SECOND QUARTER 2013

DELEGATE ADVISORS UPDATE

We are pleased to provide you with the Delegate Advisors quarterly investor letter for the second quarter of 2013. In these letters we provide an overview of economic trends and global events with insight on strategies that investors may employ to navigate current markets.

REACTING TO THE FEDERAL RESERVE

Perhaps the most notable market event of the past three months was the recent Federal Reserve (the “Fed”) statement regarding the potential “tapering” of quantitative easing. Before discussing the immediate effects of the statement, it may be helpful to discuss a bit of history to illustrate the expanding influence of the Fed. The initial purpose of the Fed upon its 1913 founding was to provide the US with a more stable and flexible banking system. Over time, however, the Fed has become a more active participant in capital markets. This trend began in the early 1980s when the Fed (under Paul Volcker) began expanding its role with the mandate to control inflation and stimulate economic growth. Further, in the wake of the 2008 credit crisis, the Fed assumed an unprecedented role in stabilizing capital markets through a variety of programs including quantitative easing (“QE”).

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