The 20 Rising Stars of Hedge Funds 2008

Top 10 Funds by Strategy Strategy/Fund Event Driven Multi-Strategy Lionhart Global Appreciation Europe Fund Class A USD Maiden Capital Opportunity Fund, LP Venus Special Situations (Offshore), Fund Ltd. Owl Creek Overseas Fund Ltd Moneda Retorno Absoluto Longacre Special Equities Offshore Fund, Ltd MM&E Capital Takeover Target Fund First Eagle Fund NV Class A Good Hope International Ltd Class A Argo Global Special Situations Fund SP Sector US Residential Real Estate Hedge V, LP (Class A) Passport Materials Fund, LP Genus Natural Resources Fund Consulta Canadian Oil Sands Fund BV Marathon Resource Partners III Prosperity Quest Fund (Power) Dorset Energy Fund Limited Global Energy Value Fund USD Permal Media & Technology Ltd. (A) Tryphon Fund, Inc Global Macro Balestra Capital Partners, LP Crescat Global Macro Fund LP Blue Sky World LP Clarium LP Ronin Master Op Investors Ltd Global Undervalued Securities Fund Everest Capital Global AIS TAAP Composite Roy G. Niederhoffer Fund (Ireland) #1 BWII, LP Equity Long/Short Passport I, LP - Global Vault Global Opportunities, Ltd Boyer Allan Pacific Opportunities Fund (New Issue) Alchemy Fund Share Class L Apis Global Deep Value, L.P. Indusino Offshore Fund Ltd QAM Asian Equities Fund Ltd Willowbrook Fund, LP Grenadier Fund Krohne Fund, L.P. Fund of Funds Gems Perennial SPY 3YR USD FMG India Opportunity Fund USD Balestra Spectrum Partners, LLC Absolute Managers Ltd Rasmala MENA Equal Opportunity Fund B Sapphire Voyager Fund, L.P. Merriwell Fund Culross Global H Fund Class H USD ZHONGGUO Signet Global Equity Fund Gold in USD 2007 1 Yr Return (%)* 1 Yr Ann. Stdev.(%) Incept. Date Assets ($ Million) 1 2 3 4 5 6 7 8 9 10 43.18% 38.85% 35.75% 32.43% 24.82% 23.97% 20.48% 18.44% 16.88% 15.41% 15.23% 24.93% 9.71% 6.96% 8.82% 11.70% 7.97% 7.75% 5.14% 3.02% 31-Oct-99 31-Oct-06 30-Jun-06 28-Feb-02 30-Sep-06 31-May-06 31-Aug-05 30-Nov-77 31-Mar-04 31-Aug-04 10.00 12.00 2350.00 183.26 17.30 7.52 possible, given the volatility of markets worldwide. “We look for the best risk profiles over three months, six months and a year out,” Atkinson noted. That flexibility may be good for returns, but it clearly poses a challenge to institutional investors. It means that global macro is not a static component of overall asset allocation. If big investors want to play in the strategy, they need to get to know the individual managers. “You sort out the players by knowing how the managers think, what tools they use, which investments they favor and how they understand the business cycle,” Atkinson said. “It is not as straightforward as other strategies.” That reality applies even more so to funds of funds. Those funds have come in for some criticism lately, shining a spotlight on the multiple layers of fees and the lack of accountability of underlying asset managers to the actual investors. Atkinson said it all boils down to return. “One layer of fees, two or three, it doesn’t matter if you can consistently beat the market,” he added. “That is all that matters. Either the investment is worth it, or not.” In that light, current market conditions are such that fund managers really need to work to earn their fees. “People actually are required to make decisions,” Atkinson quipped. “They cannot simply rely on the rising market.” As consolation, active managers in general, and hedge fund managers in particular, are not hearing unfavorable comparisons to passive managers and index funds any more. Managed Risk Equals Returns The second of the three trifectas was Passport Capital’s equity long-short strategy. In volatile MAY 2008 422.40 1 2 3 4 5 6 7 8 9 10 870.26% 134.40% 56.89% 49.19% 44.33% 43.84% 39.97% 36.23% 34.18% 32.43% 147.03% 30.17% 35.82% 14.56% 29.56% 22.47% 12.87% 20.90% 21.97% 5.91% 30-Nov-06 31-Mar-06 30-Jun-02 30-Sep-05 31-Oct-05 31-Jan-00 30-Nov-00 31-Mar-05 30-Sep-89 31-Oct-00 6.80 209.00 22.33 54.32 11.50 514.01 866.49 40.00 115.00 1 2 3 4 5 6 7 8 9 10 199.14% 78.43% 75.75% 40.38% 38.08% 32.76% 31.75% 31.39% 29.93% 29.55% 36.63% 16.85% 37.79% 18.84% 26.30% 12.09% 23.71% 12.41% 10.15% 17.30% 31-Jan-99 31-Jan-06 28-Feb-06 31-Oct-02 30-Jun-00 29-Feb-96 31-Jan-90 30-Apr-92 30-Sep-95 31-Jul-06 400.00 10.87 102.28 2938.00 65.00 3547.00 46.90 29.92 375.00 1 2 3 4 5 6 7 8 9 10 219.63% 114.00% 104.55% 95.07% 91.03% 71.42% 66.21% 60.74% 60.37% 59.00% 45.88% 44.31% 23.82% 25.17% 17.89% 12.59% 21.89% 50.81% 15.54% 12.01% 31-Aug-00 31-Oct-05 30-Nov-06 30-Sep-05 30-Nov-05 31-Oct-05 30-Apr-04 31-Aug-06 31-Jul-86 31-May-04 180.00 43.00 24.90 0.48 12.40 33.00 64.00 2.10 252.21 28.08 1 2 3 4 5 6 7 8 9 10 116.70% 79.54% 75.89% 53.73% 48.41% 47.13% 45.49% 44.91% 44.72% 43.95% 29.79% 23.49% 16.75% 12.74% 12.32% 6.52% 11.13% 10.85% 15.24% 15.98% 31-Dec-05 31-Aug-05 31-Jan-99 30-Jun-00 31-Aug-06 31-Jan-04 31-Jul-90 30-Sep-05 31-Jan-07 31-Oct-03 86.32 16.25 67.00 50.60 225.00 90.00 16.07 7.94 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. 14 HEDGE FUND RISING STARS http://www.casamhedge.com

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The 20 Rising Stars of Hedge Funds 2008 Contents Looking Great for 2008 A Matter of Supply and Demand Return Performance Highlights Challenging Period 20 Rising Stars of Hedge Funds Mentors' Page

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