This document summarizes an investment management presentation for high net worth individuals and institutions. It discusses hypothetical backtested performance results and limitations, describes Cambria Investment Management's history and services, reviews global market valuations and different asset allocation strategies, and examines the low yield environment. Contact information is provided at the end for anyone interested in learning more.

1. Investment Management
for High Net Worth
Individuals and Institutions
• QUANTCON
APRIL, 2016

2. Disclaimer
This presentation is for informational purposes and is not an offer to sell. Any investment involves significant risks, and
past market conditions may not resemble future market conditions.
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE
DESCRIBED BELOW. THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT, DO NOT
INVOLVE FINANCIAL RISK OR REFLECT ACTUAL TRADING BY ANY ACCOUNT UNDER ACTUAL MARKET
CONDITIONS AND THEREFORE DO NOT REFLECT THE IMPACT THAT ECONOMIC AND MARKET FACTORS
MAY HAVE HAD ON THE ADVISOR’S INVESTMENT DECISIONS FOR THAT ACCOUNT. NO
REPRESENTATION IS MADE THAT CIMI'S PERFORMANCE WOULD HAVE BEEN THE SAME AS SUCH
SIMULATED HAD CIMI BEEN IN EXISTENCE DURING SUCH TIME. ANOTHER LIMITATION IS THAT
INVESTMENT DECISIONS REFLECTED IN THE SIMULATED RESULTS CANNOT COMPLETELY ACCOUNT
FOR THE IMPACT OF FINANCIAL RISK ON THE MANNER IN WHICH AN ACCOUNT WOULD HAVE BEEN
MANAGED. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR
TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO AFFECT
ACTUAL TRADING RESULTS. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN
HYPOTHETICAL RESULTS AND THE ACTUAL RECORD SUBSEQUENTLY ACHIEVED. THE SIMULATED
RESULTS DO NOT TAKE INTO ACCOUNT ENHANCEMENTS THAT MAY BE MADE TO THE PROPRIETARY
COMPUTER MODELS OVER TIME. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKET
IN GENERAL, OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE
FULLY BE ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL SIMULATED PERFORMANCE
RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. ALL RESULTS ARE
GROSS OF ALL TRADING AND MANAGEMENT FEES

3. About Cambria
3
• SEC RIA founded 2006
• Active and Passive ETFs
• Digital advisory coming soon!
• Disrupt traditional high fee investing

4. Market Research
4
Blog: MebFaber.com
Work: CambriaFunds.com
Ideas: TheIdeaFarm.com
Twitter: @MebFaber

5. Freebook.mebfaber.com

6. TODAY
1. QuantCon 2015
2. Asset Allocation
3. Yield in a 2% World
4. Omaha!

7. Global Valuations
1. US 25
2. Developed 17
3. Emerging 15
4. Cheap 25% 9

8. © Copyright 2016 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved.
See NDR Disclaimer at www.ndr.com/copyright.html For data vendor disclaimers refer to www.ndr.com/vendorinfo/
DAVIS208
Standard & Poor's 500 Index Monthly Data 1964-03-31 to 2016-03-31 (Log Scale)
© Copyright 2016 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved.
See NDR Disclaimer at www.ndr.com/copyright.html For data vendor disclaimers refer to www.ndr.com/vendorinfo/
DAVIS208
Standard & Poor's 500 Index Monthly Data 1964-03-31 to 2016-03-31 (Log Scale)
1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
79
100
126
158
200
251
316
398
501
631
794
1,000
1,259
1,585
1,995
79
100
126
158
200
251
316
398
501
631
794
1,000
1,259
1,585
1,995
Source: S&P Dow Jones Indices
S&P 500
Gain/Annum When
S&P 500 Median P/S is:
% Gain/
Annum
% of
Time
* Above 1.53 0.34 20.19
Between 0.7 and 1.53 6.60 46.81
Below 0.7 10.22 33.00
S&P 500 Median Price/Sales Ratio
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2.0
2.1
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2.0
2.1
Median = 0.90
+1 SD = 1.40
+2 SD = 1.89
-1 SD = 0.41
2016-03-31 = 2.16Source: S&P Capital IQ Compustat

9. …But you would be out of stocks since the 1990s!
© Copyright 2016 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved.
See NDR Disclaimer at www.ndr.com/copyright.html For data vendor disclaimers refer to www.ndr.com/vendorinfo/
DAVIS219
Household Equity Percentage vs Subsequent Rolling 10-Year S&P 500 Index Total Return
Quarterly Data 1951-12-31 to 2015-12-31
© Copyright 2016 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved.
See NDR Disclaimer at www.ndr.com/copyright.html For data vendor disclaimers refer to www.ndr.com/vendorinfo/
DAVIS219
Household Equity Percentage vs Subsequent Rolling 10-Year S&P 500 Index Total Return
Quarterly Data 1951-12-31 to 2015-12-31
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
-4
-3
-2
-1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Correlation Coefficient since 1951-12-31 = 0.93
Concept Courtesy of Philosophical Economics
Equity as a Percentage of Household Financial Assets (Scale Left, Includes Mutual Funds and Pensions) 2015-12-31 = 51.8%
Subsequent Rolling 10-Year S&P 500 Index Total Return (Scale Right, Inverted) 2005-12-31 = 7.2%
Source: Federal Reserve Board, Mutual Fund Source: Investment Company Institute, www.ici.org, S&P Dow Jones Indices

10. TODAY
1. QuantCon 2015
2. Asset Allocation
3. Yield in a 2% World
4. Omaha!

15. Guru Allocations

16. Asset Allocations
Stocks Bonds Real Assets
60 / 40 60 40
All Seasons 30 55 15
Permanent 25 50 25
GAA 46 38 16
Arnott 30 40 30
Marc Faber 25 25 50
El-Erian 51 17 32

19. Risk and Returns – 1973 -2013

21. Emotional Investing

22. Emotional Investing

23. TODAY
1. QuantCon 2015
2. Asset Allocation
3. Yield in a 2% World
4. Omaha!

25. Global Yields
US 1.6%
Developed 1.2%
Emerging 5.9%
World 3.5%
High Yield 7.5%
(1-6% normal spread)

28. TODAY
1. QuantCon 2015
2. Asset Allocation
3. Yield in a 2% World
4. Omaha!

29. TODAY
1. Asset Allocation Models
2. Global Market Valuations
3. Omaha!

31. Bonus Idea

34. CONTACT
WEBSITE
www.cambriafunds.com
PHONE
(310) 606-5555
BLOG
www.mebfaber.com
EMAIL
mebane@gmail.com

35. CONTACT
WEBSITE
www.cambriafunds.com
PHONE
(310) 606-5555
BLOG
www.mebfaber.com
EMAIL
mebane@gmail.com