EFTA00705256.pdf

From: Neal Berger To: jeevacation@gmail.com Subject: Eagle's View Capital Management, LLC- January 2016 Performance Update... Date: Tue, 16 Feb 2016 20:21:24 +0000 Eagles View Capital Management, LLC January 2016 Performance Update Feb. 16.2016 What challenges us? Dear Partners/Friends, Click here to view our most recent monthly investor tearsheet Performance of Eagle's View Capital Partners, L.P. is estimated at -1.60% for January with YTD performance estimated at -1.60% net of all fees and expenses. Performance of Eagle's View Offshore Fund, Ltd. Class G is estimated at -2.50% for January with YTD performance estimated at -2.50% net of all fees and expenses. Performance of Eagle's View Offshore Fund, Ltd. Class B ("High Alpha") is estimated at -2.75% for January with YTD performance estimated at -2.75% 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. As we have repeatedly told investors, we do not believe our performance correlates with the overall direction of markets (equities or otherwise). Please see the following link Click here to view comparison which compares all down months of the S&P 500 versus the performance of those same months for Eagle's View Capital Partners, L.P. since inception of our Fund. We took all the down months for the S&P, calculated the cumulative negative return, and, compared this with the cumulative return of Eagle's View Capital Partners, L.P. during those same months. As readers can see, we've been modestly net positive cumulatively versus the cumulative net negative performance of the down months of the S&P since the inception of Eagle's View. As such, while months like January may provide the appearance that we correlate to the direction of markets, we believe it is not the fact that the market was negative, rather, the internal dynamics of the substantial dislocation and chaotic trading activity that caused us to have a EFTA00705256 drawdown concurrent with the market. Conversations with other industry participants have indicated that there is substantial deleveraging by hedge funds currently going on which has caused some outsized losses. Many have heard the press reports of large Funds experiencing significant double-digit losses thus far for 2016. We've been told of some others that have may not have hit the press as of yet. That said, these Funds have historically been highly volatile but ultimately have made substantial gains for investors over time. We understand that some of the larger and historically more stable multi-strategy funds are suffering as well (the losses are outsized for them, but, modest by industry standards thus far) likely due to de- leveraging going in on within a variety of strategies. We believe Eagle's View may suffer at times during highly dislocated, inefficient, and chaotic market environments. Since we are in the business of seeking to invest with Managers who capitalize upon market inefficiencies, existing inefficiencies tend to become more inefficient and pronounced during these periods of dislocation. This is both good news and bad news. The bad news is that we suffer mark to market losses, although, given our diversification of non-traditional strategies, we believe those losses will remain modest. Historically, Eagle's View Capital Partners, L.P. has experienced a loss of -3.13% as our largest peak to trough drawdown since inception thus far. The good news is that the dislocations, forced trading activity, and inefficient market activity create a very fertile environment for our Managers to capitalize upon. We hope and expect that the more dislocated markets become, the greater the opportunity for outsized profits to be monetized. Based upon a few limited data points, if one examines our return history during 2015, we experienced our largest monthly loss ever during April (-1.97%) which coincided with a European bond meltdown during the last week of the month. We quickly followed that up with a +3.17% gain during May. Our second largest losing month last year was -1.25% in June during the Greek crisis which was followed by a +3.29% July performance. Of course, we cannot suggest that the same will happen this time or that this provides statistically relevant evidence. However, it is our belief that market dislocation creates the opportunities we need to capitalize upon in periods ahead. In short, sometimes we have to lose a little money in order to monetize the substantial opportunities that present themselves with an expected positive skew between our profits and losses. Markets needn't necessarily rally for our strategies to adjust and to capitalize upon these inefficiencies, rather, even some modest normalization may allow for very favorable opportunities to be monetized. In sum, we do not believe our losses are caused by declining markets, rather, we believe challenging environments occur for us on a short-term basis when markets enter periods of extreme chaos, dislocation, de- leveraging, and inefficiency such as what we are currently witnessing. While February still has 2 weeks left for the month, we are showing some modest challenges this month, although, substantially better than what we witnessed during January thus far. Of course, we hope that the second half of the month may allow us to turn the corner toward positive for the month which is within striking distance based upon mid-month Manager estimates. During these times of market stress, we feel no need to make radical changes to our portfolio. We designed our offerings to withstand these type of market conditions. Of course, we are continuously tweaking the portfolio and seeking to add to Managers who thrive to a greater extent during these type of market conditions. EFTA00705257 Eagle's View has never sought to outperform equities or be the highest performer. Rather, we've sought to provide investors with a low-stress, wealth preservation vehicle that can withstand challenging market environments and provide a truly unique source of alpha. We believe and expect this will continue to hold true. We do not believe that we, nor anyone else has any 'edge' in making predictions regarding the direction of markets. Rather, we are simply in the money making business. We are not interested in being right about the economy or patting ourselves on the back for predicting the timing of the next Fed tightening, or lack thereof. We are interested in putting up smooth and steady returns for our investors in a low stress manner. 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. 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 EFTA00705258 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 Forward email This email was sent to jeevacation@gmail.com by Rapid removal with SafeUnsubscribem About our service provider. Eagles View Capital Management LLC 135 East 57th St. 23rd Floor New York NY 10022 EFTA00705259