The 20 Rising Stars of Hedge Funds 2008

Top 10 Funds by Strategy Strategy/Fund Convertible Arbitrage Inflective Convertible Opportunity Fund I, L.P. Whitebox Convertible Arbitrage Fund, Ltd. Castle Creek Arbitrage, LLC Rock Hill International Partners, Ltd. Basso Investors Ltd Laurus Offshore Fund Argent Classic Convertible Arbitrage Fund L.P. (C) Julius Baer Convertible and High Yield Hedge Fund (USD) Argent LowLev Convertible Arbitrage Ltd. (C) RCG Latitude Overseas Fund, Ltd. Distressed Securities Whitebox Hedged High Yield Fund Ltd Concordia Distressed Debt Fund (Class H) Schultze Partners, L.P. Millennium Global High Yield DKR Wolf Point Fund Ltd Trophy Hunter Investments, Ltd. Armory Offshore Fund Ltd M.D. Sass Re/Enterprise II, LP King Street Capital LP The Asian Debt Fund, Ltd. Class A Fixed Income Arbitrage MKP Opportunity, Ltd. Glacier Peak T-Bill Arbitrage Offshore Fund, Ltd. The Obsidian Fund (Offshore) III Relative Value Credit Strategies Fund Ltd Series 2 Cura Fixed Income Arbitrage Fund, Ltd The Galaxite Fund (Offshore) AlphaBridge Fixed Income Fund, Ltd. Smith Breeden Global Funding Ltd. Endeavor Fund II Ltd. (Feeder) UFG Russia Debt Fund Emerging Markets 788 China Fund Ltd SMC China Opportunity Fund I (Class A) Foyil Eastern Europe and Russia Focused Fund (Individual) Emperor Greater China Fund Ltd India Capital Fund A Share Hudson River Russia Fund, Ltd. Forum Global Opportunities Fund Ltd Passport India Fund, LP Enhanced India Index Fund Boyer Allan India Fund Equity Market Neutral Fox Run Alpha Fund, LP Zacks Market Neutral Leveraged ThinkStrategy Capital Fund LP Cedar Street Market Neutral Fund Hillsdale Canadian Market Neutral Equity Fund Husic Capital Management Matched Pairs (Market Neutral) New Castle Market Neutral, L.P. D5 Intrinsic Value Fund Martin Currie ARF - UK Fund GBP Krema Absolute Return Fund LLC 2007 1 Yr Return (%)* 1 Yr Ann. Stdev.(%) Incept. Date Assets ($ Million) 1 2 3 4 5 6 7 8 9 10 18.40% 18.26% 13.62% 9.44% 9.19% 9.04% 8.97% 8.69% 8.16% 7.77% 5.42% 3.78% 3.51% 7.10% 2.65% 1.93% 0.28% 5.68% 0.10% 2.75% 30-Jun-03 31-Jan-01 31-Jan-04 31-Oct-02 31-Oct-95 31-Jan-01 30-Nov-96 31-Jul-05 31-Oct-99 30-Apr-00 44.60 523.00 318.52 100.90 1291.00 14.22 190.83 56.79 category, although a couple of fund families had different individual funds appear in the top 10 within categories. The only fund with a two-fer was Balestra Capital Management. Its Balestra Capital Partners fund scored the trifecta, leading the global macro category for the past three years, and its Spectrum Partners fund finished in the top five for all three years in the fund-of-funds category. “Our consistency comes from our flexibility,” said Ryan Atkinson, chief market analyst for Balestra Capital Partners, the global macro portfolio. “I can’t really say what other funds are doing, but we try to figure out what is the best application of our strategy every year.” Atkinson noted that, more recently, the fund has rotated in and out of sectors and stocks in conjunction with changes in the market. “When the markets were rising and the economy looked strong, we were long energy and emerging markets,” he said. “Now that the economy has turned, we have found ways to play the short side on mortgage rates, housing stocks and collateralized distressed securities.” According to Atkinson, the advantage to a broad strategy such as global macro is that there can be such wide variations. “Two guys can have exactly the opposite conclusions on where crude oil, gold and the yield curve are going,” he said. “The key to return is how you rotate into and out of each asset class.” He contrasted that to a more narrowly defined strategy. “If you are in convertible debentures, that is all you do,” he added. “It is either good or bad.” To maintain that flexibility, the Balestra team tries to maintain as much of a long-term outlook as HEDGE FUND RISING STARS 13 1 2 3 4 5 6 7 8 9 10 35.73% 24.99% 18.31% 18.14% 17.87% 16.05% 15.39% 15.06% 14.89% 14.23% 7.67% 16.05% 12.17% 7.86% 5.51% 8.36% 12.02% 5.41% 5.82% 2.18% 31-Jan-02 30-Jun-02 31-Jul-01 30-Sep-99 31-Mar-05 30-Sep-94 30-Jun-05 31-Mar-96 30-Apr-95 31-Jan-04 594.00 185.00 166.00 853.61 175.00 189.67 19.00 11.07 97.62 1 2 3 4 5 6 7 8 9 10 43.15% 33.35% 29.80% 18.65% 15.54% 14.56% 14.53% 12.08% 11.00% 10.61% 9.31% 23.52% 15.06% 4.97% 5.59% 3.86% 1.80% 6.55% 5.99% 2.12% 31-Aug-01 31-Jan-06 31-Jul-96 30-Nov-05 31-Dec-04 31-Oct-04 28-Feb-01 31-May-98 30-Jun-00 31-Jan-05 327.20 8.34 760.22 867.00 667.82 224.00 511.00 2406.53 1 2 3 4 5 6 7 8 9 10 114.82% 101.03% 99.45% 92.12% 90.75% 85.29% 79.81% 76.68% 74.13% 68.77% 27.85% 18.73% 27.75% 32.17% 24.85% 17.01% 30.55% 25.19% 28.12% 23.07% 31-May-05 31-Jan-06 31-Oct-99 28-Feb-01 30-Sep-94 30-Apr-06 31-Aug-05 31-May-05 31-Dec-03 31-Oct-03 121.00 150.00 22.03 400.00 39.87 47.80 6.00 56.20 27.00 1 2 3 4 5 6 7 8 9 10 87.04% 38.21% 22.64% 17.54% 16.99% 15.86% 14.86% 13.43% 12.94% 12.49% 10.64% 11.20% 5.10% 5.31% 8.86% 6.97% 4.34% 4.28% 6.51% 6.56% 31-Dec-97 30-Apr-94 31-Jan-02 30-Jun-06 30-Apr-00 31-Jan-96 30-Jun-98 31-May-05 31-Jan-05 30-Nov-06 14.14 105.00 158.00 2.00 5.00 484.00 12.60 2.36 Source: CASAM CISDM Database (www.casamhedge.com) * cumulative % returns For inclusion in the CASAM CISDM Database or for more information, please email data@casamhedge.com, or call (212) 603-5036. MAY 2008 http://www.casamhedge.com

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