Brait Multi Strategy Fund

Fund Overview 31 October 2010

Investment Proposition
The Brait Multi Strategy Fund aims to deliver annualised returns, net of fees, that exceed ZAR cash returns by 15% over
rolling 3-year cycles. Emphasis is placed on achieving the return objective independent of the performance of the markets or
any particular asset class.
The Fund Manager pursues alpha across multiple underlying disciplines that employ diverse investment strategies. Each
discipline is managed by a focused investment professional, who collectively make up the Brait Capital Management
investment team. As a result the Fund benefits from an expanded opportunity set whilst maintaining the benefits associated
with specialisation within a particular niche. A dynamic risk allocation process across underlying disciplines drives efficient
capital utilisation, while exposure to multiple strategies of varying time frames ensures diversification of alpha streams.
The Fund currently focuses exclusively on South African investment opportunities and employs a wide range of instruments
across the equity, fixed income and currency asset classes.
Fund Manager
Brait is a listed investment group established in 1991 specialising in the structuring and management of alternative assets.
Brait’s product set includes hedge funds, fund of hedge funds, private equity funds and mezzanine debt funds.
Brait Capital Management, a division of Brait, manages ZAR1.8 billion (USD240 million) in hedge fund products.
Commentary
The Fund delivered strong performance of 4.8% for the month of October, rendering year to date return of 21.6% Equity markets
are challenging from a pure alpha orientation as the risk on – risk off liquidity primed theme dominated fundamental value add in
investment processes. Fixed income markets were beneficiaries of a prolonged disinflation theme, accentuated in emerging
markets such as SA by appreciating currencies. To this extent it served us well to have had an overweight tilt (59%) in our
strategic risk allocation to the Fixed Income complex of strategies albeit that there is no explicit directional bias associated to
these investment processes. Performance in October was predominantly driven by the FI complex of strategies as the forward
curve flattened substantially in the back end FRA’s (12m – 21m). Minor performance detractors were net short positioning in our
equity macro strategy, divergence of spreads in bank pairs and corporate action surrounding a core value position in the equity
fundamental book. Risk utilisation is moderate at 40% of the risk budget and unlikely to increase aggressively in the course of
November as we appraise the consequences of further US monetary stimulus and G20 response.

Cumulative Return vs Cash - Since Inception Key Terms

210
Fund Inception Date: 01 October 2006
190 Net Asset Value (ZAR): 1,034,876,318
Cumulative Performance

Brait Multi Strategy Cash Status: Open

170
Fund Currency: ZAR
150 Domicile: South Africa
Liquidity: Monthly
130
Notice: 1 Calendar Month
110 Manager: Brait SA Ltd

90 Auditor: Deloitte & Touche

Oct-06

Sep-07

Sep-08

Sep-09

Sep-10
Jan-07

May-07
Jul-07

Jan-08

May-08
Jul-08

Jan-09

May-09
Jul-09

Jan-10

May-10
Jul-10
Nov-06

Nov-07

Nov-08

Nov-09
Mar-07

Mar-08

Mar-09

Mar-10

Administrator: Maitland Fund Services

Prime Brokers: RMB Prime and
Cadiz Securities

Net Performance Record

Date Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2006 - - - - - - - - - -3.84% 0.95% -2.26% -5.12%
2007 1.78% 2.66% 2.69% -2.08% 4.31% 8.69% 3.21% -3.49% -1.44% -7.40% 1.95% 0.50% 10.95%
2008 1.81% 3.86% 2.21% 2.02% 4.87% 2.32% -1.54% -0.19% 1.95% 2.50% 6.16% 0.12% 29.15%
2009 2.10% -1.95% 5.45% 3.19% -0.65% 1.14% 2.72% 2.83% 0.66% 0.90% 6.11% 0.95% 25.80%
2010 2.96% -0.41% 2.04% 3.26% 1.34% 1.23% 0.83% 4.05% -0.20% 4.83% 21.67%

Lourens Pretorius – CEO: Brait Capital Management Rob Coombe – COO: Brait Capital Management Client Administration
Tel: +27 21 673 7830 Tel: +27 21 673 7818 Tel: +27 21 673 7821
Email: lwpretorius@brait.com Email: rcoombe@brait.com Email: BraitCMEnquiries@brait.com

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 Brait Multi Strategy Fund

Fund Overview 31 October 2010

Monthly Performance Attribution per Discipline Comparative Performance
1 600 40%
1 400
30%
1 200
1 000 20%
Bps Return

% Return
800 10%
600
0%
400
200 -10%
0
-20%
-200
YTD Oct-10 -30%
Equity M Equity F FI Derivative 2008 2009 YTD
FI Volatility Tactical Stat Arb Brait Multi Strategy Fund ALSI ALBI Cash

Risk Budget Utilisation Total VAR and VAR Offset

90 140
80 Net VaR Total VaR
120
Average VaR Offset
70
VaR Utilisation (%)

100
60
VaR Utilisation (%)

50 80

40 60
30
40
20
10 20

0 0
Oct-06

Oct-07

Oct-08

Oct-09

Oct-10
Jan-07

Jul-07

Jan-08

Jul-08

Jan-09

Jul-09

Jan-10

Jul-10
Apr-10
Apr-07

Apr-08

Apr-09

Oct-06

Oct-07

Oct-08

Oct-09

Oct-10
Jan-07

Jul-07

Jan-08

Jul-08

Jan-09

Jul-09

Jan-10

Jul-10
Apr-07

Apr-08

Apr-09

Apr-10
Return Distribution Since Inception Risk Analysis Table
18
Number of Returns Brait Multi-
16 All Bond All Share
Since Inception Strategy
Index Index
14 Fund
12 Standard Deviation p.a. 9.77% 7.44% 19.86%
10 Downside Deviation p.a. 4.66% 2.58% 11.62%
8 Sharpe Ratio 1.09 0.14 -0.03
6 Sortino Ratio 2.28 0.41 -0.04
4 Correlation 1.00 -0.27 0.01
2
% Profitable Periods 80.43% 65.31% 61.22%
0
Largest Draw Down -11.92% -7.34% -42.01%
95% 1 month VAR 5.41% 4.21% 11.17%
Monthly Return (%)

This Fund Overview is for information purposes only, and does not constitute either an offer or a recommendation to buy or sell any of the stocks mentioned or the fund itself. It is a private
publication intended for private circulation, and outlines the fund structure and past performance. The value of all investments can go down as well as up, and the past is not necessarily a guide to
future performance. Brait South Africa Limited is an approved Discretionary Financial Service Provider under the Financial Advisory and Intermediary Services Act (FSP Reg. No. 820) However, the
Brait Multi Strategy Fund, along with all other hedge funds in South Africa, is unregulated by the Financial Services Board.

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