Investment Solutions

ELCO’s Financial Services SMA Program

In December 2009, ELCO Management Co., LLC (“ELCO”) entered into a joint venture with Mendon Capital Advisors Corp (“Mendon”), a registered investment adviser whose principal, Anton Schutz and team focus their efforts on the Financial Services sector. Mendon will primarily provide ELCO with their recommendations of selected financial institutions, which, in their opinion, are positioned to principally benefit from mergers and acquisitions. ELCO is offering separately managed accounts for investors seeking investment opportunities in this niche space. We believe that over the next three to five years, with the proper selections, substantial capital appreciation is possible. ELCO will also provide energy intelligence on various geographic locations which we believe will serve as a catalyst to positive economic activity. Mendon has focused on the financial services industry since 1996. Mr. Schutz is quoted often in the Wall Street Journal and Barron’s. He also appears frequently as a guest on CNBC.

Mendon Capital will focus primarily on regional and larger community banks rather than the major money centers given the many issues being faced by larger banks emanating from the financial crisis. The emphasis is on institutions that have strong and or improving balance sheets with access to the capital markets, seasoned managements, acquisition know-how and minimal credit quality issues. From time to time, Mendon will also select other banks that offer capital gains as a result of mispricing in secondary offerings.

ELCO, acting as the Investment Advisor, will provide total transparency and 30-day liquidity to these separately managed accounts. Pershing, LLC acts as custodian.