Boothbay Multi-Strategy Fund, LP

Boothbay Multi-Strategy Fund, LP Investor Presentation February 2013 Confidential. Not for public distribution [B ANW 810 Seventh Ave 4th Floor New York City, NY 10019 Boothbay Multi•Strategy Fund, LP EFTA01088845 Legal Disclaimer THIS DOCUMENT IS NOT AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY INTERESTS IN THE FUND. AN OFFERING OF INTERESTS WILL BE MADE ONLY BY MEANS OF A CONFIDENTIAL PRIVATE OFFERING MEMORANDUM AND ONLY TO QUALIFIED INVESTORS IN JURISDICTIONS WHERE PERMITTED BY LAW. An investment in the Fund is speculative and involves a high degree of risk. The Fund will have substantial limitations on investors' ability to redeem or transfer their investments, and no secondary market for the Fund's interests exists or will develop. All of these risks, and other important risks, are described in detail in the Fund's Confidential Private Offering Memorandum. Prospective investors are strongly urged to review this Confidential Private Offering Memorandum carefully and consult with their own financial, legal and tax advisors, before investing. There can be no assurances that the Fund will have a return on invested capital similar to the returns of other accounts managed by Ari Glass or Boothbay because, among other reasons, there may be differences in investment policies, economic conditions, regulatory climate, portfolio size, leverage and expenses. The fact that other accounts managed by Ari Glass or Boothbay have realized gains in the past is not an indication that the Fund will realize any gains in the future. Prior performance is not necessarily indicative of future results. This document contains certain forward looking statements and projections. Such statements and projections are subject to a number of assumptions, risks and uncertainties which may cause actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by these forward-looking statements and projections. Prospective investors are cautioned not to invest based on these forward-looking statements and projections. Certain information contained herein has been supplied to Boothbay by third parties. While Boothbay believes such sources are reliable, it cannot guarantee the accuracy of any such information and does not represent that such information is accurate or complete. Boothbay Multi-Strategy Fund. LP 2 EFTA01088846 Executive Summary Investment Strategy • A multi-manager, multi strategy investment program focused on liquid, non-correlated exchange traded securities •• Currently 17 investment teams including 5 quant equity, 5 equity fundamental (low net), 2 quantFX, 2 Quant futures, 1 fixed income, and 2 other. Teams range in size, trading style, time horizon, and history providing for low cross correlation, and greater portfolio level risk adjusted returns. Objective Investments • Consistently generate non correlated superior risk adjusted returns Targeting annual returns of 12-20% with volatility of 6-9°/0't with a monthly VAR target of 180-300 basis points* (95% confidence interval) Fund History Spinning out of a multi-family office trading entity with select diversified group of portfolio managers and a robust infrastructure • AUM: approx. $45M (significant insider capital in Fund) Competitive Advantage • Large percentage of allocations to less-scalable, high Sharpe strategies. • Proprietary systems, deal structuring, sourcing, and risk management Multiple portfolio management teams with differing styles, and low cross correlation designed to provide investment diversification Managing member has skills and experience unique in the industry • Ari Glass has 15+ years' experience running hedge funds, sourcing and evaluating investment talent, and negotiating and structuring deals with portfolio managers Robust platform designed to attract and improve portfolio management talent Boothbay Multi-Strategy Fund. LP * See IMPORTANT NOTES on page 12 3 EFTA01088847 Ari Glass, Managing Member Daniel Bloom, CFO Edgar Hajjar, Director of Programming Et Development Michael Lwin, Financial Analyst/ Programmer Ian Baird Operations << cc < < 1998-1999 2000-2010 I 2011-2013 Cooper, it Lybrand Prudential Sect, ritiey Queens College Vector Partners Intrepid Management Platinum Management Yeshiva University GlobeOp, UBS, Alliance Bernstein Altrinsic Global Advisors Deloitte Boothbay Boothbay Intersite Technologies Fortis Bank OTO Financial, LLC UNLV Baruch College- Masters ABN Amro/ Franklin Templeton I UBS Boothbay Boothbay Boothbay EFTA01088848 Boothbay Difference Business Plan Issue with Business Plan Typical Investment vehicle Issue with investment vehicle Attitude towards non scalable strategies Seeder Institutional Allocator Investing early for a stake in the business/arbing value of an early versus later dollar Allocate assets to various strategies, typically more established firms Invest across a variety of strategies via exclusive managers Hybrid model of I investing in both exclusive strategies I that are non scalable and non exclusive I strategies I Managed account in Boothbay's name Will not invest in non scalable strategies or managers who don't present well enough to grow a business Invest into an LP Allocate assets to various strategies, typically more established firms. Miss out on talented emerging talent, and on non scalable strategies Focus on very scalable strategies for asset gathering purposes Direct exclusive investment on own balance sheet Open architecture allows investments in all kinds of alpha generating strategies Lack of liquidity, transparency and ability to make decisions in real time Lack of liquidity, transparency and ability to make decisions in real time Closed architecture forces them to miss out on talent who wont be exclusive Liquid, transparent, and can monitor risk and performance in real time and benefit from cross margin Profit from growth of the business side, so they pass on high-Sharpe non scalable strategies Can't afford to take operational risk of a smaller manager Generally pass as its not big enough to move the needle Is investing in non scalable strategies as they often have better risk reward. We are investing via management account so are not taking operational risk and are not taking equity so don't care about ability to grow other assets. Emphasis on liquidity, diversification, risk management, and talented trading teams Boothbay Multi-Strategy Fund. LP 5 EFTA01088849 5 Ste• Investment Process Step 1): Sourcing of Investment Talent Sourcing of Investment Talent Diligence & Deal Porde o Evaluation Structuring Construct on Risk Management • Team has extremely deep industry networks, which allows the firm to capitalize on flow from various sources • Create and nourish a culture which attracts top caliber talent — "partner" with our traders • Execution knowledge • Research databases • Willingness and knowledge to create and improve strategies Boothbay Multi-Strategy Fund. LP 6 EFTA01088850 5 Ste• Investment Process Step 2): Diligence & Evaluation Sourcing of \ Diligence & Deal \ Portfolio \ Risk Investment Talent Evaluation Structunng Construceon Management Managing member has over 12 years of experience in evaluating investment talent • Intrepid Management, Paine Heights Management, Platinum Partners Fundamental Analysis • Assess individual trades, quality of research (statistical or fundamental), trader experience, and overall abilities Quantitative Analysis ■ Quantitative analysis of strategies, historical PnL, positions Boothbay Multi-Strategy Fund. LP 7 EFTA01088851 5 Step Investment Process Step 3): Deal Structuring Sourcing of \ Diligence & Investment Talent Evaluation Deal \ Portfobo Risk Structuring Construction Management Ari Glass structured deals with investment talent at both Intrepid Associates, a Front Point-type of vehicle (2004- 2007), and Platinum Management (2007-2009) A deep understanding of the micro structure of investment talent market Deals typically allow managed accounts with capacity rights Deals have provisions offering downside protection with upside optionality Entrepreneurial and resourceful deal making includes inviting co-investors to meet talent capital requirements Quant Talent Non-Scalable: best strategies tend to be non- scalable which do not have a large institutional base Infrastructure: allows for easy setup and operational support. One-stop shop for trading talent. Target: takes a different skill set to develop quant strategies vs. running a business or raising capital Fundamental Talent • Early Dollar: as an earlier investor we benefit from the "arbitrage" vs. later dollars • Alternative Platform: provide an alternative platform for managers who do not go to large multi-strategy firms or won't give up equity to seeders Managed account ensures that Boothbay is not taking the operational risk that an investor would have as an LP Boothbay Multi-Strategy Fund. LP 8 EFTA01088852 5 Step Investment Process Step 4): Portfolio Construction Sourcing of \ Diligence & \ Deal \ Portfolio Investment Talent Evaluation Structunng Construction Risk Management • Whole is greater than the sum of its parts; non-correlated portfolios allow higher expected return per unit of portfolio risk • Low correlation of alphas allow Portfolio VaR to be approximately 64% lower than the sum of individual sub portfolio manager VaR. * • Proprietary trading environment — focus on trading edge • Broad diversification: securities, strategies, geographies, time horizons • Minimize risk to systematic factors emphasis on uncorrelated • Proprietary Allocation System • In-house system to create an optimal portfolio given various constraints ■ Investments made through managed accounts • Allows for mix of margin-intensive and non margin-intensive strategies • Real time PnL and risk reports ■ Ensure strategies are additive to the portfolio on both a fundamental and quantitative basis L Boothbay Multi-Strategy Fund. LP * See IMPORTANT NOTES on page 12 9 EFTA01088853 5 Ste• Investment Process Step 5):Risk Management Sourcing of \ Diligence& \ Deal \ Portfolio \ Risk Investment Talent Evaluation Structuring Construcbon Management / • Risk Management Risk management provides an independent assessment of each teams risk and how these risk are combined on an intraday basis Ensure that ex-ante match ex-post risks • Risk System • Tracks quantifying risks on both the individual portfolio and aggregate firm levels • Exposures we analyze include but are not limited to the following: • Gross/Net Market Value • Beta-adjusted net market value • Liquidity/Concentration risk • Volatility • Geographic risk • Stress tests fie ▪. .....salivalmta•••••••••••••• Stir, Miss OM F Fuld NMI Ulan aa. m101.1 remeeFerni Fr Intel *eZI issua • an Ml Pt lb*. MIN Oral: MAW =tie • . ro)..-• %Wait ant Mme tun k:w lar ale/ Kali Oiliklil SO WE ri. WWI AWN Mrie in ttlitil ILIOS W WS Nall an lite Nib ran INMAN MOM 11•11•10tnn ang:1g a— Boothbay Multi-Strategy Fund, LP 10 EFTA01088854 Hypothetical Pro-Forma Results* Please note: Tremendous selection bias inherent in pro-forma results. It is unrealistic to expect future performance equal to past pro-forma results. NET OF TRADER FEES Year Jan Feb Mar APIA U Jul Aug Sep Oct Nov Dec Total Sharpe BOOTHBAY 2012 2.49% 1.73% 1.91% 0.79% 0.58% 0.30% -0.57% 1.53% 0.80% 0.50% 0.59% 0.69% 11.91% 3.95 SPX 2012 4.36% 4.06% 3.13% -0.75% -6.27% 3.96% 1.26% 1.98% 2.42% 1.38E -2.15% 0.67% 16.14% 1.70 Equity Market Neutral Index 2012 1.72% 1.42% -0.02% •1.69% 0.12% -0.30% 0.00% 0.51% 0.39% 0.05% 0.44% 0.58% 2.18% 0.82 I BOOTHBAY 2011 3.04% 2.15% 3.74% 2.69% 1.86% 1.52% 1.28% 4.90% 0.67% 6.23% 2'1.60%' gr.M6 5.80 SPX 2011 2.26% 3.20% -0.10% 2.85% -1.35% -1.83% -2.15% -5.68% -7.18% 10.77% -0.51% 0.85% 0.00E 0.07 Equity Market Neutral Index 2011 1.14% 1.56% 1.22% 2.57% •1.98% -0.33% -0.35% -2.32% -5.00% 4.07% -2.03% -1.51% -3.25% -0.34 2.68% 1.20% 5.22% 1.54% 3.28% 1.03% 2.79% 1.41% 0.76% 2.76% 32.98% 6.58 BOOTHBAY 2010 2.97% 3.30% SPX 2010 -3.70% 2.85% 5.88% 1.48% -8.20% -5.39% 6.88% -4.74% 8.76% 3.69% -0.23% 6.53% 12.78% 0.71 Equity Market Neutral Index 2010 -0.49% 1.55% -0.04% -0.38% 2.08% -0.77% 0.12% -3.78% 1.78% 0.63% 2.41% -0.34% 2.64% 0.48 Annualized Stats 2010 - 2012 Return 24.17% St. Dev. 5.07% Sharpe 4.77 'Current live allocations to current portfolio adjusted upwards to annualized volatility of 6% Boothbay Mum-Strategy Fund. LP * See IMPORTANT NOTES on page 12 11 EFTA01088855 Legal Disclaimers *IMPORTANT NOTES: Please note the following important information regarding the information contained on pages 3, 9, and 11 of this presentation: ■ 1. The information contained herein (e.g., VaRs, correlations and pro-forma results) is based on the adjusted unaudited performance of certain independent traders who previously traded capital for Boothbay and/or its affiliates, as well as certain other independent traders who have been identified by Boothbay as likely candidates to trade capital for Boothbay Multi-Strategy Fund, LP. VaR and correlation figures have been calculated using a recent sample portfolio from each applicable trader, adjusted as described below. Such portfolios are not all from the same trading day or period, and may not be representative of such trader's VaR or correlation figures overall or during any other period. Boothbay will provide prospective qualified investors with a more detailed description of the methodology it used in making these calculations upon request. 2. Performance of traders is, in some cases, based solely on their hypothetical, back-tested results and not on actual trading. Any actual trading results have been adjusted to reflect targeted leverage and sizing levels that Boothbay currently intends to implement, which may be materially different than the leverage and sizing actually employed by Boothbay with respect to such traders. 3. There can be no assurances that Boothbay will be able to allocate capital to all of the traders included in these results, or that the amount of capital actually allocated by Boothbay will be sufficient for such traders to achieve their trading goals or targeted leverage and sizing levels. Boothbay has a significant conflict of interest in determining which traders to include within these results. Note that certain traders who previously traded capital for Boothbay and its affiliates are not included in these results. 4. THE PRO FORMA TRADING RESULTS REFLECTED ON PAGE 11 ARE HYPOTHETICAL AND DO NOT REFLECT ACTUAL TRADING AT BOOTHBAY. The traders underlying such results have not traded together in the manner shown. Hypothetical or back-tested trading results have many inherent limitations, some of which are described below. No representation is being made that Boothbay Multi-Strategy Fund, LP will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical or back-tested results and the actual results subsequently achieved by any particular trading program or trading advisor. 5. These results reflect an implied annual management fee of 1 %and an implied annual performance fee of 15 % payable in each case to Boothbay, as well as an estimate of anticipated fund expenses and trader compensation. Actual expenses charged to investors in Boothbay Multi-Strategy Fund, LP may be materially higher than those reflected herein, particularly with respect to the compensation payable to the traders engaged by Boothbay. 6. Past performance is not necessarily indicative of future results. Boothbay Mulu-Strategy Fund. LP 12 EFTA01088856 Trading, Risk and Operational Systems System Internal/External System Description Locates Database Internal Database that stores all locates for our traders and is automatically sent to each trader in the morning. This includes both hard and easy to borrow securities Barracuda Internal Execution management system that is used to send trades to various executing brokers in an automated fashion via FIX. It also receives in real time the trades back from the executing broker so that any issues are immediately detected Cobra Internal Portfolio optimizer that produces allocations given a particular objective function. For example, creating the optimal portfolio that maximizes Sharpe ratio. Octopus Internal Allocation engine, reconciliation tool and performance database. • Used to allocate all trades to respective managed accounts taking into account positions in common • Used to reconcile cash and positions to prime brokers • Used to maintain daily, monthly, yearly and inception to date performance and other relevant statistical data for each specific manager Paladyne External Portfolio management system that is utilized to track PNL for each account as well as each manager. It is also utilized to send trades out to our prime brokers and administrator. It also includes a robust reporting engine which we have customized for our traders, operational staff and portfolio managers Surya External Real time risk engine that is utilized to monitor the overall risk of the portfolio as well as each respective manager. We have customized Surya to match our specific needs running a multi manager platform Boothbay Multi-Strategy Fund. LP 13 EFTA01088857 Biographies Ari Glass: Managing Member An Glass founded Boothbay Family Office Management in October 2011 primarily to manage the investments of two families. Under this umbrella, Boothbay Fund Management was founded in early 2012 to manage a Multi-Manager Multi —Strategy Proprietary Trading Desk that allocated to internal talent as well as to outside managers via managed accounts. Boothbay Multi Strategy Fund was launched in February 2012 spun out of the prop desk with hand selected traders. Previously, Mr. Glass served as President of Paine Heights Management LLC, which began as part of Platinum Management (NY) LLC. There, he oversaw many of the company's interests, including managing a special opportunity hedge fund that invested in the SPAC marketplace of 2008-2009 and through a subsidiary advised on a transaction in the New Jersey Solar Energy sector in 2011. The Paine Heights Special Opportunity Hedge Fund had no down months in its 13 months of existence and returned approximately 21% net to investors. Mr. Glass was the President of Platinum Management (NY), LLC ("Platinum") from March 2007 through May 2009, where in addition to overseeing all non-investing activities, he shared responsibilities for asset allocation and risk management, including the selection of portfolio managers for Platinum's Mufti-Manager private investment funds. During his time at Platinum the fund has an annualized return of 21.19% with a annualized volatility of monthly returns of 7.9% while the market dropped a total of 34% during this time period. Prior to joining Platinum, Mr. Glass served as the Chief Operating Officer of Intrepid Capital Management (-Intrepid"), a $2.5 billion hedge fund organization, which he joined in August 2000. At Intrepid, Mr. Glass oversaw all non-portfolio related activities. In 2004, Mr. Glass launched Intrepid Associates, an affiliated entity that added fund managers to Intrepid' s platform, including sector funds in the healthcare and global utilities spaces. From April 1998 until August 2000, Mr. Glass worked as Chief Financial Officer at Vector Capital Management (Vector"), a statistical arbitrage hedge fund in Norwalk, CT. Prior to joining Vector, Mr. Glass spent 1995 to 1998 at Coopers & Lybrand, LLP, and 1994 to 1995 at Prudential Securities. Mr. Glass graduated from Queens College, with honors, in 1993 with a B.A. in Accounting and Information Systems Boothbay Multi-Strategy Fund. LP 14 EFTA01088858 Biographies (continued) Daniel Bloom: CFO Edgar Hajjar: Head of Programming & Development Michael Lwin: Quantitative Analyst r Ian Baird: Operations Chief Financial Officer and a Partner in Boothbay Family Office Management, LLC. He manages all non-investment related activities of Boothbay. From 2007-2011, Mr. Bloom was with Deloitte and Touche LLP in the advisory practice with a specific focus on the investment management industry. He advised companies with their strategies as it relates to operations, technology and compliance. From 2004-2007, Mr. Bloom managed the operations at Altrinsic Global Advisors a $7bn investment management firm that manages both long and long-short global equity portfolios. Previously, Mr. Bloom held various positions at Globeop, UBS and Alliance Bernstein. Daniel is a CPA in New York and graduated with honors from Yeshiva University in 1997. Edgar Najjar has twenty five years of experience in progressively responsible positions in both business and technology management. He has worked as a banker, trader, analyst as well as a software developer. He is highly skilled in department operations, and technology implementations. His background includes extensive understanding in managing corporate business and financial operations, establishing and directing technology programs, and leading IT and business functions. His background in finance and his technical knowledge allow him to develop and deliver multi-tiered applications that support both our operations as well as our traders. He has created several databases as well as applications that support daily operations, reconciliations, analytics, historical market data management, automated stock borrow services as well as our proprietary trading platform. Michael Lwin recently earned his Masters in Financial Engineering from Baruch College having transitioned from an academic career in Applied Mathematics and Physics. At Boothbay, Michael works asa support analyst developing statistical and database tools for risk assessment and portfolio allocation, as well asindependent research in market phenomenon. Prior to joining the team at Boothbay, he interned at The CME Group (NY location) as a Settlement Analyst where he optimized preexisting code, automated data acquisition procedures across multiple platforms, and presented exotic derivative products upcoming on the exchange to the settlement team. Ian Baird works in Operations at BoothBay. Mr. Baird has over 10 years of buy side and sell side custody, reporting and trade clearing experience. He previously worked in client services and middle-office operations at UBS Prime Brokerage Services, ABN Amro Futures, and Franklin Resources. Mr. Baird also spent time as a consultant in the Banking and Securities division of Deloitte & Touche LLP. Boothbay Multi-Strategy Fund. LP 15 EFTA01088859 Appendix: Portfolio Details* TRADER STYLE/ASSET CLASS STRATEGY MANAGER BACKGROUND GEOGRAPHY CAPACITY (mm) 1 Quantitative: Foreign Exchange and Futures Short term directional strategy in FX markets 16+ years of experience in algorithmic trading . Top ranked CTA for 3 years in Barclays FX Index G7 Pairs $50 2 Quantitative: Equities Non-directional and non- correlated alpha in US equities. Leverages inter-market volatility. Engineer- IIT background with PHD in Operations Research. 10+ years in trading and risk management. North America, Eurozone $250 3/4 Fundamental: Equities Levered ETF arbitrage run in a low net exposure 10+ years of managing money at SAC and Exis US $500 5 Quantitative: Fixed Income US Treasury Fixed Income Arbitrage. 20+ years of trading Treasury futures including seat on Chicago Board of Traders US $100 Quantitative: Equities Beta-neutral strategy employed over 1200 stocks in US and Japan Quant trading at Credit Suisse and Amaranth. =. in Math and Asst. Prof at NYU US, Japan $200 HOLDING PERIOD Intraday Weeks NIA. 1 Intraday Days 1 'There can be no assurances that the traders listed in this chart will continue to provide services to Boothbay or that the characteristics of their trading strategies will not change from those listed. Boothbay Multi-Strategy Fund. LP 16 EFTA01088860 Appendix: Portfolio Details-Continued TRADER STYLE/ASSET CLASS STRATEGY MANAGER BACKGROUND GEOGRAPHY CAPACITY (mm) 7 Quantitative: Equities Market-neutral statistical arbitrage strategy holding -2000 US liquid stocks 12+ years of experience including PM at Millennium Partners, QVT Financial and Morgan Stanley. =. Princeton US $100 8/9 Quantitative: FX Short term 18+ years of experience EURUSD $50 price in trading currencies, FX movements in modeling and managing FX market hedge funds focusing on EURUSD. Uncorrelated from major indices 10 Quantitative: Equities Beta neutral momentum and mean-reversion strategy focusing on Russell 1000 universe. Managed $100M statistical arbitrage portfolio at Radium Capital Advisors. Previously at Worldquant. US $100 11/12 Fundamental: Equities Opportunistic Previously team was at Global $500 long/short Eastern Advisors. equity market Significant experience in neutral long/short equity portfolio management HOLDING PERIOD Days Day I Days Months Boothbay Multi-Strategy Fund. LP 17 EFTA01088861 Appendix: Portfolio Details-Continued TRADER STYLE/ASSET CLASS 13 Fundamental: Equities 14 Fundamental: Equities 15 Fundamental: Equities 16 Quantitative: Futures STRATEGY Long/Short Value oriented equities Long/Short financials using bottoms-up research process Long/Short Equity Hedge fund. Strategy: Special Situations. Event and Catalysts. Short term trading approach. Swift player with high degree of flexibility. No correlation with general market. Diversified Program is a short-term. systematic trading program utilizing a momentum approach, and can be applied to several time frames and to any liquid market. MANAGER BACKGROUND Previously portfolio manager at Spring Point Capital $1.58 market neutral 10+years as portfolio manager and analyst covering financials. Previous firms include Massif Partners, Omega Advisors and Pequot Capital Management 10 + years of industry experience, but he's actively been trading equities on a discretionary basis for more than 15 years. He spent 7 years in London, most recently as Executive Director at Goldman Sachs. Built a proprietary trading system that can be applied to any market. Was a director at Cantor Fitzgerald GEOGRAPHY US Global US, Scandinavia Global CAPACITY (mm) HOLDING PERIOD $500 Months 5500 Months $150 Days $300 Days Boothbay Multi-Strategy Fund. LP 18 EFTA01088862