PowerPoint Presentation · 6/20/2018 · The OLED market is expected to be valued at USD 48.81 Billion by 2023, growing at a CAGR of 15.2% between 2017 and 2023 • GAMING Gaming

June 2018

Prosperously navigating

unexpected events

with great skill and agility

2

AGENDA

3

Who We Are

Investment Methodology

Performance

Top 10 Strategic Tech Trends for 2018-2020

Current Opportunity and Investment pipeline - GAMING

Summary

WHO WE ARE

4

BLACK SWAN

DEXTERITAS

(“BSD”)

TECHNOLOGY EXPERTISE

• Unique insight

from entrepreneurs leading

international tech development

based on needs creation

• Advisory Committee of tech leaders

who determine the global adoption

and success of new technologies

• Representation in all BSD-invested

tech sectors and sub-sectors, for

unrivalled expertise

• Portfolio Manager with 30 years of

portfolio management experience

across various asset classes at

asset management companies (LGT,

TAL, CIBC Asset Management), and

a pension (British Petroleum)

• Exceptional research team with a

wide breadth of knowledge in

research, finance, and engineering

• Intense due diligence process for our

stock selection process

• Unique risk management overlay

to minimize drawdowns and volatility

PORTFOLIO MANAGEMENT

EXPERIENCE

5

INVESTMENT METHODOLOGY

SECTOR ASSESSMENT

• Life Cycle: Sectors in introduction and growth stages with

high Total Addressable Market (TAM)

• Competition: High barrier of entry with differentiated products

and services within the sector

COMPANY ANALYSIS

• Business Model: Public ccompanies with high recurring revenue,

easily able to leverage network effects, strong negotiating power

with suppliers and customers, and strong corporate governance

• Size: Target small (500M+) to large cap public companies with

established track record of executing the business.

• Growth: Public companies with high and/or consistent revenue

growth

• Valuation: Determine if opportunities exist based on our fair

value expectation of stocks versus current stock prices

PORTFOLIO CONSTRUCTION

• Weightings: Determine % of portfolio allocated to holdings

based on risk-reward expectations

• Diversification: Well-diversified across 35 to 40 holdings to

maximize risk-adjusted returns

• Hedging: Utilize derivatives and fixed income products to

minimize drawdowns and generate alpha

IDEATION

• BSD Investment Advisory Committee: seek out global

growth themes and trends to overweight and underweight

various subsectors

• Experienced investment team sourcing trade ideas and

discussing vital macro economical forces in play

• Draw on sector experiences from members of the committee and

discuss emerging technology from the private and public space

• Deep dive into industry verticals to identify beneficiaries in other

primary, secondary, and tertiary markets

PORTFOLIO CONSTRUCTION

IDEATION

SECTOR

ASSESSMENT

COMPANYANALYSIS

PUBLIC COMPANIES

PERFORMANCE

PERFORMANCE METRICS* FUND RETURNS

FUND BENCHMARK **

Return Since Inception

YTD Return

60 Day Return

20 Day Return

Daily Standard Dev.

Sharpe Ratio

Sortino Ratio

Correlation

57.11%

1.28%

-1.28%

-0.23%

0.72%

0.87

1.20

—

63.89%

1.41%

-3.34%

-3.09%

0.95%

0.74

1.03

0.96

* Management fees and expenses may be associated with investments. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. The indicated rate of return is the historical compounded total return including changes in share value and reinvestment of all dividends.

** The benchmark is a blend of 50% Nasdaq Composite Index and 50% Russell 2000 Index. The blended index is chosen as the indices are generally followed as indicators of the performance of technology stocks and growth stocks, and our portfolio has approximately 50% of positions more correlated with the Nasdaq Composite

Index, and 50% of positions more correlated with the Russell 2000 Index.

October 31, 2013 to April 30, 2018

6

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Benchmark YTD

-2.08% 3.63% -2.07% -4.39% 2.38% 2.80% 2.21% 3.53% -1.64% 4.95% 2.89% -1.51% 10.69% 8.40%2014

2013

GLOBAL TECH FUND MONTHLY PERFORMANCE SINCE INCEPTION

BSD has outperformed our portfolio benchmark with lower risks through active diversification across various subsectors

1.32% 0.35% 2.82% 4.55% 9.60%

0.53% 5.39% -0.16% 2.98% 0.90% -0.91% 0.43% -6.67% -1.48% 9.68% 0.63% -0.76% 10.16% -0.10%2015

-7.41% -2.78% 5.31% -0.02% 2.33% -0.29% 3.66% 0.65% 1.63% 0.38% -3.75% -0.71% -1.63% 13.95%2016

-42%

-3%

36%

75%

BSD Global Technology Hedge Fund

Blend of 50% Nasdaq Composite Index and 50% Russell 2000 Index

4.97% 2.14% 2.99% 2.08% 3.85% -2.55% 2.68% 2.12% 0.51% 3.41% 0.11% -0.20% 24.49% 20.55%2017

2.89% 0.63% -0.62% -1.57% 4.11%2018 5.44% 7.11%

7

HOW BSD COMPARES TO OTHER HEDGE FUNDS

HEDGE FUND STRATEGIES* 2014 RETURN 2015 RETURN 2016 RETURN 2017 RETURN

PERFORMANCE

BSD Global Technology Hedge Fund

Absolute Return

Multi-Region

Equal Weighted Strategies

Relative Value Arbitrage

Macro/CTA

Fixed Income - Credit

Global Hedge Fund

Equity Hedge

North America

Emerging Markets Composite

Market Directional

Event Driven

10.69%

0.67%

1.71%

-0.56%

-3.06%

5.09%

-1.86%

-0.60%

1.37%

-4.13%

-8.03%

5.13%

-4.06%

Our outperformance relative to other funds are indicative of our core competency in

generating outsized returns and navigating a challenging market environment

* Hedge fund index data is provided by Hedge Fund Research Index (HFRI) as of January 2018.

10.16%

2.86%

-1.19%

-1.54%

-3.10%

-1.96%

-4.38%

-3.64%

-2.33%

-9.35%

-5.26%

-8.58%

-6.94%

-1.63%

0.31%

1.95%

3.78%

1.03%

-2.93%

4.97%

2.50%

5.49%

4.14%

6.77%

9.86%

10.50%

24.99%

3.91%

6.58%

6.10%

4.28%

7.43%

4.55%

8.04%

12.78%

6.25%

8.99%

4.68%

7.22%

TOP 10 STRATEGIC TECH TRENDS FOR 2018-2020

8

CURRENT OPPORTUNITIES AND INVESTMENT PIPLINE

• DIGITALIZATION & ELECTRIFICATION

The automotive revenue pool will grow and diversify with new services potentially becoming a ~USD 1.5

Trillion market in 2030

• 5G DEPLOYMENT

The 5G market will grow to $1.23 Trillion by 2026, according to a new report by Ericsson announced at the

Mobile World Congress

• DIGITAL TWINS

The digital twin market is expected to grow at a CAGR of 37.87%, to reach USD 15.66 Billion by 2023

• AUTOMATION & ROBOTIZATION

After growing at a compound rate of 17 per cent a year, the robot market will be worth $135 Billion by 2019,

according to IDC

• OLED – Organic Light Emitting Diode

The OLED market is expected to be valued at USD 48.81 Billion by 2023, growing at a CAGR of

15.2% between 2017 and 2023

• GAMING

Gaming market to grow at a CAGR of +11.0% toward 2021 to reach $180.1 Billion

• HYPERCONVERGED INFRASTRUCTURE

The hyper-converged infrastructure market is expected to reach USD 12.6 Billion by 2022, at a

CAGR of 43.59% between 2016 and 2022

9

CURRENT OPPORTUNITIES AND INVESTMENT PIPLINE

10

• Modern personal computers owe many advancements and innovations to the

game industry: sound cards, graphics cards and 3D graphic accelerators, faster

CPUs, and dedicated co-processors like PhysX are a few of the more notable

improvements.

• As of 2017, games industry generated $121.7 Billion in revenues worldwide,

and were the third-largest segment in the U.S. entertainment market, behind

broadcast and cable TV.

• Gaming market to grow at a CAGR of +11.0% toward 2021 to reach $180.1

Billion

• Global Esports economy will reach $905.6 Million in 2018 as brand investment

grows by 48%

• The global Esports audience will reach 380 Million this year, made up of 165

million Esports Enthusiasts and 215 Million Occasional Viewers

• On its current trajectory, the Esports industry will reach $1.4 Billion by 2020

GAMING

GAMING

Publishers

Distributors

Hardware

Users

Esports

11Source: Newzoo

2017 Total

$122B+14.3%

YoY

VIDEO GAMING ECOSYSTEM

12

GAMING

Chinese Tencent

is the clear leader in the space

Source: Newzoo

Bn

Bn

Bn

Bn

Bn

$1.91

$1.94

$2.09

$2.21

$2.27

$2.40

$3.60

$5.10

$5.30

$5.60

$6.50

$7.10

$8.00

$10.50

$18.10

Bn

Bn

Bn

Bn

Bn

Bn

Bn

Bn

Bn

Bn

2017 TOP 15 COMPANIES BY GAME REVENUE

PUBLISHERS

13

TOP 10 BEST-SELLING GAMES YEAR-TO-DATE

GAMING

1

Far Cry 5

Ubisoft

2

Monster Hunter: World

Capcom

3

Dragon Ball: FighterZ

Bandai Namco

4

Call of Duty: WWII

Activision

5

Grand Theft Auto V

TakeTwo Interactive

6

NBA 2K18

TakeTwo Interactive

7

PUBG

Bluehole

8

Sea Of Thieves

Microsoft

9

MLB 18: The Show

Sony

10

Mario Kart 8

Nintendo

Source: Forbes

PUBLISHERS

SupercellKey games: Clash Royale, Brawl Stars,

Clash of Clans, HayDay, Boom Beach

Structure: Majority owned by Chinese

tech firm Tencent

NianticKey games: Pokemon GO, Ingress

Structure: Independent (Investment from

Google, Nintendo, The Pokémon

Company and other investors)

TencentKey games: Honour of Kings, WeFire,

Clash Royale

Structure: Publicly listed

NetEaseKey games: Fantasy Westward Journey,

Onmyoji, Ghost

Structure: Publicly listed

Machine ZoneKey games: Game of War, Mobile Strike,

Final Fantasy: A New Empire

Structure: Privately held

14

TOP MOBILE GAME PUBLISHERS

GAMING

NetmarbleKey games: Lineage 2: Revolution,

Marvel Contest of Champions

Structure: Privately held

King Digital EntertainmentKey games: Candy Crush Saga, Bubble

Witch Saga 3, Hearthstone: Heroes of

Warcraft (Blizzard)

Structure: Acquired by Activision Blizzard

EA MobileKey games: Star Wars: Galaxy of

Heroes, Madden NFL Mobile, FIFA

Mobile Soccer

Structure: Public

MixiKey games: Monster Strike

Structure: Public

GungHo Online EntertainmentKey games: Puzzle & Dragons, Super

Senso

Structure: Public

PUBLISHERS

15

2012-2021 GLOBAL GAMING MARKET

GAMING

$26.12 $29.07 $30.53 $31.65 $31.95 $32.86 $33.10 $33.42 $34.84 $34.22

$31.77 $29.84 $30.53 $29.79 $31.95 $32.86 $34.48 $36.46 $38.16 $39.62

$12.71 $17.60

$24.59 $31.65

$42.60

$55.98

$70.33

$82.03

$94.56 $106.26

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

PC Games

Console Games

Mobile Games

$70.60Bn$76.50Bn

$84.80Bn$93.10Bn

$106.50Bn

$121.70Bn

$137.90Bn

$151.90Bn

$165.90Bn

$180.10Bn

CAGR

2012-2021

Total

+11.0%

Mobile

+26.8%

Console

+11.0%

PC

+11.0%

Source: Newzoo

DISTRIBUTERS

TOP 10 COUNTRIES BY GAMING REVENUE

GAMING

16

China

$32,536 M

12 USA

$25,426 M3 Japan

$14,048 M

United Kingdom

$4,238 M

4 Germany

$4,430 M

5

6

Republic of Korea

$4,203 M

7

France

$2,977 M

8

Canada

$1,968 M

9

Spain

$1,918 M

10Italy

$1,881 M

China generates one quarter of gaming revenue worldwide

Source: Newzoo

DISTRIBUTERS

17

TOP VIDEO GAMES DIGITAL DISTRIBUTERS

GAMING

Source: Newzoo

DISTRIBUTERS

Steam

Structure: Owned by Valve

Corporation (Private)

Xbox LiveStructure: Owned by Microsoft

(Publicly listed)

PlayStation StoreStructure: Owned by Sony

(Publicly listed)

OriginStructure: Owned by Electronic

Arts (Publicly listed)

UplayStructure: Owned by Ubisoft

(Publicly listed)

Amazon.comStructure: Publicly listed

GOG.comStructure: Owned by CD Projekt

(Private)

GamersGateStructure: Privately held

Green Man GamingStructure: Privately held

Battle.netStructure: Owned by Activision

Blizzard (Publicly listed)

GameStopStructure: Publicly listed

18

GAMING HARDWARWE

HOW IS PLAYING

Mobile

PC

Console

Sony Play Station 2 is the best selling console ever – 138M units sold

iPhoneXAsus ROG

Game Smartphone

Xiaomi Black Shark

Game SmartphoneRazer

Game Smartphone

Sony PS4 Microsoft XBox One X Nintendo Switch

Dell AlienwareCyberPowerPC

Gamer XtremeHP Omen X Corsair One Pro

19

2008-2017 UNIT SALES OF GAME CONSOLES

GAMING

Source: Newzoo

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Nintendo

Microsoft

Sony

HARDWARWE

24.51M 23.18M 23.19M 22.28M 19.88M 19.12M 20.84M 21.53M 20.15M 20.47M

11.16M10.36M

13.53M 13.95M

10.69M9.32M

10.51M 9.56M8.76M 8.27M

53.56M48.33M 37.81M

32.81M

23.83M

20.18M 13.9M 10.86M8.75M

18.14M

20

GPU & GAMING ACCESSORIES

GAMING HARDWARWE

Discrete

GPUs

Nvidia and AMD control nearly 100% of discrete GPU market

Smartphones are also using GPUs, mostly Adreno GPUs from Qualcomm, PowerVR G

PUs from Imagination Technologies and Mali GPUs from ARM

Gaming accessories are representing

$5B-$10B Market

Top 5 Best Gaming Gear BrandsRazer (Private)

SteelSeries (Private)

Logitech

Microsoft

Corsair (Private)

21

2014-2021 NUMBER OF ACTIVE VIDEO GAMERS WORLDWIDE

GAMING

2014 2015 2016 2017 2018 2019 2020 2021

1,815M1,958M

2,080M2,210M

2,341M2,471M

2,600M2,725M

Source: Newzoo

USERS

22

WHO IS PLAYING

GAMING

Source: Statista

Male

55%

Female

45%

Under 18 years old

18 to 35 years old

36 to 39 years old

50 years and older

29%

28%

20%

23%

USERS

23

MAY 2018 MOST WATCHED GAMES ON TWITCH BY ESPORTS HOURS

GAMING

Source: Newzoo

ESPORTS

Esports hours consists of content from professionally organized esports competitions and does not include individual (pro-player) streams. This content combined with

consumer content makes up the total hours watched.

RANK TITLE TOTAL HOURS ESPORTS HOURS

1Dota 2

Valve Corporation (Private)38.8M 17.9M

2League of Legends

Riot Games (Private)81.2M 17.2M

3Counter-Strike: Global Offensive


4Overwatch

Activision Blizzard30.9M 13.2M

5Hearthstone


6Tom Clancy's Rainbow Six: Siege

Ubisoft9.2M 2.3M

7PLAYERUNKNOWN'S BATTLEGROUNDS

Bluehole (Private)43.8M 1.7M

8StarCraft II


9Street Fighter V

Capcom2.4M 1.2M

10World of Warcraft


24

MAY 2018 MOST WATCHED GAMES ON TWITCH BY TOTAL HOURS

GAMING

Source: Newzoo

ESPORTS

Esports hours consists of content from professionally organized esports competitions and does not include individual (pro-player) streams. This content combined with

consumer content makes up the total hours watched.

RANK TITLE TOTAL HOURS ESPORTS HOURS

1Fortnite

Epic Games (Private)142.3M 0.4M

2League of Legends

Riot Games (Private)81.2M 17.2M

3PLAYERUNKNOWN'S BATTLEGROUNDS

Bluehole (Private)43.4M 1.2M

4Dota 2


5Hearthstone


6Overwatch


7Counter-Strike: Global Offensive


8World of Warcraft


9Grand Theft Auto V

Take-Two Interactive11.4M 0.0M

10Detroit: Become Human

Quantic Dream SA (Private)9.2M 0.0M

25

2016-2021 ESPORTS GLOBAL REVENUE GROWTH

GAMING

2016 2017 2018 2019 2020 2021

$1650M

$493M

$655M

$906M

$1154M

$1471M

Revenue

Growth

+33.0%YoY

Expected

Revenue

Growth

+38.2%YoY

Expected

Revenue

Growth

+27.4%CAGR

2016-2021

Source: Newzoo

ESPORTS

26

2018 ESPORTS GLOBAL REVENUE EXPECTATIONS

GAMING

2018 Total

$906M+38.2%

YoY

18%

6%

38%

32%

In 2018

China and North America

expected to generate

$509M 56%

of the global

esports revenue

Source: Newzoo

ESPORTS

27

2018 ESPORTS EXPECTED GLOBAL REVENUE STREAMS

GAMING

Source: Newzoo

Game publisher

Fees

$116.30

+11.0 YoY

Merchandise

& tickets

$95.50

+16.2 YoY

Advertising

$173.80

+23.8 YoY

2018 Total

$906M+38.2%

YoYMedia rights

$160.70

+72.1 YoY

Sponsorship

$359.40

+53.2 YoY13%

11%

40%

18%

19%

ESPORTS

Video game

streaming platforms:

Fb.gg

28

TOP ESPORTS ORGANAIZERS

GAMING

573MTotal organizer

hours

11%

9% 28%

23%

Riot and ESL combined, are responsible

for more than half of these organizer hours.

Source: Newzoo

ESPORTS

Riot Games

ESL

Dreamhack

Valve

Starladder

9%

MLG

5%

Beyondthesamit

5%

Other

10%

League of Legends, developed and

published by Riot Games, is easily the

most popular and lucrative eSports

game out there.

At the 2017 Season World

Championship, the final competition of

the 2017 League of Legends

competitive season, 24 teams received

invitations to play for a prize pool of

$4,596,591 (the initial prize pool was

$2,250,000, while the rest was fan

contributions). Samsung Galaxy, a

South Korean team and member of

KeSPA, took first place in the

competition and walked away with

$1,723,721. SK Telecom T1 finished

second and won $620,539, while Royal

Never Give Up and Team WE finished

in third and fourth to take home

$321,761 apiece.

29

ESPORTS GLOBAL AUDIENCE GROWTH

GAMING

Source: Newzoo

2016 2017 2018 2019 2020 2021

Esports enthusiasts

Occasional viewers

$160M

$121M

$192M

$143M

$215M

$165M

$246M

$189M

$281M

$216M

$307M

$250M

Total

Audience

+19.3%YoY

Expected

Revenue

Growth

+14.4%CAGR

2016-2021

Total

Audience

+13.8%YoY

In 2018 Asia-Pacific will account for 52% of Esport Enthusiasts

ESPORTS

30

SUMMARY

• We bring unique, proven strengths

• Principal with 30 years of portfolio management experience

• Dynamic stock selection methodology

• Disciplined risk management process

• Our expertise in technology is unparalleled

• Team consisting of seasoned entrepreneurs that have co-founded billion dollar companies

• Global networks of advisors and analysts examining tech vendors and tech end-users

• Significant out-performance in risk-adjusted returns

• The BSD Global Tech Hedge Fund returned 65.23% since inception versus our

benchmark** return of 75.95%

• Exhibited ~73% of the benchmark volatility as of May 31, 2018

• Hedging strategy acts as an “insurance policy” in anticipation of adverse market events,

by limiting drawdowns and often generating alpha

* Management fees and expenses may be associated with investments. Investment funds are not guaranteed, their values change frequently and past performance may not be

repeated. The indicated rate of return is the historical compounded total return including changes in share value and reinvestment of all dividends.

** The benchmark is a blend of 50% Nasdaq Composite Index and 50% Russell 2000 Index. The blended index is chosen as the indices are generally followed as indicators of the

performance of technology

stocks and growth stocks, and our portfolio has approximately 50% of positions more correlated with the Nasdaq Composite Index, and 50% of positions more correlated with the

Russell 2000 Index.

Documents

PowerPoint Presentation · 6/20/2018 · The OLED market is expected to be valued at USD 48.81 Billion by 2023, growing at a CAGR of 15.2% between 2017 and 2023 • GAMING Gaming