EFTA00695852.pdf

From: Neal Berger To: jeevacation@gmail.com Subject: Eagle's View Capital Management, LLC- January 2015 Performance Update... Date: Mon, 16 Feb 2015 15:15:44 +0000 Eagles View Capital Management, LLC January 2015 Performance Update Feb 16, 2015 Implications of the Great Global Experiment? Click here to view our most recent investor tearsheet Performance of Eagle's View Capital Partners, L.P. is estimated at +0.89% for January, 2015 with YTD performance estimated at +0.89% net of all fees and expenses. Our December confirmed performance was revised up slightly allowing us to post a +10.07% net return for 2014. Although largely psychological, it's nice to be in the double digits on a net basis. Performance of Eagle's View Offshore Fund, Ltd. Class G is estimated at +0.25% for January with YTD performance estimated at +0.25% net of all fees and expenses. Performance of Eagle's View Offshore Fund, Ltd. Class B ("High Alpha") is estimated at +0.67% for January with YTD performance estimated at +0.67% net of all fees and expenses. This Share Class seeks to generate substantially higher returns through a more concentrated portfolio of some of our historically higher return opportunities. Investors in this Class should have a willingness to accept increased volatility and risk in exchange for the potential of higher returns. What is the great global experiment? This is a phrase we are using to describe the unprecedented actions taken by major world central banks in response to the crisis of 2008, as well as in an effort to jump start and support their respective economies. We have never witnessed the policy actions that have taken place over these past six years, and frankly, nobody really knows how this "experiment" will play out. We can say, so far, so good. However, it is our opinion that the markets are showing signs of the early stages of reaction to the widespread quantitative easing and unprecedented central bank policy actions. Investopedia defines quantitative easing as, "An unconventional monetary policy in which a central bank purchases government securities or other securities from the EFTA00695852 market in order to lower interest rates and increase the money supply. Quantitative easing increases the money supply by flooding financial institutions with capital in an effort to promote increased lending and liquidity. Quantitative easing is considered when short-term interest rates are at or approaching zero, and does not involve the printing of new banknotes." It is our belief that as a direct result of current global central bank policy, we are witnessing some very rare circumstances in global interest rates, currencies, and asset prices that have been artificially impacted through massive rounds of intervention by the US, Europe, and Japan. Certain markets currently have negative nominal interest rates which essentially represents a tax on money. Several central banks have set their deposit rates below zero including the ECB at -0.20%, the Danish National Bank at -0.75%, and after abandoning the exchange rate floor, the Swiss National Bank at -0.75%. Markets have followed these central banks with Swiss bond yields below zero up to 10-year maturities, and German government bonds offering negative yields up to 5 years. We believe that the policies that have led to these distorted markets have caused a spillover effect within currencies, equity prices, fixed income, commodities and nearly all markets around the world. Why are we mentioning this and what does it have to do with Eagle's View? Eagle's View is not in the prediction business. If we were, we certainly would not have predicted this. That said, we are in the observation business. We are observing that markets are starting to react with sharp moves such as massive energy price drops within a short time span, major currency moves that we haven't witnessed in many years and/or decades, and other markets that have become more volatile and susceptible to large and rapid swings. It is our belief that we have merely just begun to see the market impact of the 6+ years of increased government intervention in markets. As we've stated, since we are not in the prediction business, we really have no idea how markets or asset prices will ultimately shakeout. Frankly, we don't believe the central bankers know either. However, we do believe that conditions are ripe for increased volatility across markets, the potential for very substantial and sustained moves in the price of major world markets, and the possibility of chaotic and sharp swings in asset prices. Simply put, we do not believe that the relative calm that markets have enjoyed these past years will persist and we believe we are about to embark upon a period of major market moves across the world. How would this impact Eagle's View? Currently, Eagle's View Capital Partners, L.P. has an annualized volatility of its return stream since inception nearly 5 years ago of 2.70% with a Sharpe Ratio of 2.72. We expect the volatility of our returns to increase and our Sharpe Ratio to decrease. Our largest losing month since inception has been -1.32% and our largest positive month since inception has been +2.11%. We expect both records to be broken. That said, we also believe that increased dislocation will lead to higher nominal returns over time for our approach as increased market inefficiencies present opportunities. Broadly speaking, Eagle's View is in the business of seeking to capitalize upon market inefficiencies without regard to the overall direction of markets. Ultimately, if we are correct that markets are in for a period of heightened volatility, this should enhance our returns even if it comes at the expense of increased volatility of our returns. Market inefficiencies are often created during more volatile and turbulent markets, although, during the initial stages of market dislocations, existing positions can often suffer as those strategies in the business of capitalizing upon these moves need to re-adjust. Over EFTA00695853 the longer term, we believe increased volatility is a positive for our strategy should it occur. Eagle's View seeks to maintain a relatively balanced book in terms of factor exposure. However, we have added some positions that we believe would benefit from heightened volatility and substantial market moves should they occur. Of course, we are broadly diversified across what we believe to be positive expectancy strategies and we believe our core return stream should continue along in a positive course with acceptable levels of volatility regardless of market conditions. We are accepting new investment within our Fund of Funds products as well as within our Advisory business. Please contact me with further interest in our products/services. EFTA00695854 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 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 Vr This email was sent to jeevacation@gmail.com by Rapid removal with SafeUnsubscriben" Privacy Policy. EFTA00695855 Eagles View Capital Management LLC I 135 East 57th St. 123rd Floor I New York I NY 10022 EFTA00695856