EFTA01384591.pdf

HUBUS133 Alpha Group Capital HUDSON BAY Risk Management CAPITAL Risk Mitigation Risk. Mitigation is Integrated Throughout the Investment Process and At All Levels of the Firm Position Level Portfolio Level Operational Level • Risk Management begins at the • Market Factor Monitoring Internal Operational Risk Working position level through the Deal Code Group • Portfolio Diversification Risk System Monitoring • Independent Administrator • Hedging at the position/Deal Code • Strategy Allocation Framework • Valuations are obtained by a third level enables the portfolio to benefit party administrator from from the power of diversification • Leverage and Liquidity Management independent pricing sources • Deal Codes are generally sized to • Style Drift Monitoring • Financing and clearing minimize portfolio exposure and risk • Weekly Portfolio Manager/Risk counterparties are carefully selected • Position level risk guidelines are Meeting and monitored designed to build a portfolio of • Risk Committee Meetings • Risk Management is anchored by an independent, diversified trades with adherence to established policies limited risk and procedures Positions, Portfolio and Operational Risk are Monitored by the Chief Risk Officer CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0084907 CONFIDENTIAL SDNY_GM_00231091 EFTA01384591