In the year 2000, we began a concerted effort to transform from being a money manager to a wealth manager. We saw our role as assisting investors across all investment categories. We began by streamlining our reports to all of you in order to make it very clear how you were doing. Then we explored whether we could assist investors in the real estate category in addition to stocks, bonds and cash. We identified several excellent partners who have brought us investments in those areas.

Our goal has always been to emulate the most successful investors.

Today, our client portfolios are very different from five years ago. Portfolios are less dependent on the stock market yet we will participate if stocks appreciate.

The question we began asking ourselves five years ago was, “How do we grow our clients’ Net Worth if the stock market ends the decade where it began”?

Our solution has continued to improve the portfolios of our clients. In the year 2005 the stock market rose a small percentage. A portfolio invested in real estate saw that category provide returns of more than 10%. Our lending opportunities provided returns of more than 9%.

We believe that no wealth management firm, and certainly no brokerage firm, can provide the level of diversity and direct ownership opportunities that Lakeside can. We are proud of that reputation and will continue to press forward to bring you even more significant opportunities to grow your net worth.

Sincerely,

Lakeside Capital Management, LLC