Separately Managed Client Accounts
2005-2007 Performance Report*

Cognition Capital Management, LLC
2005-2007 Performance

Separately Managed Client Accounts

PERFORMANCE DISCLOSURES

The performance results reported in this document reflect the investment returns of the separately managed client accounts of Cognition Capital Management, LLC during the period from January 2005 to December 2007. Partial year returns have not been annualized.

Returns reported for Cognition Capital’s separately managed client accounts are presented both gross of advisory fees and net of advisory fees and trading expenses (except, in the case of client accounts, deferred sales charges incurred on sales of assets transferred in from non-Cognition accounts), and gross of federal and state taxes. Leverage and derivatives were used in some client accounts to achieve the returns presented. The performance results include cash held in the accounts during the period and reflect the reinvestment of dividends.

GLOBAL INVESTMENT PERFORMANCE STANDARDS (“GIPS”)

Cognition Capital is currently engaged in the process of implementing the Global Investment Performance Standards (“GIPS”) for performance reporting. As part of this implementation, performance figures for all periods have been recalculated in conformance with GIPS-compliant methodology and therefore may not agree in all cases with figures previously reported by Cognition.

The principal difference between the GIPS-compliant method used in preparing this report and the methodology previously used involves the treatment of deposits and withdrawals made during the periods reported. In this report, adjustments for deposits and withdrawals have been based on the dates the transactions actually occurred. In previous reports, adjustments for deposits and withdrawals were made on the basis of a “mid-point” assumption.

INVESTMENT STRATEGIES USED IN SEPARATELY MANAGED ACCOUNTS

Cognition Capital’s separately managed client accounts are invested according to one of two basic strategies: the “Large Cap Focus” strategy, and the “Broader Market” strategy.

The accounts of clients electing to employ the Large Cap Focus strategy are invested in the stocks of companies with market caps of at least $1 billion. They may also be invested in Exchange-Traded Funds (“ETF’s”) and other investments.

The accounts of clients electing to employ the Broader Market strategy may be invested in stocks with market caps as low as $10 million, provided that, in Cognition Capital’s judgment, sufficient market liquidity exists to fairly allocate trades in economically feasible quantities among client accounts. Broader Market accounts may also be invested in ETF’s and other investments.

In practice, during the periods reported herein there has been significant overlap in the investment selections made in these two types of accounts, and, as a result, relatively insignificant differences in their performance. Therefore, returns for the two strategies are not presented separately. The overlap in investment selections is partly due to Cognition Capital’s judgment concerning the relative availability of good opportunities in large cap stocks versus small cap stocks in different market environments, which may change in the future, possibly leading to greater differences in performance between the two strategies.

Generally speaking, different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment strategy will be profitable.

DIFFERENCES IN PERFORMANCE AMONG INDIVIDUAL CLIENT ACCOUNTS

Cognition Capital attempts to accommodate individual client guidelines and preferences regarding investment choices and risk exposure insofar as it is able. These investor-imposed guidelines and restrictions on Cognition Capital’s discretion, in addition to differences in account size, timing of transactions, economic and market conditions prevailing at the time of investment, use of leverage, securities purchased and sold, securities transferred into accounts by clients, inception dates of accounts, and other factors, may lead to different results from those reported herein, as well as differences in performance among individual accounts.

MARKET CONDITIONS

The performance shown is for the stated time periods only; due to market volatility, current performance may be different.

BENCHMARK

The Standard & Poor’s 500 Index (“S&P 500”) has been used as a comparative equity benchmark for the periods presented. The S&P 500 is a market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. The S&P 500 reflects the reinvestment of dividends and capital gains distributions. Broad-based securities indices such as the S&P 500 are unmanaged and are not subject to fees and expenses typically associated with managed accounts. Investments cannot be made directly in a broad-based securities index.

Since the S&P 500 focuses on the large-cap segment of the market, the it may not be the ideal benchmark for the strategy employed in client accounts but was selected since it is generally considered representative of the U.S. stock market.. Many of the companies purchased for Cognition Capital’s client accounts have market caps ranging from $250 million (or less in some cases) up to $2.5 billion, which many consider to be small cap stocks. The companies represented in the S&P 500 are subject to a market cap minimum of $4 billion and are generally considered large caps. The market cap criterion of the S&P 500 has shifted over time.