Falcon's View Capital Management, LLC

Falcon's View Capital Management, LLC 600 Madison Avenue, 251" Floor New York, NY 10022 Tel: Email: Falcon's View Capital Management, LLC Falcon's View Fund, Ltd. Investor Presentation April 2013 DRAFT FOR INTERNAL USE ONLY EFTA01104892 Contents Appendix A Overview 3 Model Strategy Allocation A2 Competitive Advantages 4 Portfolio Performance A3 Chief Investment Officer Profile 5 Analytical Statistics A4 Organizational Structure 6 Pro-Forma Returns Calculation A8 Investment Philosophy 7 Contact Information A9 Risk Management 8 Fund Structure & Terms 9 Appendix B Strategies B2 Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104893 Overview + Falcon's View Fund, Ltd. is a Master Feeder Fund organized under the laws of the Cayman Islands. The domestic Feeder is a Delaware Limited Partnership called Falcon's View Capital Partners, L.P. with a corresponding Offshore Cayman Island based Feeder, Falcon's View Offshore Fund, Ltd. + The Fund is a multi-strategy, arbitrage oriented Fund that seeks to hire and manage trading talent in an effort to capitalize upon 'niche-oriented', under the radar inefficiencies that are often capacity constrained and too small for larger investors to focus upon. + The Investment Manager believes that there are significant opportunities for very attractive risk- adjusted performance within these strategies and combining them within a Falcon's View Fund, Ltd. structure may produce substantial risk-adjusted returns. + The Investment Manager seeks to remain highly diversified amongst the strategy base and seeks to avoid investing in strategies that rely upon beta movement to generate returns. Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104894 Competitive Advantages + The CIO of the Investment Manager has successfully been investing in 'niche-oriented', under the radar strategies for years and is well regarded as a leader in this space. + The CIO of the Investment Manager is known for being a 'first mover' and original thinker as relates to investing in newly created market inefficiencies and exiting inefficiencies that have degraded. + The CIO of the Investment Manager is a former Global Macro Trader for more than a dozen years with top Firms such as Millennium Partners, Chase Bank, Fuji Bank and a Private Family. + The CIO of the Investment Manager has over two decades of experience as both a proprietary risk-taking Trader as well as an investor in hedge funds. + The CIO of the Investment Manager has been in the hedge fund industry for 18 years and has been an active participant as the overall industry has grown from roughly $50 Billion of collective AUM to nearly $2.5 Trillion today. Falcon's View Fund. Lld. DRAFT FOR INTERNAL USE ONLY EFTA01104895 Neal Berger, Chief Investment Officer Profile Joins Fuji Bank (now Mizuho) as Proprietary Trader in the US Interest Rate Group. 1994 1990 Joined Millennium Partners, a $90 million New York hedge fund as a Global Macro Trader. • 1995 1997 t Chief Investment Officer of an internal Global Macro Portfolio. 1999 {l 1998 Had his most Joined single profitable year family office. at the bank Responsibilities during bear included running market for internal Global fixed income. Macro Portfolio. Traded equities with an emphasis on new issues (IPOs) and secondary offerings. 2000 Rejoined Millennium Partners as a Global Macro Trader. 2001 Launched New Edge Asset Management, LLC to focus on the trade of mutual funds. 2003 Founded Apogee Asset Management, LLC a multi-strategy hedge fund designed in the spirit of Millennium. 2006 O Generated alpha for largest advisory clients during worst investment crisis in recent times. A o 2008 Founded Eagle's View Asset Management, LLC to focus on hedge fund strategies for high net worth client investments. Launched Eagle's View Diversified Opportunities as an alternatives product for an independent RIA. 2009 2010 Launched Eagle's View Capital Partners, a fund of funds that invests in 'niche oriented' strategies. Multi-Strategy Fund DRAFT FOR INTERNAL USE ONLY EFTA01104896 Organizational Structure Neal Berger President & Chief Investment Officer J Todd Meister Partner Vincent Guarneri Operations & Bookkeeping Joel Rudin Chief Operating Officer Chief Compliance Officer Arman Mikayelyan Risk Manager Xufeng "Bill" Hua Quantitative Analyst Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY 6 EFTA01104897 Investment Philosophy Falcon's View does not believe that anyone possesses an edge in predicting the global macro-economic landscape. As such, we do not rely on vast market predictions to generate alpha and absolute returns. This is the essence of our strategy; we do not rely on global macro predictions to generate returns. Seek to create truly diversified portfolio of positive expectancy investments t Strive to protect downside risk through real-time monitoring and dynamic management oversight to insure adherence to strict pre- defined risk parameters on the trader level and portfolio level 4 Falcon's View Portfolio 4 Underlying liquidity within the portfolio is a tantamount consideration Underlying investments that we believe are agnostic to the directional movement of equities, fixed income and commodities Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104898 Risk Management: Manager Monitoring + Real-time risk management systems with pre-determined parameters and dedicated monitoring by Management + Management will actively terminate trading staff that violate parameters and/or exceed risk limits or loss limits. + Management has full control to close positions immediately as well as put on Firm level hedges if required. • Fund may allocate on a Managed Account basis to external Managers on an opportunistic basis. External Managers will require direct connectivity to Falcon's View's risk management system and real-time trade monitoring to insure adherence to the same monitoring and risk management as internal trading teams. + Strict adherence to compliance matters will be rigorously enforced. Falcon's View Fund. Lld. DRAFT FOR INTERNAL USE ONLY EFTA01104899 Fund Structure & Terms Investment Minimum Fund Name Investment Manager Fund Registration Lock-Up Subscriptions Redemptions Management Fee Incentive Fee High Water Mark Fund Domicile Administrator Auditor Legal Counsel $1 Million Falcon's View Fund, Ltd. (Master Fund) Falcon's View Capital Management, LLC Master-Feeder Fund None Monthly Quarterly Expenses 20% Yes Delaware/Cayman GlobeOp/SS&C (Proposed) KPMG (Proposed) Withers Bergman, LLP Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104900 Appendix A Model Strategy Allocation Performance Analytical Statistics Pro-Forma Return Calculations Contact Information A2 A3 A4 A8 A9 Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104901 Model Strategy Allocation Bounded Tradable Processes 11% Leveraged ETF Arbitrage Option Volatility 11% Arbitrage 11% T-Bill Arbitrage 11% Fraud Activism Cash .11% 1% Short-Term Fraud Activism 11% FX High Frequency and Statistical Arbitrage 11% High Frequency Information Arbitrage 11% Electricity Trading 11% Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104902 Falcon's View Fund's Portfolio Performance Growth of $1000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 —Fund Pro-forma DJCS Multi-Strategy Index N. CO CO CO CO 0) 0) C r) 0) 0 0 0 0 r ..- r .- N N N N 01 0 0 0 0 0 O O 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CY N CY CY N N N 2 (. 1 N c`I6 N (-J NI -3 O C - 3 Z.; O co < 3 n t O to —3 a < 3 n, t O 03 - 3 a < 3 n t5 O co —3 a < 3 n t5 O ts .._), Source: Dow Jones Credit Suisse Hedge Fund Index 2013 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD DJCS Multi- Strategy Index 0.25% 1.84% 2.10% 2.46% 2012 0.63% 1.15% 1.18% 1.59% -0.17% 1.70% 3.29% 2.34% 0.09% 2.40% 2.03% 1.27% 18.93% 11.19% 2011 1.36% 4.29% 5.50% 6.92% 3.94% 2.42% 2.63% 1.08% 0.07% 1.64% 0.52% 0.97% 35.90% 1.83% 2010 1.03% 1.34% 2.80% 0.20% -0.64% 2.69% 1.30% 2.33% 1.16% 0.40% 4.25% 1.25% 19.56% 9.29% 2009 1.88% 3.74% 3.79% 0.67% 2.43% 1.84% -0.40% 0.05% 2.14% 1.56% 4.77% 2.11% 27.39% 24.62% 2008 2.08% 2.29% 1.31% -2.23% 2.88% 0.93% -5.13% 10.47% 2.45% 4.17% 16.94% 8.49% 52.39% -23.64% 2007 1.00% -0.14% 1.20% -0.66% 1.35% 1.91% -0.70% 3.79% -0.17% 2.90% 3.51% 1.55% I 16.58%1 10.08% Returns are pro-forma and net of expenses/20%. Please see page A8 for pro-forma returns calculation and page 29 and 30 for disclaimers on pro-forma returns. Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104903 Falcon's View Fund's Portfolio - Quantitative Analysis Monthly Return Distribution Number of Months 40 35 30 25 20 15 10 5 0 O O O ■ O O C O O • O 0 0 (0 CO •71- •ct CO 0 OD 7 Fund DJCS Multi- Fund Strategy Index DJCS Multi- Strategy Index Sharpe Ratio (rf=0°/O) 2.59 0.70 Return 27.46% 4.71% Calmar Ratio 5.35 0.19 Volatility 9.63% 6.92% Sortino Ratio 4.87 0.68 Maximum Drawdown -5.13% -24.75% VaR (1%) -4.40% -4.25% % Positive Months 87.84% 70.27% Kurtosis 11.70 4.38 Average Positive Month 2.52% 1.37% Skewness 2.45 -1.61 Average Negative Month -1.14% -1.88% 'Comparative ratios and annualized statistics are calculated utilizing both pro-forma returns. Please see page A7 for the definition of various statistical ratios to measure performance and see page A8 for pro-forma returns calculation. Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104904 Falcon's View Fund's Portfolio Objectives LOW-CORRELATED ALPHA Falcon's View Fund's Portfolio has historically shown low statistical correlation to Equities, Fixed Income or Commodities, providing low- correlated Alpha.* 'Information regarding the indices is solely for the purpose of showing a lack of correlation between such indices and the Fund's portfolio performance returns. DIVERSIFICATION The Falcon's View Fund's Portfolio seeks to provide favorable risk-adjusted returns through all types of market conditions. We feel that the portfolio is designed to enhance the returns and improve the Sharpe Ratio of a more traditional investment portfolio, such as investments in stocks, bonds, or commodities. Monthly Return Correlation 0.40 0.30 0.20 0.10 (0.00) (0.10) (0.20) (0.30) 11 RJ/CRB Total S&P 500 Total Barclays Bond Return Index Return Index Index Note: Performance data for all indices are calculated from monthly data (January 2007— February 2013) obtained from Bloomberg. Both the actual and pro-forma returns are used in the calculation. Please refer to page A8 for pro-forma returns calculation. Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104905 Falcon's View Fund's Portfolio - Scatter Plot Against Indices Barclays Bond Index A scatter plot of the Falcon's View Fund's Portfolio against the various indices indicates low linear relationship between the respective indices and the Falcon's View Fund's Portfolio.* 'Information regarding the indices is solely for the purpose of showing a lack of correlation between such indices and the Fund's portfolio performance returns. 5% 4% 3% 2% • • 4 0 * * • •• p•S • S&P 500 Total Return Index RJ/CRB Index 15% 10% 5% 0% -5% -10% -15% -20% 20% 15% 10% 5% 0% -5% -10% • -15% -20% -25% Zrt O U') 0 0 • o o ...t.D ....O. 0 0 0 U) r r • • O • o u, • Note: Performance data for all indices are calculated from monthly data (January 2007— February 2013) obtained from Bloomberg. Both the actual and pro-forma returns are used in the charts. Please refer to page A8 for pro-forma returns calculation. Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104906 Statistical Ratios Sharpe Ratio Calmar Ratio Sortino Ratio As a measure of risk-adjusted performance, the ratio is calculated by subtracting the risk-free rate from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. This is a return/risk ratio used to determine return relative to drawdown (downside) risk in a hedge fund, which equals Compound Annualized Return divided by Absolute value of the maximum drawdown. Sortino Ratio is calculated by subtracting the risk free rate from the return of the portfolio and then dividing by the downside deviation. It differentiates upwards and downwards volatility and allows the calculation to provide a risk-adjusted measure of a security or fund's performance without penalizing it for upward price changes. Kurtosis A statistical measure used to describe the distribution of observed data around the mean. A high kurtosis portrays a chart with fat tails and a low, even distribution, whereas a low kurtosis portrays a chart with skinny tails and a distribution concentrated toward the mean. VaR Skewness A statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over a specific time frame. For example, a financial firm may determine that it has a 5% one month value at risk of $100 million. This means that there is a 5% chance that the firm could lose more than $100 million in any given month. Therefore, a $100 million loss should be expected to occur once every 20 months. A statistical measure to describe asymmetry from the normal distribution in a set of statistical data. Skewness can come in the form of "negative skewness" or "positive skewness", depending on whether data points are skewed to the left (negative skew) or to the right (positive skew) of the data average. Source: Investopedia Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104907 Pro-Forma Returns Calculation The pro-forma' results are calculated by the retroactive application of a model constructed on the basis of the actual return data and backtested results (if actual data is not available) on the underlying strategies that are to be utilized by the Fund at its inception date and in the same mix as of that date. If an underlying strategy did not exist during the period in which the pro-forma' results were compiled, the existing strategies were rebalanced pro-rata. There is no assurance that the Fund would have achieved the pro-forma returns and the pro-forma returns are shown for illustrative and informational purposes only and should not be construed as an indicator of future performance of the Fund or any other fund managed by the investment manager. Pro-forma returns do not represent actual trading and may not reflect the impact that material economic and market factors might have had on any decision-making if the portfolio were actually being managed. The pro-forma returns also assume that the Fund would have been able to purchase the securities recommended by the model and that the markets were sufficiently liquid to permit this trading. The 'fund performance' returns are calculated net of the expenses/20 fee structure imposed by the investment manager. Actual returns are net of any other expenses an investor actually paid to the investment manager. The 'pro forma' returns are net of an assumed 200 bps/year in expenses and net of a hypothetical 20% incentive fee The fund performance returns assume that dividends and other income were reinvested. The investment manager has clients other than the Fund and results across clients may differ materially. The investment manager believes such differences are due to different investment objectives and strategies. The Fund's investment program involves substantial risk, including the complete loss of principal, and no assurance can be given that the Fund's investment objectives will be achieved. Past returns are no guarantee of future results. The information contained herein does not constitute an offer to sell or the solicitation of an offer to purchase any security or investment product. Any such offer or solicitation may only be made to qualified investors by means of delivery of an approved confidential offering memorandum and only in those jurisdictions where permitted by law. Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104908 Contact Information Falcon's View Capital Management LLC 600 Madison Avenue, 25th Floor New York, NY 10022 Neal Berger Tel: Email: Falcons View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104909 Appendix B: Strategies STRATEGIES Electricity Trading Fraud Activism Short — Term Fraud Activism High Frequency Information Arbitrage Option Volatility Arbitrage Leveraged ETF Arbitrage FX High Frequency and Statistical Arbitrage Bounded Tradable Processes T-Bill Arbitrage B2 B3 B4 B5 B6 B7 B8 B9 B10 Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104910 Team 1: Electricity Trading Short Summary Incepted in January 2011, the Strategy trades Financial Transmission Rights/Congestion Revenue Rights auctions, virtual trading and other energy trading available instruments in the California Independent System Operator ("CAISO"), Midwestern Independent System Operator ("MISO"), Electric Reliability Council of Texas ("ERCOT"), and other Regional Transmission Organization ("RTO")/ Independent System Operator ("ISO") markets, and on exchanges which offer energy and Commodities products. Statistics Annualized Returns 116.97% Annualized Volatility 28.30% Sharpe Ratio (rf=0%) 2.95 Largest Net Drawdown -7.71% Portfolio Manager The Portfolio Manager is in charge of developing and implementing trading strategies in energy markets. Prior to his current position, he was a Director of Structuring and Pricing at PacifiCorp where he was responsible for structuring physical and financial products and pricing deals for different commodities and assets in coordination with Origination and Trading teams. Prior to that, he was a Manager, Quantitative Analysis, at PG&E. Previously he was a Manager, Market Assessment, at ISO New England. Prior to that Michael served in a variety of positions in TXU Energy Trading. He holds Ph.D. in Physics from The University of Texas at Austin and Graduate Finance Certificate from the Cox Business School, SMU. He has a number of publications in industrial and academic journals and is a frequent presenter at industry conferences and training events. INVESTMENT SNAPSHOT Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2013 1.21% 2.92%* 4.17%' 2012 -0.50% 1.31% 3.56% -7.71% 1.23% 1.07% 15.09% 14.06% 4.57% 15.42% 15.03% 5.99% 90.40% 2011 5.76% 20.24% 7.05% 29.24% 15.99% 5.75% 15.25% 0.00% 1.34% 4.48% 0.59% 1.97% 170.07% 'Estimate. All numbers are net of 2/20 fees paid to the trading group. Please see page 29 and 30 for disclaimer on underlying strategy's returns. Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104911 Team 2: Fraud Activism Short Summary Portfolio Manager + Incepted in July 2009, Strategy seeks to outperform equities and long/short hedge fund universe on a rolling 12 month basis. + It has a two pronged approach to generate returns, a core Prior to launching this strategy, the Portfolio Manager was an book to compound returns while preserving capital, and an investment analyst at Longacre Fund Management, a private opportunistic book to achieve outsized risk - adjusted returns. investment which allocated across a flagship partnership, distressed debt credit fund and an equity fund. Prior to that, he + The strategy also uses research publication as a form of soft worked in the bankruptcy restructuring group at Chanin Capital activism. Partners. At Chanin, he helped advise creditors in out-of-court and Chapter 11 bankruptcy restructurings. Prior to that, he Statistics worked in the leveraged finance group of Deutsche Bank where he helped structure and syndicate non-investment grade bank Annualized Returns 84.66% debt and high yield bonds, including leveraged buyout financings, Annualized Volatility 32.47% Chapter 11 exit financings and debt refinancings. He holds a Bachelor of Arts in Economics from Yale University. Sharpe Ratio (r=0%) 2.07 Largest Net Drawdown -10.61% INVESTMENT SNAPSHOT 2013 Jan 3.85% Feb 3.00W Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 6.97%* 2012 -0.44% 6.29% 4.46% 2.75% -2.08% 0.88% 3.56% 2.30% 3.02% 2.28% 1.15% 1.83% 28.98% 2011 5.30% 23.69% 33.01% 27.83% 9.03% 3.88% 0.59% 4.12% -3.41% 10.00% 5.29% 1.51% 198.31% 2010 -0.56% 3.70% 12.86% 1.68% -10.61% 0.41% 3.94% 3.41% 2.80% 1.23% 39.12% 0.62% 66.30% 2009 2.30% 2.28% 1.13% 6.29% 20.02% 2.74% 38.69% *Estimate. All returns are net of 1/20 fees paid to the trading team. Please see page 29 and 30 for disclaimer on underlying strategy's returns. Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104912 Team 3: Short - Term Fraud Activism Short Summary Portfolio Manager + Incepted in August 2009, Strategy specializes in extensive, Prior to launching this strategy, the Portfolio Manager worked as investigative research on difficult-to-analyze or obscure public an investment analyst with several hedge fund managers in companies. Manhattan, New York. He began as a generalist with Sand + Its approach is to be continuously invested in the Spring Capital, analyzing debt and equity instruments across the concentrated core book and, from time-to-time, identify highly capital structures of over-levered companies and special opportunistic, catalyst-driven investments. situations with focus on high yield debt, capital arbitrage, and + The strategy utilizes research publication as catalysts to special situation equities. He went on to work in a similar capacity create significant near-term positive return expectancy as a consultant with Cohanzick Management and later opportunities. Kinderhook Partners. At Kinderhook he focused exclusively on Statistics analyzing small-cap equities, identifying undervalued companies with exceptional growth prospects or impending catalysts that Annualized Returns 32.68% would serve to unlock intrinsic value. He graduated summa cum laude with a B.S. in Microbiology from Louisiana State University, graduated at the top of his MBA class from LSU's Flores MBA program, and has achieved the Chartered Financial Analyst Annualized Volatility 21.77% Sharpe Ratio (r=0%) 1.42 (CFA) designation. In 2012 he was selected as being in the top 5% of the 7,000+ analysts/ PM's by analyst network Largest Net Drawdown -11.06% Sumzero.com. INVESTMENT SNAPSHOT 2013 Jan -2.33% Feb 11.69%* Mar Apr May Jun Jul Aug Sep Oct Nov Dec Y TD 9.09%* 2012 3.79% -0.58% 8.65% 19.81% -4.65% -1.74% 2.28% -1.02% -4.45% 10.79% 3.43% 2.39% 42.83% 2011 6.37% -2.68% 14.09% 13.73% 15.36% 6.21% 9.49% 2.05% -2.86% -0.26% -6.45% 1.36% 68.94% 2010 1.60% -1.13% 6.31% -4.71% -6.66% 1.22% 1.03% 7.89% 2.29% -6.89% -2.28% 2.89% 0.35% 2009 -2.72% 1.99% -1.29% 1.90% 4.49% 4.28% *Estimate. All returns are net of 2/25 (over 5% hurdle rate) paid to this trading group. Please see page 29 and 30 for disclaimer on underlying strategy's Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104913 Team 4: High Frequency Information Arbitrage Short Summary Key Persons + Incepted in April 2012, Strategy seeks to exploit volatility patterns found in global markets to make selective trades The Portfolio Manager leads the creation of High Throughput + The manager specializes in quantitative trading and data- Information Arbitrage Strategies. He received his PhD in intensive investment strategies to make short-term trades in Electronic Engineering and Computer Science from MIT. His high liquid instruments. work in high throughput modeling has been featured in over 25 + The manager has created an analytics engine capable of publications, and on the cover of several high impact journals, interpreting and quantifying news and gathering information with applications in rapid drug & genome screening. from across the world for various potential events which is enhanced with back testing, data visualization, risk The Chief Technology Officer is a world-renowned programmer management and other tools. and developer, with over 50,000 hours of programming experience. He previously worked at Google with a PhD Fellowship in Human-Computer Interaction 2011. He completed Statistics Annualized Returns 27.27% his PhD in Electronic Engineering and Computer Science from MIT, where he received a Best Student Paper Award (ACM UIST Annualized Volatility 12.54% 2009). He won a Bronze Medal in the International Olympia in Sharpe Ratio (rf=0%) 2.00 Informatics (101) 2000. Largest Net Drawdown -4.35% INVESTMENT SNAPSHOT Jan 2013 -0.30% Feb 0.30%* Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 0.00% 2012 1.76% 2.47% 0.00% I 0.00% -0.60% 9.40% 14.16% 5.28% -0.74% -0.40% 1.35% -0.95% 35.26% 2011 E-2.46% -0.72% -1.23% 2.97% 119732o/4L3.67% 4.28% 1.99% 0.45% 4.14% 1.16% 5.34% 22.66% 2010 r 7.98% -0.15% -0.45% 3.75% -3.21 %77.23% 4.12% 3.50% 2.03% -3.14% -0.76% 5.90% 29.36% "Estimate. Shaded area represents backtested results from January 2010 to March 2012 All returns are net of 0/20 fees paid to this trading group. Please see page 29 and 30 for disclaimer on underlying strategy's returns. Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104914 Team 5: Option Volatility Arbitrage Short Summary Portfolio Manager + Incepted in September 2011, Strategy seeks to achieve The Portfolio Manager launched this strategy after over a decade significant capital appreciation in the long-term by targeting of experience building industry-leading derivatives businesses. absolute returns, regardless of market cycles. From 1999 to 2002, he worked as a volatility trader as part of RBC + Strategy specializes in the market-neutral, volatility arbitrage Dominion Securities' Derivatives Arbitrage Group. From 2002 to strategy. 2005, he worked directly under renowned Wall Street investor John + It systematically exploits the structural mispricing of S&P 500 Mulheren at Bear Wagner Specialists, where he helped expand the index option volatility and skew, while effectively mitigates the firm's fledgling derivatives arbitrage business. In 2005, he founded risks inherent to such strategies. his own proprietary market-making firm specializing in equity index Statistics volatility arbitrage. At its peak its trading volume accounted for Annualized Returns 22.83% approximately 13% of CBOE S&P 500 index option volume. He holds a BA from Rice University, with a triple major in Mathematical Annualized Volatility 12.80% Economic Analysis, Policy Studies and English. He also holds an Sharpe Ratio 01=0%) 1.77 MBA from Northwestern University's Kellogg School of Management, with an emphasis in Analytical Finance and Largest Net Drawdown -9.32% Management. INVESTMENT SNAPSHOT 2013 Jan -0.08% Feb 1.38% Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 1.30W 2012 1.49% 1.24% -0.05% 3.23% 2.20% 0.56% 1.43% 2.37% -1.81% -0.02% -0.28% 2.93% 13.99% 2011 0.20% 0.70% 1.60% 0.20% 1.80% 0.10% -1.70% -1.60% 4.96% -6.53% 2.91% 1.15% 3.40% 2010 -0.40% 3.60% 0.40% 0.50% 7.70% 1.60% 3.20% 1.60% 0.90% -0.30% 2.00% -0.30% 22.20% 2009 3.60% 9.50% 2.00% -1.00% 4.00% 3.80% -7.00% 1.10% -0.60% 0.60% 3.60% 2.60% 23.58% 2008 1.40% 4.50% 0.50% 0.50% 1.10% 0.20% 0.20% 2.20% -1.90% 15.30% 36.80% 16.30% 99.80% 2007 1.50% -0.10% 2.70% -1.80% -0.20% 1.90% -0.30% 9.00% 1.60% 2.60% 4.20% 1.80% 24.97% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 36.63% 34.61% 25.92% 3.19% 16.32% 18.79% 16.38% 22.82% 29.53% 41.59% 5.45% 8.59% 14.63% 19.67% *Estimate. Backtested results were shown since 1992 in blue. All numbers are net of 2/20 fees paid to this trading group. Please see page 29 and 30 for disclaimer on underfring strategy's returns Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104915 Team 6: Leveraged ETF Arbitrage Short Summary Portfolio Manager + Incepted in July 2012, Strategy seeks to profit from opportunities in the leveraged ETF space by capitalizing on structural and other inefficiencies in these products without making directional bets on underlying benchmarks. The Portfolio Manager started his Wall Street career in July 2000 + Portfolio consists of short positions in bull and corresponding as an independent trader at Electronic Trading Group, LLC (now bear leveraged ETFs. part of Schonfeld Group). As a proprietary trader, he actively and + Options are used for hedging purpose. successfully traded NYSE listed stocks with a concentration on semiconductor and data storage industry names. In 2004, he joined Statistics Apogee Fund, Ltd, a multi-strategy hedge fund. From 2005 through Annualized Returns 12.53% 2010, he was a proprietary trader at Bright Trading, LLC. He graduated from Hartwick College with a B.A. in Accounting. He Annualized Volatility 7.96% passed Series 7 in July 2010 and Series 55 in August 2010. Sharpe Ratio (rf=0%) 1.53 Largest Net Drawdown -5.50% INVESTMENT SNAPSHOT Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2013 NA 0.20%* 0.20% 2012 2.81% 1.23% 0.00% 0.39% -4.09% 3.19% 0.27% 1.86% 0.54% -0.71% 1.42% -0.71%- 6.17% 2011 -1.25% 3.73% 1.87% 2.58% 0.08% -0.45% 2.60% 2.00% -2.87% 6.78% 1.32% 0.00% 17.28% 2010 -5.50% 3.98% 3.49% 1.82% -0.94% 0.20% 2.95% 0.00% 3.92% 2.50% 1.53% 1.79% 16.48% Shaded area represents backtested results from January 2010 to June 2012, net of 0/20 fees paid to this trading group. *Return from February 19, 2013 to February 28, 2013. "Return from December 1, 2012 to December 14, 2012. Please see page 29 and 30 for disclaimer on underlying strategy's returns. Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104916 Team 7: FX High Frequency Statistical Arbitrage Short Summary Portfolio Managers + Incepted in August 2012, the High Frequency FX Trading Previously, the Portfolio Manager A founded and was principal at strategy focuses on under-exploited timescale ranges from several seconds to several hours. Ovation Capital, a $20m venture capital fund. Prior to that he held senior technical and managerial roles at Microsoft, Murray and + It only trades the most liquid instruments like G10 spot FX and Roberts, and Siemens. He holds an MBA from Harvard University targets non-correlated returns. and a B.Sc. Engineering (summa cum laude) from the University of + It utilizes dual strategies to identify micro-regimes for Cape Town. instruments and look for temporary price anomalies in related clusters of FX pairs. Prior to this, the Portfolio Manager B was a senior equity Statistics derivatives trader at UBS and Credit Suisse (1997-2008), managing a $1b notional portfolio. His primary responsibilities were market making, proprietary and flow trading, and risk management. Annualized Returns 22.18% Annualized Volatility 11.78% He also headed recruiting at UBS for Princeton University and at Sharpe Ratio (rf=0%) 1.77 CS for Harvard University. He holds an MBA from Harvard University and a BA - Economics (cum laude) from Macalester Largest Net Drawdown -6.70% College INVESTMENT SNAPSHOT Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YID 2013 0.68% 0.83% 1.51%* 2012 U-0.20% 0.35% -0.35% -0.20% 3.21% 1.58% 1.43% -0.53% 0.00% 0.66% 0.15% 1.88% 8.19% 2011 00.50% 3.20% 5.55% 1.58% 0.00% 0.45% 0.30% 0.60% -0.30% 0.98% 0.45% 0.75% 13.68% 2010 U1.8ltaL 6.00% 4.88% -6.70% 9.18% 14.33% -0.40% 2.65% 0.00% 6.98% 4.73% 0.00% 51.06% *Estimate. Numbers in blue represent backtested and simulation results. Results since August 2012 reflect actual trading PIL minus trading expenses, but exclude non-scalable fixed expenses. All numbers are net of 0/25 fees paid to this trading group. Please see page 29 and 30 for disclaimer on underlying strategy's returns. Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104917 Team 8: Bounded Tradable Processes Short Summary Portfolio Manager + Incepted in August 2011, the strategy consists of about 17 "processes" or relationships between various financial instruments that interact with certain bounds. + The bounds can be "hard" or "pure arbitrage" type, where one asset may be swapped for another asset at holder's discretion, or non- The Portfolio Manager developed the quantitative trading arbitrage bounds, where processes should not go beyond certain strategies since 06/2010. From 2001 to 2010, he worked values. as Project Manager/Subject Matter Expert, Global Banking + It uses proprietary trading techniques to execute the strategy. Market & Markets at RBS and ABN AMRO. He has a M. Sc. in making, intraday fluctuations, capturing market impact and mean- Financial Mathematics from University of Chicago and got reversion can add additional contributions to the overall P/L. his B.Sc. in Physics & Information Technology from Statistics Novosibirsk State University. He researched at VEPP — 4 electron-positron collider of Novosibirsk Institute of Annualized Returns 30.22% Nuclear Physics (11 GeV energy range) Annualized Volatility 12.84% Sharpe Ratio (rf=0%) 2.14 Largest Net Drawdown -10.58% INVESTMENT SNAPSHOT Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Y T D 2012 0.69% 1.86% -1.31% -0.11% -0.78% 6.69% 1.18% 2.35% 1.69% 0.73% 13.54% 2011 x2.87% 1.64% 1.67% 0.18% 2.41% 5.36% 0.17% 3.32% 2.04% 0.92% 2.50% 0.78% 26.53% 2010 12.71% -0.02% 2.99% 3.78% 0.00% 3.00% 0.66% 3.37% 2.25% 2.44% 0.56% 2.54% 27.08% 2009 r 1.26% 3.47% 7.83% 0.03% 3.67% 2.22% -0.12% -0.43% 5.91% 4.34% 3.60% 3.73% 41.43% 2008 U 4.47% 1.92% 3.35% -4.81% 5.79% 2.65% -10.58% 23.01% 8.74% -3.97% 7.90% 9.79% 54.81% 2007 r 1.56% 0.18% 0.88% 0.78% 3.92% 3.54% -0.81%1L 1.07% -2.85% 5.42% 5.41% 2.68% 23.68% 2006 [ 0.68% -0.67% 2.20% 0.16% 3.51% -0.86% 3.89%[ 2.16% 1.42% 2.48% 4.29% 1.72% 22.92% "Numbers in dark blue represent backtested from January 2006 to July 2011, net of 0/20 fees paid to this trading team. Please see page 29 and 30 for disclaimer on underlying strategy's returns. Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104918 Team 9: T - Bill Arbitrage Short Summary Portfolio Manager + Incepted in December 2008, the Strategy seeks opportunities to Prior to this role, the Portfolio Manager was Chief Strategist exploit positive carry that occasionally exists between short dated for Liberty Corner Patriot Master Fund, Ltd. from 1999 — US Treasuries and corresponding hedges such as term repo and 2005. Additionally, he was portfolio manager for the fund Fed fund futures. from 1999 -2002. Before joining Liberty Corner, he was an + Opportunity exists because of the massive issuance of short-term Executive Vice President and member of the Management debt by the US government and the market's challenges in Committee at Daiwa America Corp., heading the fixed absorbing the requisite supply. income advisory department of Daiwa America Capital + Strategy hedges interest rate and duration risk and is merely Strategies, Inc. Prior to becoming the Principal advisor, he exploiting a market inefficiency due to an abundance of market oversaw primary dealership positions of over $20 billion as supply in short coupons and T-Bills. Daiwa America's Head of Fixed Income Trading. He acted Statistics as a fixed income proprietary trader with the firm beginning Annualized Returns 19.56% in 1988. He had a pro-forma annual return of 27.6% from 1992 —1998 while at Daiwa. He began his career in 1985 Annualized Volatility 6.46% as proprietary trader in the fixed income department at First Sharpe Ratio (rf=0%) 2.82 Interstate Bank. He earned his MBA from UCLA in 1985 Largest Net Drawdown -1.23% and BA from Syracuse University in 1979. INVESTMENT SNAPSHOT 2013 Jan 1.25% Feb -0.05%* Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 1.20W 2012 -0.40% 0.80% 0.36% 1.79% 1.67% -0.38% -0.02% 1.84% 0.08% 0.50% 0.03% 1.24% 7.73% 2011 1.01% 0.86% 0.80% 2.26% 0.63% 4.39% 0.75% 1.64% 3.30% 0.00% 0.00% 0.00% 16.69% 2010 4.36% -0.75% -0.48% 3.55% -0.01% -0.09% -0.65% 2.83% -0.82% 2.87% -0.18% 0.87% 11.91% 2009 3.03% 2.13% 5.47% 4.22% 2.35% 1.75% 3.85% 0.85% 6.19% 1.05% 2.32% 0.93% 39.80% 2008 7.35% 7.35% 'Estimate. All performance numbers are net of 0/25 paid to this trading group. Please see page 29 and 30 for disclaimer on underlying strategy's returns. Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY 810 EFTA01104919 Disclaimer This document does not constitute an offer to sell, or an offer to buy, any security or investment product. Any such offer or solicitation may only be made to qualified investors by means of delivery of an approved confidential offering memorandum and only in those jurisdictions where permitted by law. No representation or warranty is made by any fund or any other person (including any of its agents or other representatives) as to the accuracy or completeness of the information contained herein. Only those particular representations and warranties which may be made in definitive agreements relating to the funds, when, as and if executed, and subject to such limitations and restrictions as may be specified in such definitive agreements, shall have any legal effect. This document is being provided to you on a confidential basis. Accordingly, this document may not be reproduced in whole or in part, and may not be delivered to any person without the prior written consent of the author. The performance information appearing in the section of this presentation on pages from A3 to A6 are based upon pro-forma figures of Falcon's View Fund, Ltd. (the "Fund"). The pro-forma' performance is calculated by the retroactive application of a model constructed, with the benefit of hindsight, based upon a compilation of the actual returns and back-tested results (if actual returns are not available) of the underlying strategies of the Fund at its inception and in the same mix as of the launch date of the Fund, and net of the additional estimated expenses and 20% incentive fee structure imposed by the Fund. As such, those returns with respect to the Fund's portfolio are not actual results of any investment portfolio. The pro-forma returns assume that dividends and other income were reinvested and include the effect of certain transactions costs (if any), or expenses, if applicable, in an estimated amount of 200 bps/year. If an underlying fund did not exist during the period in which the pro-forma' results were compiled, the existing Funds were rebalanced pro-rata. The performance information appearing in the section of this presentation entitled "Strategies" reflect the actual reported historical returns and back-tested returns (if actual results are not available) of the strategies in which the Fund invests. The performance information appearing in the section of this presentation entitled "Strategies" reflect the actual reported historical returns and back-tested returns of actual results are not available) of the strategies in which the Fund invests. Pro-forma and back tested returns do not represent actual trading and were calculated by means of a retroactive application of a model designed with the benefit of hindsight. These results may not reflect the impact that material economic and market factors might have had on any decision- making if the portfolio were actually being managed. In creating the pro-forma and backtested returns, we have assumed that the Fund would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit this trading. Changes Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY EFTA01104920 Disclaimer in these assumptions may have a material impact upon the pro-forma retums presented. No representations and warranties are made as to the reasonableness of the assumptions. This information is provided for illustrative and informational purposes only and should not be construed as an indicator of the Fund's future performance. The performance of any one underlying fund is not a valid indication of the compiled return of the Fund. The performance information of underlying strategies in which the Fund invests are shown net of the management fee and performance allocation charged by the portfolio traders of those strategies, but gross of the Fund's hypothetical expenses/20% fee structure. The Fund's investment program involves substantial risk, including the complete loss of principal, and no assurance can be given that the Fund's investment objectives will be achieved. Past returns are no guarantee of future results. Historical performance, whether pro-forma, backtested, or actual, is not a guarantee or an indicator of future results. The pro-forma and backtested returns reflect performance of a strategy not historically offered to investors and do not represent returns that any investor actually attained. Pro-forma assumptions integral to the recreation of the returns may or may not be testable and are subject to losses. Falcon's View Fund. Ltd. DRAFT FOR INTERNAL USE ONLY 30 EFTA01104921