Welcome to the September 2009 issue of Condor Monthly!

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Please continue below to view the "From the Portfolio Manager" and "Financial Planning Corner" segments in this month's issue.

From the Portfolio Manager

Deckers Outdoor Corporation
( DECK)

Condor Capital recently initiated a position in Deckers Outdoor Corporation (DECK) in our Large Cap Growth Strategy. DECK designs and manufactures footwear designed for outdoor sports and recreational activities, as well as for casual use. Its footwear trademarks include UGG (Australian sheepskin boots), Teva (sports sandals), and Simple (innovative sustainable-lifestyle footwear and accessories).

Consumer Trends
The market for casual, outdoor, and athletic footwear has grown significantly over the last decade. This is the result of a trend toward casual dress in the workplace, increasingly active outdoor lifestyles, and a growing emphasis on comfort. In recent years, consumers have become increasingly focused on luxury and comfort, seeking out products and brands that are fashionable while still comfortable. Additionally, there is an emerging sustainable lifestyle movement happening all around the world. Consumers are demanding that brands and companies take a more responsible approach when it comes to protecting the environment.

UGG Brand Success
The UGG brand includes authentic luxury sheepskin boots and a full line of luxury and comfort footwear and accessories. The brand includes lines for women, men, and children and has recently expanded to include non-sheepskin goods and spring/summer lines, as well. UGG brand net sales for the second quarter of 2009 increased 22.9% compared to the same period last year. The sales gain was primarily attributed to an increase in global shipments of fall products versus the same period a year ago. DECK has increased its UGG brand inventory in order to fulfill the volume of pre-booked orders currently on the books.

Due to the recent overwhelming success of the UGG brand, as well as support from its TEVA and Simple brands, Deckers Outdoor Corporation has grown to become a primary provider of luxury and outdoor footwear. DECK is heading into the holiday shopping season with a whole new line under the UGG brand, which should prove profitable due to the increasing industry-wide trend towards boots. Additionally, DECK is continuing to grow its brands internationally, with over 45% of its sales taking place in Canada, France, Australia, and Japan. As economic conditions improve, Deckers will have more opportunities to further develop its smaller brands. Overall, the success of its brands, combined with a solid balance sheet free of long-term debt, their large cash position, and attractive valuation prove that Deckers Outdoor Corporation is a company with strong growth prospects that should benefit from increases in consumer spending.

Financial Planning Corner

Taking Advantage of Your Employer's 401(k) Plan

As the economy improves, now may be a good time to revisit participation in your employer's 401(k) retirement plan. Additionally, current 401(k) participants should review and adjust their asset allocations to keep them in line with their investment goals and objectives. The Financial Planning Association recently put out a list of recommendations to keep in mind when thinking about investing in an employer sponsored plan. Keeping these tips in mind should help when investing in your employer's 401(k) plan.

1. Make sure you contribute to a plan.
Making contributions to an employer's 401k plan provides double tax benefits - not only are the contributions made on a pre-tax basis, but any growth in the plan is tax-deferred. Because of this, workers should not hesitate to participate in employer-sponsored plans. Some plans also provide an employer match, which is an added benefit - not participating is like giving up free money.

2. Benefits of dollar-cost-averaging.
Contributions into a 401(k) plan are automatically deducted from your paycheck. This type of approach allows you to dollar-cost-average into the market, which means you are investing a fixed amount throughout different market conditions. You can buy more shares when prices are low and less shares when prices are high, thus lowering the average cost basis of the investment.

3. Continue to save while you wait to join a plan.
Usually, a worker must wait until they have been with a company for six to twelve months before being allowed to join the plan. Until you are eligible to join the plan, you should save in an outside retirement account like a Roth IRA or traditional IRA in order to keep pace with your savings goals.

4. Max out your contributions.
While not everyone will be able to contribute the maximum allowable amount to their plan, everyone should try to contribute as much as possible. The maximum allowable amount changes yearly, but for 2009 that amount for a 401(k) is $16,500 and an additional catch-up of $5,500 for a participant at least 50 years old.

5. Take charge of your own investments.
Many 401(k) participants select their investment options when they initially join the plan, but neglect to review or adjust their account again. Additionally, some companies now auto-enroll their eligible employees and place contributions into a default investment option, which may not be consistent with your investor profile. It is always beneficial to review your account and the various investment options from time-to-time to make sure the account is positioned appropriately.

6. Do not over-invest in company stock.
Some companies offer company stock as an investment choice. It is important to keep your portfolio diversified to help stabilize volatility and minimize overall risk. Typically, it is not recommended to have more than 15% of your 401(k) in company stock.

7. Evaluate old 401(k) plans.
Once you leave your job, you should evaluate the pros and cons of leaving the 401(k) with the former employer. Typically, 401(k) plans offer limited investment choices so it makes sense to rollover your plan balance into an IRA where your choices are essentially unlimited. Additionally, you will not you have to deal with a former employer when you need to take a distribution out of the account.

Not only is Condor available to review your 401(k) plan and provide appropriate recommendations, but we may be able to help manage your 401(k) account through our ByAllAccounts service. This service allows us to execute trades, rebalance your account, and keep it coordinated with your other Condor-managed accounts. Additionally, we can report performance of your consolidated portfolio to give you a clearer picture of your overall financial situation. Please do not hesitate to contact us if you would like to discuss your 401(k) or our ByAllAccounts service in more detail. At Condor, we believe strongly in the principles of holistic wealth management and it is our ultimate goal to be your single source of investment management and financial planning services.

Thank you for reading this issue of Condor Monthly. If you have any comments or suggestions for this newsletter, please share them with us at newsletter@condorcapital.com.

Sincerely,

Ken Schapiro
President
Condor Capital Management

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