J S D 2003

M J S D 2004

M J S D 2005

M J S D 2006

M J S D 2007

M J S D 2008

M J S D 2009

M J S D 2010

M J S D 2011

S&P/Case-Shiller Composite 20 Home Price Index

Copyright 2011 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved. . www.ndr.com/vendorinfo/ . For data vendor disclaimers refer to www.ndr.com/copyright.htmlSee NDR Disclaimer at

Weekly Data 7/02/1993 - 4/01/2011 (Log Scale)

(B970)

Total Offerings 4/01/2011 = 1490.2$ Billions

52-Week Total 4/01/2011 = 1419.6

(---)

Source: Thomson Financial Securities Data 311 373 447 537 644 772 926

111013321597191622982756

311 373 447 537 644 772 926

111013321597191622982756

Corporate Bond Offerings 4/01/2011 = 1305.2

52-Week Total 4/01/2011 = 1051.0

(---)

214 262 321 392 480 587 718 878

10751314160819672406

214 262 321 392 480 587 718 878

10751314160819672406

Municipal Bond Offerings 4/01/2011 = 185.0

52-Week Total 4/01/2011 = 368.5

(---)

86102 120 142 168 198 235 277 328 388 458 542 641

86102 120 142 168 198 235 277 328 388 458 542 641

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Bond Offerings (13-Week Annualized and 52-Week Totals)

Copyright 2011 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved. . www.ndr.com/vendorinfo/ . For data vendor disclaimers refer to www.ndr.com/copyright.htmlSee NDR Disclaimer at

Senior Relationship Team

Paul Abbey

Ken Coleman

Andrew Connors, CFP®

Pete DeVito, CPA, CFP®

Emily Drake, CFP®

Heather Ettinger

Chris Isabella, CPA/PFS

Tom Seifert, CPA/PFS

Emily Shacklett, CPA/PFS

This Fairport in Fifteen presentation is for informational purposes only and should not be relied upon as research or investment advice. It should not be considered as a solicitation or recommendation by Fairport to buy, sell or continue to hold securities or other investments. Past performance is not a guarantee of future results, and is not indicative of any specific investment. It should not be assumed that the investment process and strategy discussed herein has been or will prove to be profitable. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets.

Disclosures