EFTA00718169.pdf

From: Neal Berger To: [email protected] Subject: Eagle's View Capital Management, LLC- March 2014 Performance Update... Date: Sun, 13 Apr 2014 16:39:25 +0000 Eagles View Capital Management LLC March 2014 Performance Update April 13. 2014 Click here to view our most recent investor tearsheet A Time To Show Lack of Correlation Dear Partners/Friends, Eagle's View Capital Partners, L.P. is estimated at +0.25% for March with YTD 2014 performance estimated at +4.69% net of all fees and expenses. Eagle's View Offshore Fund, Ltd. Class G is estimated at +0.40% for March with YTD 2014 performance estimated at +4.71% net of all fees and expenses. On April 1, we formally launched Eagle's View Offshore Fund, Ltd. Class B which is an investable Share Class for Offshore investors who desire a more concentrated portfolio of our highest return ideas without sacrificing diversification amongst strategies. The Class currently has, and is expected to maintain, less than 10 underlying Funds, although, we expect the strategies to be broadly diversified. We will attempt to achieve 'high alpha' through concentration of what we believe are some of our higher return opportunities. Our core philosophy of seeking to capitalize upon structural inefficiencies in the market without taking on beta risk to do so, remains intact. This Class is currently open and available to those wishing to invest. We will report live returns starting in April and will continue to report upon them monthly within this commentary. Although very early days, despite the turbulent market environment thus far during April, all of our other Funds are indicating positive performance MTD for April. That said, this is based upon a limited sampling and estimated performance of most of our underlying Managers. Obviously, performance will certainly change between now and month-end. We would imagine there is some carnage around the rest of the industry thus far during April. EFTA00718169 This month's letter is entitled "A Time To Show Lack of Correlation". Over the prior few years, we have had few opportunities to truly highlight the unique nature of Eagle's View and to offer evidence of our thesis that our portfolio is designed to provide investors with a truly uncorrelated and unique source of alpha during various types of market conditions. As such, 2014 has thus far given us a rare chance to "show our wares" a bit. January was a month where we were able to show solidly positive performance despite the significant drop in equity markets. March was a month where we were able to show positive performance despite the fact that hedge funds generally had a poor showing. In fact, the HFRI Fund of Funds Composite Index currently indicates -0.92% for the month and +0.24% YTD. This is in stark contrast to our positive performance during March and our more robust YTD performance. Our flagship Funds are currently outperforming HFRI Fund of Funds composite by hundreds of basis points. Based upon early indications of April thus far, this month is shaping up to be another month whereby we may be able to show positive performance and a lack of correlation. Of course, a lot will change between now and month-end. We are pleased with our 1Q returns both from the perspective of delivering an uncorrelated source of alpha as well as from an absolute return perspective. We believe the pick-up of our returns is likely due to the more "normalized" market activity and pick up in volatility. Simply put, an investor who is in the business of seeking to exploit structural inefficiencies in the market, is going to find more robust inefficiencies available during more normalized or higher volatility environments such as those we witness during the IQ of 2014. For our offerings, we believe a continuation of the turbulent market environment will continue to be a positive for us over time. We'd like to offer some brief thoughts and observations regarding the current market environment. I cannot help invoking the famous quote in the original 1987 Wall Street movie by Gordon Gekko, "Ever wonder why fund managers can't beat the S&P 500? 'Cause they're sheep, and sheep get slaughtered.". In our view, most of the biggest hedge fund investors in the world tend to gravitate toward the largest and most famous Managers. Many of those Managers run long/short equity strategies. In our opinion, many of these long/short equity Managers often tend to gravitate toward the same positions for a variety of reasons. These reasons include, safety in going along with the crowd, incestuous talent pool that has largely been born and bred from a similar mindset and training ground, and a sharing of ideas and thoughts amongst Portfolio Managers that offer very little in the way of true independent thinking. In short, the sheeple are investing in the same Managers, who are then investing in the same positions, which requires a precarious balance to be maintained successfully. If the balance is tipped, a dash for a small and closing exit door ensues. Ever wonder why one nightclub/bar has a line around the corner while another that is seemingly very similar located next door has no line- human nature and behavior. Many want to follow the herd. Will the current market environment which has largely been isolated to an unwind of the darling hedge fund stocks spill over into other markets and impact that broader economy? We don't have the answer as of yet as it depends upon how close the dominos are to each other. We certainly believe the risks of this happening are higher today than at any time in the recent past. That said, with the market up 32% last year, 16% the year EFTA00718170 before, and only modestly down for 2014 at this moment, we believe it is too early to make prognostications. Luckily for us, we are not in that business anyway. Eagle's View is in the business of seeking to capitalize upon market inefficiencies and make positive expectancy investments. It is our view that structural and general market inefficiencies tend to be more pronounced during more normalized and higher volatility regimes. We do very little thinking about the overall direction or macro view of markets. We do not seek to invest with Managers who attempt to predict the course of the global macro- economic landscape as we do not believe anyone has an advantage in doing so. We simply do not attempt what we feel is a losing battle. We are accepting new clients within our Fund of Funds products as well as within our Advisory business. Please contact me with further interest in our products/services. Disclaimer: Past performance is not indicative of future results. This newsletter is provided for informational uses only and should not be used or considered an offer to sell, buy or subscribe for securities, or other financial instruments. Prospective investors may not construe the contents of this newsletter or any prior or subsequent communication from us, as legal, tax or investment advice. Each prospective investor should consult his/her personal Counsel, Accountant, and other Advisors as to the legal, tax, economic and other consequences of hedge fund investing and the suitability of such investing for him/her. Further, the contents of this newsletter should not be relied upon in substitution of the exercise of independent judgment. The information contained herein has been obtained from sources generally deemed by us to be reliable, however, all or portions of such information may be uniquely within the knowledge of parties which are unaffiliated with us or our affiliates and, therefore, may not be amenable to independent investigation or confirmation. In such cases, we have not undertaken to independently investigate or confirm the accuracy or adequacy of such information, but we have no reason to believe that such information was not accurate and adequate, to the best of our knowledge, when given. The index comparisons herein are provided for informational purposes only and should not be used as the basis for making an investment decision. There are significant differences between client accounts and the indices referenced including, but not limited to, risk profile, liquidity, volatility and asset composition. Funds included in the HFRI Monthly Indices must report monthly returns; report net of all fees retums; report assets in US Dollars, and have at least $50 million under management or have been actively trading for at least twelve (12) months. Fund of Funds invest with multiple managers through funds or managed accounts. The strategy designs a diversified portfolio of managers with the objective of significantly lowering the risk (volatility) of investing with an individual manager. The Fund of Funds manager has discretion in choosing which strategies to invest in for the portfolio. A manager may allocate funds to numerous managers within a single strategy, or with numerous managers in multiple strategies. The minimum investment in a Fund of Funds may be lower than an investment in an individual hedge fund or managed account. The investor has the advantage of diversification among managers and styles with significantly less capital than investing with separate managers. PLEASE NOTE: The HFRI Fund of Funds Index is not included in the HFRI Fund Weighted Composite Index. It is important to note that investing in hedge funds involves risks. Please request and read the Private Placement Memorandum for a complete description of the risks of hedge fund investing. Hedge fund investing may involve, in addition to others, the following risks: the vehicles often engage in leveraging and other speculative investments which may increase the risk of investment loss; they can be highly illiquid; hedge funds are not required to provide periodic pricing or valuation information to investors; they may involve complex tax structures and thus delays in distributing important tax information may occur; hedge funds are not subject to the same regulatory requirements as mutual funds and they often charge high fees. Opinions contained in this Newsletter reflect the judgment as of the day and time of the publication and are subject to change without notice. Eagle's View Capital Management, LLC provides investment advisory services to clients other than the Funds, and results between clients may differ materially. Eagle's View Capital Management, LLC believes that such differences are attributable to different investment objectives and strategies between EFTA00718171  clients. Past performance is not a guarantee of future results. If you are not the intended recipient or have received this communication in error please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Kindest regards, Neal Berger President Eagles View Capital Management LLC 212.421.7300 Forward email rr This email was sent to by Instant removal with SafeUnsubscribeT" Privacy Policy. Eagles View Capital Management LLC 135 East 57th St. 23rd Floor New York NY 10022 EFTA00718172