Murray PriestleyFounder & CEO

Alpha Capital Management

• Alfred Winslow Jones in 1949

• Fund that bought long & sold short to “hedge” the portfolio

• 670% return over 10 years (compared to the normal 358% for fund managers)

Father of the Hedge Fund

Born in Melbourne, Australia

Father of the Hedge Fund

140 US Hedge Funds in 1968

US Hedge Funds Today

15,600 Est. $2 trillion FUM

Styles ofInvesting

ArbitrageSimultaneously buy GOLD at $1000 in New York

and sell GOLD at $1050 in London.

Convertible ArbitrageSimultaneously purchase convertible securities

while shorting the stock.

Fixed Income ArbitrageInefficiencies in pricing bonds.

“Picking up cents in front of a steam roller”

Statistical ArbitrageMis-pricing of one or more assets. “Quants”

Pairs trading based on moving in and out of correlation.

DistressedTaking advantage of bankruptcy

by buying assets cheap

Buy – Fix – SellBuy – Unpack – Sell Pieces

Long/Short EquitiesBuying long and selling short

Global MacroGlobal indexes, interest rates and currencies

George SorosMade $1 billion during the 1992

Black Wednesday UK currency crisis

Managed FuturesTrading Commodities

ModernPortfolio Theory

Risk vs. ReturnDiversification leads to higher

return for less risk.

U ChartGet the best risk return ratio at the tip of the U-curve.

Harry Markowitz, 1952

Performance

20% 30%

20% 30%

US$1,000

US$10,000

US$100,000

US$1,000,000

US$10,000,000

US$100,000,000

US$1,000,000,000

1978 1984 1990 1996 2002 2008

Buffet$3.4 Million

Simons$474 Million

Performance

Performance Stats

CAGR%The year-over-year growth rate of an investment over a period of time.

Max DrawdownThe largest drop of a given asset within a certain time period.

Sharpe RatioA measure of the excess return per unit of risk in an investment asset

Backtesting

Strategies Entry and exit rules

RiskCorrelation, position, total risk

Money Management Risk per trade, equity curve

TimeframesTrends occur 30% of time

Portfolio Mix

Performance

Fund AdvantagesLarger time frames and more buying power.

Alpha Currency Neutral Fund

27.38% CAGR after fees

Low volatility

No management fee

25% Performance fee

No lock-in

Alpha Currency Neutral Fundälpha&Currency&Neutral&Fund&Report&4&OCTOBER&2012 Performance is shown net of fees

Inception : 13 AUG 2012

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD S&P 5002012 2.73% 2.24% 1.42% 1.94% 2.57% 0.68% 0.87% 0.84% 2.55% 2.93% 20.40% 7.60%2011 1.53% 1.17% 1.90% 1.10% 1.50% 2.33% 2.57% 1.76% 2.48% 2.10% 3.02% 2.57% 26.84% 2.11%

Performance Statistics Quantitative Statisticsälpha MSCI World S&P500 älpha MSCI World S&P500

Compounded Rate of Return 27.38% 0.98% 4.95% Annualised Standard Deviation 0.72% 4.66% 5.50%Average Monthly Return 1.87% 0.23% 0.58% Annualised Sharpe Ratio 1.73 1.4 0.18Highest Monthly Return 3.02% 10.26% 10.77% Skewness -0.30 -0.28 0.21Lowest Monthly Return 0.68% -8.99% -7.18% Kurtosis -1.14 0.42 1.30

Monthly Profitable Percentage 100% 52% 57% Correlation -0.28 0.58Max Drawdown 0% -2.98% -18.18%

NAV Growth Rolling Monthly Performance

MSCI World represents the performance of Global equities

älpha Holdings Management Ltd - Room D, 9F Jonsim Place - 228 Queens Road East - Wanchai, Hong Kong

www.alphafinhk.com - +852 8122 9446

800.00

900.00

1,000.00

1,100.00

1,200.00

1,300.00

1,400.00

1,500.00

1,600.00

Jan-

11

Feb-

11

Mar

-11

Apr-

11

May

-11

Jun-

11

Jul-1

1

Aug-

11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr-

12

May

-12

Jun-

12

Jul-1

2

Aug-

12

Sep-

12

Oct

-12

älpha MSCI World S&P

-10.0%

-5.0%

0.0%

5.0%

10.0%

Jan-

11

Feb-

11

Mar

-11

Apr-

11

May

-11

Jun-

11

Jul-1

1

Aug-

11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr-

12

May

-12

Jun-

12

Jul-1

2

Aug-

12

Sep-

12

Oct

-12

älpha MSCI World S&P

H O L D I N G S

No commitment.

www.alphafinhk.com

Register Your Interest Today!