BUSINESS PLAN July 2012...BUSINESS PLAN July 2012 Confidential – Not for distribution Odin Capital Management Ltd, One Crown Square, Woking, Surrey GU21 6HR, United Kingdom Phone:

BUSINESS PLAN

July 2012

Confidential – Not for distribution

Odin Capital Management Ltd, One Crown Square, Woking, Surrey GU21 6HR, United Kingdom

Phone: +44 1483 721 191, Fax +44 207 979 0255 [email protected] www.odincm.com

mailto:[email protected]

This document is issued by Odin Capital Management Ltd. which is authorised and regulated by the

Financial Services Authority. This document is only made available to Professional Clients.

Information contained in this document is provided on a strictly confidential basis only and does not

constitute an offer to sell or a solicitation of an offer to buy any security, nor is it advice or a

recommendation to enter into any transaction. Any offer to sell or a solicitation of an offer to buy or

sell shall be made solely by a Confidential Offering Memorandum. This document is being circulated

on a confidential basis only and may not be distributed to unauthorized parties and is subject to

modification, updating, validation and amending. All investments involve a risk of loss of capital and

no guarantee or representation can be made that an investment will generate profits or that an

investment will not incur loss of invested capital.

Disclaimer

Odin Capital Management Ltd - Strictly confidential


Executive Summary 4

Strategy outline 5

Structure 6

Organisational chart 7

Partner Bios 8/9

Service providers 10

Odin Trading Ltd 11

Performance and risk 12

Our edge 13/14

Capacity 15

Marketing strategy 16

Terms 17

Offshore Directors bios 18/19

Contents

Positive 6-yr track record: 23.68% net return p.a, Sharpe ratio 2+

Successful operating history, partners from Credit Suisse & Goldman Sachs

Top fund service providers: Newedge, JP Morgan, KPMG

Low or negative correlations to equity and hedge fund indices

Scalable cross-asset strategy on world’s most liquid markets – capacity $1bn

Unique feature of discretionary execution supported by quant models

Managed accounts till present. Now also investable through offshore fund

4


Executive Summary

CIO Patrick Moerth started working on strategy in 2002. PhD and

exposure to world’s most successful hedge funds at Credit Suisse key to

outlining model characteristics and implementation

Futures cross asset model driven by fundamental and technical data

Quant models for directional bias and timing

Discretionary execution for consideration of market themes & agenda

Intra-day trading for exploiting short term market inefficiencies

Risk management: active position management and few positions for

strong trade selection

Limited overnight & liquidity risk

5


Strategy outline

Best of breed selection

UK investment management firm founded in 2006 & registered

with the FSA since 2008

Fully functional offices in Surrey, near London, with a robust and

efficient technology personnel & infrastructure

6


Structure

A mature structure

Odin Financial Ltd

BVI Offshore fund

Odin Capital Management Ltd

UK investment manager

Management

Qualified investors

IT

CIO COO

PM Macro quant

7


Organisational chart

Patrick Moerth, CIO

2006-now: Odin Capital

2002-2006: Credit Suisse, Global Macro quant strat

2001-2002: Feri Alternative, HF analyst

PhD Economics from Univ. St Gallen

CFA, CAIA, FRM

Tigrane Kibarian, COO


2004-2008: Goldman Sachs, portfolio restructuring

2001-2004: General Electric, corporate finance

2000-2001: Arthur Andersen, Audit

MBA from ESSEC – French Grande Ecole

Deepak G.C., Information Technology


MSc Computing

TBA, Portfolio manager

2012: Odin Trading

2009-2011: Family office trader

2006-2008: Absolute Capital, portfolio manager

2005-2006: Barep (SocGen HF), risk manager

French Engineer

TBA, Macro quant strategist

2009-now: Odin Trading

2004-2008: Project manager, Travelsky Group, China

MBA from Oxford, Msc Computer Science in Beijing

1st prize of China Physics competition - CFA, FRM, IMC

8


Bio – Patrick Moerth, Founder & CIO

Patrick Moerth is the founder and Chief Investment Officer of Odin

Capital Management Ltd. He has more than 11 years professional trading

and investment experience in the hedge fund industry. Prior to founding

Odin Capital Management he was responsible for Global Macro and

quantitative strategies in the hedge fund group of Credit Suisse in Zurich.

He entered the industry as a hedge fund analyst at FERI Alternative

Assets. He holds a PhD in Economics from the University of St. Gallen,

a European Masters of Business Sciences and a Masters of International

Business from the University of Vienna. He qualified in all three levels of

the CFA and both levels of the CAIA programmes as well as the GARP

FRM examination. He is the author of several hedge fund specific

publications in recognised scientific journals and specialised books.

9


Bio – Tigrane Kibarian, COO

Tigrane Kibarian is Chief Operating Officer with over 9 years of markets

experience. He started his capital markets career at Goldman Sachs in

London on the equity trading floor in 2003. Primarily in charge of equity

business strategy, he was promoted to VP in the portfolio transition

management team responsible for large institutional 1bn+ cross-asset

portfolio restructurings. Risk management and operational excellence

were critical to his success in the role. Based on that experience, Tigrane

started trading his own proprietary portfolio, active across foreign

exchange, bonds and equity indices futures. Prior to capital markets,

Tigrane worked as an auditor for Arthur Andersen and as a corporate

financial professional at General Electric in both France and Italy.

Tigrane graduated from leading French Business School ESSEC.

10


Fund Service providers

• JP Morgan Custodian

• Newedge Group Clearing broker

• KPMG Fund Auditor

• DMS -Don W. Ebanks & Ronan Guilfoyle Independent offshore

directors

• Charter Group Fund Administration Administrator

• Kaye Scholer (onshore) & Harneys (offshore) Legal Counsel

• Rees Pollock (London) Investment manager

auditor

Independent and segregated business with no access to client information or positions

10+ in-house traders active on US and European equity indices, bonds, currency and

commodity futures

Manager with 25 years experience runs operations, letting Odin Capital staff dedicated to

client fund management

11


Odin Trading Ltd

Discussions

between PM’s and

traders about

market structure

Ability to assess

traders & engage

top performers for

Odin Capital

Implementation of

quant strategies

based on market

observations

ODIN TRADING Ltd

SYNERGIES WITH ODIN CAPITAL

12


Net Performance & risk

Performance exhibits net returns since inception accounting for 1% management fee and 25%

performance fee subject to a high watermark as well as operational and trading costs.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year

2006 1,82% 1,98% 2,70% 6,44% -0,02% -1,81% 4,37% 16,28%

2007 2,18% 2,60% 5,22% 0,01% 0,70% 5,28% 4,83% 11,27% 1,94% 3,19% 2,09% 7,03% 56,83%

2008 9,71% 4,40% 10,84% 0,21% 1,48% 4,61% 1,21% 6,49% 1,82% 7,01% 3,27% 3,36% 69,31%

2009 0,29% -0,01% 1,63% -6,49% -0,42% 0,26% 0,11% 0,16% -0,25% -0,01% -0,01% -0,13% -4,98%

2010 0,50% -0,96% 1,13% 0,87% 5,41% 2,04% 0,49% 0,26% 3,47% 0,73% -1,36% 1,88% 15,24%

2011 1,91% 1,55% 2,82% -1,31% -6,04% 3,49% 1,65% 0,36% 3,70% 0,49% -0,97% 1,23% 8,83%

2012 2,50% 0,24% -4,15% 0,96% -2,53% 2,16% -0,99%

Return p.a 23,68%

Standard dev. p.a 10,88%

Sharpe ratio 2,02

Positive months 78,08%

Upside potential ratio 1,68

Omega 5,5

Maximum drawdown -7,28%

Modified VaR -3,82% -8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

Jun-0

6

Aug-0

6

Oct-06

Dec-

06

Feb

-07

Apr-

07

Jun-0

7

Aug-0

7

Oct-07

Dec-

07

Feb

-08

Apr-

08

Jun-0

8

Aug-0

8

Oct-08

Dec-

08

Feb

-09

Apr-

09

Jun-0

9

Aug-0

9

Oct-09

Dec-

09

Feb

-10

Apr-

10

Jun-1

0

Aug-1

0

Oct-10

Dec-

10

Feb

-11

Apr-

11

Jun-1

1

Aug-1

1

Oct-11

Dec-

11

Feb

-12

Apr-

12

Jun-1

2

13


Our Edge – Process and performance

• Robust investment process

Consistently positive track record through different

economic environments & cycles

• Correlations

Low or negative correlation to EQ and HF strategies

Year

Jun/Dec

20062007 2008 2009 2010 2011

June 2012

YTD

Odin CM

correlation

Odin Capital

Management 16,28% 56,83% 69,31% -4,98% 15,24% 8,83% -0,99%

DJ/CS Hedge Fund

Index 7,02% 12,56% -19,07% 18,57% 10,95% -2,52% 2,61% -0,31

DJ/CS Global Macro

Hedge Fund Index 5,00% 17,36% -4,62% 11,55% 13,47% 6,44% 1,53% -0,05

DJ/CS Managed

Futures Index3,65% 6,01% 18,33% -6,57% 12,22% -4,19% 2,14% 0,07

S&P500 total return -

incl. dividends11,66% 5,49% -37,00% 26,46% 15,06% 2,11% 8,31% -0,29

14


Our Edge – Skill and structure

• Access to talented traders

We have the ability to select traders with good

performance metrics and scalable strategies from Odin

Trading Ltd, which acts as an incubator for the Fund.

• In-house programming expertise

Market observations can be analysed and translated

into systematic strategies. Once these have been

tested and traded successfully for a period of time,

clients will be given the opportunity to participate

• Fee structure

1.5%/25% structure fully aligns interest of investor with

that of Odin Capital Management

15


Capacity

80%

5%

5%

5% 5%

Strategies for $40MM AUM

Global Macro

Quant strategiesequity indices

Quant strategiesbonds

Quant strategiescurrencies

Quant strategiescommodities

60%

10%

10%

10%

10%

Strategies for $1bn AUM

Global macro

Quant strategiesequity indices

Quant strategiesbonds

Quant strategiescurrencies

Quant strategiescommodities

• Global Macro strategy executed with highly liquid futures and scalable up to $1bn

• We have the team, infrastructure & strategies to perform with significant inflows

16


Marketing strategy

• Launch offshore fund vehicle & establish operational robustness

• Increase visibility through HF events, HF databases & press articles

• Establish strategic relationships with cap intro agents in US, Asia & Switz.

2Q 2012 - Set-up & Visibility

• Launch US onshore fund in 4Q

• Road show in Asia, US and Switzerland in 3Q & 4Q

• Keep building managed accounts & be investable across client spectrum

3Q/4Q 2012 - Investor meetings

• Maintain momentum & high visibility profile to get on FoHF’s radar

• Introduce quant strategies to offering

• Attract sophisticated “brand” investors

2013

USD and EUR share classes, 2x leveraged share class

Subscriptions and redemptions at month end

Minimum subscription 100,000USD or EUR equivalent

Redemptions free of charge with 30 days notice

0.5% charge for shorter notice redemptions

High-water mark applies

17


Terms

No gate or lock-up period

Monthly liquidity terms

1.5% management fee

25% performance fee

Investors subscribing from first dealing date will profit from a 1%

discounted management fee on all investments made in first 6 months

18


Offshore Director Bio – Don W. Ebanks

Don Ebanks is a Director and Global Head of Compliance of DMS Management Ltd. He boasts

extensive experience in the financial services sector from multiple perspectives, i.e. private banking,

investment management, financial products, regulatory matters and distressed/restructuring scenarios.

Previously, Don was employed as the Executive Director of the Secretariat of the Portfolio of Finance &

Economics within the Cayman Islands Government, providing policy advice to the Financial Secretary

and Cabinet Ministers. He routinely participated in or led consultative committees and working groups

considering legislative amendments and other significant matters.

Prior to his work with the Secretariat, Don was the Managing Director of the insolvency and

restructuring practice of Ernst & Young in the Cayman Islands, and also worked in its London office.

Before joining Ernst & Young, Don was employed as the Deputy Head of the Investment Services

Division of the Cayman Islands Monetary Authority (CIMA), the independent government agency

responsible for the regulation of the financial services industry, where he created and became the first

Head of the Compliance Division. Here he managed all enforcement matters for CIMA and was

responsible for the case management of complex distressed fund matters, engaging insolvency

practitioners where required and managing the resolution of cases across various firms, regulatory

agencies and jurisdictions.

Don began his career with Coutts & Co. serving as a portfolio manager, and then moved to Barclays

Private Bank to take up an asset management role, where he was also a Trustee of the Barclays Bank

Pension Scheme in the Cayman Islands. Don has also been involved in the management and

development of family real estate interests. Don is a member of the Cayman Islands Compliance

Association, and holds a Master of Arts degree in Economics from the University of Western Ontario.

19


Offshore Director Bio – Ronan Guilfoyle

Ronan Guilfoyle is a Managing Director of DMS Management Ltd. Formerly, Ronan was employed as a

Group Manager at Admiral Administration Ltd., an independent mutual fund administration firm based in

the Cayman Islands, where he oversaw more than 50 hedge funds with assets in excess of US$5

billion. During his tenure at Admiral Administration, he was instrumental in building and managing

strategic relationships for large hedge fund clients. In this role, he led a group that was responsible for

the accurate and timely delivery of full fund administration services to a variety of convertible, private

equity, hedge and fund-of-fund clients. In addition to core administrative services, much of his time was

devoted to working with investment managers to help them address the cultural challenges of advising

an offshore hedge fund, including working in an appropriate manner with the board of directors.

He began his career with Ernst & Young, Ireland, where he was responsible for supervising audit

teams on large global audits in excess of US$3 billion, as well as training staff in audit methodologies.

Ronan is the Treasurer and a Director of Cayman Crime Stoppers as well as a board member of Hedge

Funds Care Cayman. In addition, he is also a member of the Cayman Islands Directors Association and

the Cayman Islands Society of Professional Accountants. He is a Chartered Accountant and holds a

Bachelor of Science degree in Accounting from University College Cork, Ireland.

Documents

BUSINESS PLAN July 2012...BUSINESS PLAN July 2012 Confidential – Not for distribution Odin Capital Management Ltd, One Crown Square, Woking, Surrey GU21 6HR, United Kingdom Phone: