The 20 Rising Stars of Hedge Funds 2008

Top 10 Funds by Strategy Strategy/Fund Convertible Arbitrage Discus US Standard- Class B Shares Whitebox Convertible Arbitrage Fund, Ltd. Laurus Offshore Fund PENN Convertible Fund, L.P. Castle Creek Arbitrage, LLC Argent Classic Convertible Arbitrage Fund L.P. (C) Basso Investors Ltd Mohican VCA Offshore Fund, Ltd Inflective Convertible Arbitrage Composite Forest Global Convertible Fund Distressed Securities Millennium Global High Yield Bay Harbour Partners, Ltd. Trophy Hunter Investments, Ltd. Whitebox Hedged High Yield Fund Ltd M.D. Sass Re/Enterprise II, LP Highland Crusader Fund, Ltd Concordia Distressed Debt Fund (Class H) King Street Capital Ltd Post DistressedOffshore Fund, Ltd. American Durham Fixed Income Arbitrage MKP Opportunity, Ltd. AlphaBridge Fixed Income Fund, Ltd. UFG Russia Debt Fund The Galaxite Fund (Offshore) DMR Structured Arbitrage Master Fund Lodsworth Arbitrage Fund Limited Cura Fixed Income Arbitrage Fund, Ltd The Obsidian Fund (Offshore) Concordia Capital Class N G-10 Fixed Income Arbitrage (2x Leverage) Coast Value Fund I, Ltd Emerging Markets Emperor Greater China Fund Ltd Prosperity Quest Fund Foyil Eastern Europe and Russia Focused Fund (Individual) Russian Opportunities Fund Ltd India Capital Fund A Share Atlantis China Fund Trophy Fund Tradewinds Russia Partners I, LP Enhanced India Index Fund Firebird Fund LP Equity Market Neutral Fox Run Alpha Fund, LP Viper Capital Partners ThinkStrategy Capital Fund LP Augustus MJK International Master Fund LP Zacks Market Neutral Leveraged New Castle Market Neutral, L.P. Aletheia Insider Index, LP Thor Optima Fund Ltd. (Class A) Martin Currie ARF - UK Fund GBP GLC Gestalt Europe Fund Ltd 2005-2007 3 Yr Return (%)* 3 Yr Ann. Stdev.(%) Incept. Date Assets ($ Million) 1 2 3 4 5 6 7 8 9 10 59.42% 47.70% 34.09% 32.31% 32.06% 31.48% 30.85% 30.30% 29.47% 29.09% 11.30% 5.13% 1.96% 8.57% 4.19% 0.27% 3.01% 4.03% 4.78% 4.54% 30-Nov-99 31-Jan-01 31-Jan-01 31-Jul-03 31-Jan-04 30-Nov-96 31-Oct-95 31-May-04 31-Oct-01 30-Sep-94 207.66 523.00 1291.00 1.98 318.52 14.22 48.50 434.47 markets, it might seem that a long-short strategy would be a strong approach. But Passport and one other manager were the only ones able to return performance of better than 100% over three years. So John Burbank, chief investment officer, clearly has some edge. Burbank unabashedly claimed it is his anti-U.S. bias. “We were short credit, long commodities and long emerging-market population centers,” he said. But it also was his moxie. “Most people were just trying to have low volatility. We were trying to make high returns, and we made correct bets,” he added. “A lot of the success is asset class selection. If you want your investment to double in two or three years, General Electric or Citigroup are not going to get you there.” Burbank is clear that his approach has risks, but he stressed that risk management is not the same as risk avoidance. He indicated that, counter intuitively, avoiding risk may actually exacerbate it. “For example, Americans have a tremendous home bias in investing, but America is only 5% of the world’s population,” he noted. “And that bias was fully priced into the market around 2000.” In effect, failure to look abroad for opportunities is not avoiding risk, but enhancing it. Similarly, Burbank noted that most people do not have much invested in basic materials because it is the smallest sector of the S&P 500, about 3%. “But it is our biggest sector,” he said. “That is because the rest of the world needs basic materials. But people just don’t pay attention. As a result, there are tremendous inefficiencies in the financial markets. That is how hedge funds make money: not just going with the lowest common denominator of what is normal, HEDGE FUND RISING STARS 15 1 2 3 4 5 6 7 8 9 10 113.40% 94.87% 88.98% 77.01% 61.24% 55.97% 53.35% 45.10% 44.91% 43.45% 8.56% 11.67% 9.72% 5.83% 6.93% 12.38% 9.89% 4.57% 4.97% 4.30% 30-Sep-99 31-Jul-95 30-Sep-94 31-Jan-02 31-Mar-96 31-Jul-00 30-Jun-02 31-Jan-97 30-Jun-02 30-Apr-93 853.61 465.93 189.67 594.00 11.07 2845.10 185.00 57.39 168.59 1 2 3 4 5 6 7 8 9 10 52.90% 36.34% 35.95% 33.05% 32.39% 32.14% 31.01% 30.78% 28.35% 28.21% 7.31% 1.86% 2.43% 3.40% 3.15% 2.43% 3.65% 10.51% 5.97% 3.24% 31-Aug-01 28-Feb-01 31-Jan-05 31-Oct-04 31-Jul-04 31-Dec-03 31-Dec-04 31-Jul-96 29-Feb-04 31-Jan-99 327.20 224.00 667.82 53.85 108.00 760.22 220.00 30.00 1 2 3 4 5 6 7 8 9 10 556.48% 437.86% 363.18% 347.90% 344.84% 335.42% 333.41% 284.73% 265.42% 228.43% 33.39% 27.46% 31.67% 28.47% 29.95% 25.09% 47.92% 31.18% 24.84% 19.86% 28-Feb-01 31-Jan-00 31-Oct-99 31-Jan-97 30-Sep-94 31-Mar-03 30-Sep-01 28-Feb-97 31-Dec-03 31-May-94 400.00 450.51 22.03 165.47 39.87 631.77 408.99 137.00 194.00 1 2 3 4 5 6 7 8 9 10 144.44% 108.23% 68.22% 62.74% 60.35% 55.66% 44.57% 44.30% 43.89% 41.48% 9.90% 33.85% 3.83% 9.04% 9.58% 4.02% 7.49% 5.18% 5.78% 6.06% 31-Dec-97 31-Oct-04 31-Jan-02 31-Jan-05 30-Apr-94 30-Jun-98 31-Jul-00 31-May-04 31-Jan-05 31-Aug-99 14.14 24.83 158.00 3.10 105.00 484.00 161.76 190.00 12.60 121.25 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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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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