In the Jungle of Alternatives - Presentation: Antje Biber Managing Partner, Feri Trust GmbH - Investments Summit

FERI TRUST GMBH

IN THE JUNGLE OF ALTERNATIVES

SELECTION REQUIREMENTS FOR HEDGE FUNDS

Antje Biber

Managing Partner, Feri Trust GmbH

Investment Consultant Summit

September 4th 2012

HEDGE FUNDS - A HIGHLY COMPLEX ASSET CLASS

© FERI 2

Source: google pictures

Hedge FundsHedge Funds

© FERI 3

....some simple facts

LET‘S LOOK AT SOME NUMBERS

Dow Jones Credit Suisse Multi-Strategy Hedge Fund Index

MSCI World

return Return p.a. Volatility p.a. return Return p.a. Volatility p.a.

YTD 4.58% 9.36% 4.32% YTD 2012 6.29% 12.98% 16.35%

© FERI 4

Source: Credit Suisse und PerTrac, : 2002- June 2012

2 y 15.83% 7.62% 5.39% 2 y 25.40% 11.98% 18.26%

3 y 29.17% 8.91% 4.65% 3 y 38.91% 11.58% 17.58%

5 y 13.00% 2.40% 8.70% 5 y -11.43% -2.40% 20.89%

10 y 93.44% 6.82% 5.81% 10 y 74.69% 5.74% 17.20%

THE HEDGE FUND UNIVERSES (OFFSHORE & UCITS) STILL GROWS

050

100150200250300350400450500

An

zah

l

Number of funds: UCITS HF

© FERI 5Source : Feri, Eurekahedge, BofAML

UCITS Long/Short Fonds

Number of funds / Assets under management

Offshore Hedge Funds

HAVE HEDGE FUNDS LEARNED AFTER 2008?

What did hedge fund manager change after the crisis

27%

31%

36%

Senkung der Lock-Up Fristen

Senkung der Managementgebühren

Einräumung häufigerer Liquidationsmöglichkeiten

higher Liquidity

lower Management Fees

shorter Lock-up periods

© FERI 6Source: Ernst&Young ‚Restoring the balance‘ 2010 global hedge fund survey.

7%

7%

9%

13%

16%

Verlängerung der Lock-Up Fristen

Veränderung der Maximalkündigung (Gates)

Kürzung der Kündigungsfristen

Angebot gesonderter Managed Accounts

Reduzierung der Performance Fee

reduction of performance fee

managed accounts

shorter redemption period

changes of gating rules

lengthening of lock-ups


....a single and homogeneous asset class?

© FERI 7

....NOT !

....a diversifing instrument ?

....absolutely !

HEDGE FUND STRATEGY RETURNS ARE NOT CONSISTENT

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD

Convertible Arb.

Relative Value

An

nu

al R

etu

rn (

% p

.a.)

Global Macro25.6%

Global Macro37.1%

Managed Futures20.6%

Equity Long/Short

47.2%

Convertible Arbitrage

25.6%

Distressed Securities

20.0%



25.1%


15.6%

Equity Short Bias

17.0%

Special Situations

16.4%

Global Macro17.4%



47.4%

Special Situations

14.4%

Global Macro 5.98%


4.71%

Fixed Income Arb.


25.5%

Equity Long/Short

21.5%

Equity Long/Short

17.2%

Special Situations

23.0%

Equity Short Bias

15.8%

Global Macro18.4%

Equity Short Bias

18.1%

Global Macro18.0%

Special Situations

14.0%


11.7%


15.6%

Special Situations

16.8%

Equity Short Bias

14.9%

Fixed Income Arbitrage

27.4%

Global Macro 13.5%

Equity Arbitrage

5.00%


3.90%

Equity Arb.

Special Situations

22.7%


20.7%

Equity Arbitrage

13.3%


22.2%

Equity Arbitrage

15.0%


14.6%

Global Macro14.7%

Equity Long/Short

17.3%

Equity Long/Short

11.6%

Equity Long/Short

9.7%

Equity Long/Short

14.4%

Equity Long/Short

13.7%

Merger Arbitrage

-3.3%


21.0%


12.5%


4.30%


3.74%

Risk Arb.

Eve

nt

Dri

ve

n


17.9%

Special Situations

20.5%

Merger Arbitrage

5.6%


16.0%

Merger Arbitrage

14.7%

Equity Arbitrage

9.3%

Equity Arbitrage

7.4%

Special Situations

17.2%

Global Macro8.5%

Global Macro9.3%


14.3%

Equity Arbitrage

9.3%

Global Macro-4.6%

Special Situations

19.9%

Managed Futures 12.2%

Equity Short Bias 2.17%

Special Situations

3.12%

Distressed Sec.

Equity Long/Short

17.1%

Equity Arbitrage

14.8%


-1.7%

Equity Arbitrage

15.3%

Special Situations

11.8%


8.0%


5.8%



6.7%

Special Situations

7.2%

Global Macro13.5%

Merger Arbitrage

8.8%

Special Situations

-16.3%

Equity Long/Short

19.5%


11.0%

Merger Arbitrage

1.19%

Managed Futures 2.15%

© FERI 8

Source: Credit Suisse 2012

An

nu

al R

etu

rn (

% p

.a.)

Eve

nt

Dri

ve

n

Special Situations

Equity Arbitrage

16.6%


14.5%

Global Macro-3.6%

Merger Arbitrage

13.2%

Global Macro11.7%

Special Situations

6.8%


4.0%


12.9%

Equity Arbitrage

6.5%

Equity Arbitrage

6.1%

Equity Arbitrage

11.2%


8.4%

Equity Long/Short

-19.8%

Merger Arbitrage

12.0%


10.3%


0.49%

Equity Long/Short

1.86%

Equity Long/Short

Equity Hedge


15.9%

Merger Arbitrage

9.8%


-4.4%


12.1%


6.3%

Merger Arbitrage

5.7%

Special Situations

1.2%

Merger Arbitrage

9.0%

Managed Futures

6.0%

Merger Arbitrage

3.1%


8.7%

Managed Futures

6.0%


-20.5%

Global Macro 11.6%

Equity Long/Short

9.28%


-4.19%

Global Macro 1.52%

Equity Short Bias

Merger Arbitrage

13.8%


9.3%

Equity Short Bias

-6.0%

Global Macro5.8%

Managed Futures

4.2%

Managed Futures

1.9%


-0.7%


8.0%

Merger Arbitrage

5.5%


0.6%

Merger Arbitrage

8.2%

Equity Short Bias6.0%

Fixed Income Arbitrage-28.8%

Equity Arbitrage

4.1%

Merger Arbitrage

3.20%

Managed Futures -4.94%

Merger Arbitrage

0.05%

Global Macro

Tactical Trading Managed

Futures12.0%

Managed Futures

3.1%


-8.2%

Managed Futures-4.7%

Equity Long/Short

2.1%

Equity Short Bias

-3.6%

Equity Long/Short

-1.6%

Equity Arbitrage

7.1%


2.0%


Managed Futures

8.0%


5.2%

Convertible Arbitrage-31.6%


Equity Arbitrage

-0.9%

Equity Long/Short

-6.48%

Equity Arbitrage

-2.28%

Managed Futures

Equity Short Bias

-5.5%

Equity Short Bias0.4%

Special Situations

-9.0%

Equity Short Bias

-14.2%


1.9%

Equity Long/Short

-3.7%

Merger Arbitrage

-3.5%

Equity Short Bias

-32.6%

Equity Short Bias

-7.7%


-2.6%

Equity Short Bias

-6.6%


3.8%

Equity Arbitrage-40.3%

Equity Short Bias

-25.0%

Equity Short Bias

-22.5%

Special Situations -10.85%

Equity Short Bias

-7.62%

Source: Credit Suisse; Data including May 2012

OVERVIEW OF HEDGE FUND STRATEGIES

Global Macro

Managed Futures

Other Systematic Trading

Tactical Trading

Convertible Bond Arbitrage


Equity Arbitage

Capital Structure Arbitrage

Mixed Relative Value

Relative Value

Diversifying Strategies

© FERI 9

Merger Arbitrage

Special Situations

Distressed SecuritiesEvent Driven


Equity Hedge Long Bias

Equity Hedge No BiasEquity Hedge Short BiasEquity Hedge

Mixed Event Driven

Mixed Equity Hedge

Directional Strategies

MANAGED FUTURES & GLOBAL MACRO: OVERVIEW

Managed Futures

- Systematic Trading modells based on technical signals

- Diverse substrategies

o Trendfollowing / Momentum

o Countertrend / Mean-reverting

o Systematic Macro

- Mainly directional positions diversified over multiple markets ( also commodities)

© FERI 10

Mainly directional positions diversified over multiple markets ( also commodities)

Global Macro

− Discretionary trading decisions based on macro economic views

− Identification of makroeconomic trends

− Diversification of managers through investment focus

− Global and regional specialists

− „relative Value“ as well as directional positions

MANAGED FUTURES & GLOBAL MACRO: CHARATERISTICS

Characteristics Managed Futures Global Macro

Liquid + +

Longterm uncorrelated + +/-

Low leverage + +

© FERI 11

Low leverage + +

Diversified + +/-

Trading decisions systematic discretionary

Basis technical fundamental

MANAGED FUTURES & GLOBAL MACRO: OVERVIEW

270

320

370DJ CS Managed Futures Index

DJ CS Global Macro Index

MSCI World

© FERI 12

70

120

170

220

Dec 97 Dec 98 Dec 99 Dec 00 Dec 01 Dec 02 Dec 03 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11

Quelle: Feri

Dez 97 Dez 02Dez 98 Dez 99 Dez 00 Dez 01 Dez 04Dez 03 Dez 05 Dez 07Dez 06 Dez10Dez 08 Dez 11Dez 09

MANAGED FUTURES & GLOBAL MACRO: CORRELATION

Managed Futures have a negative correlation especially in times of equity market crises!

130

150

170

0.2

0.4

0.6

0.8

112M Korrelation CS Managed Futures Index (lhs)

Korrelation: Langfristiger Durchschnitt (lhs)Correlation: longterm average

12m correlation: CS Managed Future Index

© FERI 13Quelle: Feri

50

70

90

110

-1

-0.8

-0.6

-0.4

-0.2

0

0.2

Dec 98 Jun 00 Dec 01 Jun 03 Dec 04 Jun 06 Dec 07 Jun 09 Dec 10Dez 98 Jun 00 Jun 03Dez 01 Dez 04 Jun 06 Dez 07 Jun 09 Dez 10

MANAGED FUTURES & GLOBAL MACRO: RETURN IN TIMES OF CRISES

Return in difficult equity markets (1994 - today)

5%

10%

15%

20%

© FERI 14Source: Feri

-25%

-20%

-15%

-10%

-5%

0%

Q4 2008 Q3 2002 Q3 2011 Q3 2008 Q3 2001 Q2 2010 Q1 2001 Q1 2009 Q3 1998 Q2 2002 Q1 2008

MSCI World

DJ CS Managed Futures Index

DJ CS Global Macro Index

MANAGED FUTURES & GLOBAL MACRO: DIVERSIFICATION NEEDED

� 3 month returns on the basis of 420 funds

� Results based on randomly generated Portfolios (320.000 Data)

Statistical characteristica (Median):

1 F

un

d

2 F

un

ds

5 F

un

ds

10

Fu

nd

s

Return p.a. 9,6% 10,3% 10,8% 10,9%

10 funds1 fund

Volatile strategies need diversification

300

400

500

600

300

400

500

600

© FERI 15

Return p.a. 9,6% 10,3% 10,8% 10,9%

Volatility 20,0% 16,3% 13,3% 12,0%

Sharpe (2%) 0,38 0,51 0,66 0,74

Probability of 3-month-drawdowns (DD):

1 F

on

ds

2 F

on

ds

5 F

on

ds

10

Fo

nd

s

DD >-5% 17,9% 14,2% 9,8% 7,6%

DD >-10% 6,9% 3,8% 1,3% 0,6%

10 funds1 fund

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

-30,0% -20,0% -10,0% 0,0% 10,0% 20,0% 30,0%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

-30,0% -20,0% -10,0% 0,0% 10,0% 20,0% 30,0%

0

100

200

300D

ez.

99

Au

g. 0

0

Ap

r. 0

1

De

z. 0

1

Au

g. 0

2

Ap

r. 0

3

De

z. 0

3

Au

g. 0

4

Ap

r. 0

5

De

z. 0

5

Au

g. 0

6

Ap

r. 0

7

De

z. 0

7

Au

g. 0

8

Ap

r. 0

9

De

z. 0

9

Au

g. 1

0

0

100

200

300

De

z. 9

9

Au

g. 0

0

Ap

r. 0

1

De

z. 0

1

Au

g. 0

2

Ap

r. 0

3

De

z. 0

3

Au

g. 0

4

Ap

r. 0

5

De

z. 0

5

Au

g. 0

6

Ap

r. 0

7

De

z. 0

7

Au

g. 0

8

Ap

r. 0

9

De

z. 0

9

Au

g. 1

0

OVERVIEW OF HEDGE FUND STRATEGIES

Global Macro

Managed Futures

Other Systematic Trading

Tactical Trading

Convertible Bond Arbitrage


Equity Arbitage

Capital Structure Arbitrage


Relative Value

Diversifying Strategies

© FERI 16

Merger Arbitrage

Special Situations

Distressed SecuritiesEvent Driven


Equity Hedge Long Bias

Equity Hedge No BiasEquity Hedge Short BiasEquity Hedge

Mixed Event Driven

Mixed Equity Hedge

Directional Strategies

PERFORMANCEANALYSIS: EQUITY HEDGE VS. EQUITY LONG ONLY

Equity Hedge Index * MSCI World

Return Return p.a. Volatility p.a. Return Return p.a. Volatility p.a.

1- y -4.49% -4.49% 7.47% 1- y -13.54% -13.54% 20.01%

© FERI 17

Source: * ARIX Equity Hedge Index, Feri und Hedgefund.net, 01. 2002- 05. 2012

2- y 4.14% 2.05% 6.78% 2- y 8.47% 4.15% 18.57%

3- y 9.91% 3.20% 6.33% 3- y 11.92% 3.83% 17.88%

5- y 11.18% 2.14% 8.70% 5- y -33.02% -7.70% 20.90%

10- y 86.99% 6.46% 7.27% 10- y 11.87% 1.13% 17.22%

DRAWDOWNANALYSIS: EQUITY HEDGE VS. EQUITY LONG ONLY

Equity Hedge Index * MSCI World

Drawdown Duration Recovery Drawdown Duration Recovery

© FERI 18

Source: Feri und Hedgefund.net, 01.2002- 05.2012*: ARIX Equity Hedge Index

DD 1 -20.05% 13 25 DD 1 -55.51% 16 n.a.

DD 2 -8.07% 5 n.a DD 2 -26.47% 6 15

DD 3 -3.96% 1 3 DD 3 -4.51% 2 3

10% OF EQUITY HEDGE IN A TRADITIONAL PORTFOLIO

0%

2%

4%

6%

8%

10%

RenditenvergleichReturn comparison

3%

4%

5%

6%

7%

8%

9%

VolatilitätsvergleichVolatility comparison

© FERI 19

Source: Feri und Hedgefund.net HF Index: ARIX Equity Hedge , „Bonds“ Barclays Aggregate Bond Index „Equities“ MSCI World

-8%

-6%

-4%

-2%

80%Bonds, 10% Equities, 10% ARIX Equity Hedge

80%Bonds, 20% Equities

0%

1%

2%

80%Bonds, 10% Equities, 10% ARIX Equity Hedge

80%Bonds, 20% EquitiesEquity Hedge Index

Equity Hedge Index

10 % of Equity Hedge allocation leads to higher returns and lower volatility !


....good or bad ?

© FERI 20

... THE JUNGLE ?

... And how can we shed light on them ?

CRITICAL ASPECTS OF HEDGE FUND SELECTION

1. Returns persistance, analysis...

2. Illquidity redemption restrictions...

3. Benchmarking survivorship bias...

© FERI 21

4. Regulation operational risk...

5. Transparency managers...

SPOT LIGHT INTO THE QUANT JUNGLE: FACTOR ANALYSIS

Current factors used (240):

� 35 Commodities factors

� 6 Credit factors

� 7 Currency factors

� 31 Emerging Markets factors

� 56 Equity factors

� 32 Fixed Income factors

© FERI 22

� 32 Fixed Income factors

� 31 HF Indices

� 9 Mortgage factors

� 14 Non-linear payoffs

� 9 Real Estate factors

� 10 Volatility factors

Autocorrelation and non linear performance components considered

HEDGE FUND MANAGERS: ....THEN A MIRACLE OCCURS

© FERI 23

Source: google pictures

HEDGE FUND RISK ANALYSIS – AN OVERVIEW

1. Administrative risks: audit and controlling requirements(registration, official audit, independent pricing etc.)

2. Personal risks: background checks for all fund managers(education, former employers, clients etc.)

3. Operational risks: financial control, back office, trade execution,liquidity terms and lock-up periods

Qu

ali

tati

ve

Eva

lua

tio

n

© FERI 24

liquidity terms and lock-up periods

4. Management risks: detailed and appropriate risk management systems(personally checked !)

5. Portfolio risks: liquidity, leverage, market risk exposures, etc.

Qu

ali

tati

ve

Eva

lua

tio

n

Qu

an

t.

An

aly

sis

QUALITATIVE EVALTUATION CRITERIA

• Fund cash flows

• Costs

• Ability/Profile

• Resources

• Motivation

• Organizational structure

• Customer Relations

• Concept

• Consistency

• Capacity

• Risk Management Approach

• Systems

• Independent Risk

Hedge Fund Evaluation System

Risk Strategy Inst. Aspects Management Economics

© FERI 25

• Operations• Independent Risk

Manager

• Market exposure

Content of RatingBase System:For each fund 50 basic information criteria and 400 valuation criteria 60 valuation criteria are rating criteriaAll of these rating criteria are grouped into 5 rating segmentsThese rating segments are weighted as shown and finally consolidated into the fund rating

The analysis and the evaluation prosess must be consistent, transparent, independent from the analyst !

QUALITATIVE ANALYSIS:ASSESSMENT FRAMEWORK

Risk

Risk – Risk Management Approach- How does the manager try to avoid getting into difficult

situations?

Risk – Risk Management Systems- Will adverse moves be picked up quickly enough?

Risk – Independent Risk Manager

Strategy

Strategy – Concept- Competitive advantage?- Structured investment process?- Match of advantage / uniqueness with investment

process?

Strategy – Consistency- Has the manager left the area of his “edge”?

© FERI 26

Risk – Independent Risk Manager- Is there a RM who will be able to stop out (or contain in

any other way) the losing position?- Uniqueness

Risk – Market Exposure- What is the maximum loss likely to be suffered in normal

/ extreme market based on market exposure / position concentration / leverage / illiquidity of the book?

- Has the manager left the area of his “edge”?- To which extent was the strategy changed?- Is the change likely to have a positive or negative

impact on the future performance of the fund?

Strategy – Capacity- Approximate true capacity of the fund/strategy?- Is the manager’s capacity estimation realistic?- Is the manager operating above his capacity?

Strategy – Trading- Match of trade execution process with strategy?

QUALITATIVE ANALYSIS:ASSESSMENT FRAMEWORK

Management

Management – Ability / Profile- Stability of team- Relevance of work experience/education- Length of experience in industry

Management – Resources- How many investment professionals / other

staff?- Is the staff concentrated on the fund or also

Economics

Economics – Fund Cash Flow- Are there any dangers of the fund

being squeezed out by redemptions?

Economics – Costs- Is the cost structure excessive with

respect to management motivation and strategy?

Inst. Aspects

Inst. Aspects –Organizational Structure- Quality and independence of the

business partners: administrator, prime broker, and auditor of the fund

Inst. Aspects – Customer Relations Management

© FERI 27

- Is the staff concentrated on the fund or also doing other things?

- Is the staffing sufficient to support the scope of the strategy?

Management – Motivation- Is the staff (incl. analysts) directly linked to

the success of the fund?- Is the manager hurt if he makes a big loss?- How is the manager’s other wealth

distributed / is he focused on the fund?

Relations Management- Is the report sufficient to monitor the

fund?

Inst. Aspects – Operations- Is a proper financial control

guaranteed by the fund’s structure and its back office operations?

QUALITATIVE ANALYSIS: DATABASE & CUSTOMIZED QUESTIONNAIRES

All information (up to 400 data per fund) is entered into a database in a comprehensive manner

60 valuation criteria

© FERI 28

60 valuation criteria are rating criteria leads to a final internal rating

Contact Records Meeting Notes Investment Proposals

EXTENSIVE DOCUMENTATION OF EVERY PROCESS STEP

© FERI 29

⇒Transparency and objectivity of evaluation is needed

For every fund & every fund manager

PORTFOLIO RISKS REPORTING FOR A MULTI STRATEGY HF PORTFOLIO

Risk reports show parameters of strategy specific risks in the portfolio

Systematic risk (Beta, style and factor exposures) are monitored for each portfolio on a monthly basis

VaR breakdown per strategy:

Style Weight VaR VaR weight

ED 14% 153'459 0.60%

EH 51% 483'388 1.89%

RV 18% 105'628 0.41%

TT 17% 322'428 1.26%

Sum 100% 1'064'903 4.16%

Portfolio VaR (95%): 4.16%

VaR weight

ED

14%TT

30%

Type B Model 1.85% 2.25%

CSFB/Tremont Convertible Arbitrage Index -0.229

CSFB/Tremont Distressed Index 0.129

CSFB/Tremont Equity Market Neutral Index 0.149

CSFB/Tremont Event Driven Index 0.302

CSFB/Tremont Fixed Income Arbitrage Index -0.002

CSFB/Tremont Global Macro Index 0.044

CSFB/Tremont Long/Short Equity Index 0.091

Factor

exposure VaR VaR max

Type A Model 1.86% 2.56%

MSCI World 0.258

Lehman Aggregate Bond Index 0.167Goldman Sachs Commodity US $ DRI Index 0.052

© FERI 30

Factor exposure

exposure

0.26

0.17

0.05

Style exposure

exposure

-0.23

0.13

0.15

0.30

0.00

0.04

0.09

0.03

0.26

factor

MSCI World

Lehman Aggregate Bond Index

Goldman Sachs Commodity US $ DRI Index

HF Index

CSFB/Tremont Equity Market Neutral Index

CSFB/Tremont Event Driven Index

CSFB/Tremont Fixed Income Arbitrage Index

CSFB/Tremont Distressed Index

CSFB/Tremont Convertible Arbitrage Index

CSFB/Tremont Global Macro Index

CSFB/Tremont Long/Short Equity Index

CSFB/Tremont Managed Futures Index

CSFB/Tremont Risk Arbitrage Index

Unrestricted Model 2.33% 3.61%

10 year Bund yield* -0.821

10 year Japan yield* 0.598

10 year Treasury yield* 0.179

10-Year Treasury Benchmark 0.0983 months T-Bill yield* -0.012

Amex Oil Index 0.034

DAX 30 0.013

DJ Stoxx 600 0.010

eur_tr 0.005

Fama/French SMB 0.017

Federal Reserve Trade weighted value of US Dollar 0.075

FTSE All Shares -0.012

FTSE Small Caps 0.037

High Yield factor 0.023Investment grade spread* 0.100

Lehman High Yield Credit Bond Index 0.023

MSCI Europe Small Caps 0.012

MSCI World 0.020

MSCI World Metals & Mining USD 0.018

Realized S&P 500 volatility change -0.057

S&P 500 0.074

S&P/TSX OIL & GAS INDEX 0.002

EH

46%

RV

10%

Strategy weight

ED

14%

EH

51%

RV

18%

TT

17%

CSFB/Tremont Long/Short Equity Index 0.091CSFB/Tremont Managed Futures Index 0.027CSFB/Tremont Risk Arbitrage Index 0.256

Factor

exposure VaR VaR max

RÉSUMÉ:

Hedge Funds....

...is the name of a group of various strategies with vastly different characteristics

...all strategies should be analyzed and allocated individually

...quantitative and qualitative analysis of Hedge Funds require an adaption of • research processes • evaluation parameters

© FERI 31

• evaluation parameters• risk monitoring

...can deliver diversification and alpha for institutional portfolios ...

But remember: “There is no such thing as a free lunch!”

DISCLAIMER

Any questions...?

Thank you for your attention

© FERI 32

Feri Trust GmbH

Haus am Park

Rathausplatz 8-10

61348 Bad Homburg

This presentation is for informational purposes only. An investor should consult and review the appropriate offering memorandum before making any investment decisions.

This presentation does not constitute an offer to any person to whom it would be unlawful to make such an offer.

Prospective investors should inform themselves and take appropriate advice as to any applicable legal requirements and any applicable taxation and exchange control regulations inthe countries of their citizenship, residence or domicile which might be relevant to the subscription, purchase, holding, exchange, redemption or disposal of any investments.

Past performance is not a guide to future performance and the value of investments and the income derived from them can go down as well as up. Future returns are not guaranteedand a loss of principal may occur.

Opinions expressed are current opinions as of the date appearing in this material only. No part of this material may be 1.) Copied, photocopied or duplicated in any form, by any means;or 2.) redistributed without Feri Trusts‘ (FT) prior written consent.

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In the Jungle of Alternatives - Presentation: Antje Biber Managing Partner, Feri Trust GmbH - Investments Summit