EFTA01101108.pdf

Ii ELECTRON CAP I TAL PARTNERS LLC Electron Global Fund, LP O1 2013 INVESTOR PRESENTATION For exclusive of Jeffrey Epstein EFTA01101108  introduction & team executive summary focused & • Continuation of a 7-year global long/short equity strategy concentrated on global utilities and infrastructure companies in the US, consistent strategy Europe, Asia and Latin America James ("Jos- ) Shaver. Managing Partner & Portfolio Manager. has 8 years of experience as a long/short equity portfolio manager and 21 years (including 10 years working abroad in both Europe and Asia) covering the global utility and infrastructure sectors accomplished Shaver and the core investment team know each other well having worked together for an average of 6 years. both at SAC team Capital Advisors and the former Electron Capital Management (-Electron CM") Combined annualized net return of 10.3% cumulatively outperformed each of the MSCI World Utility, S&P 500 and HFRI Equity Hedge Indices by approximately 92%, 68% and 62%, respectively' demonstrated Consistent outperformance of the MSCI World Utility Index in 7 out of 8 years (in both up and down markets) resulting in track record 8.1% annualized alpha2 and capital preservation in challenging markets • Time-proven risk management culture and process which incorporates a proprietary global sector risk and capital allocation risk management model (60+ metrics) • The Managing Partner has committed a significant upfront investment to the Fund and management company aligned interests • All Partners will reinvest up to 1/3 of distributable profits back into the Fund which will vest over 3 years (no base salaries are drawn) I. Please see page 25 for detailed performance related disclaimers. 2. Jensen's alpha calculation. Jenseris alpha - Portfolio return -(Risk free rate Portfolio beta x (Market return - Risk free rate)]. ELECTRON $Ifiet y hde - noi Ou `.O! nut) c:alr. or ni:Voule CA' TAT. PARTNERS LLC For exclusive of Jeffrey Epstein EFTA01101109  I introduction & team g oba oh ty sector philosophy & process portfolio & EIS[ management fund informano accomplished team Cohesive team who have worked together at: the members of the investment team have extensive industry expertise and • SAC Capital a history of success investing together and across market cycles • Electron Capital Management 2000 2001 2002 2003 2004 2005 2006 2007 2009 2009 2010 2011 2012 Jos Shaver' UBS CSFB/DLJ SG Barr Devlin PA Electron" SAC Capital Electron Managing Partner/ Director (UK) Managing Sector Founder and Portfolio Manager. tong/short global Portfolio Manager. long/short global utility and Portfolio Manager EU utilities Director. EU utilities US PA utility and infrastructure fund infrastructure book < Goldman Sachs (since '96) Pequot Citadel SAC Capital Electron Nell Chol Pained Sall-side analyst covering US utilities Analyst covering Analyst coveting US utilities. Analyst covering US utilities. Senior Analyst US utilities gas pipelines and IPPs infrastructure and select EU utilities Peter Suozzo, CFA' < UBS (since '96) Citigroup Electron" Electron Partner/ Sell-side analyst. Sell-side analyst, valuation and Analyst covering infrastructure and deep fundamental dives in Senior Analyst Head. Asian utility research accounting research US, Europe. Asia and Latam Ran Zhou, CFA Electron" Electron Partner/ Analyst covering Asia. select infrastructure and alternative Senior Analyst energy companies Electron" Electron Jeff Zheng Calk Senior Analyst Technical and quantitative analyst/ Aaron Keller, CPA Intrepid Capital (Electron" Controller) Electron CFO and Head of Operations Senior Accountant Controller Chief Financial Officer Greg Zaffiro Intrepid Capital (Electron") Electron Managing Director. Marketing and IR Asiocsate Analyst Director 'Please see Appendx for full team background. education and advisory board biographies. "Denotes original Electron Capital Management (2004-2008) ELECTRON May Confidential. Do Nol Dula/tale or Diserbute. 2 CAPITAL PARTNERS LLC For exclusive of Jeffrey Epstein EFTA01101110  I g oba ut. ty sector global utility and infrastructure sector regional market capitalization* regional characteristics (US $2.8 Trillion) wEurope The Pace Setters US Muddling Forward Asia The Diligent Student Latam Alp Becoming Enlightened • EU directive • Hybrid structure • Studying Europe • Improving regulatory (particularly UK) framework • Political risk realized • Consolidation • China factor • Corporate governance • Power and carbon • EPA mandates and renewables driving • Environmental issues • Government ownership • Country specific issues capex • Increased transparency • Coal-to-gas switching subsector market capitalization* universe of companies* global sector correlations* Region Europe US Asia Latam Total 0.8 One of the Least Correlated Sectors Electricity Water 2% 43% Electricity 44 66 43 20 178 0.6 Gas 22% Natural Gas Water Utility-related 7 5 38 15 7 59 14 4 46 0 3 0 36 19 143 $ 0.4 To C 0.2 0.0 it Health Care Utility- C a A C O C •0 a ra C related C cri C 7 33% Total 94 147 107 23 376 V 0 C it o 'Source: Morgan Stanley. MSCI ELECTRON Sbicty Confidential. Do Not topical° of Disebute 3 CAPITAL PARTNERS LLC For exclusive of Jeffrey Epstein EFTA01101111  introduction & team &bad utity sector ph losopny & process portfolio & risk management fund why the global utility and infrastructure sector significant timely and ongoing Structural changes increasing opportunities in the sector. Textbook underperformance coming out • Regulatory arbitrage of recession waning -rr Timely Opportunities • Shale gas discoveries, change in fuel Generation capex waning yet transmission mix and LNG impact and distribution capex increasing structural change in • Renewable subsidies expiring changes cycle Efficiency measures gaining momentum • Tax changes (dividends, subsidies, • Environmental initiatives on an upswing Robin Hood taxes) Limited long/short dollars in what is viewed Re-regulation in some markets as a complex niche sector(') • Fuel cost pass-through clauses global utility and infrastructure opportunities Increased investor appreciation of utility • Continued unbundling of the utiity characteristics - essential services, dividends value chain creating long/short and growth in a low growth environment opportunities Macro flows continue to create distortions • Competition in generation and and thus long/short opportunities retaiVsupply dividends Investors largely not pricing in potential Regulatory model changes deregulation and growth dividend increases and cuts Elimination of subsidies Re-rating or change in valuation metric Ongoing Opportunities possible in "new normal" Consolidation and divestitures changing risk profiles • Infrastructure growth from both developed and emerging markets (1) Only 1 stock is contained in Goldman Sachs VIP and VISP lists as of August 2012. ELECTRON SInctly Conklentsal. Oo Nol Dupicale 0, Dtanbute. CAPITAL PARTNERS LLC For exclusive of Jeffrey Epstein EFTA01101112  global unity sector global utility and infrastructure market structure Unique commodity • Divestitures • Reverse margin changes • New entrants New-build price signals • Fuel switching fragmentation/ commodity consolidation cycle • Environmental • Efficiency Framework • Fossil fuel costs -(> renewables • Commodity price impact • Market distortions • Bottlenecks • Peak shaving • Expropriatory politics • Carbon price distortions deregulation • SO. NO,. Hg2 • Acts of nature • Generation competition • Politicization of tariffs • Supply competition • Nuclear • Value chain unbundling ELECTRQN Cor lidrutrAl Du %et 2up cam m 2i:Houlv 5 CAP TAL PAR - NE IS LLC For exclusive of Jeffrey Epstein EFTA01101113  ph[losophy &process investment philosophy Work environment is a "safe" place for opinions and independent thought "Hunt as a pack" particularly for cross-border market structure changes Consistent measurement and feedback are the keys to improving as investors Focus on alpha generation team based culture Team members may own a view point, but not a name or region Focus on utility market structure changes - generally slower to be priced into the stocks Take advantage of the global utility sector's low regional correlations Focus on the risk/reward proposition, not the greatest absolute return potential • Build conviction by first eliminating possibilities focused, sector-driven approach • Cash flow is paramount Sizing is most important risk step • Keep risk model discipline - mitigate selective memory and bias rigorous risk management • When in doubt. get out ELECTRON Dricty C<”,lidevtrol. Do Nol 2up:c:ate or Dul'oul,. 6 CAPTAL PAP - NERS LLC For exclusive of Jeffrey Epstein EFTA01101114  introduction & team g oba ut 1 ctor philosophy 8 process I portfolio & n* management fund infofmatio., exhaustive, repeatable investment process key focus on structural changes in utility markets: - Integrated research Thesis with Differentiated View 1. Cross-country/region comparison ("where - Global network of management have we seen this movie before?") Toehold Positions relationships spanning 20 years 2. Deep-dive analysis and discussion with - Senior advisory board members multiple parties involved. such as company management, regulators, - Regulators consultants, etc. - Consultants 3. Evaluate the potential impact to the - Lobbyists industry and local utility market - Sell-side/buy-side analysts 4. Determine the company winners and losers under different structural change scenarios idea detailed generation analysis 5. Evaluate upside/downside potential for portfolio each affected stocks construction 6. Check how different we are from consensus technical ongoing - Trade around fundamentally based overlay monitoring 7. Maintain and increase conviction through positions research and elimination of possibilities - Proprietary utility focused statistical approach combined with multiple technical indicators - Daily review of risk model and limits • Short trade a bucket of - Discussion and action taken on positions fundamental losers breaching stops, targets and time limits - Sizing based on conviction, - Periodic drawdown analysis and stress tests • Maximize dividend capture risk/reward and liquidity - Daily measurement of alpha contribution by - Thesis write-up, upside/downside region and subsector valuation and time limits for each position in risk model - Deep-dive reviews of lessons learned ELECTRON Stncty Conldential. Do Not Dupicalo or Detrbute. 7 CAPITAL PARTNERS LLC For exclusive of Jeffrey Epstein EFTA01101115  I portfolio & risk management lurid r I portfolio construction Typically 70 to 100 positions globally No long position greater than 10% of Fund's value position number, No short position greater than 5% unless paired with long sizing and liquidity 95% of portfolio <2 days volume • Top 10 longs generally 40 to 50% of Fund's value concentration of portfolio • Top 10 shorts generally 30 to 40% of Fund's value • Typically 150% to 250% • Historical median Electron: 185% gross, max 212% gross exposure Historical median SAC: n/a Generally ranges between 50% long to 15% short Historical average Electron: 30% net net portfolio exposure Historical average SAC: 17% net • Globally diversified with allocation according to the most attractive alpha opportunities • Approximately 40-60% ex-US geographic exposure • Approximately 85%+ OECD countries • Past performance is not indicative of future results. No representation is made that the Fund will or is likely to have exposures similar to the historical exposures shown above. ELECTRON COT lid, Du `,.:12up calf. of Dul-ouly 8 CAP TAL PARTNERS lle For exclusive of Jeffrey Epstein EFTA01101116  portfolio B nsk management risk management our proprietary global sector risk and capital model has been developed over the last 8 years provides multi-function/multi-level risk controls Tracks on a real time basis 60+ risk and capital metrics relevant to the global utility and infrastructure sectors Quantifies risk using a proprietary "risk lens" for the global utility and infrastructure sectors Provides a "granular window" on market flows into and out of the global utility and infrastructure sectors Conduct daily reviews to implement action plans on risk issues or triggered limit breaches Periodic drawdown analysis and stress testing performed sample risk positions Nuclear 0 lOP FX I Beta 0 o ? 0 0 1.÷ Thailand Coal O Supply Action taken to mitigate Oi ELECTRQN IrictyCorlidevtral. Do `.012,up:cate or ThIlroule. 9 CAP TA: FARTNE P . S LLC For exclusive of Jeffrey Epstein EFTA01101117  portlotio 8 nE.k management r n risk management Electron believes that most metrics fall into the following three categories: company Country, regions, sectors. subsectors and sub-subsectors exposures risk metrics Commodity risk (e.g. power. oil, natural gas, coal. etc.) both direct and indirect Interest rate risk (e.g. regulated utilities. company leverage. etc.) Plethora of financial measures position Liquidity and concentration measures risk metrics Relative positions and volatility Absolute and relative stop loss flags capital metrics Real time alpha and beta attribution by regions and main sectors Thesis write-ups for all positions - consistently reevaluate thesis and avoid thesis creep Absolute and relative target gain flags Trade duration limit flags to mitigate stale positions ELECTRON C<>r lid, Do `.o! Du') calf. or tr.11 10 CA? .TAI PAR - NERS LLC For exclusive of Jeffrey Epstein EFTA01101118  introducton 3. team gobai unity sector philosophy 8 process portfolio 8 risk management fund information demonstrated track record' monthly returns (net of fees) • Electron • SAC Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2012 0.88% 2.30% -1.61% -1.21% 021% 2011 -1.87% -0.60% 2.15% 3.19% -3.77% -0.89% -2.01% -2.95% -3.20% 5.86% •1.06% 2.07% -3.48% 2010 0.84% -0.88% 1.63% 0.18% -2.70% 1.33% 1.65% 0.68% 1.88% 1.15% •1.51% 1.56% 5.85% 2009 6.83% 2.08% -1.18% 4.14% 3.40% 1.69% 2.29% 1.94% 3.79% -0.05% 0.37% 0.20% 28.36% 2008 5.72% 2.16% aoo:„ 1.22% -1.47% n/a -0.13x 0.12% 4.23% -2.69% -0.10% 0.01% 14.40% 2007 3.30% 3.22% 4.1 1% 2.70% 3.46% 4.06% 1.36% -2.34% 3.02% 3.16% -1.92% 1.35% 28.35% 2006 7.92% 0.08% 2.02% 2.52% 0.03% •1.45% -0.18% 1.19% 0.52% 3.59% 5.21% 28.24% 2005 2.52% 0 04'. 2.25. 3 14% cumulative returns performance metrics 120% Electron/ MSCI World S&P 500 HFRI Equity i .Bectron/SAC —MSCI World Utilities SAC Utiles Index Hedge 100% , S&P 500 • HFRI Equity Hedge Total period return 91.2% -02% 24.4% 30.1% 80% Annualized return 10.34% -0.03% 3.37% 4.07% 60% % positive months 65% 56% 61% 65% Annualized 40% 8.94% 14.65% 16.44% 9.81% standard deviation 20% Maximum drawdown -14.92% -41.97% -48.09% -28.86% Sharpe ratio' 0.96 -0.12 0.10 0.23 0% Beta of Funds 0.30 022 0.62 -20% Correlation of Fund' 0A9 0A1 0.68 -40% Aug-05 May-06 Feb-07 Nov-07 Aug-08 May-09 Feb-10 Nov-10 Aug-11 Correlation of Fund 0.29 0.18 0.55 In down market' 1. see page 25 for detailed performance-related disclaimers. 2. monthly periodicity. risk free rate:3 month treasury bil secondary market rate (source: Federal Reserve). 3. based on monthly net returns. ELECTRON Stncty Conldential. Do Not Dupicale Of Dttntxtte. CAPITAL PARTNERS LLC For exclusive of Jeffrey Epstein EFTA01101119  introduction & team g:obal utlity sector philosophy & process portfolio 8 risk management fund information appe demonstrated track record' capital preservation in down markets contra performance in down markets2 MSCI World Utilities Electron/SAC S&P500 Electron/SAC 45% 43% 0% 40% 0.25% 0.37% 35% 2.4x -1% 30% 25% -2% 18% 20% 15% -3% 10% 5% -4% -3.65% 0% .4.07% % of positive months when MSCI % of negative months when MSCI