Post on 11-Sep-2014
description
1
The Hedge Fund Service Expo and Conference
June 2008
2
Alpha Equity Management Organizational Structure
Strategic Partnership with RidgeWorth Capital: • $74B asset management subsidiary of
SunTrust Banks Inc., a top 10 US bank• Seeded three 130/30 mutual funds
Joint Venture with The Praedium Group:• $7B private equity firm with 16+ years of
private real estate investment experience• JV includes 130/30 and mkt. neutral U.S.
real estate securities funds and related SMAs
• 75% employee-owned• 25% owned by RidgeWorth Capital
Alpha Equity Management Ownership :
3
Alpha Equity Products
130/30 StyleHedge Funds
Market NeutralHedge Funds
Long/ShortHedge Funds
Alpha PraediumMarket Neutral
GlobalMarket Neutral
GlobalLong/Short*
Alpha Praedium 130/30
U.S.Market Neutral
U.S.200/100
U.S.Equity
InternationalMarket Neutral
International130/30
InternationalEquity
GlobalEquity
Real EstateEquity
130/30Mutual Funds
RidgeWorth International Equity 130/30
RidgeWorth Real Estate
130/30
RidgeWorth U.S. Equity
130/30
4
Fund Performance Summary
*Annualized Fund Net Return
*Annualized Benchmark
Return
*Annualized Alpha
4
International Equities Alpha Equity International “130/30” 19.56% 7.84% 11.72% Inception: June 1, 2001
Benchmark: FTSE All-World ex US**
Alpha Equity International Market Neutral 5.33% Inception: January 1, 2004
U.S. Real Estate Equities Alpha Praedium “130/30” 25.11% 15.85% 9.26% Inception: June 1, 2001
Benchmark: NAREIT Equity Index
Alpha Praedium Market Neutral 7.81% Inception: January 1, 2003
U.S. Equities Alpha Equity Market Plus “200/100” (Tax Efficient) 4.05% 1.24% 2.82% Inception: July 1, 2000
Benchmark: S&P 500
Alpha Equity Leveraged Market Neutral 6.55% Inception: July 1, 2000
Global Equities Alpha Equity Global Long/Short 12.19% Inception: January 1, 2003
Alpha Equity Global Market Neutral 4.91% Inception: July 1, 2004
*Since fund inception through May 2008. May returns are estimated.
**The fund Benchmark changed from the Bank of New York ADR Index to the FTSE All-World ex US Index on 1/1/2007 to reflect the expansion of the portfolio’s composition. Data referring to the “Benchmark” refers to the Benchmark that was in effect at the time in question. 4
5
Investment Process
• Quantitative• Multifactor models for each asset class• Dynamic factor weighting• Daily rebalancing • Dynamic leverage policy
• Fundamental• Factors are fundamentally-based• Final oversight by portfolio managers
• Process• Stable• Systematic • Scalable
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Alpha Equity International 130/30 Fund
Securities Universe: FTSE All-World ex US
Note on the Benchmark and Universe: The fund Benchmark changed from the Bank of New York ADR Index to the FTSE All-World xUS Index on 1/1/2007 to reflect the expansion of the portfolio’s composition. Through November 2006, our universe consisted of the 650 most liquid ADRs and US GDRs. On December 1, 2006, our universe expanded to include 4,000 of the most liquid common equity shares on local exchanges in the global markets ex-US. Data referring to the “Benchmark” refers to the Benchmark that was in effect at the time in question.Note on Returns: “Net Fund” returns are net of a high watermark until 1/1/2007
Performance Statistics (Jun 01— May 08):
Fund Avg Annlzd Net Rtrn 19.56% Benchmark Avg Annlzd Net Rtrn 7.84% Fund Avg Annlzd Net Alpha 11.72%
PERFORMANCE ATTRIBUTIONALPHA EQUITY INTERNATIONAL 130/30 FUND
Inception Through 4/30/08
-0.2%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
Avg
. Mo
nth
ly E
xces
s R
etu
rn
-100%
-50%
0%
50%
100%
150%
200%
250%
300%
350%
Cu
mu
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Re
turn
Net Fund BenchmarkJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
NET FUND -2.69% -2.95% -0.49% -10.31% 5.85% -0.31% 4.31% -7.23%Bk of NY ADR -4.90% -3.01% -4.47% -11.05% 3.77% 5.01% 1.57% -13.27%
NET FUND 0.29% 2.11% 8.22% 3.21% 2.25% 1.56% -5.88% 4.63% 0.17% -2.83% -3.44% -3.35% 6.25%Bk of NY ADR -4.37% -0.50% 5.09% -1.83% -0.61% -5.35% -10.19% -0.16% -11.91% 7.03% 5.78% -4.64% -21.24%
NET FUND -1.95% 2.96% -1.20% 8.09% 7.53% 2.15% 1.10% 2.84% 2.21% 8.35% 4.02% 9.94% 55.91%Bk of NY ADR -2.15% -4.75% -1.67% 10.01% 7.01% 0.90% 1.89% 2.70% 1.54% 6.40% 2.92% 8.24% 37.10%
NET FUND 3.38% 1.79% -0.85% -6.71% 2.77% 2.09% -2.76% 0.25% 5.23% 4.53% 8.06% 2.70% 21.52%Bk of NY ADR 1.40% 2.23% -1.81% -3.33% 0.39% 1.93% -3.67% 0.48% 2.81% 3.65% 6.10% 3.90% 14.47%
NET FUND -0.48% 6.97% -3.12% -2.09% 1.63% 2.32% 5.56% 5.10% 7.55% -3.36% 3.94% 4.93% 32.07%Bk of NY ADR -2.37% 4.61% -3.46% -2.32% 0.09% 1.13% 3.60% 2.58% 3.87% -3.19% 1.57% 3.67% 9.69%
NET FUND 11.18% -1.40% 3.65% 5.60% -6.43% -0.56% 1.16% 1.56% -1.68% 3.56% 3.60% 3.59% 25.33%Bk of NY ADR 7.17% -1.63% 3.56% 5.48% -5.14% -0.58% 1.48% 1.87% -0.25% 4.53% 2.87% 3.15% 24.20%
NET FUND 0.33% -0.05% 3.89% 6.57% 4.52% 0.66% 0.74% -2.09% 6.96% 5.68% -6.73% -2.40% 18.55%FTSE All-World xUS 0.35% 0.56% 2.80% 4.86% 2.94% 0.91% -0.22% -1.54% 6.63% 5.78% -4.23% -1.47% 18.17%
NET FUND -9.70% 1.52% -3.42% 5.23% 2.25% -4.72%FTSE All-World xUS -9.70% 2.85% -2.01% 6.20% 1.68% -1.73%
*Estimated May 2008 Returns
2008
2007
2002
2003
2001
2005
2006
2004
7
Alpha Equity International Market Neutral Fund
Securities Universe: FTSE All-World ex US
PERFORMANCE ATTRIBUTIONALPHA EQUITY INTERNATIONAL MARKET NEUTRAL FUND
Inception Through 4/30/08
-0.2%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
Currency
Country/Region
RiskAlpha
C/R Sector
Stock Resid.
ExpensesTrading
Total Gross
Total Buy-and-Hold
LongsShorts
Av
g. M
on
thly
Re
turn
Fund Avg Annlzd Net Rtrn 5.33%
Performance Statistics (Jan 04— May 08):
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YearNET FUND 3.81% 1.08% 0.48% -1.59% 2.60% -0.49% 1.37% -1.03% 0.59% 0.23% 0.54% -0.89% 6.77%1 Mo. T-bill Yield 0.07% 0.07% 0.08% 0.08% 0.07% 0.08% 0.09% 0.10% 0.12% 0.12% 0.14% 0.17% 1.20%
NET FUND 0.81% 2.90% -0.27% 0.84% -0.07% 0.34% 1.70% 1.56% 2.89% 0.14% 0.67% 0.75% 12.90%1 Mo. T-bill Yield 0.15% 0.17% 0.21% 0.22% 0.22% 0.23% 0.25% 0.27% 0.28% 0.26% 0.31% 0.33% 2.94%
NET FUND 2.75% 0.02% 0.33% 1.22% -0.75% 1.48% 0.36% -0.31% -1.39% -1.00% 0.51% 0.24% 3.47%1 Mo. T-bill Yield 0.33% 0.35% 0.37% 0.39% 0.38% 0.40% 0.37% 0.42% 0.43% 0.38% 0.43% 0.44% 4.78%
NET FUND -0.09% -1.30% 1.23% 1.79% 1.36% 0.42% 1.33% -0.64% 1.86% 0.33% -1.48% -0.71% 4.10%1 Mo. T-bill Yield 0.39% 0.41% 0.43% 0.42% 0.40% 0.40% 0.35% 0.42% 0.35% 0.28% 0.32% 0.31% 5.00%
NET FUND -1.29% 0.72% -1.83% -0.91% 0.17% -3.12%1 Mo. T-bill Yield 0.22% 0.13% 0.17% 0.10% 0.09% 0.71%
*Estimated May 2008 Returns
2008
2005
2006
2004
2007
Note on the universe: Through November 2006, our universe consisted of the 650 most liquid ADRs and US GDRs. On December 1, 2006, our universe expanded to include 4,000 of the most liquid common equity shares on local exchanges in the global markets ex-US. Note on Returns: “Net Fund” returns are net of hurdle rate of the 1 Yr. T-bill Yield and 1% management fee until 11/1/05.
0%
5%
10%
15%
20%
25%
30%
35%
Cu
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Net Fund 1 Mo. T-bill Yield
8
Alpha Praedium 130/30 Fund
Securities Universe: Largest 200 US REIT Stocks
Fund Avg Annlzd Net Rtrn 25.11% NAREIT Annlzd Net Rtn 15.85% Fund Avg Annlzd Net Alpha 9.26%
Performance Statistics (Jun 01— May 08):
PERFORMANCE ATTRIBUTIONALPHA PRAEDIUM 130/30 FUND
Inception Through 4/30/08
-0.2%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
RiskAlpha
SectorIndustry
Stock Resid.
ExpensesTrading
Total Gross
Total Buy-and-HoldLongs
Shorts
Av
g. M
on
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Ex
ce
ss
Re
turn
0%
50%
100%
150%
200%
250%
300%
350%
400%
Cu
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Net Fund FTSE NAREIT Equity REITs Index
Note on the Benchmark: The fund Benchmark is the FTSE NAREIT Equity REITs IndexNote on Returns: “Net Fund” returns are net of a high watermark until 1/1/2008.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YearNET FUND 5.62% -0.94% -1.49% -0.25% -0.35% 5.01% 3.36% 11.20%NAREIT 5.86% -1.99% 3.66% -4.15% -2.86% 5.50% 2.44% 8.22%
NET FUND 2.70% 2.80% 7.58% 5.35% -0.08% 5.11% -3.67% 2.41% -3.23% -1.46% 2.97% 2.26% 24.48%NAREIT 0.20% 1.93% 6.00% 0.85% 1.35% 2.73% -5.23% -0.20% -3.84% -4.81% 4.71% 0.74% 3.82%
NET FUND -1.23% 4.66% 2.87% 5.22% 5.04% 4.71% 5.20% 1.21% 1.46% 4.27% 6.30% 4.16% 53.47%NAREIT -2.91% 1.65% 2.00% 4.40% 6.04% 2.18% 5.35% 0.54% 3.35% 1.81% 4.40% 3.50% 37.13%
NET FUND 3.72% 5.02% 6.72% -17.94% 8.32% 5.45% 0.74% 7.04% 1.39% 4.54% 5.99% 5.17% 38.82%NAREIT 4.32% 1.75% 5.53% -14.58% 7.13% 2.93% 0.33% 7.94% -0.06% 5.35% 4.31% 4.85% 31.58%
NET FUND -6.21% 0.57% -1.58% 4.70% 2.83% 5.26% 6.95% -3.39% 1.82% -2.49% 4.63% -0.26% 12.66%NAREIT -8.40% 3.07% -1.55% 5.32% 3.47% 5.03% 7.14% -3.66% 0.60% -2.37% 4.21% -0.20% 12.16%
NET FUND 8.31% 3.06% 3.88% -4.15% -2.52% 5.74% 3.40% 3.48% 1.50% 6.57% 4.34% -0.85% 37.18%NAREIT 7.30% 1.79% 5.05% -3.72% -2.85% 5.20% 3.37% 3.78% 1.85% 6.26% 4.65% -1.56% 35.06%
NET FUND 8.59% -2.53% -0.13% -0.53% -1.04% -9.27% -7.46% 5.95% 2.17% 8.27% -1.27% -3.93% -2.90%NAREIT 8.42% -2.24% -2.39% -0.02% 0.05% -9.07% -7.80% 6.57% 4.41% 1.12% -9.07% -5.03% -15.69%
NET FUND -2.53% 0.52% 7.34% 2.64% 0.46% 8.44%NAREIT -1.03% -3.56% 6.23% 5.86% 0.77% 8.17%
*Estimated May 2008 Returns
2008
2001
2002
2003
2007
2004
2005
2006
9
Alpha Praedium Market Neutral Fund
Securities Universe: Largest 200 US REIT Stocks
Fund Avg Annlzd Net Rtrn 7.81%
Performance Statistics (Jan 03— May 08):
PERFORMANCE ATTRIBUTIONALPHA PRAEDIUM MARKET NEUTRAL FUND
Inception Through 4/30/08
-0.2%
0.0%
0.2%
0.4%
0.6%
0.8%
1.1%
RiskAlpha
SectorIndustry
Stock Resid.
ExpensesTrading
Total Gross
Total Buy-and-HoldLongs
Shorts
Av
g. M
on
thly
Re
turn
0%
10%
20%
30%
40%
50%
60%
Cu
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Net Fund 1 Mo. T-bill Yield
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YearNET FUND 3.36% 1.33% 0.61% 0.83% -2.73% 2.99% 0.05% -0.94% 0.38% 1.98% 2.78% -0.15% 10.82%1 Mo. T-bill Yield 0.10% 0.10% 0.10% 0.10% 0.09% 0.10% 0.07% 0.07% 0.08% 0.07% 0.08% 0.08% 1.03%
NET FUND -0.18% 4.03% 1.46% -3.07% 0.80% 2.16% 0.34% -0.92% 0.56% -0.09% 0.83% 0.25% 6.19%1 Mo. T-bill Yield 0.07% 0.07% 0.08% 0.08% 0.07% 0.08% 0.09% 0.10% 0.12% 0.12% 0.14% 0.17% 1.20%
NET FUND 1.35% -1.39% -0.19% 0.46% -0.63% 0.31% 0.07% 1.30% 1.35% -0.77% 0.03% -0.35% 1.50%1 Mo. T-bill Yield 0.15% 0.17% 0.21% 0.22% 0.22% 0.23% 0.25% 0.27% 0.28% 0.26% 0.31% 0.33% 2.94%
NET FUND 1.86% 2.34% -0.63% -1.22% 0.47% 1.00% 1.35% 0.02% 0.16% -0.16% 0.86% 1.62% 7.90%1 Mo. T-bill Yield 0.33% 0.35% 0.37% 0.39% 0.38% 0.40% 0.37% 0.42% 0.43% 0.38% 0.43% 0.44% 4.78%
NET FUND 1.54% 0.75% 1.34% -0.73% -0.49% -0.58% 2.84% -0.31% -0.81% 6.43% 5.35% -0.33% 15.73%1 Mo. T-bill Yield 0.39% 0.41% 0.43% 0.42% 0.40% 0.40% 0.35% 0.42% 0.35% 0.28% 0.32% 0.31% 4.78%
NET FUND -1.44% 2.32% 1.99% -0.79% -1.28% 0.73%1 Mo. T-bill Yield 0.22% 0.13% 0.17% 0.10% 0.09% 0.71%
*Estimated May 2008 Returns
2006
2007
2003
2004
2005
2008
Note on Returns: “Net Fund” returns are net of a hurdle rate of the 1 Yr. T-bill Yield until 1/1/2008.
10
Alpha Equity Leveraged Market Neutral Fund
Securities Universe: Largest 3000 US Stocks
PERFORMANCE ATTRIBUTIONALPHA EQUITY LEVERAGED MARKET NEUTRAL FUND
Inception Through 4/30/08
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
RiskAlpha
Sector
Industry
Stock Resid.
ExpensesTrading
Total Gross
Total Buy-and-Hold
LongsShorts
Av
g. M
on
thly
Re
turn
-40%
-20%
0%
20%
40%
60%
80%
100%
Jun-00Dec-00
Jun-01Dec-01
Jun-02Dec-02
Jun-03Dec-03
Jun-04Dec-04
Jun-05Dec-05
Jun-06Dec-06
Jun-07Dec-07
Cu
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Net Fund 1 Mo. T-bill Yield
Fund Avg Annlzd Net Rtrn 6.55%
Performance Statistics (Jul 00— May 08):
Note on Return: “Net Fund” return is net of a hurdle rate of the 1 Yr. T-bill Yield until 1/1/2008.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YearNET FUND 2.33% -0.96% -9.30% -14.06% -8.27% 3.25% -25.18%1 Mo. T-bill Yield 0.48% 0.50% 0.52% 0.51% 0.51% 0.49% 3.05%
NET FUND -5.62% -2.94% 1.24% 3.17% 3.02% 11.55% 16.42% 12.10% 9.80% -14.52% -11.07% -1.36% 18.12%1 Mo. T-bill Yield 0.45% 0.38% 0.37% 0.34% 0.33% 0.30% 0.30% 0.29% 0.28% 0.19% 0.18% 0.16% 3.62%
NET FUND 3.34% 1.04% -1.42% 12.44% 3.81% 15.16% 15.23% 10.25% 8.91% -2.60% -14.28% 8.90% 74.04%1 Mo. T-bill Yield 0.14% 0.14% 0.15% 0.15% 0.15% 0.14% 0.14% 0.14% 0.14% 0.13% 0.12% 0.10% 1.65%
NET FUND 1.90% 0.50% 5.20% 1.43% 5.71% 1.05% -8.78% -4.29% 2.41% 4.10% 0.38% -3.90% 4.82%1 Mo. T-bill Yield 0.10% 0.10% 0.10% 0.10% 0.09% 0.10% 0.07% 0.07% 0.08% 0.07% 0.08% 0.08% 1.03%
NET FUND -0.56% 0.16% 4.11% -11.62% 4.32% -1.79% 0.67% -5.58% 5.19% -6.07% 2.76% 1.80% -7.74%1 Mo. T-bill Yield 0.07% 0.07% 0.08% 0.08% 0.07% 0.08% 0.09% 0.10% 0.12% 0.12% 0.14% 0.17% 1.20%
NET FUND 2.46% -0.45% 0.23% -1.56% 1.48% -0.48% -2.36% -0.53% 3.08% 5.06% 1.82% -0.71% 8.09%1 Mo. T-bill Yield 0.15% 0.17% 0.21% 0.22% 0.22% 0.23% 0.25% 0.27% 0.28% 0.26% 0.31% 0.33% 2.94%
NET FUND -4.42% -2.06% -0.12% 8.29% -3.62% 5.16% 1.87% 2.33% 1.47% 1.52% -2.35% -0.16% 7.42%1 Mo. T-bill Yield 0.33% 0.35% 0.37% 0.39% 0.38% 0.40% 0.37% 0.42% 0.43% 0.38% 0.43% 0.44% 4.78%
NET FUND 2.87% 3.05% -0.84% 0.50% 0.48% -0.51% -6.71% -6.43% 0.20% -6.36% 5.24% -0.26% -9.20%1 Mo. T-bill Yield 0.39% 0.41% 0.43% 0.42% 0.40% 0.40% 0.35% 0.42% 0.35% 0.28% 0.32% 0.31% 4.78%
NET FUND 1.39% 0.53% -0.10% 0.88% 2.57% 5.37%1 Mo. T-bill Yield 0.22% 0.13% 0.17% 0.10% 0.09% 0.71%
*Estimated May 2008 Returns
2008
2000
2001
2007
2002
2003
2004
2005
2006
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Current Allocations
U.S. "200/100"15.2%
GlobalMarket Neutral
49.1%
Real Estate"130/30"
5.4%International "130/30"30.3%
Alpha Equity Global Long/Short Fund
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Cu
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Ind
ex
Net Fund
Fund Avg Annlzd Net Rtrn 12.19%
Performance Statistics (Jan 03 — May 08):
PERFORMANCE ATTRIBUTIONALPHA EQUITY GLOBAL LONG/SHORT FUND
Inception Through 4/30/08
0.0%
0.2%
0.4%
0.6%
0.8%
1.1%
1.3%
Av
g. M
on
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Re
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
2003 -0.91% 1.40% 1.39% 5.16% 3.21% 2.76% -0.05% 0.56% 1.22% 4.49% 2.62% 4.34% 29.31%
2004 1.49% 1.56% 1.15% -8.84% 4.23% 1.91% -0.86% 0.74% 2.63% 1.73% 4.37% 1.86% 11.89%
2005 -1.44% 3.03% -1.94% 0.10% 1.41% 1.41% 3.03% 0.61% 2.95% -0.57% 2.54% 0.43% 12.02%
2006 3.14% 0.27% 1.10% 2.00% -2.15% 2.22% 1.03% 0.94% 0.48% 1.75% 0.54% 0.79% 12.71%
2007 1.54% 0.16% 0.87% 2.24% 1.51% -1.00% -1.98% -1.30% 2.00% 1.69% -0.71% -1.23% 3.72%
2008 -3.99% 0.66% -0.66% 1.74% 0.78% -1.57%*Estimated May 2008 Returns
Fund Performance Since Inception - Net of All Fees
Note on Return: “Net Fund” return is net of a hurdle rate of a blended benchmark until 4/1/2007.
12
Current Allocations6/1/2008
InternationalMkt. Neutral
33.4%
U.S. EquityMkt. Neutral
33.0%
Real EstateMkt. Neutral
33.7%
Alpha Equity Global Market Neutral Fund
PERFORMANCE ATTRIBUTIONALPHA EQUITY GLOBAL MARKET NEUTRAL FUND
Inception Through 4/30/08
-0.10%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
0.80%
Total Gross
LMN Return
RMN Return
IMN Return
Rounding
Av
g. M
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Re
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-5%
0%
5%
10%
15%
20%
25%
Jun-04Sep-04
Dec-04Mar-0
5Jun-05
Sep-05Dec-05
Mar-06
Jun-06Sep-06
Dec-06Mar-0
7Jun-07
Sep-07Dec-07
Mar-08
Cu
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Alpha Equity Global Market Neutral Fund 1 Mo. T-bill Yield
Fund Avg Annlzd Net Rtrn 4.91%
Performance Statistics (Jul 04— May 08):
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YearNET FUND 0.53% -1.31% 1.30% -0.48% 0.80% -0.04% 0.79%1 Mo. T-bill Yield 0.09% 0.10% 0.12% 0.12% 0.14% 0.17% 0.75%
NET FUND 0.60% 0.59% -0.31% 0.35% -0.55% 0.07% -0.05% 0.90% 2.26% 1.24% 0.79% -0.02% 6.00%1 Mo. T-bill Yield 0.15% 0.17% 0.21% 0.22% 0.22% 0.23% 0.25% 0.27% 0.28% 0.26% 0.31% 0.33% 2.94%
NET FUND 0.59% 0.30% -0.13% 2.33% -1.05% 2.24% 1.17% 0.66% 0.07% 0.14% -0.31% 0.59% 6.76%1 Mo. T-bill Yield 0.33% 0.35% 0.37% 0.39% 0.38% 0.40% 0.37% 0.42% 0.43% 0.38% 0.43% 0.44% 4.78%
NET FUND 1.48% 0.96% 0.51% 0.56% 0.44% -0.18% -0.49% -2.32% 0.41% 0.95% 3.19% -0.36% 5.17%1 Mo. T-bill Yield 0.39% 0.41% 0.43% 0.42% 0.40% 0.40% 0.35% 0.42% 0.35% 0.28% 0.32% 0.31% 5.00%
NET FUND -0.54% 1.12% 0.15% -0.31% 0.15% 0.56%1 Mo. T-bill Yield 0.22% 0.13% 0.17% 0.10% 0.09% 0.71%
*Estimated May 2008 Returns
2007
2008
2004
2005
2006
Note on Return: “Net Fund” return is net of a hurdle rate of the 1 Yr. T-bill Yield until 1/1/2008.
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Outperforming the Competition
•1st for 36-month compounded annual return
BAID (Barclay Alternative Investment Database) Ranking through Feb 2008.
•1st for 12-month compounded annual return
•10th for 36-month compounded annual return
Alpha Equity Real Estate Securities “130/30”(now known as the Alpha Praedium 130/30)
Alpha Equity Real Estate Securities Market Neutral (now known as the Alpha Praedium Market Neutral)
The Barclay Hedge Alternative Investment Database ranks Alpha Equity Real Estate Securities “130/30” and Real Estate Securities Market Neutral as two of the best real estate hedge funds.
Top 10 Sector – Real Estate Hedge Funds
From Mar-2007 to Feb-2008
Ranked by Compound Annual returnProgram Name or Manager 12-Mo. Comp Ann. Return
1. Alpha Eq R/E Sec Mkt Ntrl Fund 14.19%2. Value Fund II LP 13.28%
3. Marathon Real Estate Opportunity 11.02%
4. Skylight Capital Build-Up GBP 10.17%
5. ING Clarion Mkt Ntrl. LP 4.31%
6. ING Clarion Global LP 2.89%
7. Third Avenue Real Estate Opp LP 8.49%
8. ING Clarion Global Ltd 7.04%
9. CRM Windridge Partners LP 6.29%
10.CRM Windridge Fund Ltd 5.80%
From Mar-2005 to Feb-2008 Ranked by Compound Annual Return
Program Name or Manager 36-Mo. Comp Ann. Return
1. Alpha Equity Real Estate Sec. 16.39%2. Skylight Capital Build-Up GBP 14.62%
3. Marathon Real Estate Opportunity 14.19%
4. Thames River Prop Growth & Inc GBP Dbn 12.80%
5. Thames River Prop Growth & Inc GBP Acc 12.76%
6. Thames River Prop Growth & Inc EUR Dbn 10.98%
7. Thames River Prop Growth & Inc EUR Acc 10.88%
8. LIM Asia Alt Real Estate Fund 9.29%
9. ING Clarion U.S. LP 8.64%
10.Alpha Eq R/E Sec Mkt Ntrl Fund 8.64%
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• Experienced People
• Investment team together since 1994• Managed $22 billion at former employer • Full institutional infrastructure
• Solid Process
• Repeatable: structured and disciplined• Flexible: automatically adjusts to the market
• Outstanding Performance
• Alpha across all products• Alpha from both longs and shorts• Alpha from exposure to return factors, not risk factors
Our Edge - Three “P’s”
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Investment Minimum $1 million
Redemptions Monthly
Lock-up None
Onshore Legal Domicile Delaware
Offshore Legal Domicile British Virgin Islands
Legal Counsel Edwards Angell Palmer & Dodge
Onshore Administrator MadisonGrey
Offshore Administrator MadisonGrey
Prime Broker Morgan Stanley
Auditor KPMG
Fund Terms
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Contact Information
Hartford Office
90 State House SquareSuite 1100
Hartford, CT 06103
Tel. (860) 218-1520
New York Office
405 Park AvenueSuite 803
New York, NY 10022
Tel. (646) 708-9396
AlphaEquityMarketing@AlphaEquityLLC.com
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Disclaimer
This document is for informational purposes only, and it does not constitute an offer or solicitation to buy the limited partnership interests described herein. Any such offer or solicitation will only be made to qualified investors solely by means of a private offering memorandum and only where permitted by law.
Before making an investment decision with respect to the partnership, potential investors are advised to carefully read the private offering memorandum, the limited partnership agreement and the related subscription documents and to consult with their tax, legal and financial advisors.
This document contains a preliminary summary of the purpose of the partnership and the principal business terms of the partnership; this summary does not purport to be complete and is qualified in its entirety by reference to the more detailed discussion contained in the private offering memorandum and the actual text of the limited partnership agreement.
This document is being provided to you on a confidential basis solely to assist you in deciding whether or not to proceed with further investigation of the investment vehicles of Alpha Equity Management LLC. Accordingly, this document may not be reproduced in whole or in part and may not be delivered to any person without prior written consent of Alpha Equity Management LLC.
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