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Risk Disclosure Statement: There is a substantial risk of loss in trading in securities and other financial instruments.

Past results are no guarantee of future performance. Prospective investors must read the current prospectus or disclosure document prior to investing. This is not a prospectus or a disclosure document and nothing contained herein constitutes an offer to purchase interests in any IKOS fund. An offer may only be effected by delivery of a current prospectus or disclosure document. The funds described herein are only provided for institutional investors and those individuals with sufficient experience and understanding of the risks involved. The funds are not available to private customers.

The Worlds

Richest hedge Funds

Dr. brownsteins winning formula


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Canyons seCret empire


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Cashing in on Chaos
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Fe b r u a r y 2 0 1 1 b l o o m b e r g m a r k e t s

39

the 100 topperforming Large hedge fUNdS


Fund, Manager(s) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 21 22 23 24 25 26 27 28 29 30

In BloomBerg markets first-ever ranking of the top 100 large hedge funds, bets on mortgages, gold, emerging markets and global economic trends stand out.
assets, in billions ytd total RetuRn

Structured Servicing Holdings, Don Brownstein, William Mok Russian Prosperity, Alexander Branis Pure Alpha II, Ray Dalio Ikos FX, Elena Ambrosiadou Cevian Capital II, Christer Gardell, Lars Forberg AQR Global Risk Premium, Team managed Nisswa Fixed Income, Steve Kuhn Third Point Offshore, Daniel Loeb Autonomy Global Macro, Robert Gibbins Linden International, Joe Wong All Weather 12% Strategy, Ray Dalio Ortus Currency Program, Joe Zhou Pure Alpha 12%, Ray Dalio, Robert Prince Two Sigma Investments Compass U.S., Team managed Appaloosa Investment, David Tepper Cerberus Institutional Partners Series IV, Stephen Feinberg Merchant Commodity, Michael Coleman, Doug King Monarch Debt Recovery, Michael Weinstock, Andrew Herenstein BlackRock U.K. Emerging Companies, Richard Plackett, Ralph Cox Thoroughbred, David Tepper Coatue Management, Philippe Laffont Element Capital, Jeffrey Talpins Discovery Global Opportunity, Rob Citrone Paulson Enhanced, John Paulson Visium Balanced Offshore, Jacob Gottlieb Renaissance Institutional Futures, Jim Simons Man AHL Diversified, Team managed Sola 1 Class A, Chris Pucillo Tennenbaum Opportunities V, TCP Investment Committee Ellerston Asia Pacific, Ashok Jacob Silver Point Capital Offshore, Edward Mule, Robert OShea

Structured Portfolio Management, U.S. Prosperity Capital Management, Russia Bridgewater Associates, U.S. Ikos Asset Management, Cyprus Cevian Capital, Sweden AQR Capital Management, U.S. Pine River Capital Management, U.S. Third Point, U.S. Autonomy Capital Research, U.K. Linden Asset Management, U.S. Bridgewater Associates, U.S. Ortus Capital Management, Hong Kong Bridgewater Associates, U.S. Two Sigma Investments, U.S. Appaloosa Management, U.S. Cerberus Capital Management, U.S. Aisling Analytics, Singapore Monarch Alternative Capital, U.S. BlackRock Investment Management, U.K. Appaloosa Management, U.S. Coatue Capital Management, U.S. Element Capital Management, U.S. Discovery Capital Management, U.S. Paulson & Co., U.S. Visium Asset Management, U.S. Renaissance Technologies, U.S. Man Fund Management, U.K. Solus Alternative Asset Management, U.S. Tennenbaum Capital Partners, U.S. Ellerston Capital, Australia Silver Point Capital, U.S.

Mortgage-backed arbitrage Emerging markets Macro Currency Activist Macro Mortgage-backed arbitrage Event driven Macro Multistrategy Macro Macro Macro Systematic Global credit Distressed Commodity Distressed Long/short Fixed income Long/short Fixed-income arbitrage Emerging markets Merger arbitrage Long/short Managed futures Managed futures Credit Credit Long/short Credit

1.2 1.1 34.0 1.2 3.9 3.7 1.2 2.2 1.7 1.1 2.2 1.7 9.9 1.7 4.9 7.5 1.5 1.6 2.0 5.7 3.2 1.6 3.0 * 1.8 2.3 2.9 2.5 1.0 1.4 4.5

49.5% 39.3 38.0 30.5 29.8 27.3 27.0 25.2 24.7 23.4 23.2 23.1 22.2 21.7 20.9 20.0 19.8 19.0 18.6 18.6 18.0 17.3 17.2 16.9 16.4 15.9 15.3 15.1 15.0 14.9 14.9

134.6% 195.2 2.0 18.1 35.7 21.2 92.0 38.6 69.0 72.9 11.3 19.1 1.7 20.4 132.0 30.0 5.3 35.0 6.1 120.0 11.0 78.8 65.0 13.2 22.0 3.8 16.9 7.9 58.5** NA NA

2009 RetuRn

ManageMent FirM, location

strategy

the WorlDs richest heDge FunDs


assets, in billions ytd total RetuRn

100
14.6 14.2 14.2 14.1 13.9 13.0 13.0 12.9 12.8 12.6 12.4 12.3 12.1 12.1 12.0 11.8 11.8 11.7 11.6 11.5 11.1 11.0 10.8 10.8 10.6 10.6 10.5 10.5 10.5 10.3 10.1 10.0 9.6 9.6 9.6 9.5
2009 RetuRn

FunD, manager(s)

management Firm, location

strategy

32 33 35 36 37 39 40 41 42 43 44 46 47 49 50 51 52 53 54 56 58 61 62 63 64 67

Man aHL Diversified Futures, Team managed Brummer & Partners Nektar, Kerim Kaskal, Kent Janer glenview Opportunity Funds, Larry Robbins aspect Diversified, Gavin Ferris Joho Partners, Robert Karr Paloma Partners, Donald Sussman Perry Partners International, Richard Perry Wolverine Convertible arbitrage Trading, Christopher Gust Farallon Capital Offshore, Thomas Steyer Winton Futures Class B, David Harding Paulson Credit Opportunities, John Paulson Spinnaker global Opportunity, Claude Marion, Alexis Habib gLg emerging Markets, Bart Turtelboom, Karim Abdel-Motaal Renaissance Institutional equities, Jim Simons BlueTrend, Leda Braga MKP Offshore Credit, Patrick McMahon, Anthony Lembke Transtrend Diversified Trend Programenhanced Risk (USD), Team managed Strategic Value Restructuring, Victor Khosla R3, Rick Rieder Canyon Value Realization, Joshua Friedman, Mitchell Julis Fir Tree Value, Jeff Tannenbaum SaC Capital International, Steven Cohen Fore Multi Strategy, Matthew Li glenview Funds, Larry Robbins Pershing Square International, Bill Ackman Spinnaker global emerging Markets, Marcos Lederman BlueCrest International, Michael Platt OZ global Special Investments Master, Daniel Och PaRS IV Offshore II Class a/1, William H. Gross Maverick Class a/1, Lee Ainslie III Saba Capital Master, Boaz Weinstein Tewksbury Investment, Matthew Tewksbury Bay II Resource Partners, Thomas Claugus Clive, Christian Levett Millennium International, Israel Englander aQR absolute Return, Team managed

Man Fund Management, U.K. Brummer & Partners Kapitalforvaltning, Sweden Glenview Capital Management, U.S. Aspect Capital, U.K. Joho Capital, U.S. Paloma Partners, U.S. Perry Partners, U.S. Wolverine Asset Management, U.S. Farallon Capital Management, U.S. Winton Capital Management, U.K. Paulson & Co., U.S. Spinnaker Capital, U.K. GLG Partners, U.K. Renaissance Technologies, U.S. BlueCrest Capital Management, U.K. MKP Capital Management, U.S. Transtrend, Netherlands Strategic Value Partners, U.S. BlackRock Advisors, U.S. Canyon Partners, U.S. Fir Tree Partners, U.S. SAC Capital Advisors, U.S. Fore Research & Management, U.S. Glenview Capital Management, U.S. Pershing Square Capital Management, U.S. Spinnaker Capital, U.K. BlueCrest Capital Management, U.K. Och-Ziff Capital Management, U.S. Pacific Investment Management, U.S. Maverick Capital, U.S. Saba Capital Management, U.S. Stevens Capital Management, U.S. GMT Capital Offshore Management, U.S. Clive Capital, U.K. Millennium Capital Management, U.S. AQR Capital Management, U.S.

Managed futures Macro Opportunistic Managed futures Long/short Multistrategy Multistrategy Convertible arbitrage Multistrategy Managed futures Credit Emerging-market debt Emerging-market equity Long/short Managed futures Credit Managed futures Distressed Distressed Multistrategy Multistrategy Long/short Multistrategy Long/short Event driven Emerging-market debt Macro Distressed Global credit Long/short Long/short Multistrategy Long/short Commodity Multistrategy Multistrategy

1.3 2.2 1.0 3.9 2.3 1.7 5.1 1.1 3.8 5.4 8.8 2.6 1.3 4.4 11.9 2.0 5.7 2.5 1.1 8.8 6.3 12.0 1.1 3.4 4.4 1.7 8.2 1.2 2.0 3.1 1.8 3.3 1.0 4.0 5.2 1.5

16.4 6.1 106.2 11.2 21.0 23.0 25.2 55.1 26.6 4.6 35.0 28.1 35.2 4.6 4.4 17.1 11.3 19.2 54.0 55.0 22.1 29.0 48.5 82.7 41.1 28.3 45.4 8.4 63.3 24.2 8.0 10.5 51.4 17.4 17.2 38.1

Fe b r u a r y 2 0 1 1 b l o o m b e r g m a r k e t s

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the 100 top performing large heDge FUNDs coNtiNUeD


assets, in billions ytd total RetuRn 2009 RetuRn

FunD, manager(s)

management Firm, location

strategy

70 72 73 74 76 77 78 80 82 85 86 88 89 90 91 93 94 95 96 97 99

aQR Delta, Team managed Millburn Diversified Program, Team managed BlueCrest emerging Markets, Nick Riley BlueMountain Credit alternatives, Andrew Feldstein Bay Resource Partners Offshore, Thomas Claugus York Credit Opportunities, James Dinan OZ asia Master, Daniel Och Shepherd Investments International Class a, Brian Stark, Mike Roh Davidson Kempner International, Thomas Kempner, Marvin Davidson greenlight Capital, David Einhorn Passport Capital global Strategy, John Burbank York european Opportunities, James Dinan Capula global Relative Value a, Yan Huo, Masao Asai Halcyon Partners Offshore, Kevah Konner, John Bader Carlson Double Black Diamond, Clint Carlson Caxton global Investment, Andrew Law Davidson Kempner Distressed Opportunities International Class a, Michael Leffell, Anthony Yoseloff York Select, James Dinan advantage advisers Xanthus, Takis Sparaggis Sark Limited , Emmanuel Gavaudan, Emmanuel Boussard Scoggin Capital Management, Craig Effron, Curtis Schenker Boronia Diversified, Angus Grinham Paulson Recovery, John Paulson Octavian global, Richard Hurowitz Moore Macro Managers, Louis Bacon Paulson Partners, John Paulson exane 1archimedes a, Cesar Zeitouni, Gilles Lenoir Blenheim, Willem Kooyker Perella Weinberg Partners Xerion Offshore, Daniel Arbess Citadel, Ken Griffin CQS Convertible and Quantitative Strategies Feeder, Michael Hintze, Oliver Dobbs elliott International, Paul Singer OZ Master, Daniel Och

AQR Capital Management, U.S. Millburn Ridgefield, U.S. BlueCrest Capital Management, U.K. BlueMountain Capital Management, U.S. GMT Capital, U.S. York Capital Management, U.S. Och-Ziff Capital Management, U.S. Stark Investments, U.S. Davidson Kempner Capital Management, U.S. Greenlight Capital Offshore, U.S. Passport Capital, U.S. York Capital Management, U.S. Capula Investment Management, U.K. Halcyon Offshore Asset Management, U.S. Carlson Capital, U.S. Caxton Associates, U.S. Davidson Kempner Capital Management, U.S. York Capital Management, U.S. Oppenheimer Asset Management, U.S. Boussard & Gavaudan Holding, Hong Kong Scoggin Capital Management, U.S. Boronia Capital, Australia Paulson & Co., U.S. Octavian Advisors, U.S. Moore Capital Management, U.S. Paulson & Co., U.S. Exane Asset Management, France Blenheim Capital Management, U.S. Perella Weinberg Partners, U.S. Citadel Investment Group, U.S. CQS Cayman, U.K. Elliott Management, U.S. Och-Ziff Capital Management, U.S.

Relative value Systematic Emerging markets Global credit Long/short Distressed Multistrategy Multistrategy Distressed Long/short Macro Event driven Fixed-income arbitrage Multistrategy Multistrategy Macro Distressed Event driven Long/short Multistrategy Event driven Managed futures Distressed Global special situation Macro Merger arbitrage Long/short Managed futures Event driven Multistrategy Convertible arbitrage Multistrategy Multistrategy

1.0 1.1 1.2 2.9 2.0 3.0 1.4 1.6 5.7 6.8 1.7 2.7 5.5 1.0 3.7 6.6 1.1 1.2 1.1 1.7 1.8 1.7 2.2 1.0 3.8 * 1.4 5.0 2.3 11.0 1.1 16.8 18.6

9.5 9.5 9.4 9.4 9.3 9.1 9.0 9.0 8.9 8.8 8.7 8.7 8.6 8.6 8.5 8.5 8.5 8.2 8.1 8.1 8.0 7.9 7.8 7.6 7.6 7.4 7.3 7.2 7.1 7.0 7.0 6.7 6.7

19.3 7.4 33.9 37.6 56.6 35.7 34.0 12.2 NA 30.6 19.3 30.9 12.2 21.5 28.2 6.2 45.0 82.6 29.6 25.1 37.0 6.1 25.5 30.6 16.8 6.2 10.2 43.7 35.3 62.0 31.2 30.1 23.1

returns are for the 10 months ended on oct. 29. includes funds with more than $1 billion in assets. *total for both funds is $5 billion. **as of oct. 31, 2009. sources: bloomberg, hedge-fund databases, hedge-fund firms, investors

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Fe b r u a r y 2 0 1 1

100

the WorlDs richest heDge FunDs

2003, the value of their houses had fallen. Those who could confronted a mountain of paperwork at newly cautious banks. uhn gets excited when talking about the mortgage market. A Minneapolis native, he earned a bachelors degree in economics from Harvard University in 1991 and went to work trading municipal bonds at Piper Jaffray Cos. in Minneapolis. He switched to mortgage bonds at Piper and then took a job doing the same activity at Cargill Inc., the food producer that started a trading operation out of its effort to hedge the prices of farm products. Kuhn left Cargill in 1998 for Citadel LLC, the Chicago hedge fund, where he traded convertible bonds. In 2002, he joined Goldman Sachs Group Inc., again to trade mortgages. In 2007, when the market started to wobble, Kuhn saw opportunity. He called up Taylor, a fellow Minnesotan, and offered his services. Taylor had set up Pine River in 2002 after 14 years at Minnetonka, Minnesotabased money manager EBF & Associates. Pine River is named for the town 150 miles (240 kilometers) north of Minneapolis where Taylor has a lake house. He was banished there for a year by a noncompete clause in his EBF employment contract that required him to move at least 100 miles away from the Twin Cities if he started a competing company. Kuhn pitched Taylor on starting a mortgage fund to do some bottom fishing when the market really cracked. They named it Nisswa after another town in northern Minnesota. The collapse that Kuhn expected came in 2008, when

BiggeSt hoLDingS in u.S. StocKS By heDge funDS


amount held, in billions $3.44 3.35 3.33 3.07 2.54 2.41 1.83 1.83 1.82 1.82 stock

1 2 3 4 5 6 7 9

Sears Holdings Nike AutoZone Motorola Citigroup Viacom J.C. Penney Kraft Foods AutoNation DaVita

ranking is derived from public filings of the 20 top holders of s&p 500 stocks as of sept. 30. Value of holdings is as of Dec. 13. source: bloomberg

mortgage bonds plunged. Then, the crisis caught up to Fannie Mae and Freddie Mac. The U.S. took them over that September to ease concern that they would fail and cease to back $5 trillion in mortgages. After the takeover, Fannie and Freddie stopped a key activity, Kuhn says. In addition to guaranteeing mortgages, the companies bought and sold securities in order to moderate fluctuations in rates. That also helped control price differences, or spreads, between various types of mortgage bonds, making it hard for traders to find arbitrage opportunities. There werent a lot of nickels lying around, Taylor says. Without Fannie and Freddie trading, the market is ripe with opportunity, Kuhn says. But government control of the companies means that traders like him have to watch for government programs that make it easier for homeowners to refinance. He watches hours of C-SPAN, the cable channel that broadcasts government hearings. Sometimes he records them to watch in the evening. My wife is a good sport, he says. In 2010, you didnt need to be a specialist to see that there was money to be made in mortgages. Daniel Loeb of Third Point normally invests in stocks and bonds of companies going through mergers and restructurings. He has owned mortgage securities since 2007. In 2009, they helped lift the fund 38.4 percent for the year, Loeb said in a letter to investors dated March 1, 2010. Mortgage securities contributed significantly to our returns during the fourth quarter and have also performed strongly so far in 2010, Loeb wrote. As of June, mortgage investments accounted

going it alone, profitably


the heDge-FunD industry is the college of cardinals of financea mans world. Just two of the managers of the top 100 large funds are women. one of them, elena ambrosiadou, ranks No. 4. she runs the ikos FX Fund, a currencytrading pool that returned 30.5 percent in the first 10 months of 2010. ambrosiadou is accustomed to success in male milieus. a chemical engineer, she once worked in refineries for petroleum giant BP Plc and later became an
52 bloomberg markets

executive for the British company. ambrosiadou, a greek whose firm is based in cyprus, started ikos in 1991 with her husband, martin coward, a cambridge University graduate in mathematics and a foreign-exchange strategist, according to a biography accompanying an article he wrote for the hedge fund Journal in February 2008. the pair ran ikos together until December 2009, when coward left the firm. ambrosiadou had filed for divorce earlier that year.

ambrosiadou and coward declined to comment on ikos, its performance or their split. in a video interview in January, ambrosiadou said one secret to ikoss success is a focus on the institution. the scientific process is about building the body of knowledge independent of any one person, ambrosiadou told opalesque tV, a website that covers hedge funds. ambrosiadou enjoys her performance fees. in 2009, she paid $120 million for the Maltese

falcon, a 290-foot (88-meter) computerized sailing ship built by venture capitalist tom Perkins, according to Yachtpals.com, a boating site.
aNthoNY eFFiNger

Fe b r u a r y 2 0 1 1

dAve m. Benett/getty imAges

elena Ambrosiadou

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