FIN alternatives

t
Friday, January 11, 2008

Houston Firm Launches Cross-

HEDGE FUND
www.finalternatives.com
& PRIVATE EQUITY NEWS
Vol. IV, No. 1

Inside this Issue

Commodity Energy Hedge Fund News ................................ 2, 7, 14-15
Memorabilia The Ultimate Alternative?

A fter six months of marketing

its energy hedge fund to insti-
tutional investors, Houston-based
for additional energy exposure.
“We’ve had 50 to 60 investor
meetings over the last five or six
Bear Shutters Third Hedge Fund
Point Clear Goes Long
MFA Seeks Powerful Lawmaker For
ETG Capital this week launched months and there is tremendous Top Post
Fund Launches ........................... 3-6
its ETG Capital Master Fund with appetite at the institutional level for Haar Cultivates Ag. Expertise
between $25 million and $50 mil- the energy commodity sector,” said BlackSquare Unveils $30M Global
lion. The cross-commodity, rela- Addison. Macro Fund
tive-value energy hedge fund has No more than 50% of the fund’s Martin Asset Mgmt. Plans Hedge
exposure to the U.S. power, natural capital can be allocated to any one Fund, ETF
Year In Review ............................ 8-9
gas, crude oil and refined products particular commodity. The offering Top Strategies, Top Trades, Top
sectors. employs short-, intermediate- and Funds
The firm intially aimed to launch long-term trading, and 85% of its Halls of Justice ....................... 10-11
the fund in October, but was derailed trades are in some sort of spread, Anchor Point Founder Enters Prison
Lone Star Exec. To Be Questioned In
by a committed investor who had either in commodities, time or loca- South Korea
too much exposure to the fast- tion within a commodity. Shareholder Activism.................. 13
sinking credit markets, according Addison said the firm is currently Hedge Funds Push For Brink's Split
to co-founder Don Addison. The bullish on the U.S. power sector Private Equity............................... 14
fund attracted commitments mainly Sorenson Closes 2nd Fund
and will be initiating several long
People Moves............................... 16
from large funds of funds looking Continued on Page 15

Activist Bulldog Preps SPACs Hedge Fund

A ctivist hedge fund shop
Bulldog Investors is adding
a new strategy to its product line.
understanding how they work and
their risks and rewards,” said co-
founder Phil Goldstein. “It’s such
makes SPACs safe is that their
capital goes into a bank trust fund
which can’t be touched until a deal
The Saddle Brook, N.J.-based firm a conservative investment but has is approved. The shareholders have
is launching the Absolute Plus the perception of being very risky. an opportunity to endorse the deal,
Fund, focused on investing in spe- We’re looking for double-digit and if they don’t they are entitled to
cial purpose acquisitions compa- returns annualized with a minimum a pro-rated share of the trust fund.
nies or “blank check companies,” of 6.5% per annum, which will be “It’s a win-win if a good deal
this month with some $8 million in the worst case. It’s very attractive comes down the road but if it
assets. versus just having your money in doesn’t, then the manager has
“There are great opportuni- the bank and the risk is comparable to take the hit,” Goldstein said.
ties there and I think we’re one of to having a certificate of deposit.” “We’ve had a lot of experience
the top hedge fund managers in According to Goldstein, what Continued on Page15

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 Does Madonna-Centered Strategy Have A Prayer?
O ne U.K.-based firm is looking
to turn a hobby into a viable
trading strategy, giving investors
a real alternative to their alterna-
tives portfolio. Marquee Capital
is banking on investing in celeb-
rity memorabilia, specifically that
related to the singer Madonna, to
drive performance for its one-year-
old operation.
The firm, formed by four entre-
preneurs, boasts what it calls “the
world’s largest collection” of
Madonna memorabilia, ranging
from outfits she’s worn to a signed
American Express card. It also
has a collection of items from other
celebrities, including Michael
Jackson and Elton John.
“As far as we know, we’re the
world’s first investment vehicle
FINalternatives
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Publisher
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Hung Tran
Managing Editor
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FINalternatives is a general circulation
weekly. No statement in this issue is to be
construed as a recommendation to buy
or sell securities or to provide investment
advice. Copyright 2007 by Stone Street
Media, LLC. Copying prohibited without the
permission of the publisher.
2 FINalternatives
specializing in celebrity memora-
bilia,” said CEO Chetan Trivedi.
“Madonna turns 50 this year and,
fan or not, she does represent an
opportunity to invest in and we’re
going to be holding exhibitions this
year globally.”
The firm follows a two-prong
strategy: long-term investments
spanning at least a decade alongside
tactical, event-driven acquisitions.
Items once belonging to the likes
of Madonna and Marilyn Monroe
are held for the long-term, while
other memorabilia, such as that of
the Jackson 5, are flipped within
the six to nine months in connec-
tion with events like the group’s
proposed reunion tour this year.
“Last year, we bought a chunk
if items, including lyrics to the
$2.8 Billion CTA Closes Out
‘Phenomenal’ Year
Q
uantitative Investment Man-
agement last year enjoyed
success on both the fundraising
and performance fronts. The Char-
lottesville, Va.-based firm’s Global
Program, a systematic, diversified
futures strategy, made gains in 11
out of 12 months as its assets bal-
looned from just $527 million to
over $2.7 billion.
The Global program enjoyed a
1.15% return last month, bringing
its returns to 28.41% for the full
year. In comparison, the Newedge
CTA Index (the former Calyon
Financial Barclay Index) was up
just 8.82%. The program’s perfor-
mance in December was driven by
small profits in many futures mar-
kets as no individual market distin-
‘ABC’ song,” said Trivedi. “If
they go forward with their reunion,
we’re looking to exit from some of
our Jackson 5 memorabilia because
it would be a good time to do that
with all of the media attention.”
Trivedi said 99.9% of its inven-
tory comes from legitimate sources,
such as Sotheby’s auction house.
Marquee, which doesn’t manage
a fund, is offering investors a stake
in the firm for their capital, which
goes directly into purchasing
additional memorabilia, and is
currently in conversation with a
“major” venture capital firm based
in the Middle East.
The minimum of invest-
ment requirement is £10,000
(US$19,000) and the minimum
investment period is 10 years.
guished itself last month, according
to the firm’s December investor
letter.
“Only one sector, metals, suf-
fered a small loss,” the letter read.
“As our assets approach $3 billion,
the Global Program has clearly
demonstrated that it can handle its
increased size, making it the CTA
of choice for institutional investors.
Due to our asset growth, the Global
Program will be included in the
Newedge CTA Index for 2008.”
The program does not charge
a management fee, and its per-
formance fee is 30%. There is a
$250,000 minimum investment
requirement for fund investors, and
a $20 million minimum for man-
aged accounts.
Jan. 11, 2008

Absolute Return
Debuts Second
Fund Of Funds
U .K.-based Absolute Return
Partners this month launched
another fund of hedge funds
vehicle, a follow-on vehicle to its
Millennium Wave Fund, which
launched in March 2006. The Mil-
lennium Wave II Fund launched
with US$60 million in seed capital
from a large northern European
pension fund, as well as from the
firm.
Fund II will follow exactly the
same investment strategy as its
predecessor, ultimately investing
in 15 to 20 underlying managers.
Each of the fund’s underlying man-
agers must seek to deliver a return
of at least 10% to 12% annually;
to enhance its expected returns,
the fund will use leverage of an
average of 50% to 100%, subject
to market conditions.
There is no underlying manager
overlap between the existing fund
and the new offering, according to
the firm.
Millennium Wave Advisors,
which is headed by John Mauldin,
will act as a sub-advisor to the
fund.
“We are excited to launch this
sister fund to The Millennium
Wave Fund and to continue the
successful co-operation with John
Mauldin whose immense network
we consider a major asset,” said
Niels Jensen, chief executive of
Absolute Return.
Absolute Return currently man-
ages some $400 million in total
assets under management.
Jan. 11, 2008
Haar Offers Agriculture Program
H aar Capital Management
believes that further success in
the managed futures industry can
be had by sticking to its knitting.
The Boca Raton, Fla.-based com-
modity trading adviser last month
launched the Discretionary Ag
Trading program, a discretionary
agricultural-only futures strategy.
The program finished its first
month of trading up 5.67%, with
about $11 million in assets under
management.
Haar’s new program is not
entirely a carve-out of its existing
and more diversified Commodity
Trading program, according to
founder Stanley Haar. “Obvi-
ously, it’s a subset of the markets
that we trade under the bigger
program,” he said. “However, we
can hold different positions and
different size positions in the new
program.”
But Haar admits that there’s
going to be significant overlap
Singapore Firm Unveils Korea FoF
H
FG Investments, a Singapore-
based joint venture established
last year by Hana Daetoo Securi-
ties and Opvs Investment Hold-
ings, launched its inaugural fund
of hedge funds last month.
The HFG Korea Fund will
invest in a range of actively man-
aged Korea-focused hedge funds,
targeting a 12% annual return. 3A
Asia, the Hong Kong-based arm of
alternative asset management firm
3A SA, has been appointed as the
FINalternatives
FUND LAUNCHES
between the two programs because
of his background and experience
in the agricultural sector, coupled
with the success of the existing
program within that sector. Last
year, the former trader for the
Continental Grain Co. returned
16.76% to investors in the $42 mil-
lion Commodity program, largely
from trading soybeans, wheat and
cocoa.
Haar said his decision to launch
the latest strategy was based largely
on institutional demand for agricul-
tural-based products. “There was a
demand from some of those clients
for an ag-only program. We think
there’s more interest out there
partly because the ags seem to be
the center of attention by every-
body whether it is Goldman Sachs
or Jim Rogers.”
The Ag program charges a 2%
management fee and 20% incen-
tive fee. The minimum investment
requirement is $500,000.
fund’s investment advisor.
“We are extremely excited about
the launch of this product,” said
Jennifer Carver, CEO of 3A Asia.
“The Korean hedge fund market
has been growing dramatically in
recent years and the HFG Korea
Fund creates the ideal opportu-
nity for global investors to either
establish or expand their expo-
sure to Korea. We expect HFG to
receive significant demand for this
product.”
3
 Launching a Hedge Fund Conference

Member FINRA, SIPC

Thursday, February 7, 2008

The Princeton Club
15 West 43rd Street (bet. 5th & 6th Ave.) New York, NY 10036

Conference Agenda:
5:30pm Conference Registration
6:00pm – 7:00pm Conference Presentation & Industry Panel
7:00pm – 8:30pm Cocktails & Hors d'oeuvres

Space is limited, RESERVE YOUR SPOT TODAY

If you are a financial advisor, trader, portfolio manager or analyst and are contemplating launching a hedge fund
in 2008, you shouldn’t miss this opportunity to meet with some of the leading industry service providers
from the legal, accounting, fund administration and prime brokerage community to discuss your upcoming
launch. Gain insight into the inner-workings of launching a hedge fund and an accurate level of expectation
when it comes to startup budget, operational responsibilities, capital raising and many more.

RSVP and More Information:

Bill Hanson
Hedge Fund Capital Partners, LLC

Tel# 646.747.5222
Email whanson@hedgecap.com
www.hedgecap.com

Sponsor Panelists:

Hedge Fund Capital Partners, LLC, a member of FINRA and SIPC, is a New York based
broker dealer catering to the needs of the hedge fund community.

Roxbury Capital
Launches Maiden
Hedge Fund
A fter two decades of managing
traditional equity strategies,
Roxbury Capital Management
has launched its first hedge fund.
The $3 billion Santa Monica,
Calif.-based firm’s RQS Migra-
tion Fund, a quantitative long/short
vehicle, debuted in September with
$5.4 million in assets. The fund
now manages about $8 million and
has returned an estimated 11.1% in
its first four months of trading.
The fund is agnostic to capital-
ization, growth, value or sectors
and uses a behavioral, quantitative
model to predict demand shocks in
stocks, which tend to be driven by
analysts’ information, according to
Jon Foust, head of marketing and
client services.
“What we’ve heard from large
hedge fund of funds players is that
it’s different from any other quant
model out there because it is based
on behavioral dynamics in a given
stock as opposed to fundamentals,”
he said.
“From a placement standpoint,
it can be very complementary in
uncorrelated returns to the tradi-
tional quant funds that have gotten
a black eye in the back half of
2007.”
The Migration Fund, which is
benchmarked to the Russell 3000
Index, charges a 2% management
fee and a 20% incentive fee, with
a $1 million minimum investment
requirement.
Roxbury Capital was founded in
1986.
Jan. 11, 2008
BlackSquare Unveils Global Macro
U .K-based BlackSquare Cap-
ital launched the BlackSquare
Capital Global Macro Fund of
Funds on Jan. 1 with some US$30
million in assets.
The concentrated multi-manager
portfolio launched with 11 discre-
tionary and systematic macro hedge
fund managers, many of whom
are closed to new investment. The
portfolio includes managers such
as Caxton Associates, Moore
Capital Management, Fortress
Investment Group’s Drawbridge
Commodities Fund and Winton
Capital Management, and will
be equally split between equities,
commodities, interest rates and
foreign exchange. Eventually, the
portfolio will contain between 15
to 20 managers.
“When I look at the world today
and going forward, I view the cur-
Magnum Pops Cork On Asia FoFs
M
agnum Global Investments is
making investing in China and
India a priority in 2008. The $350
million fund of hedge funds shop last
month launched the Magnum China
Fund, a Greater China-focused fund
of hedge funds, and kicked off the
New Year with the unveiling of the
Magnum India fund.
Magnum’s China Fund invests
in hedge funds and long-only
funds focused on the Greater
China region. It currently invests
in six managers, with plans to add
another 10 to 12.
The minimum investment for the
FINalternatives
FUND LAUNCHES
rent environment given the level
of uncertainty in interest rates and
revaluation of equity/debt markets,
as a very good environment for top-
down thematic macro investing,
more so now than any time over
the last 10 years,” Christopher
Peel, CEO of BlackSquare, said.
The Global Macro Fund of
Funds charges a 1% management
fee and a 10% incentive fee with a
US$100,000 minimum investment
requirement.
Next quarter, the firm is also
looking to launch a long/short
commodities fund of funds. “What
we want to do is create a product
that will complement investors
currently invested in long-only
products so we want to have a dis-
cretionary but fundamental fund
that will trade across global com-
modity markets,” said Peel.
fund is $100,000. It charges a 1.5%
management fee and a 10% incen-
tive fee over a hurdle of 20%.
Magnum’s Indian vehicle has
been set up as a feeder fund to invest
in a fund of hedge funds managed
by New York-based RAS Capital
Management, which launched in
November 2006. That fund cur-
rently includes a dozen managers
employing a mix of long/short
equity, event-driven and arbitrage
strategies
The India fund charges a 1.5%
management fee and 10% incen-
tive fee.
5
FUND LAUNCHES

Calif. Firm Preps Alternative Energy Hedge Fund

T arzana, Calif.-based Martin

Asset Management is ushering
in the New Year with a pair of
launches.
Next month, the firm will launch
its Ilios Alternative Energy Fund, a
long-biased vehicle, with between
$10 million to $15 million in assets.
The firm will also serve as a sub-
adviser to an exchange-traded fund
strategy to be rolled out at the end
of March.
Ilios will invest in a range of
public companies involved in
wind, solar, hydro, geothermal and
biomass energy, and will hedge
certain exposures using inversely
correlated ETFs.
“We don’t use leverage, deriva-
tives or futures because they’re
added risks to the portfolio,” said
Francisco Martin, founder. “We
use a lot of PowerShares [ETFs]
to get downside protection when
we deem it necessary.”
Martin said the fund is investing
in companies such as First Solar,
a product manufacturer for solar
power plants, because of the per-
formance of its stock and the fact
that it “probably has the best track
record of all the solar energy com-
panies out there.”
He also said that investors are
looking to invest in more alterna-
tive energy funds as oil prices top
the $100 mark. “We’re seeing $115
to $120 per barrel, which will make
alternative energy more feasible.”
The fund charges a 2% manage-
ment fee and a 20% incentive fee
with a $500,000 minimum invest-
ment requirement
Martin is also sub-advising an
ETF-specific strategy dubbed the
Integris Global Index Plus Fund,
which is slated to launch on March
31 with some $10 million in pro-
prietary capital.
Martin said the fund is mostly
replicating the performance and
risk performance of the HFRI
Index by going long and shorting
certain ETFs. Thirty percent of the
fund will be a global, macro oppor-
tunistic strategy designed to add
more alpha.
The Integris fund charges a 1%
management fee and a 15% perfor-
mance fee.

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6 FINalternatives Jan. 11, 2008

Blackstone Buys
Credit Hedge
Fund GSO
T he Blackstone Group is getting
bigger, agreeing to buy hedge
fund GSO Capital Partners for
$930 million. Meanwhile, it has
unveiled a plan to stop its stock
price from doing the opposite.
GSO, which manages $10 bil-
lion in leveraged finance assets,
including a multi-strategy credit
hedge fund, is headed by former
Credit Suisse executive Bennett
Goodman. He will join the firm’s
executive committee. Blackstone
will pay $620 in cash and stock at
closing, with an additional $310 to
be paid over five years subject to
performance targets.
“The combination of GSO’s
business with our existing corporate
debt operations will produce one of
the largest credit platforms in the
alternative asset management busi-
ness, with over $21 billion of total
assets under management,” Black-
stone CEO Stephen Schwartzman
said. “Given the current dislocation
in the credit markets, this is an ideal
time to create a more powerful,
diversified platform from which to
grow Blackstone’s business.”
Goodman, who headed Credit
Suisse’s alternative capital unit,
founded GSO with Tripp Smith
and Doug Ostrover, formerly
co-heads of leveraged finance at
the bank. It has offices in New
York, London, Los Angeles and
Houston.
Blackstone—which has seen
its share price plummet more than
40% since its initial public offering
in June—also announced a $500
million share buyback plan.
Jan. 11, 2008
Bear Stearns To Close Third
Hedge Fund After 40% Decline
R eversing course, Bear Stearns
has told investors that it is shut- Bear, Fortress
tering an asset-backed securities Talked Merger
hedge fund that lost almost 40% of
its value last year. The firm, which
was forced by the subprime mort-
A proposed merger of Bear
Stearns and alternative
investments giant Fortress
gage collapse to close two funds in
Investment Group fell apart
the summer, had unveiled a plan
in recent weeks, as the bloodied
to save the fund in August, sus-
Wall Street giant seeks to turn
pending investor redemptions.
around its recent run of bad
The once-$900 million Bear
fortune.
Stearns Asset Backed Securities
In the weeks before former
Fund lost 21.4% in November,
Bear CEO James Cayne
and dropped by one-third between
announced his resignation, the
August and November. All told, it
firms held preliminary talks on
fell by at least 39% last year. Bear
a tie-up, the Financial Times
blamed the ongoing credit crisis
reports. But discussions ended
for its decision, noting that “given
without a deal, due to tax com-
the difficult market conditions that
plications and disagreements
continue to exist,” things could get
about the price.
worse, Bear told clients in a letter on
The Fortress failure is at
Dec. 20, Bloomberg News reports.
least the second try by Bear to
Bear said the fund still has
add a high-profile alternatives
about $500 million in assets, and
manager to burnish its image.
would return $90 million imme-
When troubled first surfaced
diately, with the rest refunded as
at two hedge funds managed
its assets are sold. The firm did
by the firm this summer, Bear
not give a timetable for the fund’s
officials approached Avenue
unwinding, but did say that it is
Capital about taking a stake in
completely unlevered and had just
the hedge fund.
0.5% exposure to subprime-linked
securities. Portfolio manager Colin
Gordon will remain on until the lion Emerging Markets Macro
fund closes. Fund returned 25.56% last year,
Under Bear’s original plan, the after a 2.95% December surge,
fund would have been restructured, according to a letter sent to inves-
locking up investor cash for two tors Tuesday, Reuters reports. Of
years. course, emerging markets funds
The bad news put a damper were among the best-performing
on a hopeful report about some of all hedge funds last year.
of its other hedge funds. At least Bear’s $200 million Europe
two of its more than dozen hedge Long/Short Fund added 1.05% last
funds posted respectable, if not month, bringing its full-year return
spectacular, returns. Its $1.7 bil- to 18.29%.
FINalternatives 7
YEAR IN REVIEW
HFR: Hedge Funds Up 10.36%
In 2007
T he average hedge fund managed
double-digit returns—just—last
year, according to figures from
Hedge Fund Research.
The firm’s HFRI Fund Weighted
Composite Index returned 10.36%
for 2007 after a 0.68% rise in
December. Funds of funds trailed,
but not by much, adding 9.94% last
year following a 0.1% return last
month.
As far as individual strategies go,
there are emerging market funds,
and then there’s everybody else.
E.M. blew all other comers out of
the water, returning 24.91% on the
year (1.75% in December). Funds
focused on Asia, in particular, had
a stellar 2007, soaring 35.88%. The
strategy’s 2.82% December return
was also tops among those tracked
by HFR.
Energy hedge funds also enjoyed
a successful 2007, returning 16.47%
(1.95% in December). Technology
funds also posted strong returns,
adding 15.68% on year, though the
strategy fell 0.46% last month.
Speaking of losing, just three of
the myriad strategies and sub-strat-
egies tracked by the HFRI indices
finished last year in negative ter-
ritory. Hedge funds focusing on
the financial sector suffered the
most, as financial firms were bat-
tered by the credit crisis and roiling
stock markets. The strategy lost
5.88% in 2007, dropping 1.62% in
December alone. Real estate hedge
funds were pushed into the red by a
2.41% decline last month, leaving
the strategy down 1.33% on the
8 FINalternatives
year. And high-yield funds finished
marginally down, losing 0.14% in
2007 (down 0.05% in December).
Among other major hedge fund
strategies, macro funds posted a
12.2% return in 2007 (1.33% in
December), while equity hedge
funds returned 10.71% (0.68% last
month). Relative value funds added
9.35% (0.99% last month), event-
driven 7.38% (0.13%), merger
arbitrage 6.73% (down 0.67% last
month) and distressed securities
6.29% (0.55%).
Equity-market neutral funds
were up 5.78% last year (0.78%
last month), convertible arbitrage
4.9% (down 0.83% last month) and
fixed-income 2.68% (0.23%).
Investable hedge funds did pro-
portionally worse, according to
HFR’s HFRX indices. Overall,
investable funds returned 4.23%
in 2007, declining 0.14% in
December. While only one of the
HFRX subindices found itself in
the red last year—convertible arbi-
trage, which lost 0.95% for the year
after a 2.17% drop in December—
just one bettered the Standard &
Poor’s 500 Index, which returned
4.9% in 2007. That was relative
value arbitrage, which topped all
other investable strategies with a
5.8% return, though like most of
the HFRX strategy indices, it found
itself in the red last month, drop-
ping 0.42% in December.
Event-driven investable funds
returned 4.88% on the year, merger
arbitrage funds 4.85% and dis-
tressed securities 3.99%.
Atticus,
Ackman Top List
Of Top Hedge
Fund Trades
F ew things bring a smile to a
hedge fund manager’s face
more than being right, and prof-
iting handsomely by it. So there are
likely to be more than a few broad
grins on Atticus Management’s
New York trading desk.
The firm was recognized by
Dow Jones Hedge Fund Trades in
its second-annual list for making
two of the top hedge fund trades
of 2007, moves which netted the
firm almost $1.2 billion in and of
themselves.
THE BIG TEN
Top Hedge Fund Trades of 2007
1. Atticus Management: Freeport
McMoran Copper & Gold
Profit: $800 million
2. Pershing Square Capital Manage-
ment: MBIA Inc. and Ambac Financial
Profit: more than $500 million
3. Tontine Partners: Foster Wheeler
Profit: $426 million
4. Atticus: Union Pacific and other U.S.
railroads
Profit: $387 million
5. Maverick Capital: First Solar
Profit: more than $350 million
6. Glenview Capital Management: Crown
Castle International and American
Tower
Profit: $319 million
7. Dawson-Herman Capital Manage-
ment: CF Industries
Profit: $160 million
8. Meditor Capital Management: Onyx
Pharmaceuticals
Profit: $155 million
9. Tremblant Capital Group: Chipotle
Mexican Grill
Profit: $95 million
10. Shunway Capital Partners: United
Therapeutics Corp.
Profit: $73 million
source: Dow Jones Hedge Fund Trades
Jan. 11, 2008

Goldman, Highbridge Among 2007 Losers
S ome of the biggest hedge funds
in the world have been weighed
in the balance of 2007, and found
wanting.
Most indices show that the
average hedge fund returned
roughly 10% last year, a figure that
some big names in the industry can
only dream about, according to pub-
lished reports. The biggest name
of all, Goldman Sachs’ Global
Alpha fund, suffered one of the
largest declines of any hedge fund
last year, losing 38% through Dec.
28. It is the second-straight losing
year for the one-time Cadillac of
hedge funds, which, like many of
its quantitative peers, was severely
burned by this summer’s subprime
slide, and continued to be hurt by
the credit crisis throughout the
second half of the year.
It was hardly alone. According
to Bloomberg News, seven of the
10 largest hedge fund managers
trailed the industry average; six of
those seven were quant managers.
A case in point is the quant
offering from the world’s largest
hedge fund manager, JPMorgan.
Its Highbridge Capital Man-
agement unit saw its Statistical
Opportunities Fund fall 14%. But
the firm’s non-quant funds often
performed extremely well, with
its long/short equities offering up
40% and its Asian equities fund up
19%. The firm’s flagship returned
a more modest 8.5%, while its
event-driven and relative value
fund dropped 10%.
Other funds glad to see the ball
drop on New Years are Blue Sky
Capital Management’s Japan
Jan. 11, 2008
Fund, which fell 31% last year,
Odey Asset Management’s Japan
& General Fund, which declined
by 26%, Drake Capital Manage-
ment’s flagship Global Opportu-
nities Fund, which lost 23%, and
GMN Capital, which lost 19%.
San Francisco-based GMN
announced in November that it
would close its doors and return its
remaining assets to investors.
Goldman’s Global Equity Oppor-
tunities Fund, for which the firm
led a $3 billion bailout in August,
was down 30% through November,
and Renaissance Technologies’
largest fund, Institutional Equities,
fell by about 1% on the year.
Many hedge funds avoided the
quants’ fate at the hands of the sub-
prime market, and in fact profited
from the experience, none more
spectacularly than Paulson & Co.
The New York firm boasts three
funds with triple-digit returns in
2007, led by its Credit Opportuni-
ties Fund, with an awe-inspiring
589.9% return. The firm’s Credit
Opportunities II and event-driven
arbitrage funds didn’t do too badly,
either, returning 351.8% and 100%,
respectively. The firm’s merger
arbitrage fund trailed all three, but
still returned a handsome 52%.
Triple-digit performances were
also turned in by San Francisco’s
Passport Management, whose
Global Master Fund returned 219%,
New York-based Harbinger Cap-
ital Management, whose flagship
added 118% while its Special Situ-
ations Fund returned 170%, and
788 Capital Management, whose
China Fund rose 104% on the year.
FINalternatives
YEAR IN REVIEW
Other notable winners of 2007
include Gartmore, whose Tenro
fund added 57%; Sandler Capital
Management, which rose 53%;
Odey’s European fund; which
jumped 52%; Eton Park Capital
Management, whose Master Fund
returned 35%; Pequot Capital
Management’s Core Global Strat-
egies Fund, which also rose 35%;
Quantitative Investment Man-
agement’s Quantitative Global
Fund, which bucked the quant
trend and returned 28.6%; MKP
Capital Management’s MKP
Partners, which added 27.7%; and
Tremblant Capital’s flagship
Tremblant Parters, which returned
22%. William Ackman’s $4 bil-
lion activist hedge fund, Pershing
Square Capital Management,
also returned about 22%.
Among industry titans, Citadel
Investment Group’s flagship
Kensington fund returned 30%,
D.E. Shaw & Co.’s Oculus Fund
rose 26% (its Composite Fund
managed just 7.4%), and Atticus
Capital’s European offering also
rose 26%. Cerberus Capital Man-
agement’s International Fund was
up 18%, Farallon Capital Man-
agement’s flagship rose 14.8%,
SAC Capital Advisors’ Interna-
tional Fund added 13%, and Och-
Ziff Capital Management’s OZ
Master Fund returned 11.7%.
Two other high-profile names
were not as lucky: 32 Capital,
run by Barclays Global Inves-
tors, returned just 0.3%, while
Old Lane, the hedge fund founded
by new Citigroup CEO Vikram
Pandit, added only 2.8% in 2007.
9
HALLS OF JUSTICE

Hsu Enters Prison With Apology, Explanation

F acing a judge before going to

prison, disgraced hedge fund
manager Albert Hsu blamed his
bipolar disorder for his misfortune,
and decried putting the mentally ill
in jail.
“My mental illness is not an
excuse” for plotting to have his
former mistress raped and kid-
napped, Hsu said at his formal
sentencing yesterday in Stamford,
Conn. “But it is an explanation for
my actions.”
Judge Richard Comerford sen-
tenced Hsu, the founder of hedge
fund Anchor Point Capital, to
two-and-a-half years in prison, and
12 years probation. He also has
to register as a sex offender upon
his release, and a violation of his
probation could send him back to
the slammer for 12½ years. Hsu
pleaded guilty to the charges in
October.
Hsu apologized to his victim,
whom he posed as to post an online
ad on a bondage and sadomas-
ochism Web site seeking “a real-
life abduction and rape scene” that
included her photo, license plate
number and where she preferred
to stand at a New Canaan, Conn.,
commuter rail station.
And he expressed regret for its
effect on his family, saying he
“never wanted to shame” it, and
adding that the worst moment in
his life was when his mother denied
he was her son after his arrest. His
wife, Kendra, with whom he has
two children, has filed for divorce.
But he also inveighed against
jailing the mentally ill. “Incar-
cerating [the mentally ill] in an
environment that is already over-
crowded is a step that further solid-
ifies their mental illness,” he said.
Hsu said he has attempted sui-
cide five times, and that he posted
the offending ad after the medica-
tion for his bipolar disorder stopped
working. Hsu had previously been
warned by police in New Canaan
after the victim complained of
harassment.
Hsu’s victim, who has not been
identified, approved of Hsu’s plea
agreement, her attorney said. He
could have faced up to 25 years in
prison.

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10 FINalternatives Jan. 11, 2008


Homm Sued By Investor Over
‘Secret’ Brokerage
A litigious Colorado millionaire
has filed suit against Abso-
lute Capital Management Hold-
ings co-founder Florian Homm,
accusing him of defrauding inves-
tors in the once high-flying hedge
fund.
Jack Grynberg, an oil and nat-
ural gas developer best known for
a flurry of lawsuits arguing that
more than 70 energy companies
owed billions of dollars to the U.S.
government for oil and gas explo-
ration on federal and Native Amer-
ican tribal lands, accused Homm
of buying highly-illiquid penny
stocks for AbCap’s funds through
a brokerage firm he owned.
Texas Prime Broker Slapped For
‘Inadequacy’
A Houston prime brokerage and
three employees have been dis-
ciplined for a variety of failures in
dealings with hedge fund clients.
According to the Financial
Industry Regulatory Authority,
SMH Capital made $325,000 in
improper soft-dollar payments to a
hedge fund client in spite of “sev-
eral red flags” raised by the man-
ager’s requests, including the fact
that the hedge fund asked to be paid
directly for third-party services,
identified neither the research pro-
vider nor the provider, or provide
any invoice or backup documenta-
tion. FINRA said that SMH “took
no steps” to determine whether the
Jan. 11, 2008
According to Grynberg, Homm
and co-defendant Todd Ficeto each
owned half of Beverly Hills, Calif.-
based Hunter World Markets,
which sold pink sheets to AbCap.
The suit alleges that Hunter earned
a commission on the pink sheets,
the value of which Grynberg says
Homm inflated, taking a 20% cut
as his incentive fee for his role as
manager of the AbCap funds. In
addition, Grynberg accuses Homm
of lying to investors by putting as
much as 44% of the funds’ assets
into pink sheets, while telling inves-
tors that investments in unlisted
companies would be capped at
10%.
soft-dollar payment was proper.
What’s more, SMH allowed
two of its brokers to collect com-
missions on trades made for a
hedge fund the two managed while
employed at SMH. Michael Rosen
and Jack Seibald received bonuses
from a “profit pool” filled in part
with commissions from their own
hedge funds.
SMH was fined $450,000 for
failure to adopt adequate supervi-
sory procedures and systems. The
firm was also ordered to retain an
independent consultant to review
its policies and systems. Rosen and
Seibald were each hit with $100,000
fines and 20-day suspensions.
FINalternatives
HALLS OF JUSTICE
Lone Star Exec.
Hit With Travel
Ban In Korea
T he chairman of hedge fund Lone
Star Funds may be spending
more time in South Korea than he
planned, after prosecutors slapped
a 10-day travel ban on him.
John Grayken traveled to the
country Wednesday to testify in
the stock-price manipulation trial
of one of its portfolio companies.
Prosecutors had sought to ques-
tion Grayken for months, and said
he would be brought in for ques-
tioning after his court appearance,
scheduled for today. It would not
say how long he would be detained
for; South Korean prosecutors can
hold a person in custody for up to a
month before arresting him.
At issue is Lone Star’s pur-
chase of a majority stake in Korea
Exchange Bank in 2003. Some
labor unions and politicians alleges
that the hedge fund colluded with
KEB management to depress its
stock price in advance of that deal,
in which Lone Star paid US$1.2
billion for a 65% share of the
firm.
Lone Star came under a hail of
criticism in 2006, when it agreed
to sell KEB to Kookmin Bank at
a US$4 billion profit. Last year, it
broke off that deal, saying KEB’s
value has grown further, striking
a new tentative agreement in Sep-
tember to sell the bank to HSBC.
Grayken has defended his firm’s
stewardship of KEB, saying Lone
Star’s investment and management
shakeup resulted in its soaring
value.
11
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Defense
Contractor Fends
Off Hedge Fund
A Maryland court has dealt a
potentially fatal setback to
activist hedge fund Costa Bra-
va’s battle with defense contractor
Telos Corp.
Baltimore City Circuit Court
Judge Albert Matricianni dis-
missed two shareholder derivative
claims, filed by Costa Brava Part-
nership III two years ago, seeking
$79 million in accrued but unpaid
dividends on preferred shares of
the company. Matricianni ruled
that Costa Brava “failed to prove”
that Telos has wrongfully withheld
the dividends and are misusing
company funds. Telos had coun-
tered that Maryland law prohibits
it from paying dividends while it is
insolvent.
Matricianni ruled that a pair of
special litigation committees set up
by Telos to review Costa Brava’s
claims “were independent, disin-
terested and performed their duties
in good faith.”
“We are gratified, but not sur-
prised, that the Court ruled in our
favor,” CEO John Wood said.
Costa Brava, which owns 16%
of Telos, isn’t done fighting just
yet. Last year, it won two seats on
Telos’ board in a proxy fight, and
two other counts—seeking to have
Telos put into receivership and
dissolved—are set to be heard at
trial in April. The firm can appeal
Matricianni’s decision.
Telos expressed confidence that
those two counts would also be
dismissed.
Jan. 11, 2008
Third Activist Takes Aim At Brink’s
A nother activist hedge fund that
joined the raid on Brink’s Co.
Steel Partners on Tuesday warned
the security company, famous for
its armored trucks, to seek a spin-
off or sale, or else. It also disclosed
a 6.2% stake in Brink’s.
“Steel Partners II believes that
significant shareholder value would
be unlocked if the issuer were to
pursue a tax-free spin-off of one
of its two business segments,” the
hedge fund wrote. Steel further
demanded an immediate sale of
Brink’s if it does not pursue a spin-
off, and called on the company to
Jana, Sandell Launch Offensive
Against CNET
A nnoyed by its poor stock per-
formance, activist manager
Jana Partners has launched a bid
to take control of Internet media
group CNET Networks.
The New York-based firm,
backed by fellow hedge fund San-
dell Asset Management, said it
plans to nominate a pair of candi-
dates to challenge the two CNET
board members up for reelection at
the company’s next annual meeting.
It also plans a push to add five seats
to the CNET’s board—which cur-
rently numbers eight directors—in
an effort to gain control.
Jana complains that CNET’s
performance is not up to snuff,
pointing both to a 19% decline in
stock price between 2005 and last
year, as well as last year’s less than
FINalternatives
SHAREHOLDER ACTIVISM
increase its stock buyback plan
fivefold to $500 million.
Steel is the third activist hedge
fund to express its unhappiness
with Brink’s’ efforts to boost its
stock price. Both Pirate Capital
and Millbrook Capital Manage-
ment have sought a tax-free spi-
noff, with the latter nominating a
slate of board candidates for the
company’s 2008 annual meeting.
In November, Richmond, Va.-
based Brink’s said it had retained
the Monitor Group to investi-
gate strategic alternatives for the
company.
1% return. The hedge fund boosted
its voting stake to 10.6% this week,
and also owns an 8% non-voting
stake. Sandell owns a 5% non-
voting stake in CNET.
San Francisco-based CNET
quickly responded to Jana’s
intrigues, calling its proposal
“improper under the company’s
bylaws” and arguing that “no
person or group of persons should
be able to gain a majority of the
board and control of the company
without offering sufficient value to
all stockholders.”
Jana managing partner Barry
Rosenstein said it is the compa-
ny’s “own underperformance that
makes it more vulnerable to an
opportunistic acquirer looking to
acquire it cheaply.”
13
PRIVATE EQUITY
Sorenson Capital
Raises $400
Million Fund II
P rivate equity firm Sorenson
Capital has closed its second pri-
vate equity fund, which has attracted
approximately $400 million in cap-
ital. It is the largest closing to date
for a Utah-based firm.
Sorenson is best known for its
high-powered management team,
including founding managing
directors Fraser Bullock, who
was chief operating officer of the
2002 Salt City Winter Olympics;
Ron Mika, a former managing
director of Bain Capital; and Tim
Layton, former president and
CEO of Medeco Security Locks
and managing director of Alpine
Consolidated.
G.E. Exec Joins
$500M P.E. Firm
A top General Electric execu-
tive is making the move into
private equity, joining a large group
of other G.E. veterans.
Lloyd Trotter, the highest-
ranking African-American in the
history of G.E., is joining New
York-based GenNx360 Capital
Partners, Business Week reports.
He currently serves as CEO of Gen-
eral Electric Industrial and a vice
chairman of the parent company.
GenNx360, which is backed by
G.E., will focus on commercial
security, industrial water treatment,
infrastructure and aerospace invest-
ments. It is expected to launch with
more than $500 million in capital.
14
Point Clear’s Short-Biased Credit
Strategy To Go Long
F airhope, Ala.-based Point Clear
Capital Management is bet-
ting on continued volatility in the
credit markets, and is adjusting its
credit hedge fund accordingly. The
$80 million shop is transforming
its Alpha 1 Fund from a directional
short strategy to a long/short one.
“We felt it was the right call
to be in directional short posi-
tions early in that fund and now
that we’re entering into a wider
spread, more volatile environment,
we’re staying with a short-bias and
picking our entry points to start
taking long credit risks,” said Lyle
Minton, partner. “The name of the
game going forward is still a wider
‘Nowhere To Hide’ For Babylon
Fund In November
G odvig Capital’s Iraq-focused
hedge fund, the Babylon Fund,
experienced its biggest monthly
drawdown since inception, losing
5.4% in November. The drawdown
slowed the US$13.1 million fund’s
year-to-date returns to 13.6%.
In his monthly investor letter,
portfolio manager Björn Englund
partially attributed the loss to “the
general spike in risk aversion glob-
ally and in the region in November,
which was combined with ‘lack-
of-liquidity-driven’ falling share
prices on the Iraq Stock Exchange
and higher yields, while the
ongoing appreciation of the Iraqi
FINalternatives
posture with a lot of volatility.”
The Alpha I Fund and its levered
versions, Alpha 50 and Alpha 150,
returned 22.17%, 16.84% and
39.05%, respectively, last year.
The firm’s Piedmont Fund is an
offshore structured credit fund
with a short bias to exposure to the
U.S. investment-grade corporate
bond market. The fund implements
its short credit position through the
trading of credit default swaps. The
firm offers its funds in credit-linked
notes, allowing it to issue different
funds on the same platform.
The Piedmont Alpha fund
charges a 1% management fee and
a 20% incentive fee.
dinar stalled–at least temporarily.”
The open-ended mutual fund
structured vehicle’s largest losses
during the month were in a few
Iraqi financial services names such
as Dar ElSalam Investment Bank
and Kurdistan International
Bank, which both lost 25% of their
value in November.
Going forward, Englund said
he expects the hiccup in the Iraqi
equities market to subside and the
prevailing improved security and
macroeconomic situation in Iraq to
help “breath new life into the stock
market and investors’ sentiment in
2008.”
Jan. 11, 2008
Citadel Ponders
Taking IPO
‘Plunge’ In ‘08
A fter enjoying another year of
stellar returns, Citadel Invest-
ment Group may be ready to meet
its public.
The $20 billion hedge fund giant
is considering an initial public
offering, BusinessWeek reports,
citing sources who say the Chicago
firm may “take the plunge this
year.”
Citadel itself was coy about the
possibility of a public listing.
“An IPO is something we’d con-
sider,” CFO Gerald Beeson told the
magazine. “It would be a byproduct
of our wanting to expand our firm
to create an even more diverse and
permanent institution.”
In September, Citadel hired John
Andrews, the former Goldman
Sachs head of investor relations,
who joined the investment bank
just prior to its 1999 IPO.
BULLDOG cont. from page 1
in dealing with the managers and
we know who the good ones are.
It’s just safer than just investing in
straight equities.”
Goldstein estimates there are 95
SPACs currently trading with $14
billion in total capitalization.
The firm is marketing its new
offering, which charges a manage-
ment fee of 75 basis points and a
15% incentive fee above a hurdle
of three-month Treasury bills, to
its existing investors comprising of
individuals and funds of funds.
Jan. 11, 2008
MFA Courts Republican
Congressman For Top Job
A top Republican on Capitol Hill
is poised to become the chief
lobbyist for hedge funds as head of
the Managed Funds Association.
Rep. Richard Baker (R-La.) dis-
closed last week that he is in talks to
become the next president and CEO
of the MFA. The lobbying group is
reportedly prepared to offer Baker
the nearly $1 million-per-year
job, though it is still unclear if he
will accept the position. The MFA
acknowledged that it plans to “begin
negotiations with Congressman
Richard Baker as a candidate for the
president/CEO position.”
Baker would replace John
Gaine, who has led the MFA for
more than a decade. Gaine will
remain with the organization.
Baker, first elected to Congress
from the Baton Rouge area in
1986, is the former chairman of
the House subcommittee on capital
markets, insurance and govern-
ment-sponsored entities, a role in
which he was noted for his efforts
to reform mortgage finance giants
Fannie Mae and Freddie Mac.
Hedge funds have not been a focus
of Baker in Congress, though he
ETG cont. from page 1
positions across the curve in U.S.
power. The fund will probably be a
seller of natural gas on a “heat-rate
basis,” but within that sector there
are certain periods, particularly
next winter, when the firm will
begin to initiate more long natural
gas positions.
He also mentioned that the
FINalternatives
introduced an unsuccessful bill
seeking increased disclosure for
hedge funds in 1999.
The MFA’s courting of the
Republican Baker comes as the
hedge fund industry has avoided a
flurry of potentially damaging leg-
islation pushed by the newly-Dem-
ocratic-controlled Congress. Still,
hedge fund executives have over-
whelmingly supported Democrats
in recent election cycles, helping
fund the party’s successful effort to
retake both the House and Senate
in 2006. Hedge fund executives are
among the prominent fundraisers
for presidential candidates in both
parties.
Should Baker resign from Con-
gress to take the MFA post, he
would be the 20th House Repub-
lican since the 2006 election to
announce his exit or retirement.
The departures are complicating
Republicans’ efforts to retake Con-
gress this November, making that
already remote possibility an even
greater reach.
Baker has said if he does not
leave the House to take the MFA
job, he’ll seek reelection in the fall.
firm is contemplating launching
an alternative energy offering in
the carbon trading space but those
plans are “still a bit further on the
horizon.”
The fund charges a 2% manage-
ment fee and a 20% incentive fee
with a $1 million minimum invest-
ment requirement.
15

GAM Adds Baer
Structured
Products Team
H edge fund manager GAM has
added Julius Baer’s alterna-
tive risk trading team to its struc-
tured products division.
GAM, which manages some
US$76 billion, said the group will
be based in its Zurich, Switzerland,
office. Redubbed GAM Structured
Investments, the five-person team
is led by Yoshiki Ohmura, who
has managed structured portfolios
totaling US$610 million for GAM
funds of funds since 2006.
Hedge Fund
Veteran Returns
To Mellon Capital
M ellon Capital Management
has brought a veteran former
hedge fund manager back as chief
investment officer.
Michael Ho, who developed
and managed hedge fund strategies
during a seven-year stint at Mellon
Capital, has also been named vice
chairman of the Bank of New
York Mellon division.
In his new role, he will focus on
client relationships.
Ho returns to Mellon from
Kévian Capital Management, the
$300 million tactical asset alloca-
tion management firm he founded.
That firm is closing. He also
worked at Zurich, Switzerland-
based Marcuard Family Office
16
PEOPLE MOVES
as chief investment officer after
leaving Mellon Capital in 2003.
FrontFour Snags
Ex-Pirate Capital
Exec.
E
vent-driven hedge fund shop
FrontFour Capital has
appointed former Pirate Capital
executive Jerry Meyer as chief
operating officer. In his new post,
Meyer is responsible for back
office operations, technology and
all fund accounting duties. He will
also assist in all compliance issues,
since the firm is in the process of
registering with the SEC.
Prior to joining FrontFour,
Meyer was director of operations
at Pirate.
Citi AI Names COO
C
ontinuing the shakeup pre-
cipitated by the ouster of CEO
Charles Prince and the appoint-
ment of Vikram Pandit as his
successor, Citigroup named Jacob
Lew chief operating officer of its
alternative investments division.
Lew moves to Citi Alternative
Investments from the firm’s wealth
management business, where he
also served as COO. He succeeds
Don Callahan, who became chief
administrative officer of the whole
of Citi last month.
Prior to joining Citi, Lew served
as director of the U.S. Office of
Management and Budget for three
years under President Bill Clinton.
FINalternatives
Cole Partners Hires
New CIO
C ole Partners Asset Man-
agement has named Philip
Halpern chief investment officer
of Tellus Asset Management, a
natural resources fund of hedge
funds affiliated with the firm.
Halpern is responsible for directing
portfolio strategy and manager
structure of the natural resources
fund of funds.
Halpern formerly served as the
CIO of the University of Chi-
cago and California Institute of
Technology. Prior to moving to
the endowment world, he served
as CIO at The Washington State
Investment Board.
Aide To Newark
Mayor Joins Hedge
Fund
A top aide to the mayor of
Newark, N.J., is leaving his
post to join a hedge fund.
Bo Kemp, currently the troubled
city’s business administrator and
acting director of its engineering
department, has resigned to take a
post at an unidentified hedge fund.
Before joining the administration
of Mayor Cory Booker 18 months
ago, he led a now-defunct pub-
lishing company.
Kemp said he left because he
could no longer support his chil-
dren’s private school and eventual
college expenses at his current
salary.
Jan. 11, 2008
 North American Hedge Fund League Tables
By Ankur Samtaney, Eurekahedge Analyst

N orth American hedge funds finished last month up

0.6%, bringing their returns for 2007 to a decent
9.4%. These positive December returns were achieved
from short positions in underperforming sectors such as
the financial and consumer cyclical sectors.
Among other asset
despite persisting fears of an economic slowdown in the classes, commodities fared
U.S., and amidst considerable volatility in the underlying considerably well, with
markets. Equities, which started the month rallying, gold and silver rising in
turned volatile on the Federal Reserve’s announcement excess of 7% on the month,
of a 25 basis point rate cut on Dec. 11, and the Standard and oil prices climbing by
& Poor’s 500 finished the month down 0.9%. Long/ 8.6%. These movements, among others, largely benefited
short managers, against this backdrop, made some gains CTAs, who were the best performers in December.

AuM Dec. ‘07 2007 2006 % rise in Annualized

Name of the Fund Rank2 (US$ Mln) Return return return NAV return
Eurekahedge North American Hedge Fund Index1 0.59 9.39 12.31 146.92 11.96

Long/Short Equity
Eurekahedge North America Long/Short Equities Hedge Fund Index 0.52 10.34 11.69 147.25 11.98

C&O Investment Partnership LP 1 36 4.21 74.15 2.31 620.27 15.15

Sandler Plus Domestic Fund LP 2 67 1.30 54.82 4.95 58.11 22.58
McGinnis Capital LP 3 2 -7.40 53.91 43.61 229.88 32.42
Blake Street BCM Fund LP 4 5 4.80 44.26 -5.88 95.28 9.12
Whitebox Intermarket Fund Ltd 5 30 2.16 39.07 16.96 100.05 21.35
Rosen Offshore Limited 6 25 5.97 37.81 1.75 115.96 9.29
J.W. Partners LP 7 45 4.43 36.83 2.10 949.45 30.17
The Preservation Trust 8 62 0.72 36.83 10.45 257.96 15.85
Pequot Core Global Offshore Fund Inc 9 522 2.10 34.94 8.35 788.46 16.89
Modern Capital Fund LLC 10 108 2.80 34.77 19.16 118.66 23.20

CTA/Managed Futures
Eurekahedge North America CTA/Managed Futures Hedge Fund Index 2.64 12.69 9.59 166.97 13.06

Trendline Fund LP 1 2 7.43 28.94 -16.01 54.47 64.49

H T Funds CTA 2 * 6.73 23.04 23.04 64.49
Salem Futures Fund LP 3 108 6.35 20.04 9.22 1,012.05 15.06
Legacy Futures Fund LP 4 12 3.95 19.30 -7.51 593.02 12.00
FORT Global Trend LP 5 6 -0.82 12.21 1.58 377.48 13.91
Briarwood Fund 1 LP -2XL Series 6 4 2.31 11.36 32.38 91.95 22.87
Tactical Multistrategy Commodity Fund LP 7 31 2.44 11.19 18.59 198.40 16.48
Sunrise Commodities Select Portfolio - Currency Fund LP 8 9 1.00 10.28 2.93 109.09 5.07
Tactical Institutional Futures Program 9 33 2.40 7.34 24.26 1,142.01 18.63
Sunrise Commodities Select Portfolio LP 10 224 2.30 7.15 8.38 6,039.58 18.03

1 2
based on 34.83% of the funds reporting their December 2007 returns as at Jan. 10, 2008 ranked by 2007 YTD returns * not disclosed

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