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BARCLAY ROUNDTABLE

INSIDE:

Obamacare Ushers in New Era for the Healthcare Industry


Hedge Funds Strive to Discern Promising Winners from the Potential Losers
to profit from both sides? What are the best opportunities in the sector going forward? To discuss these issues in more detail we have assembled a panel of expert hedge fund managers who specialize in the healthcare sector. Our panel includes: Michael Castor, Sio Capital Management, LLC. Dr. Castor is the Portfolio Manager at Sio Capital Management, a healthcare-focused hedge fund founded in 2006. Before Sio, Dr. Castor worked at Bernstein Investment Research (2001 to 2006) as the firms lead healthcare analyst. Prior to Bernstein, Michael worked in the investment banking/capital markets division at JP Morgan focusing on biotechnology and healthcare equity offerings. Before entering finance, Dr. Castor spent three years in clinical medicine, including two years of surgery and otolaryngology residency at Columbia Presbyterian Medical Center in New York. Michael earned his MD from The Ohio State University College of Medicine where he graduated summa cum laude. David G. ONeill, Continental Advisors, LLC. Mr. ONeill is a partner of Continental Advisors and joined the firm in 2001. He has served as Co-Portfolio Manager of the
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I Roundtable Discussion Pages 1-4, 18-20 I The Top 20 CTAs, Past 5 and 3 Years Pages 5-6 I The Top 20 CTAs of 2013 Page 7 I Hedge Fund Rankings Pages 8-14 I Fund Review - MQS Management, LLC Pages 15-17
Past results are not necessarily indicative of future results. An investment in commodity futures and options involves the risk of loss. Please read the important disclosure on page 19.

he passage of the Obama Administrations Affordable Care Act (ACA) has ushered in a new era for how health insurance and healthcare will be utilized and financed in the United States. With a multi-year rollout that has seen some stumbling blocks along the way, many questions remain as to how effective the plan will be for consumers at large and what the overall impact will be on all parties of the value chain within the healthcare industry.

Judging by the healthcare sectors 7.0 percentage point performance advantage over the broader S&P 500 Index for the latest 12 months, it would appear that the market may have previously discounted, or has altogether disregarded, any potential ill effects that the law may have on industry constituents. Healthcare and biotech managers tracked by BarclayHedge have also participated strongly, returning 22% over the past 12 months, significantly ahead of the broader universe of long/short managers and the composite hedge fund universe. But it remains to be seen if there is yet another shoe to drop in the story. If volatility lies ahead, are healthcare focused hedge fund managers poised
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Continental Healthcare fund since its inception. From 1985-2001, Mr. ONeill served as a partner and an equity research analyst at William Blair & Company, LLC. He was a principal of the firm from 1991-2001, and his primary research coverage focused on healthcare and pharmaceutical services and other select healthcare service and consumer and business service sectors. Mr. ONeill received a BBA in finance from the University of Notre Dame and a MM in accounting and finance from the Kellogg School of Management at Northwestern University. Anthony Sterling, Visium Balanced Fund Healthcare

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Barclay Roundtable (cont.)


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Services. Mr. Sterling is the Portfolio Manager of Visium Balanced Fund. He joined the Visium team in 2006. Prior to Visium, Mr. Sterling worked as sector head/analyst in healthcare services for Amaranth Advisors. He spent time as an investment banking associate in Merrill Lynchs Global Healthcare Group and as an equity research associate in medical devices for Banc of America Securities. Mr. Sterling graduated with a BS in accounting from Lehigh University and received an MBA from Columbia Business School. Michael Weiss, Opus Point Partners. Mr. Weiss is the Cofounder of Opus Point Partners, an alternative investment firm focused on investing in publically traded biotech companies. Mr. Weiss began his professional career as a lawyer at Cravath, Swaine & Moore. Upon leaving the practice of law, he began working with Dr. Lindsay Rosenwald, cofounder of Opus Point Partners, seeding and financing biotechnology companies. In 2009, Mr. Weiss and Dr. Rosenwald founded Opus Point Partners. Mr. Weiss earned his JD from Columbia Law School and his BS in finance from The University at Albany. winners and losers should the Affordable Care Act get defunded? Castor: The healthcare industry is comprised of a diverse, heterogeneous mix of companies. The ACA, for all its complexities and nuances, can be summarized broadly as expansion of insurance coverage with subsidies for those who are unable to buy insurance and taxes on healthcare compamental positive to healthcare product companies in the next few years. Medical device companies and pharmaceutical companies have already begun incurring the new fees and taxes without the benefit of the expansion of coverage, which is slated to begin in 2014. Across the board, healthcare product companies have managed to either raise prices or cut operating costs such that they have preserved their operating margins and profitability despite the new fees. In 2014, there will be the potential for higher volumes as a result of broader insurance coverage. The selling costs and R&D that healthcare companies incur should be relatively fixed such that incremental revenues come at a higher level of profitability. In the short term, hospitals will be winners as there are fewer uninsured patient visits and lower levels of bad debt. The incremental revenues should essentially be pure profit, as hospitals are doing the same amount of work and incurring the same costs as before, only now they will be receiving more money for their efforts. However, payers are fairly efficient and are likely to cut reimbursement over the next one to two years to bring hospital profitability back down to current levels. The ACA is unlikely to be defunded. If it were, we can look to the system before ACA to see whether there would be specific winners. If there is not much of a windfall from the implementation of the ACA, there should not be much change if the ACA were to be defunded. ONeill: In June 2009, when President Obama originally committed to reforming the US healthcare market, stock prices in the sector plummeted. In the span of just a week, the S&P Healthcare Index declined by about 5%. We painfully
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Michael Castor
Sio Capital Management, LLC

It is estimated that over time


approximately 30 million incremental individuals (approximately half of the uninsured population in the US) will get healthcare as a result of the ACA. nies to pay for the subsidies. It is estimated that over time approximately 30 million incremental individuals (approximately half of the uninsured population in the US) will get healthcare as a result of the ACA. Simplistically, the financial impact on most companies should be relatively muted. From a high level, healthcare companies should see a small increase in volume offset by a small increase in fees. From a practical standpoint, it is likely that the ACA will be an increwww.BarclayHedge.com
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: Since the signing of the Affordable Care Act into law in 2010, implementation has come in a number of phases (e.g., Patients Bill of Rights in 2010, Medicare enhancements in 2011, open enrollment in 2013, coverage in 2014, etc.). Explain the impact that any of these phases have had on healthcare companies and to what extent these impacts are currently priced in. In your opinion, what factors and remaining implementation aspects of the law have yet to be priced in, and in what sectors/companies might we see the greatest impact? Who are the likely

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remember those days! Now, in contrast, investors view Obamacare as a decided positive for most healthcare sectors, and stock prices have rallied to record highs. This has been a breathtaking shift in sentiment. Candidly, however, our crystal ball regarding the Affordable Care Act remains quite clouded, and we continue to believe that classifying which companies might be winners and losers under the Affordable Care Act to be fraught with uncertainty. While investor consensus expectations clearly have hardened in recent months, we remain suspicious as to whether such conclusions can be drawn at this early date. For instance, in the hospital stocks, we understand the positive earnings implications associated with lower bad debts; however, after scouring the insurance plans on the public exchanges over the past several weeks, we are concerned that the high deductibles (typically $3,000-$5,000 for silver or bronze plans) may temper plan uptake among the low-income uninsured who expect free healthcare. Likewise, while it is obvious that managed care companies revenue projections will benefit from an expanded market, earnings appear vulnerable to unfavorable regulatory interpretations by the government on risk corridors or reinsurance rules. And, how might Medicare pay-forperformance formulas, integrated delivery networks, accountable care organizations, and private exchanges impact the distribution of healthcare profits along the industry continuum? We think it prudent to tread lightly until some of these issues become clarified. Our preference is to stay focused on the lower risk names in healthcare, including larger cap pharmaceutical and medical device stocks, where well-established product cycles and long-lived revenue streams reduce potential earnings volatility. After five years in which the stock price performance of the healthcare industry has ranked among the very top performing S&P sectors, we think caution
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and conservativism may be the better part of valor! We remain long-term bulls on the outlook for healthcare stocks, but in todays environment, we worry about shorter-term turbulence on the implementation of the Affordable Care Act. Sterling: While important to the beneficiary, the early phases of the

The most significant phase of the Affordable Care Act will be enrollment in late 2013 and early 2014 and actual coverage starting January 2014. As formerly uninsured people get insurance coverage there will be an increase in utilization of the healthcare system in 2014 and beyond. Some of the biggest beneficiaries of the coverage expansion will be hospitals, Medicaid insurers, labs, drug stores, pharmaceutical/medical supply distributors, physician management companies, and healthcare technology vendors as well as others. We expect the multiples and valuations for these sectors to expand in 2014/2015 as revenue, earnings, and cashflow growth accelerate due to the higher utilization and lower bad debt expense that the insurance coverage will result in. Should the Affordable Care Act get defunded, the biggest losers would be the hospitals and the Medicaid insurers as they are the most levered to the utilization that would otherwise increase. The likely winners would be the commercial health insurers, as many of the requirements that limit profitability and the movement of membership to public exchanges would go away. Weiss: Generally speaking, we see the net result of the Affordable Care Act, upon full implementation, as an increase in the number of insured Americans coupled with a decrease in the amount reimbursed per individual essentially, higher volumes at lower prices. In the short-term we see hospitals/providers and insurers/managed care companies as the biggest beneficiaries. For the hospitals the ACA will provide more covered individuals paying for their services in contrast to 2011 where some have estimated that hospitals provided almost $41B to uninsured individuals. The prospect of capturing those lost dollars has driven outperformance in 2013 for hospitals and providers, and

David G. ONeill
Continental Advisors, LLC

...investors view Obamacare as a decided positive for most healthcare sectors, and stock prices have rallied to record highs.

implementation of the Affordable Care Act since 2010 have not had a significant impact on the healthcare industry. The Patients' Bill of Rights, implemented in 2010, helped children with pre-existing conditions gain health insurance coverage and ended lifetime limits on the care consumers may receive. Beginning in 2011, minimum loss ratio requirements provided that health insurers spend a minimum percentage (80% in the individual and small group market and 85% in the large group market) of their premiums on health care claims and quality improvement costs. Thus far the insurance industry has been able to adjust to these new requirements without any meaningful impact on profitability.
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Barclay Roundtable (cont.)


Continued from Page 3 we expect it to continue over the next several years as revenues should increase. However, over time, our expectation is that the government will start reducing reimbursement rates. California has already tried to cut reimbursement for Medicaid by 10%, and we expect this will be a national trend. In the end, hospitals will see more paid-for volume but at lower and lower prices than those prevailing today, ultimately diminishing or potentially erasing early benefits from the ACA.
Similarly, the insurers/managed care companies may initially see additional revenues as more Americans pay for insurance under ACA. It is estimated that 32 million additional Americans will be insured on ACA. Collectively, that should increase volume and possibly prices as insurers offer premium plans at higher prices than before. Longer-term, however, these companies risk an imbalance in healthy patients signing up as opposed to sicker patients. ACA mandates no discrimination based on prior conditions. Insurers need to balance coverage of those sicker, higher cost patients with premium income and lower costs associated with caring for healthier, younger Americans. Any long-term imbalance could increase insurers overall costs and shrink margins. While not widely recognized, more covered lives is also a net positive for biotech and pharma companies who should see higher drug utilization without pricing pressure for the foreseeable future, especially for important and novel medicines. If ACA is defunded or repealed, we would expect the gains seen in hospitals, managed care and insurers to be lost. Even if ACA is not defunded, we expect in the mid-term for those sectors to underperform as price controls
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kick in and imbalances in the underlying insured populations cut into the original margin gains that we will see in the short-term (next 2 years).

more than the macro environment in which the company operates. ONeill: Most of the primary segments of the health products industry (including pharmaceuticals, biotech, orthopedics, cardiac care, etc.) are global in scope. Thus, all the leading competitors in the US market Johnson & Johnson, Medtronic, Pfizer, etc. also are the leading competitors in Europe, in emerging markets, and around the globe. Consequently, when an investor is committed to owning the leadership business franchises in the healthcare space, gaining significant geographic diversification is difficult. An alternative approach to diversifying away from the Affordable Care Act, and one which we recently implemented, is to diversify by payor source. Specifically, we look to minimize our ACA-risk by proactively scouring for names with little or no Medicare/Medicaid reimbursement exposure. As a result, we aggressively increased holdings in companies with exposure to non-government payor sources, including dental, veterinary, consumer retail, consumer hygiene, and cosmetic surgery. Weiss: We are not seeing many great opportunities in ex-US healthcare stocks as a result of the ACA. That is not to say that there arent many high quality multinational healthcare companies headquartered outside the US, but it is to say that most rely heavily on sales in the US. As the US has been the nation most willing to pay premium prices for innovation, we believe such ex-US companies will be impacted in a similar fashion as those within the US. We see price controls and allocation of care as the greatest risks to pharmaceutical and biotech companies. As the so called death panels begin to decide which patients are entitled to Continued on Page 18
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: Given the potential impacts to US based healthcare stocks from the Affordable

Anthony Sterling
Visium Balanced Fund

As formerly uninsured people get insurance coverage there will be an increase in utilization of the healthcare system in 2014 and beyond.

Care Act, are there ways to diversify away from this risk by investing in non-US healthcare stocks? Which non-US industries are most shielded? Which non-US industries and stocks will remain most susceptible to the changes in the US? Castor: Investing in non-US healthcare companies is diversifying not just because of less exposure to the ACA, but also because of the exposure to different economic trends, healthcare dynamics, regulatory environments, and reimbursement patterns. Ultimately, the fundamental issues of each individual company will be the primary determinants of their success

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Top 20 CTA Performers Past Five Years


For the period from 10/1/2008 to 9/30/2013. Includes only CTAs managing at least $10 million as of 9/30/2013
5-YR COMP. ANNUAL RETURN SHARPE RATIO LARGEST DRAWDOWN % WINNING MONTHS BEST 12-MO. PERIOD WORST 12-MO. PERIOD ASSETS UNDER MGMT. ($) TRADING ADVISORS

1 2 3 4 5 6 7 8 9

CenturionFx Ltd (6X) 24FX Management Ltd Two Sigma (Enhanced Compass) Splendor Capital (Credence Oriental) GalNet Asset Mgmt (Alpha Fund) OptHedge (Options & Futures) Beechdale Capital (Gamma Traders) Bridgewater Pure Alpha Fund II Fort, LP (Global Diversified LP)

62.66% 30.57% 28.03% 26.62% 25.99% 22.68% 21.83% 17.36% 17.29% 16.33% 15.72% 13.87% 13.60% 13.40% 12.67% 11.91% 11.74% 11.66% 11.45% 11.33%

1.98 1.56 1.76 3.55 1.19 2.86 0.47 1.55 1.12 1.31 1.21 0.51 1.15 1.70 1.93 0.49 1.03 0.74 1.56 0.69

21.60% 18.35% 19.26% 3.02% 33.34% 4.08% 44.00% 9.97% 13.71% 5.28% 8.79% 27.61% 8.67% 9.85% 12.73% 24.63% 14.35% 14.17% 6.54% 20.13%

73.33% 71.67% 66.67% 88.33% 73.33% 86.67% 63.33% 61.67% 61.67% 85.00% 63.33% 60.00% 55.00% 66.67% 96.67% 48.33% 60.00% 58.33% 63.33% 55.00%

239% 105% 78% 40% 89% 64% 93% 46% 50% 64% 33% 62% 39% 34% 29% 46% 33% 34% 29% 56%

8% -6% -15% 15% -12% 0% -9% -1% -10% -2% 2% -26% -5% -7% -2% -15% 1% -9% -1% -18%

40.6M 108.3M 3933.0M 86.4M 61.1M 18.3M 10.6M 62916.0M 176.1M 59.3M 14000.0M 37.2M 561.9M 3933.0M 32.5M 10.6M 723.8M 59.2M 62916.0M 12.7M

10 A-Venture Capital 11 Man Investments (AHL Evolution) 12 Keck Capital Management 13 Fort, LP (Global Contrarian LP) 14 Two Sigma (Compass) 15 Esulep LLC (Permo Fund) 16 Briarwood Capital Mgmt. (2X) 17 Dominice & Co (Cassiopeia USD) 18 Tanyard Creek Capital (Livestock) 19 Bridgewater Pure Alpha Fund I 20 Hamer Trading (Hamer Fund)

DEFINITION OF TERMS USED IN THE PERFORMANCE TABLES


Compound Annual Return. This is the rate of return which, if compounded over the number of years covered by the performance history, would yield the cumulative gain or loss actually achieved by the CTA during that period. Sharpe Ratio. The Sharpe Ratio is equal to the compound annual rate of return minus rate of return on a risk-free investment divided by the annualized monthly standard deviation. Largest Drawdown is the largest loss of equity from a peak to a valley in a single month or period of consecutive
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months during the past five years (three years for the 3-Year Table). % of Winning Months. This is the percentage of months during the past five years (three years for the 3-Year Table) in which the CTA achieved a profit for the month. Best /Worst 12-Month Period. These figures indicate the best and worst consecutive 12-month rates of return achieved by the CTA during the past five years (three years for the 3-Year Table).

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Top 20 CTA Performers Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only CTAs managing at least $5 million as of 9/30/2013
3-YR COMP. ANNUAL SHARPE RETURN RATIO LARGEST DRAWDOWN % WINNING MONTHS BEST 12-MO. PERIOD WORST 12-MO. PERIOD ASSETS UNDER MGMT. ($) TRADING ADVISORS

1 2 3 4 5 6 7 8 9

CenturionFx Ltd (6X) Protec Energy Partners (ET1) Bayou City Capital Sharpe+Signa (Currency) Gedamo (FX Alpha) Third Street AG 24FX Management Ltd Splendor Capital (Credence Oriental) Vallen Advisors

71.87% 35.07% 31.38% 29.71% 28.07% 26.66% 26.54% 21.80% 21.22% 21.15% 19.53% 19.20% 18.08% 17.09% 15.52% 15.40% 14.99% 14.55% 14.22% 13.63%

2.34 1.93 0.76 2.53 3.04 1.47 1.36 4.15 2.22 2.95 2.04 0.66 1.15 6.06 1.01 4.35 0.33 1.60 1.12 0.52

17.55% 14.43% 58.94% 4.12% 8.43% 15.69% 18.35% 2.42% 4.82% 8.51% 10.56% 17.57% 19.26% 1.55% 15.49% 0.56% 44.00% 4.63% 18.73% 39.67%

72.22% 61.11% 75.00% 77.78% 86.11% 72.22% 69.44% 88.89% 61.11% 83.33% 77.78% 52.78% 63.89% 94.44% 61.11% 91.67% 58.33% 58.33% 83.33% 77.78%

239% 91% 161% 74% 45% 77% 54% 31% 40% 28% 35% 63% 39% 20% 47% 28% 93% 25% 43% 83%

8% 1% -40% 5% 17% -4% -6% 15% 9% 9% 4% -15% -15% 12% -4% 9% -6% 6% -4% -15%

40.6M 85.8M 6.4M 125.0M 28.7M 28.0M 108.3M 86.4M 19.4M 10.8M 61.1M 445.0M 3933.0M 125.0M 163.0M 22.5M 10.6M 723.8M 13.4M 50.2M

10 Cauldron Investment (Stock Index Plus) 11 GalNet Asset Mgmt (Alpha Fund) 12 Global Ag 13 Two Sigma (Enhanced Compass) 14 Global Sigma Group (Sigma Plus) 15 Crabel WPD Futures (Class J) 16 ACT Currency Partner AG 17 Beechdale Capital (Gamma Traders) 18 Dominice & Co (Cassiopeia USD) 19 White River Group (Stock Index) 20 LJM Partners (Aggr. Premium Writing)

NOTE: Past results are not necessarily indicative of future results. Trading in commodity futures and options is speculative in nature and involves the risk of loss of ones entire investment or more. Prior to investing with any CTA, please read carefully the CTAs disclosure document.
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Top 20 CTA Performers 2013


For the period from 1/1/2013 to 9/30/2013. Includes only CTAs managing at least $1 million as of 9/30/2013.*
2013 YTD RETURN LARGEST DRAWDOWN BEST 12-MO. PERIOD WORST 12-MO. PERIOD ASSETS UNDER MGMT. ($) TRADING ADVISORS SHARPE RATIO STARTING DATE

1 2 3 4 5 6 7 8 9

FX Concepts (GFM) Investment Capital Adv (Managed Acts) Opus Futures Hartswell Capital Mgmt (Athena) CenturionFx Ltd (6X) LEH Advisor (Break out Point) Two Sigma (Enhanced Compass) Matic Capital Allocation (General) 24FX Management Ltd

46.07% 33.34% 33.12% 33.00% 33.00% 31.90% 31.39% 28.58% 28.14% 27.30% 25.59% 25.50% 25.13% 24.06% 23.71% 23.37% 21.90% 21.74% 21.68% 21.04%

0.26 1.04 0.27 3.52 1.98 1.40 1.76 1.50 1.56 0.42 -0.16 0.78 0.69 2.96 1.27 2.21 -0.24 0.60 2.78 0.26

44.21% 29.65% 50.62% 5.05% 21.60% 15.35% 19.26% 7.28% 18.35% 18.81% 53.34% 58.94% 19.47% 13.20% 56.97% 10.29% 43.00% 22.39% 18.59% 45.02%

Mar-01 Nov-10 Mar-11 Jan-13 Jan-06 May-09 Jan-05 Jan-13 Jan-01 Feb-09 Oct-06 Jan-01 Oct-11 Jun-11 Jan-10 May-12 Dec-04 Feb-12 Jul-11 May-99

59% 77% 92% n/a 239% 75% 78% n/a 105% 27% 69% 161% 43% 70% 444% 76% 32% 56% 145% 99%

-37% -5% -42% n/a 8% -15% -15% n/a -6% -18% -38% -40% -12% 7% -54% 38% -27% 16% 49% -35%

10.0M 3.6M 8.3M 1.8M 40.6M 2.0M 3933.0M 4.8M 108.3M 41.0M 42.0M 6.4M 1.1M 2.3M 2.9M 4.0M 7.0M 4.5M 14.0M 142.0M

10 Gables Capital Mgmt (Global FX) 11 Revolution Capital Mgmt (Mosaic) 12 Bayou City Capital 13 Redleaf Capital (Fallback >$50K ) 14 Option Capital 15 Barbashop (Gold and Silver) 16 Fornex (Foyle) 17 Niederhoffer, R.G. (Optimal Alpha B) 18 Beechdale Capital (Vega Traders) 19 Pan Capital Mgmt (Energy) 20 Mulvaney Capital Mgmt. (Gl. Markets)

*NOTE: Performance statistics, except for 2013 YTD Return, are based upon the past 5 years performance or the CTAs entire history, whichever is shorter.

NOTE: Past results are not necessarily indicative of future results. Trading in commodity futures and options is speculative in nature and involves the risk of loss of ones entire investment or more. Prior to investing with any CTA, please read carefully the CTAs disclosure document.
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Top 10 - Convertible Arbitrage - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4. 5 6 7 8 9 10

Pine River Convert Master Fund Ltd Whitebox Concentrated Conv Arb Ltd Steelhead Pathfinder Fund Pine River Asia Master Fund Ltd Investcorp Silverback Arb Ltd Mohican VCA Fund LP Lazard Rathmore Fund Ltd Castle Creek Arb LLC Symphony Rhapsody Fund LP GLG Gl Convertible A USD

12.52% 11.20% 9.52% 7.07% 6.31% 5.29% 5.03% 4.31% 4.10% 4.06%

2.35 1.96 3.74 1.91 1.60 2.40 1.00 2.55 1.95 0.57

0.11 0.70 0.67 0.50 0.56 0.58 0.60 0.53 0.39 0.86

Aug-09 Jan-01 Nov-05 Jul-04 Nov-06 Oct-02 Oct-07 Jan-02 Dec-98 Aug-97

27% 17% 9% 9% 5% 5% 8% 5% 4% 10%

3% 6% 1% 4% 3% 1% 8% 1% 1% 11%

117.5M 240.4M 616.9M 291.5M 534.0M 10.7M 151.0M 801.0M 44.2M 179.0M

Top 10 - Distressed Securities - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4 5 6 7 8 9 10

Hildene Opp Master Fund, LTD JLP Partners Fund LP Schultze Offshore Fund Ltd Valo Group Fund LP Armory Fund LP Perella Weinberg Prtnrs Asset Based Phoenix Fund York Credit Opportunities LP (A) Ahab Opportunities LP Candlewood Special Situations Fund Ltd

28.08% 18.55% 17.41% 12.62% 12.27% 11.74% 10.70% 10.67% 10.34% 10.16%

2.67 0.56 0.84 2.13 0.53 4.32 0.74 1.24 0.89 2.23

0.20 0.79 0.63 0.61 0.62 0.18 0.40 0.81 0.51 0.60

May-08 Oct-09 Apr-04 Aug-09 Sep-03 Apr-08 Oct-01 Feb-01 Feb-94 May-03

36% 64% 36% 5% 42% 12% 28% 16% 13% 15%

12% 50% 29% 3% 38% 0% 17% 13% 13% 5%

874.1M 19.1M 136.5M 20.2M 53.9M 880.0M 16.7M 5000.0M 25.5M 787.5M

Top 10 - Emerging Mkts. Asia - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4 5 6 7 8 9 10
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Sinfonietta Class A Orchid China Master Fund Pangolin Asia Fund CSV China Opportunities Fund LP Quam China Focus Fund Class A Golden China Fund Thai Focused Equity Fund C ARA Asian Asset Income Fund B PXP Vietnam Fund Renminbi Bond Fund USD A

25.72% 14.35% 14.33% 13.31% 12.74% 12.68% 12.64% 11.88% 10.89% 10.64%

1.65 0.91 1.03 0.62 0.54 0.99 0.43 0.92 0.54 1.52

-0.31 0.62 0.63 0.69 0.61 0.59 0.42 0.50 0.20 0.34

Jun-08 Jun-08 Dec-04 Jan-10 Jun-05 Jul-04 Oct-97 Aug-07 Jan-04 Dec-07
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48% 41% 17% 26% 68% 30% 25% 5% 43% 2%


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6% 20% 16% 24% 30% 12% 32% 18% 24% 8%

66.0M 130.6M 47.5M 48.7M 54.5M 908.6M 206.1M 28.1M 70.2M 325.1M

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Top 10 - Emerging Mkts. E. Europe - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4 5 6 7 8 9 10

AccessTurkey Fund LLC GFM Levant Fund GAM Talentum Emerging L/S Fund EUR OCCO Eastern European Fund Firebird Republics Fund Ltd Firebird Fund LP Anno Domini Growth and Opp (A) UFG Russia Select Fund DWS Europe Convergence Bonds Strateji Long/Short Equity Fund

12.07% 12.00% 8.75% 7.92% 6.54% 5.02% 4.61% 3.95% 3.39% 2.64%

0.49 0.55 1.32 1.73 0.36 0.23 0.43 0.22 0.38 0.14

0.53 0.27 0.19 0.40 0.81 0.78 0.46 0.74 0.67 0.76

Apr-99 Feb-06 Feb-07 Jan-02 May-97 May-94 Jan-08 Feb-06 Feb-00 May-06

19% 55% 11% 12% 12% 2% 5% -6% 2% -10%

27% 32% 4% 4% 26% 27% 12% 17% 12% 25%

40.6M 70.1M 70.3M 600.1M 183.2M 132.5M 72.2M 138.0M 81.5M 26.2M

Top 10 - Emerging Mkts. Global - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1. 2 3 4 5 6 7 8 9 10

VR Global Offshore Fund Ltd Ping Exceptional Value Offshr Ltd Greylock Gl. Opp. Master Fund Ltd Argo Distressed Credit Fund Ltd Permal Fixed Inc Special Opp Ltd (AQ) ICE Global Credit Strategy Frontier Market Select Fund II LP Frontaura Gl Frontier LLC RAM Lux Systematic EM Eq lp USD B Outrider Offshore Ltd

18.75% 17.74% 13.44% 11.81% 9.29% 9.05% 8.85% 8.62% 8.02% 7.63%

1.76 0.63 1.25 0.77 1.03 1.81 0.83 0.89 0.47 1.30

0.61 0.52 0.57 0.26 0.27 0.74 0.69 0.46 0.78 0.47

May-99 Jun-08 Jan-97 Oct-08 May-95 Nov-08 Oct-06 Nov-07 Aug-09 Apr-04

37% 38% 15% 39% 8% 7% 29% 28% 11% 4%

12% 30% 8% 8% 9% 3% 19% 18% 22% 4%

1442.2M 259.5M 625.0M 30.8M 817.0M 743.0M 67.0M 153.0M 1710.0M 181.2M

Top 10 - Equity Long/Short - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4 5 6 7 8 9 10

Mangrove Partners LP Gagnon Investment Associates LLC Hayate Japan Equity L/S Fund JPY Smith Street Capital I LP Darwin Partnership LP Kinetics Partners LP Privet Fund LP Old Growth Partners LP UMJ Kotoshiro Fund USD KSA Capital Partners LP
I

33.42% 32.51% 30.48% 30.14% 26.48% 24.38% 23.33% 21.72% 21.20% 20.35%

1.98 1.79 1.60 2.02 1.70 1.11 1.52 1.25 2.28 1.38

0.25 0.70 0.02 0.63 0.72 0.90 0.66 0.72 0.40 -0.48

Apr-10 Jan-01 Mar-06 Jul-09 Jul-05 Sep-00 Feb-07 Jul-10 Nov-08 Mar-04

5% 24% 78% 75% 27% 43% 10% 37% 31% 15%

8% 21% 7% 19% 20% 26% 18% 20% 4% 15%

280.2M 56.8M 40.1M 13.7M 30.6M 24.8M 73.0M 13.0M 102.0M 240.0M
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Top 10 - Equity Long Biased - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1. 2 3 4 5 6 7 8 9 10

Kerrisdale Partners LP Loyola Capital Partners LP McGinnis MLP Fund LP Baker Street Capital Ltd Osmium Capital LP Khrom Investments Fund LP Ginga Explorer Fund JPY Tristan Partners LP Polestar Fund LP Brightline Capl Ptnrs LP

77.38% 48.43% 48.22% 38.52% 33.74% 31.24% 28.54% 27.98% 26.66% 26.48%

2.48 0.93 1.45 1.68 1.52 1.95 2.14 1.95 1.29 0.75

0.14 0.72 0.66 0.43 0.70 0.46 0.27 0.59 0.87 0.34

Jul-09 Oct-00 Oct-03 Oct-09 Nov-02 Mar-08 Jul-10 Jun-05 Jan-03 Jul-05

19% 94% 32% 28% 44% 38% 58% 20% 36% 127%

4% 39% 36% 16% 18% 10% 6% 14% 21% 50%

99.0M 61.8M 20.0M 211.0M 107.8M 35.0M 50.9M 63.5M 89.1M 68.0M

Top 10 - Equity Long Only - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4 5 6 7 8 9 10

SFP Value Realization Fund Ltd (A) Arcus Japan Value Fund Helium Special Stuations Ltd GBP Osmium Spartan Akamatsu Bonsai A RGM Value Opportunity Fund LP Arcus Japan Fund (Relative Instl) YEN Valley Forge Capital LP Headlands Strategic Opportunities LP Scopia Long LLC

46.31% 33.79% 29.19% 27.33% 24.22% 23.28% 21.35% 21.22% 20.78% 20.53%

1.85 1.65 2.39 1.36 1.26 1.72 1.07 2.29 1.60 1.47

0.25 0.53 0.49 0.74 0.44 0.74 0.52 0.73 0.75 0.90

Nov-03 Dec-03 Aug-06 Dec-05 Jan-07 Jun-03 Jul-06 Jul-07 May-07 Jan-05

85% 85% 47% 41% 85% 17% 80% 22% 24% 27%

15% 12% 8% 18% 18% 10% 21% 4% 12% 19%

265.0M 117.4M 83.4M 18.6M 26.0M 41.0M 92.1M 82.0M 95.0M 34.0M

Top 10 - Equity Market Neutral - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4 5 6 7 8 9 10
10

Wada Capital Japan Trust CC1 Fund Credentia Partners Fund I LP GAM Talentum Enh. Europe L/S EUR-A Old Mutual Gl Equity AR USD ABCA Reversion Fund Plc MNJ Asia-Pacific Abs Return Fund Pengana Australian MN Fund Aphilion SIF Cornerstone CM US Equity Mrk Ntr

20.00% 15.30% 12.39% 11.30% 10.35% 10.28% 9.55% 9.44% 9.21% 8.43%

3.92 5.63 2.22 1.49 1.87 1.97 2.44 1.03 0.70 1.08

0.35 -0.29 0.16 0.23 -0.07 -0.13 0.15 0.04 0.34 0.00

Aug-07 Sep-10 Aug-08 Dec-04 Jul-09 May-10 Jan-06 Sep-08 Jun-08 Feb-08
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19% 10% 10% 10% 11% 0% 17% 11% -9% 0%


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1% 0% 3% 6% 5% 3% 2% 13% 19% 7%

17.0M 10.1M 54.8M 335.9M 442.8M 196.8M 78.3M 15.8M 79.9M 30.1M

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BARCLAY MANAGED FUNDS REPORT

Top 10 - Event Driven - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4 5 6 7 8 9 10

FrontFour Capital Partners LP KG Investments Fund Gates Capital ECF Value Fund II LP JANA Nirvana Offshore Fund Ltd Litespeed Offshore Fund Ltd HG Vora Special Opportunities Fund LP Corre Opportunities Fund LP Whitebox Asymmetric Ops Fund LP Catalysis Partners LLC Cube Global Opportunities A USD

20.97% 20.26% 19.16% 18.65% 17.51% 16.88% 14.47% 13.48% 12.77% 12.69%

2.15 2.68 1.42 1.81 2.19 2.08 1.54 1.58 1.06 1.34

0.78 0.47 0.84 0.66 0.92 0.55 0.73 0.33 0.58 0.76

Jan-07 Jan-09 Jan-04 Apr-07 Jul-02 Apr-09 Aug-09 Apr-10 Oct-00 May-09

27% 22% 21% 31% 22% 18% 22% 23% 6% 9%

10% 6% 21% 13% 12% 9% 12% 7% 11% 7%

290.0M 89.0M 1459.0M 1635.0M 1388.0M 789.0M 92.0M 169.7M 56.6M 135.4M

Top 10 - Fixed Income - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4 5 6 7 8 9 10

Crystal Fund II Ltd Alegra ABS I (Euro) Fund IAM Structured Credit Strat Composite Spectrum Master Fund Ltd Chenavari - Toro Capital IA - A EUR STS Partners Fund Metacapital Mortgage Opp Fund Midway Market Neutral Fund SPM Structured Servicing Holdings LP Pine River Fixed Income Master Fd Ltd

56.38% 43.02% 37.85% 37.30% 31.18% 26.97% 22.68% 21.95% 19.23% 17.12%

4.02 2.30 1.91 4.46 4.50 9.39 2.57 2.88 3.00 2.16

0.29 0.55 0.23 0.19 0.30 0.23 0.29 0.26 -0.14 0.04

May-06 Jul-04 Jul-08 Jan-03 Jun-09 May-08 Aug-08 Jun-01 Feb-98 Sep-08

31% 48% 16% 32% 34% 27% 0% 4% 8% 14%

2% 23% 2% 1% 5% 0% 10% 6% 4% 9%

101.6M 213.6M 193.7M 121.8M 425.4M 891.0M 1264.0M 566.0M 2153.0M 3664.9M

Top 10 - Fixed Income Arbitrage - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4 5 6 7 8 9 10

Asgard Fixed Income Fund I Ltd EUR Danske Invest Hedge FI Strategy Barnegat Fund Ltd (B) III Fund LP Whitebox Credit Arb Ltd Element Capital Fund Ltd Chenavari - Corp Credit Strat M1 EUR Blue Mountain Credit Alternatives Ltd NGA Capital Ltd (A) III Fund LP Series 2
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23.78% 21.90% 19.17% 11.89% 11.13% 10.40% 10.21% 9.20% 8.87% 8.81%

4.35 4.42 1.54 2.48 1.68 1.56 1.69 2.97 1.06 2.45

0.25 0.48 0.53 0.38 0.67 0.10 0.12 0.34 0.31 0.38

Jul-03 Jan-05 Jan-01 Jan-99 Jan-02 Apr-05 Oct-08 Nov-03 Jul-08 Jan-10

18% 19% 12% 15% 18% 18% 14% 7% 10% 11%

3% 1% 10% 2% 9% 4% 7% 3% 9% 1%

414.7M 1260.1M 664.2M 156.0M 226.5M 4440.8M 967.0M 6122.1M 126.6M 156.0M
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BARCLAY MANAGED FUNDS REPORT I (641) 472-3456

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Top 10 - Fixed Income High Yield - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4 5 6 7 8 9 10

Capital Four Credit Opportunities Fund Brandywine Global Credit Opportunities Muzinich Credithedge Master Fund Battery Park High Yield Opp Ltd Dexia Bonds Euro High Yield (I) Horizon Multi Dis. Offsh Fund Ltd A MidOcean Credit Opp Fund Canepa Short-Term High Yield Offshore Aristeia International Ltd A First Western Cap Mgmt Total Return LP

19.76% 18.56% 12.35% 11.12% 10.53% 10.34% 9.83% 9.62% 9.39% 8.96%

2.49 2.55 2.66 2.01 1.28 0.79 3.53 1.59 2.29 1.59

0.44 0.13 0.73 0.83 0.78 0.86 0.60 0.28 0.64 0.84

Jan-10 Sep-10 Jul-03 Jul-01 Oct-03 Jan-08 Apr-09 Aug-09 Aug-97 Jul-99

24% 4% 9% 12% 12% 6% 9% 12% 14% 6%

6% 3% 4% 6% 9% 14% 3% 9% 4% 7%

38.3M 41.6M 395.0M 29.4M 350.2M 18.5M 606.5M 35.0M 1305.7M 11.6M

Top 10 - FoFs Greater than $250M - Past Three Years


For the period from 10/1/2010 to 9/30/2013.
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4 5 6 7 8 9 10

SPM Core SkyBridge Multi-Adviser Hedge Fund G Legion Strategies Ltd Corbin Opportunity Fund EnTrust Capital Diversified LP (L) F&C MM Navigator Moderate A Acc J.P. Morgan MS Fund II Ltd CA NZD GLG Balanced Managed Fund Lighthouse Global L/S Fund LP Cross Shore QP Partners LP

14.84% 11.53% 10.74% 8.84% 8.58% 8.53% 7.91% 7.90% 7.78% 7.71%

2.23 2.00 2.17 3.99 0.70 1.30 2.36 0.81 1.53 1.01

-0.09 0.68 0.63 0.46 0.77 0.67 0.74 0.85 0.78 0.90

Jun-09 Jan-03 Apr-94 Jan-10 Oct-04 Oct-07 Jan-07 May-00 Jan-05 Jan-04

-3% 13% 12% 9% 14% 21% 11% 19% 16% 17%

10% 9% 7% 1% 19% 9% 3% 13% 6% 12%

1605.3M 724.3M 724.3M 426.5M 305.3M 434.4M 2917.1M 976.9M 285.0M 419.5M

Top 10 - FoFs Less than $250M - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4 5 6 7 8 9 10
12

Ikebana Japan L/S Ltd Gottex Port Alpha Mkt Nrl Erisa USD Morrocroft Special Opportunity I LP F&C MM Navigator Boutiques A Acc Optima Partners Focus Fund (A) Capricorn GEM Bermuda Fund LP Fundamental Credit LP GLL Investors LP Highgate Partners LP

18.16% 17.86% 16.84% 14.44% 12.82% 12.64% 11.54% 11.35% 11.07% 10.60%

1.23 1.25 3.89 1.30 1.51 1.37 2.96 4.11 2.23 1.26

0.46 0.99 0.29 0.68 0.79 0.64 0.52 0.14 0.81 0.89

Dec-01 Jan-07 Mar-08 Oct-07 Jan-07 Mar-08 Jan-06 Jan-09 Jan-95 Jan-93
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50% 23% 27% 33% 28% 20% 12% 7% 19% 15%


I

10% 20% 1% 14% 10% 10% 1% 2% 6% 11%

20.5M 113.6M 21.0M 84.8M 102.1M 122.0M 31.2M 29.0M 43.0M 48.8M

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BARCLAY MANAGED FUNDS REPORT

Top 10 - Macro - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4 5 6 7 8 9 10

Haidar Jupiter Intl Ltd Quantedge Global Fund North MaxQ Macro Fund (B) EUR HBK Partners Global Macro L/S SYW LP CommonWealth Opportunity Master Fund MQS Fund Ltd Permal Global Opportunities Ltd (AQ) MKP Opportunity Offshore Ltd Alpha HG Fund LTD II

26.34% 25.03% 13.82% 13.82% 12.19% 10.05% 9.47% 8.73% 7.18% 7.06%

1.46 0.86 1.43 0.62 0.27 1.49 1.19 0.98 1.40 0.82

-0.30 0.60 -0.22 0.79 -0.15 0.47 0.47 0.30 -0.53 0.76

Jan-02 Oct-06 Jun-10 Jan-08 Sep-06 Dec-08 Jul-08 Jan-99 Aug-01 May-05

24% 6% 14% 12% -32% 3% 7% 10% 6% 4%

9% 30% 7% 29% 36% 6% 5% 8% 2% 11%

179.6M 664.8M 580.2M 18.1M 18.1M 566.0M 60.0M 304.0M 3620.4M 26.4M

Top 10 - Merger Arbitrage - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4 5 6 7 8 9 10

ABCA Opportunities Fund Plc A EUR Chicago Capital Master Fund Glazer Enhanced Offshr Fund Ltd Gardner Lewis Merger Arb II LP Helium Opportunities A EUR KWK Merger Arbitrage TIG Arbitrage Associates LP/Ltd Weaver Arbitrage Partners LP Black Diamond Arbitrage Partners LP Gabelli Associates Limited

8.05% 7.06% 6.69% 5.00% 4.37% 3.77% 3.67% 3.48% 3.43% 3.14%

1.77 4.42 2.71 2.12 2.80 2.45 1.47 3.48 1.28 1.52

0.20 0.32 0.43 0.37 0.64 0.40 0.39 0.38 0.40 0.58

Aug-07 Jan-98 Aug-10 Dec-09 Oct-09 Mar-04 Jan-93 Dec-97 Feb-98 Sep-89

9% 8% 4% 7% 3% 3% 6% 4% 5% 4%

4% 0% 1% 3% 1% 1% 3% 0% 3% 2%

65.5M 76.1M 180.0M 19.7M 407.4M 11.7M 934.9M 20.8M 15.2M 135.0M

Top 10 - Multi - Strategy - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4 5 6 7 8 9 10

Platinum Ptnrs Value Arb (USA) LP Visium Global Offshore Fund Ltd Kayne Anderson Cptl Income Ptnrs QP Pine River Master Fund Ltd The Forty4 Fund Platinum Ptnrs Liq Opport Fund LP Phalanx Japan AustralAsia MS Fund Whitebox Multi-Strategy Fund LP PH&N Absolute Return Fund Millennium USA LP
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16.49% 14.41% 14.21% 13.34% 13.18% 11.69% 11.62% 11.30% 10.27% 10.06%

4.62 3.05 2.06 2.68 1.33 1.16 1.81 1.89 3.03 4.91

0.28 0.37 0.83 0.16 0.06 0.56 0.31 0.81 0.81 0.64

Jan-03 May-10 Jan-00 Jun-02 Jan-10 Jul-09 Apr-05 Jan-02 Oct-02 Jan-90

12% 13% 21% 15% 1% 25% 19% 16% 12% 12%

0% 3% 7% 3% 3% 12% 4% 6% 1% 1%

750.0M 399.6M 446.5M 3090.6M 129.5M 23.6M 112.0M 654.0M 813.7M 5240.0M
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Top 10 - Sector Energy - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4 5 6 7 8 9 10

Cumulus Energy Fund Hite MLP LP Cushing GP Strategies Fund LP Hite Hedge LP Kayne Anderson Midstream Instl LP Longbow Clean Value Fund ELCO Select Fund Cushing MLP Opp 1 LP Dorset Energy Fund Ltd ARI Energy Fund LP

42.88% 31.23% 20.14% 19.72% 18.11% 17.86% 17.00% 15.22% 13.06% 12.10%

1.05 3.24 1.96 3.94 1.52 0.90 0.92 1.34 0.54 0.68

0.01 0.67 0.69 0.37 0.67 0.42 0.83 0.69 0.80 0.74

Oct-06 Jul-07 Nov-06 Jan-04 Feb-09 Jun-09 Nov-02 Nov-06 Nov-00 Apr-05

45% 32% 24% 31% 16% 13% 16% 21% 28% 29%

27% 5% 7% 1% 8% 16% 24% 14% 27% 21%

284.0M 137.2M 120.0M 182.9M 389.1M 19.2M 57.2M 206.0M 270.6M 144.8M

Top 10 - Sector Other - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4 5 6 7 8 9 10

JW Partners LP A venBio Select Fund LLC Krensavage Partners LP Gator Financial Partners LLC DAFNA LifeScience Select Ltd JW Partners LP B Opus Point Healthcare Innovations Fund Perceptive Life Sciences Fund LP FJ Capital Long/Short Equity Fund Goodbody PL Capital LP

71.50% 36.18% 35.42% 31.40% 31.23% 29.81% 29.25% 28.28% 26.67% 26.26%

1.71 1.34 2.89 2.05 1.57 1.56 1.07 2.05 2.31 1.92

0.03 0.73 0.66 0.50 0.81 0.73 0.67 0.25 0.74 0.77

Feb-99 Jul-10 Jul-08 Jul-08 Jan-04 Feb-99 Aug-09 Jul-99 Feb-08 Dec-00

87% 71% 44% 37% 25% 66% 19% 74% 25% 35%

4% 21% 8% 12% 24% 20% 33% 8% 10% 17%

172.1M 21.4M 33.2M 19.0M 57.0M 172.1M 65.5M 954.8M 73.0M 32.0M

Top 10 - Sector Technology - Past Three Years


For the period from 10/1/2010 to 9/30/2013. Includes only Hedge Funds managing at least $10 million as of 9/30/2013
FUND NAME 3-YR COMP. ANNUAL RETURN SHARPE RATIO CORR. VS.S&P 500 STARTING DATE LAST 12-MO. PERIOD LARGEST DRAW DOWN ASSETS UNDER MGMT. ($)

1 2 3 4 5 6 7 8 9 10
14

Kingdom Ridge Capital Master Fund Ltd Advantage Advisers Tech Ptnrs LLC CCI Technology Partners Ltd GLG Technology Equity Fund Cobia Capital Partners LP Westerly Partners L.P. Polar Cap Gl Tech Fund EUR Advantage Advisers Xanthus Fund Clover Street Fund LP Proteus Capital, L.P.

17.11% 15.03% 12.49% 12.30% 10.55% 10.41% 10.31% 9.49% 9.38% 7.00%

0.78 1.27 1.61 0.94 1.17 1.02 0.70 0.78 1.43 0.78

-0.11 0.69 0.10 0.73 0.41 0.75 0.66 0.74 0.67 0.53

Apr-08 Jan-98 Jan-08 May-98 Jan-08 Jun-06 Feb-10 May-99 Jan-09 Jul-03
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64% 26% 4% 19% 20% 20% 12% 10% 13% 0%


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16% 12% 11% 12% 9% 13% 21% 11% 6% 10%

194.0M 224.6M 435.1M 276.3M 26.0M 91.0M 565.2M 1621.4M 29.0M 50.0M

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BARCLAY MANAGED FUNDS REPORT

BARCLAY FUND REVIEW

MQS Management, LLC - MQS Fund, LTD.


At a Glance:
MQS Fund, Ltd.
Fund Assets: Firm Assets: No. of Employees: $64 million $64 million 9

Account Information
Minimum Investment: $1,000,000 Management Fee: 2.00% Incentive Fee: 20%

Performance Analysis

QS Management, LLC, founded in 2008 by hedge fund veteran Bob Gelfond, is a fundamentally driven quantitative global macro manager. Located in the Flatiron District of New York City, MQS is a Registered Investment Adviser and Commodity Pool Operator. Bob Gelfond, Founder and CIO of MQS Management, LLC, has over 25 years of experience as a quantitative strategy developer, portfolio manager, investor, and senior hedge fund executive. Bobs keen interest in mathematics and the financial markets started at an early age. He began trading while still in high school and devised his first trading system shortly after graduating from the University of Virginia with degrees in mathematics and economics. Together with a friend, Bob developed a system to trade stock index futures having discovered, before most of the market, the correct relationship between the futures and cash markets. The model proved to be very successful. Bob joined D.E. Shaw in 1989 as their tenth employee. While at D.E. Shaw, his responsibilities included

the research, development, and implementation of a series of successful trading and arbitrage strategies including a currency trading model. Bob left D.E. Shaw in 1992 and joined Millennium Partners as a managing director/portfolio manager trading and improving the model. The model developed while at D.E. Shaw and Millennium Partners was the precursor to the model being currently used. Following a successful 7 years at Millennium Partners, during which time his strategy annualized at 13% with a Sharpe ratio over 1.3, Bob took a step away from the hedge fund industry and started MagiQ Technologies, a quantum information company. Under Bobs leadership, MagiQ successfully developed and marketed the worlds first mathematically proven unbreakable computer encryption code based on quantum physics. Bob holds a patent in the field of quantum cryptography. MagiQ has been named a Technology Pioneer by the World Economic Forum (Davos), awarded the SA50 Business Leader in computing by Scientific American,
I

Start Date: July 2008 Total Return: 45.3% Compound Ann. Return: 7.39% Worst Drawdown: 8.23% Sharpe Ratio: 1.00 % of Winning Months: 66.67% Average Gain: 1.73% % of Losing Months: 33.33% Average Loss: -1.62%

Correlations
Barclay Gl. Macro Index S&P 500: U.S. T-Bonds: World Bonds: EAFE: 0.44 0.41 -0.01 0.12 0.50

A nnu al Retu rns Past 5 Y ears


2009 2010 2011 2012 2013 (thru 9/13) 6.26% 10.56% 4.40% 16.98% 4.46%

Past results are not necessarily indicative of future performance.

and named one of the Top Ten Tech Companies to Watch for the Next 10 Years by IEEE Spectrum. Bob served as CEO from 1999 to 2006, and today is the companys Chairman. By 2006, having grown MagiQ to a mature company, Bob decided Continued on Page 16
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it was time to step back into the hedge fund industry. As he puts it, he took the model out of moth balls as it had not been modified since the late 90s. Bob ran real out of sample data and, as expected, discovered the results were very similar in nature to those achieved a decade earlier. This finding provided the impetus to launch MQS Management. As he started to consider his team, Bob drew on the talents of his former colleagues, namely current President, CTO, and CCO of MQS Management, David Babcock. With 25 years of experience, David has held a variety of leadership roles within the hedge fund, proprietary trading, banking, and technology industries. Prior to joining MQS Management, he was the head of US Systems at the Royal Bank of Canada (RBC); over his tenure managing hundreds of staff nationally and internationally, carrying performance, financial, and audit responsibilities for his division over 10 years. Over the previous 6 years, David led all non-trading activities for Bobs group within Millennium Partners, LP working as his Chief Technology Officer. Before joining Bob, David was a proprietary options market maker, managing books in the majority of the major equity production on the American Stock Exchange floor (Intel, Phillip Morris, Digital Equipment). MQS Management began operations on July 1, 2008 in the middle of the financial market maelstrom. Bob, with his newly assembled team, understood that these were not ideal conditions in which to launch but felt the current market conditions presented an ideal situation in which to prove the models mettle. In a period where many market participants were seeing double digit drawdowns, MQS closed its first 6 months down 16

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3.01%. This real time stress test proved that the models risk mechanisms were robust and could manage through difficult market periods. Philosophy MQS Managements philosophy is rooted in the belief that markets often diverge from relative fundamental value due to demand and/or supply excesses, flows, and different perceptions on economic fundamentals. Experience has taught MQS that market divergences are caused by minor factors that do not change underlying fundamentals. MQS Management seeks to achieve superior rates of return with low correlation to

global indices and other alternative asset managers throughout all market environments. Trading Edge MQS Management LLCs strategy is markedly different from other global macro managers in that the model considers fundamental economic inputs without regard to any technical price patterns. As a result, the manager believes their return stream will likely have low correlation and be additive to an investors risk adjusted returns. There are three basic tenets to the strategy: preserve capital, seek mispriced assets in a variety of markets, and improve the risk adjusted return of an investors portfolio (i.e. Sharpe and Sortino
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Fund Review (cont.)


ratios). The model has proven itself through multiple market cycles as its initial development dates back to Bob Gelfonds tenure at D.E. Shaw (1989 1992) and Millennium Partners (1992 1998). Starting initially with currencies, the model evolved over time to include short and long-term interest rates, commodities, stock indices, and interest rate swaps. The model utilizes a proprietary forecasting algorithm which incorporates macroeconomic statistics to calculate price forecasts for each market traded. The model is designed to generate unusually accurate price targets for each instrument traded and uses strictly fundamental inputs which encourage the algorithm to buy low and sell high based on an inherent fair value calculation for each market. Risk Management Bob believes that the success of the model is dependent on how it is engineered to minimize the chance of big losses. That being said, MQS is more concerned with limiting tail risk rather than just volatility. The model will automatically reduce position sizes as volatility rises and/or performance suffers. The model will reduce position sizes in an attempt to avoid a monthly loss greater than 5% and an annual loss of greater than 10%. The risk management engine incorporates historical and real time volatility and a variety of additional factors in an effort to systematically and dynamically control risk. MQS has never had a monthly loss greater than 5% since its inception in July of 2008. Although capital appreciation is a key component in the model, its primary function is the preservation of capital. Trading The model tracks economic data from 12 countries across a wide range of global financial instruments in an effort to create a truly diversified portfolio. These instruments include currencies, fixed income, interest rate swaps, stock indices, and commodities. The model will trade ideas based purely on relative value economic fundamentals. It is the markets misinterpretation of these fundamentals where the model will identify mispricings. Trade ideas are typically intermediate to longer term in nature. Shorter term trades are initiated to trade around core positions. With regard to leverage, the funds usage of capital has typically been less than 25%. The strategy differs markedly from a typical global macro in that it is not trend following and does not use technical, priced based indicators. The model is agnostic to carry trades and does not make big thematic bets. The portfolio is constantly rebalanced and will typically execute over 100 small trades per day in an effort to properly position itself based on real time fundamental information. The model attempts to hedge out all systematic risk to create diversification through taking positions in many small truly independent relative value plays. Peer Group Comparison In order to evaluate the efficacy of MQSs proprietary price forecasting algorithm coupled with its focus on relative value economic fundamentals, weve compared the performance of the MQS Fund, Ltd. with a universe of 139 macro funds for the period from July 2008 through September 2013. Figure 1 compares the rolling 12-month risk-adjusted returns for MQS with the average values for its relevant subgroup. Risk adjusted returns are calculated by dividing the 12month rolling average of the monthly returns by the 12-month rolling average of the monthly standard deviation. As we can see, since April 2011 MQS has consistently, and in the majority of time periods, significantly outperformed the average risk-adjusted returns generating by its relevant subgroup. Examination of the standard deviation data for MQS reveals how effectively it has controlled volatility. In Figure 2, we compare MQSs average monthly standard deviation on a rolling 12-month basis with the averages generated by its peer group for the same time period as above. As we can see, in all but two of the 52 time periods under consideration since July 2008, MQSs volatility has been lower than its peer group averages. Future Plans Outlook MQS Management has the potential to become a significant player in the quantitative global macro hedge fund space as the strategy has been designed to have a large capacity. Research and development continues to be a focus, and MQS expects to incorporate new strategies into the model over the coming quarters. MQS continues to see great prospects for its strategy going forward. The model has performed quite well this year and has maintained a low correlation with market indices and its peers.

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Barclay Roundtable (cont.)


Continued from Page 4 receive potentially lifesaving medicines and which are not, sales of pharmaceutical and biotechnology products could see restricted demand. Layer on top of that the risk of price controls that may be mandated by the government, which will be the largest payer for these products under ACA, and one can envision significant profit compression for pharmaceutical and biotechnology companies. While the risk remains, we do not expect this to be an issue in the near or intermediate term.
renowned for successful deal making in the past. Two of these include Intrexon (XON) and OPKO Health (OPK). These two companies seem to be replete with buzzwords but very little substance. Having identified these, there are no hard catalysts that will disabuse investors of the hopes they have for magical value creation. (Arikace) to treat non-tuberculous mycobacterial pneumonia [INSM, Q1 2013]. My sense is that the investment community generally believes these all have high likelihoods of showing success. I happen to have the opposite view and think that all of these are extremely high risk. ONeill: We simplistically disaggregate the biotechnology sector into two separate groupings. First, the top 6 or 8 large-cap biotech names (including Amgen, Celgene, Biogen, Gilead, Regeneron, etc.) generally have appreciated 40-80% this year very good performance. In our analysis, these gains largely reflect important innovations in clinical science. Each of these companies recently reported materially positive clinical trial results, and each is now poised to introduce new biotech products that will transform treatment protocols in multi-billion dollar disease states (including cancer, hepatitis C, and hemophilia). Below these top 6-8 companies, the second group of biotech stocks is also enjoying stock price levitation: over half of the 122 members of the NASDAQ Biotech index are up by over 50% this year and fully one in five members are up by over 100%. However, in our view, most stock price gains within this latter group cannot be rationally explained through incremental clinical data. Here, we perceive speculation. In these names, investors are betting, or hoping if you will, that scientists broader understanding of molecular biology will translate into an improvement in the historical hit rate associated with biotech clinical trials. We will see, but count us as skeptical. We think it is more likely that todays investor optimism regarding small, unprofitable biotech stocks will prove unfounded, given the soaring funding requirements of these companies and historical failure rates in biotech clinical trials. At
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: Biotechnology stocks have had an exceptional run so far in 2013. What segments of this industry have performed the best? How do valuations in the sector compare to 12 months ago? What factors may further drive performance? What outstanding legal or regulatory issues may derail certain stocks in the industry? Where are the best short opportunities?

Michael Weiss
Opus Point Partners

Castor: The biotech run in 2013 has certainly been impressive. This holds true for both large cap and small cap companies. For the latter, there are companies with valuations in excess of one billion dollars despite having only preclinical or phase I (meaning very early-stage) products. Given that most products fail, this is astounding. To quantify the degree of risk, a 2003 study by DiMasi et al suggested that the ultimate chance of an early-stage drug reaching the market is only 8%. Large cap companies also have valuations that reflect much higher R&D productivity than has been seen over the past ten years. While it is possible that this comes to fruition, the odds seem pretty low. With high valuations and commensurately high expectations, there are potential short opportunities. A few companies have high valuations based on CEOs that have been
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As the so called death panels begin to decide which patients are entitled to receive potentially lifesaving medicines and which are not, sales of pharmaceutical and biotechnology products could see restricted demand. It is also likely that the healthcare IT space is too rich. As hospitals and doctor offices install IT systems, the opportunities for new sales declines. Even with continuous change in the healthcare landscape, such as the upcoming implementation of ICD-10 codes, expectations for revenue growth for many companies might be too great. There are a number of high-visibility binary events in 2014. These include the trial of pirfenidone/Esbriet in IPF (ITMN, due Q2 2014), the combination of two cystic fibrosis drugs to treat the most common form of CF (VRTX, due mid 2014), and inhaled amikacin
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Continental Advisors, our primary investment objective is preservation of capital. In a period of spiking biotech stock valuations, we believe that investment objective is at odds with an investment in a company whose existence hinges on a binary event read-out at some indeterminate date years into the future. Weiss: The best performing sector of biotech for the second year in a row was the large cap biotechs. We attribute the large cap outperformance to two factors: first, over the last few years, the large cap biotechs have entered a new cycle of successful innovation, Gilead (GILD) for Hepatitis C and B-cell cancers, Celgene (CELG) in cancer and autoimmune, Biogen Idec (BIIB) in neurology, and Regeneron (REGN) in eye care. This successful innovation is driving another wave of revenue growth that we believe will carry forward for several years; and second, given their size and recent high profile successes they have caught the eye and interest of individuals and generalist investors, who have driven up demand for these limited names. Another subsector of biotech that outperformed in 2013 was orphan drugs, that is, companies that develop drugs for diseases that affect a very limited number of patients, typically less than a few thousand. These companies face lower regulatory hurdles and more certainty of successful development. Once on the market they can charge hundreds of thousands of dollars for each patient treated. There has been a lot of investor interest and focus on these companies over the past year, and we expect that to continue. As mentioned earlier, we do not see this as a near-term risk, but with the implementation of the ACA and the possibility of price controls, these orphan drug companies could be particularly negatively impacted given their heavy reliance on premium pricing and no potential to trade price for volume.
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: Given the continued launch of sector based exchange traded funds (ETFs) and large asset flows into these products, what opportunities are being created for healthcare stock pickers from the growth of healthcare ETFs? How has the growth of the ETF market created challenges for healthcare stock pickers? To what extent does it make sense for hedge funds to use ETFs to gain or hedge exposures? How active is the ETF-related derivative market? What opportunities exist in this market for hedge fund managers?

(including the iShares Nasdaq Biotechnology ETF and the Market Vectors Pharmaceutical ETF) to create an asymmetric risk profile thereby delivering more of the up markets and fewer of the down markets to our clients. Weiss: The growth of healthcare based ETFs, especially in biotech, have driven additional dollars into a relatively concentrated group of large cap names. The IBB, for instance, the best known biotech ETF, has approximately 60% of its assets in its top 10 positions. As money flows into the ETF, more money flows into these select large cap names, driving these names higher and with them the index, which in turn drives more investor interest. As long as these large cap names continue to execute on their business plans and avoid major setbacks, the ETFs should perform well and ensure continued outperformance for the large cap names. Of course, this creates opportunities to profit from the allocation of these inflows but also creates challenges to hedge funds to differentiate themselves based on fundamental stock picking. We do find it convenient to hedge exposure with ETFs given their relative liquidity and underlying security diversity. Plus, the many options to choose from give us an extra tool to customize baskets of ETFs to match our long exposure without taking undue single security risk when hedging for exposure purposes.

Castor: As healthcare has become a hot sector, ETFs allow investors to own diversified exposure to the space. These products as they are purchased create incremental demand. It is positive as long as the sector is hot. Conversely, they create a danger for accelerated downside if sentiment changes and there is broad-based selling of these ETFs. ONeill: Continental Advisors is focused on bottom-up, company-bycompany stock picking. With roughly three decades of continuous research experience in healthcare, we pride ourselves on a unique longitudinal perspective in following the companies within the industry. Yet, commensurate with this investment approach, we eagerly embrace new tools that allow us to tailor the structure and exposure of a clients portfolio. We constantly seek to create a more attractive risk/reward profile for our clients. With that objective, ETFs are within the universe of investment candidates at our disposal. Since 2001, when we started our healthcare strategy, we have invested in no less than a half-dozen ETF instruments on behalf of our clients. In particular, we appreciate these tools for their liquidity, offering the ability to gain rapid exposure to a specific factor. In recent years, we frequently employed a measure of put and call options on certain ETFs
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: IPO activity has picked up considerably over the past 12 months in a number of sectors. How has IPO activity been within the healthcare sector? What deals have gone out undersubscribed, but may still look attractive? Conversely, which IPOs may have run up too much and may be poised for a fall? How active have the private equity and debt markets been in

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the healthcare space? What are the most attractive private plays in the sector? Castor: Two undersubscribed deals that are interesting are AEIR and ADMA. Having said this, these are both small cap and relatively illiquid. Another small company that is highly interesting is Sorrento (SRNE). Most of the larger, liquid names have been highly oversubscribed. The stocks in general have done extremely well. Across the board, I find valuations stretched, which I think is an understatement. Certainly some companies will see great success, and the stock prices will appreciate correspondingly. However, it is imperative to recognize risk and use probability-adjustments to set reasonable levels of valuations. If one were to invest in an equal-weighted manner across the basket of healthcare IPOs of 2013, I think this would unfortunately prove to be a value-destroying strategy. Only time will tell, of course. As Yogi Berra is reported to have said, The hardest thing about forecasting is predicting the future. ONeill: Given investors recent appetite for all things biotech, it is not surprising that 2013 IPO activity within the healthcare sector has

focused on early stage biotech companies. Performance of these offerings has been good, and in many instances, exceptional. However, the risk profile in owning a company whose entire valuation rests on a single clinical trial is extraordinarily high, and we generally are reticent to put client capital at risk in such situations. Nonetheless, we concede that forthcoming innovations in genomic research will trigger revolutionary changes in the practice of medicine. And we look forward to uncovering and investing in new business models that will capitalize on these paradigm shifts. Sterling: IPO activity in the healthcare sector has been robust. Very few deals have been undersubscribed and many have risen dramatically post IPO. Private equity has been less active on the buy side, but very active on exiting investments via the IPO market. Debt markets have been very accommodating in several transactions, particularly in the hospital/facilities space. We anticipate additional IPO activity in the healthcare technology sector and hospital/facilities sectors. Weiss: For the biotech sector, the IPO market has been extremely active in 2013. In fact, in terms of dollars

raised and number of companies that have gone public, 2013 is on track to be the second best year of all time for IPOs, outpaced only by the bubble year of 2000. While we believe the biotech sector overall is quite healthy and the quality of the IPOs in 2013 has been the best weve seen in some time, we are concerned with the robust after market performance of these newly minted public companies, many of which now have valuations approaching or surpassing $1B. We see this as a potentially dangerous situation, as most of these companies are in the earliest stages of development but are being priced for unqualified success. This we see as a recipe for disaster as biotech development is wrought with risk and setbacks are common, even for companies that are ultimately successful. The declines from any setback or miscue will be amplified by the inflated prices, and a just a few of these dramatic falls can have a widespread negative impact and chilling effect on further IPOs and investment in the industry generally. It is not uncommon to have sector wide price adjustments as investors recalibrate risk of these early stage companies.
The organization of this roundtable was assisted by Jeffrey F. Kuchta, CFA, a consultant with Strategic Capital Investment Advisors.
Fund, an investor should independently investigate such CTA or Hedge Fund. In particular, an investor should read carefully any CFTC-required disclosure documents prepared by the CTA. Any statement of opinion contained herein is subject to change. Principals and/or employees of BarclayHedge, Ltd., and/or its affiliates may from time to time have a position or interest in the investments referred to in this newsletter. Nothing contained herein should be construed as a trading recommendation of BarclayHedge, Ltd. or its affiliates. The interviews contained herein are the opinions of the individual authors and do

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The data and reports on commodity trading advisors (CTAs) and Hedge Funds contained in this newsletter are based on information and data obtained from various sources, including CTA disclosure documents. Neither BarclayHedge, Ltd., nor any of its affiliates has verified the accuracy of such information and data, and therefore cannot guarantee their accuracy or completeness. Past performance is not necessarily indicative of future results. An investment in commodity futures and options is speculative in nature and can involve the risk of loss of ones entire investment or more. An investor should carefully evaluate his own financial position before making such an investment. Prior to investing with any CTA or Hedge

not constitute the rendering of legal, accounting or other professional advice.


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