ST.

BONAVENTURE UNIVERSITY STUDENTS IN MONEY MANAGEMENT

SIMM Energy Hedge Fund

Annual Report
As of October 26, 2012

This report is to be presented to the SIMM Advisory Board on Friday November 2, 2012 and distributed to interested University members, Community members, and any other interest parties.

Disclosure
This report is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security nor is it intended to provide investment advice. There is no guarantee that the energy fund will have a return on invested capital similar to other accounts managed by SIMM. The fact that other accounts managed by SIMM have realized gains in the past is not an indication that the energy fund will realize any gains in the future. Prior performance is not indicative of future results. An investment in the energy fund is speculative and involves risk of loss of invested capital. There can be no assurance that the performance objectives of the energy fund will be achieved. The investment program utilized by the energy fund is subject to significant risks including risks from the use of short sales and leverage. Prospective investors are urged to review the energy funds investment objectives and understand the risk of loss associated, and consult with financial, legal and tax advisors prior to investing in the energy fund. Performance results shown are presented on a before fee basis and are broken down into Net Asset Value (NAV) and cost basis return. An individual investors return may vary from these returns based on different management fee and incentive arrangements, and the timing of capital transactions. The statistical data regarding the indices has been obtained from BLOOMBERG PROFESSIONAL SERVICE and the returns are calculated assuming all dividends are reinvested. The indices are not subject to any of the fees or expenses to which the funds are subject. This presentation is being provided to you on a confidential basis and is intended solely for the information of the people to whom it is being presented. This presentation is intended solely to assist you in deciding whether or not to proceed with a further investigation of the SIMM Energy Hedge Fund. Accordingly, this presentation may not be reported in whole or in part, and may not be delivered to any person without prior written consent of the SIMM Energy Hedge Fund.

SIMM Energy Hedge Fund

Page 1

Table of Contents
Investment Objective_________________________________________________________________________p3 Energy Trends and Events___________________________________________________________________p4-5 Energy Market Outlook_____________________________________________________________________p6-7 Our Focus__________________________________________________________________________________p8 Closed Positions__________________________________________________________________________p9-11 Open Positions_____________________________________________________________________________p12 Fund Performance__________________________________________________________________________p13 Cumulative Return Comparison________________________________________________________________p14 Updates________________________________________________________________________________p15-21 Risk Management Guidelines_________________________________________________________________p22 Management Team__________________________________________________________________________p23 Biographies_____________________________________________________________________________p24-25

SIMM Energy Hedge Fund

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Investment Objective and Compensation Terms

Preservation of Capital Generate returns to investors that exceed: The annual historical return of the S&P 500 The performance of the SPDR Energy ETF (XLE) Assuming no leverage, expected annual net returns to investors of 8% - 9% The Fund requires on an annual basis, the following fee structure: Two (2) percent of assets under management (AUM). These are to assist in the day-to-day operations of the fund which include, but are not limited to: Trading Costs Reorganization Costs Costs of Reporting Twenty (20) percent of gains (realized or unrealized) There is no minimum investment Prime Broker: Interactive Brokers Redemption: Quarterly with 60 days notice AUM as of Close 10/26/12: $262,560.60

SIMM Energy Hedge Fund

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Energy Trends and Events

Beginning with the first half of our fiscal year, there have been numerous significant and historical macroeconomic events that have dictated the progress of the world economy as it struggles to grow after the worst financial crisis since the Great Depression. The energy sector is cyclical, which does well during good economic periods and underperforms during an economic slowdown. The Eurozone debt crisis has dominated the news with positive, negative, and speculative announcements determining market sentiment. There is still uncertainty for Greece, after numerous amounts of financial aid given to the country from late spring, as well as into the summer. There were multiple elections in the country that failed to decide on leadership, creating further instability. Fears over Spains failing economy also came to fruition as Spanish banks received a 100 billion bailout, 10 year Spanish bond yields rose to record highs, and unemployment reached over 25%. Even Chinas seemingly unstoppable growth has slowed as GDP has dipped below 10% per year; an average that it has maintained over the past three decades. Growth in the U.S. has been tepid at best. The economy has grown only 1.3% in the second quarter and the unemployment rate is still high despite dropping near a four year low of 7.8% in September. To help get our economy back on track, The Federal Reserve has pledged to keep interest rates near zero, at a rate of 0.25% through mid-2015. They also enacted a third round of quantitate easing (QE3) through monthly open-ended buying of $40 billion in mortgage backed securities with no announced end date. Commodities, especially the crude oil complex, have been affected by the cyclicity in the global markets. WTI crude oil is down over 16% so far in 2012 and Brent crude oil is down over 2%. The prices of these major oil benchmarks were heavily affected by the already mentioned global macroeconomic events. Hydraulic fracturing has allowed for a rebirth in U.S. oil production that has created a record supply of WTI crude at its delivery point in Cushing, OK.
SIMM Energy Hedge Fund Page 4

Energy Trends and Events (Continued)

The combination of heavy production and difficulties transporting the commodity out of Cushing has put downward pressure on prices and has helped the Brent-WTI spread to continue to widen. Middle East tensions have also had an effect on prices. Iran continued to threaten to close the Strait of Hormuz, which about 20% of the worlds oil travels through, because of nuclear sanctions. After a decline at the beginning of the summer, which corresponded with a drop in oil prices, gasoline prices surged this summer on supply concerns. Refinery outages throughout the U.S. and Europe kept supplies tight in New York Harbor where RBOB futures prices reached a five-month high of $3.342 a gallon and gasoline prices in California briefly shot up over $6 a gallon in some locations. This rapid rise in gasoline prices has helped to increase the crack spread during the second half of the summer, improving refiner margins, and elevating our refiner holdings. Natural gas has also had an eventful and historic run over the past few months. The same technology that has created a new oil boom in the U.S. has led to even larger growth in natural gas production. This growth, along with an extremely warm winter has led to record inventory and has severely depressed the price, reaching its lowest level in over a decade of $1.89 in April. The decrease in price has also led to a significant amount of power plants using natural gas instead of coal during the hot summer we experienced this year.

SIMM Energy Hedge Fund

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Market Outlook
The outlook for the global macroeconomic environment remains weak as forecasts of growth continue to be concerning. The World Economic Outlook (WEO), which is published by The International Monetary Fund (IMF), projected a global growth rate of just 3.3% and 3.6%, for 2012 and 2013, respectively. In the U.S., forecasts of real Gross Domestic Product (GDP) are expected to increase by 1.7% for next year. Some of the major events that will have a large impact on economic growth will be the geopolitics in the Middle East, the U.S. presidential election, the continued uncertainty with the European Union, and the slowing growth of BRICS. One of the most crucial issues facing the U.S. is the impending fiscal cliff, which may be detrimental to the economy. The fiscal cliff would occur early in 2013 and includes: The beginning of Obama's health care tax, the end of the payroll tax cut, which would increase the payroll tax by 2%, and spending cuts, including deep cuts to the Defense and Medicare budgets. The outcome of the fiscal cliff will weigh heavily on growth and possibly even send the economy into another recession. Growing government debt is another concern that could potentially force the United States to receive further credit downgrades. The open-endedness of QE3 is also a concern. The Fed, unwilling to announce an end date for this program, further indicates the uncertainty surrounding the U.S. economy. This also brings up concerns about inflation as The Fed continues to freely print money without any true indication that these programs are helping grow the economy and create jobs. The potential of QE3 weakening the value of the dollar can temporarily inflate commodity prices as a weak dollar makes commodities more attractive for purchase. The price movements of the crude oil complex are uncertain and very possibly will be influenced by the uncertainty in the global macroeconomic environment. Currently, the consumption of crude oil is expected to fall 0.5 million bbl/d as we leave the seasonal peak from the summer and enter the winter months and as there is a
SIMM Energy Hedge Fund Page 6

Market Outlook (Continued)

reduction in demand because of the weakening global economy. The EIA expects West Texas Intermediate (WTI) to average $93 per barrel for the remaining of 2012 and further decrease during the winter months as supply is expected to increase due to this decreased demand. Excess supply in Cushing may slowly be reduced, leading to rising prices, as transportation infrastructure improves. Any significant reduction in inventory could also reduce WTIs spread with Brent. Selling at a premium, Brent Crude oil is expected to average $112 per barrel for the remaining of 2012 and $103 per barrel in 2013. The price of Brent prices have and will remain elevated, due to tight supplies, as seasonal refinery maintenance is still occurring. Prices should come down as refineries comeback online in the next few months and as global demand remains weak. Gasoline prices will also be affected by the uncertainty in the world economy. If these current negative trends continue, gasoline prices will drop as demand continues to weaken and as the outlook of the global economy potentially gets worse. Overall, all commodities part of the crude oil complex will see increases in price over the long term. As the global economy and population continues to grow, consumption of oil and its products will also increase. This is very bullish for prices long term but the current global economic outlook may weaken prices over the next six to twelve months. The outlook for natural gas is bullish as temperatures are forecasted to be normal this winter and as less rigs drill for the commodity. Despite forecasted temperatures expected to be 2% higher than the 30-year average, winter temperatures are predicted to be at least 20% colder than last year. A cooler winter may increase heating demand, which is bullish for natural gas. The supply glut will see draws in inventory as more natural gas will be used to heat homes and businesses. Also as the rig count for the exploring and production of natural gas continues to decline, less inventory will be replenished, keeping supplies tight.

SIMM Energy Hedge Fund

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Our Focus
The Fund was founded under the principle focus of investing within the energy sector and its products. This entails investments being made in various areas throughout the energy markets. We utilize numerous securities in order to capitalize and generate superior returns to investors.

Futures Contracts Equities Futures Options Equity Options

Within the energy sector, The Fund has had a primary focus on making investments in the traditional areas (crude, natural gas, and natural gas liquids). We have found investments involving positions in various energy commodities, along with companies throughout the industry. The Fund reacts to changes in the market and adapts to trends by taking both long and short positions. Moving forward, we reserve the right to invest in other products not stated in our current investment focus.

SIMM Energy Hedge Fund

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Closed Positions
Name Name Chesapeake Put Chesapeake Put Chesapeake Call Chesapeake WTI Crude Call Oil WTI Crude Oil TSO Equity HFC Equity TSO Equity CHK Equity HFC Equity LNG Equity Brent Crude CHK Equity Oil Brent Crude LNG Equity Oil WTI BrentCrude Crude Oil Oil Put BrentETF Crude Oil USO Put WTI Crude Oil Natural Gas Put Natural Gas USO ETF Put Natural Gas Brent Crude Natural Gas Oil Brent Crude Natural Gas Oil WTI Crude Natural Gas Oil WTI Crude Brent Crude Oil Oil Brent Crude Oil Ticker Ticker CHK, 2012, 04/20, 21 CHK, 2012, 04/20, 21 Strike Strike CHK, 2012, 04/20, 26 CHK, 2012, 04/20, 26 Strike Strike
CL, 2012, 12 TSO

Trade Settlement Close Security Date TradeDate Settlement Date Date Date Equity Security
Option 11/30/2011 4/20/2012 4/12/2012 Equity Option 11/30/2011 4/20/2012 Equity Option 11/30/2011 4/20/2012 4/20/2012

Close Position Date 2 long 4/12/2012 (2) short 4/20/2012 1 long 4/17/2012 long 318
long Open227

Equity Option Futures

11/30/2011

4/20/2012

CL, 2012, 12

Futures Stock Stock Stock

11/9/2011

1/9/2012 1/31/2012 1/31/2012 2/29/2012 2/29/2012 3/21/2012 3/21/2012

11/9/2011

11/16/2012 N/A N/A N/A

11/16/2012
Open Open N/A

4/17/2012

Average Closing Total Closing Cost Total Cost Price Cost Realized P&L Position Average Cost Total Cost Closing Price Total Cl (1.60) (320.04) 0.67 134.00 (187.20) long 2 $ (1.60) $ (320.04) $ 0.67 $ 2.29 457.95 0.00 0.00 457.95 short -2 $ 2.29 $ 457.95 $ $ (94.07) (94,072.32) 104.66 104,660.00 10,585.36 long 1 $ (94.07) $ (94,072.32) $ 104.66 $ (22.64) (12,001.32) 1,927.17 $ (12,001.32) $ (12,006.32) 3,031.87 2,828.50 3,483.30 (4,569.60) 655.20 117.57 112.41 $ 7,181.44 $ (34.52)

HFC TSO CHK LNG

StockStock

1/9/20121/9/2012 N/A

HFC CHK LNG

Stock Stock Stock

1/9/2012

N/A N/A N/A

10/3/2012 Open

(26.50) long 318 (12,006.32) $ (22.64) 0 19.64 19,637.50 short Open long 227 $ (26.50) (12.90) (17,512.08) long 674

COIL, 2012, 08 COIL, 2013, 06 CL MAY12 101.5 P

Futures

1/31/2012 1/31/2012 2/29/2012 2/29/2012

7/16/2012 5/16/2013 4/17/2012 5/19/2012

4/17/2012 4/17/2012 4/17/2012 4/18/2012

10/3/2012 short 0 $ 19.64 $ 19,637.50 2 (119.85) (239,704.80) 117.57 235,140.00 long

short

COIL, 2012, 08 COIL, 2013, 06

USO 19MAY12 38.0 P NG, 2012, 05 CL MAY12 NG, 2012, 05 NG, 2012, 06

Futures Futures Futures Option Equity Futures Option

Open

(1)

long 674 $ (12.90) $ (17,512.08) 113.07 113,067.60 112.41 (112,410.00) $ (119.85) $ (239,704.80) 7,181.44 0.00 $

7/16/2012 5/16/2013

4/17/2012 long 2 (8) 0.90 short 4/17/2012 30 short (0.72)-1 long

$ 113.07 (2,151.73)

$ 113,067.60 $ 0.71 2,130.00

101.5 P

USO 19MAY12 38.0 P NG, 2012, 05 NG, 2012, 05 NG, 2012, 06 COIL, 2012, 08 COIL, 2013, 06

Futures 4/4/2012 4/26/2012 4/17/2012 4/25/2012 Futures Option 3/21/2012 Futures 4/4/2012 4/26/2012 4/4/2012 Futures Futures Futures Futures Futures

Equity Option Futures Futures Futures Futures Futures Futures Futures

4/4/2012

3/21/2012

5/29/2012 7/16/2012 5/16/2013

5/19/2012 4/26/2012 4/26/2012 5/29/2012 7/16/2012 5/16/2013

5/17/2012 7/5/2012

3 short (2.14)-8 (64,236.96) 62,430.00 long 4/17/2012 $ 0.90 2.08 $ 7,181.44 $ 3 (2.13) (64,043.04) 2.14 (64,156.96) long 4/18/2012 long 30 $ (0.72) $ (2,151.73) $ (3) 2.26 67,933.04 2.53 (75,930.00) short 4/25/2012 long 3 $ (2.14) $ (64,236.96) $ (2) 117.56 235,115.20 102.01 (204,020.00) short
long

- (1,813.92) (113.92) 0.71 $ (8,003.92) 2.08 $ 31,090.40

COIL, 2012, 08 COIL, 2013, 06 CL, 2012, 12 CL, 2012, 07

4/17/2012 4/17/2012 4/17/2012 4/17/2012

4/4/2012 4/4/2012 4/4/2012

6/20/2012 7/10/2012 5/8/2012

4/4/2012

long 3 $ (2.13) $ (64,043.04) $ (112.43) (224,864.80) 93.80 187,600.00

2.14 $ (37,269.60) 2.53 $ 35,350.72

11/16/2012 6/20/2012

5/17/2012 short -3 $ 2.26 $ 67,933.04 $ (2) (104.66) 209,315.36 86.98 (173,960.00) short
long

4/17/2012 4/17/2012 4/17/2012 4/17/2012

7/5/2012

short -2 $ 117.56 $ 235,115.20 $ 103.84 (207,674.64) 96.98 193,950.00 long short long long 2 -2 2 2 $ $ $ $ (112.43) (104.66) 103.84 4.38 $ (224,864.80) $ 209,315.36 $ (207,674.64) $ (8,764.64) $ $ $ $

102.01 $ (13,729.28) 93.80 $ $ $ $

6/20/2012 7/10/2012 5/8/2012 7/9/2012

WTI Crude OilSIMM CL, 2012, Hedge 12 Energy Fund WTI Crude Oil WTI Crude Oil Call CL, 2012, 07 CL Aug12 98 Call

11/16/2012 6/20/2012 N/A

86.98 Page 9 96.98 0.03

Futures Option

5/8/2012

Closed Positions
Name Name WTI Crude Oil Call Chesapeake Put Natural Gas Call Chesapeake Call Natural Gas Call WTI Crude Oil Natural Gas TSO Equity Natural Gas Put HFC Equity Natural Gas Put CHK Equity RBOB LNG Equity RBOB Call Brent Crude RBOB Call Oil RBOB Brent Crude Oil WTI Crude Oil Brent Put Crude Oil Brent Crude Oil USO ETF Put WTI Crude Oil Natural Gas WTI Crude Oil Natural Gas Oil WTI Crude Call Natural Gas Oil WTI Crude Put Brent Crude Oil RBOB Brent Crude Oil Ticker Ticker CHK, 2012, 04/20, 21 CL Aug12 98 Call Strike CHK, 2012, 04/20, 26 NG JUN12 2.4 Call Strike CL, 2012, 12 TSO
NG Jul12 NG Jul12 2.35 Put NG JUN12 2.45 Call

Security Security

Trade Close TradeSettlement Settlement Date Date Date Date Date

Average Close Position Cost Date Position 4.38 2 0.05 -2

Closing Total Closing Realized Total Cost Price Cost P&L Average Cost Total Cost Closing Price Total Cl $ (8,764.64) (1.60) $ 1,463.04 2.29 0.03 $ (320.04) 60.00 $ 0.17 $ (5,010.00) 457.95 $ (8,709.28) 0.67 $ (3,553.92) $ 5,806.08 104.66 $ 8,786.08 2,116.08 (2,196.96) (6,728.84) (2.32) 117.57(2.32) $ (3,242.84) 112.41 $ 33,970.40 (31,709.60) 0.71 $ 5,310.72 2.08 $ (6,759.28) 2.14 $ 3,240.72 2.53 $ (4,409.28) 102.01 $ (2,759.84) 93.80 $ $ $ $

2 long Futures Option 7/9/2012 4/12/2012 long Equity Option 5/8/2012 11/30/2011 N/A 4/20/2012
Futures Option Futures Option

Equity Option Futures Stock Stock Stock

4/25/2012 4/25/2012

11/30/2011

5/25/2012 5/25/2012

4/20/2012

5/17/2012 5/24/2012

4/20/2012 4/17/2012
long

short

(3) 3

short long

Futures

Futures Option Futures Option Futures

HFC

NG Jul12 2.30 Put RB Sep12

CHK

0.05 1 3 2.45 6/5/2012 6/27/2012 6/26/2012 long 1/9/2012 N/A Open long 318 0.07 6/5/2012 6/26/2012 6/26/2012 short (3) 1/9/2012 N/A Open long 227 3 0.07 6/5/2012 6/26/2012 6/26/2012 long 1/31/2012 N/A 10/3/2012 short 0 2.52 7/2/2012 8/31/2012 7/13/2012 short (1) 11/9/2011 11/16/2012 1/31/2012 7/2/2012 8/28/2012 N/A 8/28/2012 Open short 674 (1) long 0.09 2 0.07

(1,566.96) $ (94.07) (73,436.96) $ (22.64) 2,153.04 $ (26.50) (2,196.96) $ 19.64 105,690.68 $ (3,987.69) (12.90) $ (3,030.51) (119.85)

0.25 7,380.00 $ (94,072.32) $ 2.74 82,230.00 $ (12,001.32) 0.00 (30.00) $ (12,006.32) 0.00 0.00 $ 19,637.50 2.68 112,417.20 $ (17,512.08) 0.00 $ (239,704.80) 0.00 0.00 $ 0.00

LNG RB Sep12 254 Call COIL, 2012, 08 RB Sep12 264 Call

RB Sep12 COIL, 2013, 06 COIL Oct12 101.5 (COILV2) CL MAY12 P COIL Jan13 (COILF3) USO 19MAY12 38.0 P

Stock Futures Option Futures Futures Option Exercised Future Futures

2/29/2012 7/16/2012 1 long 7/2/2012 8/28/2012 8/28/20124/17/2012 long

8/28/2012 8/28/2012 8/28/20124/17/2012 short (1) short 2.63 2/29/2012 5/16/2013 -1

(106,680.00) $110,667.69 113.07 (2.54) $ 113,067.60 $ (196,364.80) 230,340.00 $ 0.90 115.17 $ 7,181.44 $ $ 195,795.20 113.75 (227,500.00) (0.72) $ (2,151.73) $

2 short 98.18 Futures 9/13/2012 8/22/20124/17/2012 long Futures Option 7/8/2012 3/21/2012 4/17/2012 -8
Futures Futures Futures

97.90 12/14/2012 8/22/2012 short (2) Equity Option 7/8/2012 3/21/2012 5/19/2012 4/18/2012 long 30 Futures Futures Futures Futures Futures Futures Futures Futures Option
7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/17/2012

NG, 2012, 05 NG, 2012, 05 NG, 2012, 06

RB Sep12

CL Sep12 (CLU2) CL Jul13 (CLN3) CL Sep12 84 Call CL Sep12 84 Put

4/4/2012 4/4/2012

8/21/2012 6/20/2013 8/16/2012

4/26/2012 4/26/2012 5/29/2012 7/16/2012 5/16/2013

7/25/2012 7/25/2012 7/17/2012 7/17/2012 7/25/2012

4/25/2012 4/4/2012 5/17/2012 7/5/2012

long long long short

long

2 (2) 2 2 1

long long short short long short long long

Futures Option Futures Option Futures

4/4/2012

COIL, 2012, 08 COIL, 2013, 06

4/17/2012 4/17/2012 4/17/2012

8/17/2012 8/31/2012

6/20/2012 7/10/2012 5/8/2012 7/9/2012

84.56 3 87.34 3 4.51 -3 3.58 -2 2.74 2 -2 2 2

(169,124.64) 87.22 174,440.00 $ (2.14) $ (64,236.96) $ 174,685.36 90.72 (181,440.00) $ (2.13) $ (64,043.04) $ (9,014.64) 6.13 12,255.36 $ 2.26 $ 67,933.04 $ (7,164.64) 1.38 2,755.36 $ 117.56 $ 235,115.20 $ (115,052.92) 2.67 112,295.40 $ (112.43) $ (224,864.80) $ $ $ $ (104.66) 103.84 4.38 $ 209,315.36 $ (207,674.64) $ (8,764.64)

WTI Crude Oil CL, 2012, Hedge 12 SIMM Energy Fund WTI Crude Oil WTI Crude Oil Call CL, 2012, 07 CL Aug12 98 Call

11/16/2012 6/20/2012 N/A

$ Page 10 86.98 $ $ 96.98 0.03

4/17/2012 5/8/2012

Closed Positions
Ticker Ticker Security CHK, 2012, 04/20, 21 Chesapeake Strike Oct12 Futures Natural Gas Put NG CHK, 2012, 04/20, 26 Chesapeake Strike Feb13 Futures Natural Gas Call NG WTI Crude CL, 2012, 12Futures Nov12 Natural GasOil NG TSO Equity Natural Gas RBOB HFC Equity RBOB CHK Equity LNG Equity Brent Crude Oil Brent Crude Oil WTI Crude Oil Put USO ETF Put Natural Gas Natural Gas Natural Gas Brent Crude Oil Brent Crude Oil NG TSO Mar13 RBHFC Nov12 RBCHK Dec12 LNG COIL, 2012, 08 COIL, 2013, 06 CL MAY12 101.5 P USO 19MAY12 38.0 P NG, 2012, 05 NG, 2012, 05 NG, 2012, 06 COIL, 2012, 08 COIL, 2013, 06 Futures Futures Futures Name Name

Trade Settlement Close Trade Settlement Average Total Closing Realized Security Date Date Date Position Average Cost Total Cost Closing Price Total Cl Date Date Close Date Position Cost Total Cost Closing Price Cost P&L Equity Option 11/30/20119/26/2012 4/20/2012 9/4/2012 9/26/2012 short Equity Option 11/30/20119/26/2012 4/20/2012 9/4/2012 1/29/2013 long Futures 9/26/2012 9/26/2012 Stock 10/10/2012 Stock 10/10/2012 Stock Stock Futures Futures Futures Option Equity Option Futures Futures Futures Futures Futures Futures Futures Futures Option 11/9/2011 11/16/2012 10/29/2012 10/12/2012 short 2/26/2013 1/9/2012 10/12/2012 N/A long 10/31/2012 10/18/2012 1/9/2012 N/A long 10/31/2012 10/18/2012 1/31/2012 N/A short 1/31/2012 2/29/2012 2/29/2012 3/21/2012 N/A 7/16/2012 4/12/2012 (2) 4/20/2012 2 4/17/2012 (2) 2 Open 1 Open (1) 10/3/2012 Open 4/17/2012 long 2.87 short 3.41 long 3.17 long 3.60 2.96 long 2.83 short long long 2 $ 57,300.00 -2 $ (68,200.00) 1 $ 63,355.36 318 (72,044.64) $ (124,255.12) 227 $ 118,895.48 0 $ 674 2 -1 -8 $ $ $ $ $ $ $ $ $ $ $ $ $ (1.60) 2.29 (94.07) (22.64) (26.50) 19.64 (12.90) (119.85) 113.07 0.90 (0.72) (2.14) (2.13) 2.26 117.56 (112.43) (104.66) 103.84 4.38 $ $ 2.97 (320.04) (59,350.00) $ 3.62 457.95 $ 72,460.00 0.67 (2,059.28) $ $ 4,250.72

$ (94,072.32) (71,440.00) $ 104.66 (8,089.28) $ 3.57 $ 3.94 (12,001.32) 78,870.00 6,820.72 (10,181.24) 4,892.56

2.72 $ (12,006.32) 114,076.20 2.71 $ 19,637.50 (114,000.60) $ (17,512.08) $ (239,704.80) $ 113,067.60 $ $ 7,181.44 (2,151.73) $ $ $ $ $ $ $ $ $

117.57 112.41 0.71 2.08 2.14 2.53 102.01 93.80

$ $

5/16/2013 4/17/2012 Total Realized P&L short 4/17/2012 4/17/2012

$ 17,091.82 short

*Current Prices as of October 26, 2012 30 3/21/2012 5/19/2012 4/18/2012 long

4/4/2012 4/4/2012 4/4/2012 4/17/2012 4/17/2012 4/17/2012 4/17/2012 5/8/2012 4/26/2012 4/26/2012 5/29/2012 7/16/2012 5/16/2013 11/16/2012 6/20/2012 N/A 4/25/2012 4/4/2012 5/17/2012 7/5/2012 6/20/2012 7/10/2012 5/8/2012 7/9/2012 long long short short long short long long 3 3 -3 -2 2 -2 2 2

$ $ $ $ $ $ $ $ $

$ (64,236.96) $ (64,043.04) $ 67,933.04

$ 235,115.20 $ (224,864.80) $ 209,315.36 $ (207,674.64) $ (8,764.64)

WTI Crude OilSIMM CL, 2012, Hedge 12 Energy Fund WTI Crude Oil WTI Crude Oil Call CL, 2012, 07 CL Aug12 98 Call

$ Page 11 86.98 $ $ 96.98 0.03

Open Positions
Name TSO Equity HFC Equity LNG Equity XOM PXD Equity XLE Equity ETF VLO Equity Natural Gas Natural Gas Ticker TSO HFC LNG XOM PXD XLE VLO NG Jan13 NG Apr13 Security Stock Stock Stock Stock Stock ETF Stock Futures Futures Trade Date 40,917.00 40,917.00 40,939.00 40,995.00 41,004.00 41,004.00 41,122.00 41,205.00 41,205.00 Settlement Date N/A N/A N/A N/A N/A N/A N/A 41,270.00 41,359.00

Open Positions long 318.00 (22.64)

long long long long short long long short 227.00 674.00 116.00 168.00 (366.00) 356.00 2.00 (2.00) (26.50) (12.90) (86.84) (110.61) 70.85 (27.40) 3.98 3.90

Position

Average Cost

Total Cost (7,200.79) (6,016.41) (8,697.97) (10,073.28) (18,582.80) 25,929.57 (9,756.13) (79,524.64) 78,015.36

Current Price 38.35 38.89 16.00 90.62 103.63 71.96 29.03 3.86 3.81

Market Value 12,195.30 8,828.03 10,784.00 10,511.92 17,409.84 (26,337.36) 10,334.68 77,100.00 (76,120.00)

Unrealized P&L 4,994.51 2,811.96 2,086.03 438.64 (1,172.96) (407.79) 578.58 (2,424.64) 1,895.36

Total Realized P&L $ 8,799.69 *Current Prices as of October 26, 2012

SIMM Energy Hedge Fund

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Fund Performance
SIMM Energy Hedge Fund (April 2, 2012 - Present) *Returns exclude transaction costs*

Fund Performance

Total Return Since Inception

5.15% 5.01% 5.04% 0.54% 0.41% 1.57%

Annualized Return

Year-To-Date Return

Sharpe Ratio

Sortino Ratio

Standard Deviation

SIMM Energy Hedge Fund

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Cumulative Return Comparison Time Weighted Return Comparison

Cumulative Returns from 04/02/12 - 10/26/12 *** U839136 is the Energy Fund

XLE 0.32%

SPX 0.25%

U839136 5.04%

SIMM Energy Hedge Fund

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Crude Oil Update

Review: Crude oil is down over 17% from the beginning of April with its yearly highs being achieved during the middle of the prior month. Strong political tensions, along with increases in supply and demand at 16-year lows, have put downward pressure on the price of crude oil. We have seen slowing global growth, particularly in China as their Purchasing Manager's Index (PMI) has dipped below 50, the first occurrence since early 2009. This is a clear sign of possible contraction in the manufacturing sector, which is correlated with the price of oil. We have also noticed oil prices and Gross Domestic Product positively correlated throughout the year. As our GDP declined throughout the year below two percent, we began to see a large drop off in oil. Data from the Energy Information administration (EIA) shows that recently we have had large builds in supply, driving the price lower. Supplies in Cushing, OK have reached a record high this June of nearly 48 million barrels. Since the reversal of the Seaway Pipeline earlier in the year, which has enabled the transport of excess crude supply, we have seen Cushing stocks go down slightly for the past four months, now currently at 44 million barrels. We have also seen the Brent/WTI spread nearly double since April 1st. Brent is trading at a nearly $24 premium to WTI as of the end of October 2012, which is due to the increased supply in Cushing.

Risk Management Guidelines

SIMM Energy Hedge Fund

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Crude Oil Update (Continued)

Forecast: Prices of oil will continue to be relatively high as a slow economic recovery across the world increases consumption. Also, unrest in the Middle East will continue to push oil prices up. SIMM Energy will closely follow the markets into the presidential election as well as 2013. As emerging markets look to improve their standard of living, energy consumption of all kinds will continue to increase dramatically. We will look to increase our international exposure in crude oil exploration, with these being strong long-term plays on earnings per share, price to earnings, and a dividend basis. We believe that Cushing stocks will eventually come off record high levels as new technological innovation will get the excess supply out, possibly increasing demand while driving down oil prices. The WTI/Brent spread will come off of its highest levels in the near future as well, and we will see WTI prices rise to catch up with Brent.

Risk Management Guidelines

SIMM Energy Hedge Fund

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Natural Gas Update

Current Holdings: January 2013 Natural Gas, April 2013 Natural Gas Review: With the abnormally mild winter in the beginning of 2012, residential and commercial natural gas consumption decreased dramatically helping to build an already growing inventory. By the end of April, working inventories were at 2,576 Bcf which is 857 Bcf or almost 50% greater than the 5-year average for that time of year. These record inventories helped pushed its price down to its lowest level in over a decade of $1.89. These depressed prices made natural gas an attractive option to use as fuel for power plants. Plants with the capacity to switch from coal power to natural gas made this change to take advantage of such low prices. A record setting summer, being the hottest on record in 50 years, created extreme cooling demand. This also creates a demand for electricity as air conditions are often used during warm weather. The consistently hot summer created a high amount of cooling demand which pushed prices upwards over 70% from their low in April as more power plants used natural gas for electricity generation over coal. This has led to consumption of natural gas in the electric power sector averaging 22% higher than 2011 levels. Hurricane Isaac, a category 1 hurricane, which struck the U.S. coast in the Gulf of Mexico in September, also affected the price of natural gas. The Gulf is important for natural gas production and processing, as 30% of the processing plant capacity is located there. The threat of the hurricane sent 72% of this capacity offline raising prices as weekly supply surpluses fell below their 5-year averages.

Risk Management Guidelines

SIMM Energy Hedge Fund

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Natural Gas Update (Continued)

Forecast: Over the next few months, we expect to have a cooler winter than last year, which should send natural gas prices upwards. The National Oceanic and Atmospheric Administration (NOAA) projected that the Northeast, Midwest, and the South will experience temperatures 2% higher than the 30-year average. Despite this, winter temperatures will be about 20%-27% colder than last year. Cooler temperatures should increase heating demand, drawing down stocks, and increasing gas prices. Furthermore, rig count for natural gas production in the United States is at 427 versus last years 927. The reduction in rigs drilling for the gas is due to the abundant amount of production form liquids rich shale plays such as the Eagle Ford and Marcellus shale. This decrease in rigs should also produce less inventory, tightening supplies, sending price upwards. It is also important to note that working inventory levels are at 3,843 Bcf, well above the 5-year average of 3,592 Bcf. We believe that the current level of working inventory is depressing the price and this is most likely only a short-term phenomenon. Going forward, we expect cooler temperatures to increase demand for heating households and with a major reduction in rig count, the process of replenishing inventory will take longer as well. As a result, we believe the price of natural gas will continue to increase over the next few months.

Risk Management Guidelines

SIMM Energy Hedge Fund

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Equities Update
Current Holdings: Cheniere Energy Inc. (LNG), Energy Select Sector SPDR (XLE), Exxon Mobil Corp. (XOM) HollyFrontier Corp. (HFC), Pioneer Natural Resources (PXD), Tesoro Corp. (TSO), and Valero Energy Corp. (VLO) Review: Throughout our fiscal year, our equity positions have outperformed the market. Our positions have an average annualized return of 29.60%, outperforming the S&P, which returned 0.25% over this same period. The top performers were our refinery stocks due to increased profit margins over the summer. The front month WTI and RBOB crack spread has increased 23% when compared to this time last year. The increase in oil and gas prices over this summer has widened the spread, making refiners more profitable. The largest gainer in our portfolio was Tesoro Corp (TSO), which had an annualized return of 92.34%. Strong earnings in Q2 led Tesoro to beat analyst estimates by $0.63. The company also announced during earnings that they are purchasing BPs Carson refinery in California. This gives the company a 23% market share in that state. This larger market share may also allow them to profit off of the fire at Chevrons Richmond refinery, which may be offline for almost a year. The next leading equity in our portfolio is HollyFrontier Corp. (HFC) with a 60.97% annualized return. They also posted positive Q2 earnings, which beat estimates by $0.14. HFC has benefitted from the cheap price of WTI, which is down 13% this year. The company also raised its regular dividend 50% while also giving a special dividend during the summer and in early fall of $0.50.

Risk Management Guidelines

SIMM Energy Hedge Fund

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Equities Update (Continued)

Valero Energy Corporation (VLO) has posted an annualized return of 26.65%. The company has also greatly benefitted from the general decline in oil prices and improvement in the crack spread over the past few months. The company reported better than expected Q2 earnings of $1.50 a share, beating analyst estimates by $0.07 and they also raised their dividend 2.5 cents. Other positive news for Valero included the announcement that they plan to spin of their retail business that may be valued at $3.5 billion.

Risk Management Guidelines

Pioneer Natural Resources (PXD) has a -10.5% annualized return in our portfolio. The company failed to meet their Q2 earnings estimate by $0.20, but did well in revenue, beating estimates by 2.4% and was up 14.8% year over year. Helping to give the stock a small boost, this past September, the company announced it would begin to divest some of its holdings in the liquid-rich Barnett Shale play. We also closed our position in Chesapeake Energy Corp. (CHK) profiting $2,829. We were originally short the company due to controversy stemming from CEO Aubrey McClendon. We decided to exit the position after the stock rose over 3% after activist investor Carl Ichan bought a significant stake in the company and as the price of natural gas rose due to the hottest summer in over 50 years as the companys core business is natural gas production. ExxonMobil is currently the only oil and gas supermajor we own. The company had an annualized gain of 7.43% in our portfolio. The companys return has been below average for the sector due to its large exposure to natural gas. ExxonMobil has been increasing natural gas production in the U.S., as they believe that demand will increase in the coming years. This has exposed XOM to record low natural gas prices, which are down 40% over the past two years. As prices have risen this summer, and holdings in the oil rich Bakken shale have increased, we have seen a greater amount of equity flow into the company.
SIMM Energy Hedge Fund Page 20

Equities Update (Continued)

Cheniere Energy (LNG) has had a 33.30% annualized return since our initial purchase. They have gained a significant competitive advantage by being the only company to gain conditional approval to export liquefied natural gas from the Federal Energy Regulatory Commission. Because of the high costs of building the Sabine Pass liquefied natural gas train, the company has struggled to make earnings, missing Q2 earnings with a $0.34 per share loss. Despite this, they began to make deals to export LNG including a 20-year deal with GAIL, India's largest gas transmission company to export 3.5 million tons LNG per year.

Risk Management Guidelines

Our short position in the Energy Select Sector SDPR ETF (XLE) currently has a negative annualized return of -2.78%. We are currently using the ETF as a general hedge for our long equity positions. Forecast: The uncertainty in the global macroeconomic environment gives us an unclear picture of price direction for our commodities, which greatly affects our holdings. For the crude oil complex, this uncertainty makes it difficult to determine where the price of oil is heading and could make it difficult for refiners to retain such high margins. Also, the abundant supply and record production of natural gas has depressed the price, making it difficult to profit from. We hope companies such as Cheniere will gain full permission to export natural gas, driving up their share price and allowing for greater profits. We do caution that they have still not received full approval and without it, this could be detrimental to their gross margins. The Federal Government is currently conducting a study to see the economic impact of exporting natural gas and will give a final decision when the study is concluded at the end of 2013.

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Risk Management Guidelines

Before each trade is implemented, all the possible foreseen risks involved must be presented and discussed with management. A formal trade proposal must be put in writing as to have a record of the initial justification and risks associated with the trade. This also allows us to review trades and critique them based on new information and changes in the market.

Risk Management Guidelines

Each position is monitored on a daily basis and is adjusted accordingly. Each analyst is assigned a position to monitor and is to report to upper management on a weekly basis. Positions limits include: No equity position can make up more than 20% of the portfolio Futures contracts initial maintenance margin cannot exceed 50% of the total portfolio value Despite our ability to lever our portfolio through Interactive Brokers (4.5x), management has decided the risk/reward mix is not essential at this time. Management advises that all speculative positions consider a corresponding hedge position.

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Management Team Management Team

Jeremy Tranzillo Co-Portfolio Manager Vasile Tivadar Co-Portfolio Manager

Vasile Tivadar Jeremy Tranzillo Co-Portfolio Manager Co-Portfolio Manager

Peter Eller Crude Oil Analyst

Neil Scheible Equity Analyst

Dan Gasapo Equity Analyst

Chris Matthews Natural Gas Analyst

Arkan Razi Gasoline Analyst

Tom Montemage Equity Analyst

Peter Eller Crude Oil Analyst Neil Scheible Equity Analyst

Dan Gasapo Equity Analyst

Chris Matthews Natural Gas Analyst

Arkan Razi Gasoline Analyst Neil Scheible Equity Analyst

SIMM Energy Hedge Fund

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Biographies Biographies

Jeremy Tranzillo

Energy Hedge Fund Co-Portfolio Manager, May 2012 Present Head of Fixed Income, January 2012 May 2012 M.B.A. St. Bonaventure University, May 2013 B.A. Psychology, SUNY Geneseo, December 2006

Vasile Tivadar

Energy Hedge Fund, Co-Portfolio Manager, May 2012 Present Energy Hedge Fund, Geopolitical Analyst, January 2012 May 2012 Fixed Income Sector, Research Associate, January 2012 May 2012 Risk Management, Research Analyst, January 2012 May 2012 Industrial Sector, Research Analyst, September 2011 December 2011 B.B.A. Accounting and Finance, St. Bonaventure University 2013

Peter Eller

Energy Hedge Fund, Oil Analyst, August 2012 - Present Social Media Operations, Associate, August 2012 - Present Long Fund, General Analyst, January 2012 - May 2012 B.B.A. Finance, St. Bonaventure University May 2014
SIMM Energy Hedge Fund

Neil Scheible

Energy Hedge Fund, Equity Analyst, August 2012 - Present MicroFinance, Fund Member, September 2012 - Present B.B.A. Management Finance, St. Bonaventure University, 2012 B.B.A. Finance, St. Bonaventure University 2013
Page 24

Biographies Biographies

Chris Matthews
Energy Hedge Fund, Natural Gas Analyst, August 2012 - Present Long Fund, Consumer Discretionary, Analyst, August 2011 December 2011 B.B.A. Finance, St. Bonaventure University 2013

Arkan Razi

Energy Hedge Fund, Gasoline Analyst, August 2012 - Present B.B.A. Finance, St. Bonaventure University 2014

Dan Gasapo
Energy Hedge Fund, Equity Analyst, August 2012 Present Consumer Discretionary, Analyst, January 2012 May 2012 B.B.A. Finance & Minor in Economics, St. Bonaventure University 2013

Tom Montemage
Energy Hedge Fund, Equity Analyst, August 2012 - Present M.B.A. St. Bonaventure University December 2012 B.S. Business Administration, May 2008 Passed Level I Exam of the CFA Program

 Thank you for taking the time to read our Semi-Annual report. For more information refer to our website www.BonaSIMM.org If you have any questions or recommendations please contact the following individuals:

Jeremy Tranzillo: Tranzijp11@Bonaventure.edu Vasile Tivadar: Tivadav@Bonaventure.edu Also follow us on Twittter @SIMMEnergyFund