a short insight into our hedge funds due diligence and selection services and process with some case studies provided

1. SELECTIVE ALTERNATIVES:
Alternative investments
due diligence and selection
May, 2017

2. 2 | © 2016 All rights reserved
„In today‘s rapidly changing, fiercely
competitive world, you don‘t simply find
opportunities. You must create them.
Creating opportunities fuels
performance. That‘s the power of our
edge.“
(The Carlyle Group)

3. 2 | © 2016 All rights reserved
„In today‘s rapidly changing, fiercely
competitive world, you don‘t simply find
opportunities. You must create them.
Creating opportunities fuels
performance. That‘s the power of our
edge.“
(The Carlyle Group)

4. 2 | © 2016 All rights reserved
„In today‘s rapidly changing, fiercely
competitive world, you don‘t simply find
opportunities. You must create them.
Creating opportunities fuels
performance. That‘s the power of our
edge.“
(The Carlyle Group)

5. 2 | © 2016 All rights reserved
„In today‘s rapidly changing, fiercely
competitive world, you don‘t simply find
opportunities. You must create them.
Creating opportunities fuels
performance. That‘s the power of our
edge.“
(The Carlyle Group)

6. 2 | © 2016 All rights reserved
„In today‘s rapidly changing, fiercely
competitive world, you don‘t simply find
opportunities. You must create them.
Creating opportunities fuels
performance. That‘s the power of our
edge.“
(The Carlyle Group)

7. 2 | © 2016 All rights reserved
„In today‘s rapidly changing, fiercely
competitive world, you don‘t simply find
opportunities. You must create them.
Creating opportunities fuels
performance. That‘s the power of our
edge.“
(The Carlyle Group)

8. 2 | © 2016 All rights reserved
„In today‘s rapidly changing, fiercely
competitive world, you don‘t simply find
opportunities. You must create them.
Creating opportunities fuels
performance. That‘s the power of our
edge.“
(The Carlyle Group)

9. 2 | © 2016 All rights reserved
„In today‘s rapidly changing, fiercely
competitive world, you don‘t simply find
opportunities. You must create them.
Creating opportunities fuels
performance. That‘s the power of our
edge.“
(The Carlyle Group)

10. 2 | © 2016 All rights reserved
„In today‘s rapidly changing, fiercely
competitive world, you don‘t simply find
opportunities. You must create them.
Creating opportunities fuels
performance. That‘s the power of our
edge.“
(The Carlyle Group)

11. 2 | © 2016 All rights reserved
„In today‘s rapidly changing, fiercely
competitive world, you don‘t simply find
opportunities. You must create them.
Creating opportunities fuels
performance. That‘s the power of our
edge.“
(The Carlyle Group)

12. 2 | © 2016 All rights reserved
„In today‘s rapidly changing, fiercely
competitive world, you don‘t simply find
opportunities. You must create them.
Creating opportunities fuels
performance. That‘s the power of our
edge.“
(The Carlyle Group)

13. 2 | © 2016 All rights reserved
„In today‘s rapidly changing, fiercely
competitive world, you don‘t simply find
opportunities. You must create them.
Creating opportunities fuels
performance. That‘s the power of our
edge.“
(The Carlyle Group)

14. 2 | © 2016 All rights reserved
„In today‘s rapidly changing, fiercely
competitive world, you don‘t simply find
opportunities. You must create them.
Creating opportunities fuels
performance. That‘s the power of our
edge.“
(The Carlyle Group)

15. 15 | © 2016 All rights reserved
Our current “top pick” investment idea – Life Settlements Fund
SELECTIVE
ALTERNATIVES OUR TOP IDEA

16. 16 | © 2016 All rights reserved
EQUITY HEDGE
Fund #1 is a long/short fund focused
on small / mid-cap biotech and specialty
pharma.
AUM USD551M
Liquidity No lock up
Redemption quarterly, 45 d. notice
Minimum USD1M
2016 6,0%
2015 19,2%
2014 73,5%
2013 122,4%
2012 20,9%
2011 12,9%
2010 8,1%
Total CAGR: 35,37%
Annualized St Dev: 27,07%
Sharpe ratio: 1,30 *
EVENT DRIVEN
Fund #2 seek to capitalize on out-of-favor, analysis-
intensive securities in the mortgage-backed securities
space.
.
AUM USD219M
Liquidity 1Y lock up
Redemption quarterly, 60 d. notice
Minimum USD500k
Total CAGR: 21,29 %
Annualized St Dev: 4,50%
Sharpe ratio: 4,69 *
** Risk free rate – 0,21% (German 10 year bond yield on December 31, 2016)
SELECTIVE
ALTERNATIVES OTHER PICKS
2016 8,2%
2015 8,1%
2014 13,9%
2013 27,4%
2012 48,9%
2011 14,8%

17. 17 | © 2016 All rights reserved
TACTICAL TRADING
Fund #3 is an opportunistic global-macro fund that
takes exposure to liquid asset markets.
AUM USD313M
Liquidity No lock up
Redemption monthly, 3 d. notice
Minimum USD100k
Total CAGR: 15,61%
Annualized St Dev: 16,83%
Sharpe ratio: 0,91 *
FUND OF HEDGE FUNDS
Fund #4 seek to invest in funds with
focus on asymmetric return profiles.
AUM USD570M
Liquidity No lock up
Redemption quarterly, 45 d. notice
Minimum USD125k
Total CAGR: 6,30 %
Annualized St Dev: 4,24%
Sharpe ratio: 1,44 *
2016 14,4%
2015 -21,5%
2014 31,9%
2013 34,9%
2012 4,9%
2011 53,5%
2010 28,1%
2009 13,7%
OTHER PICKS
SELECTIVE
ALTERNATIVES OTHER PICKS
2016 -3,5%
2015 1,4%
2014 11,4%
2013 8,5%
2012 10,7%
2011 2,9%
** Risk free rate – 0,21% (German 10 year bond yield on December 31, 2016)

18. 18 | © 2016 All rights reserved
The most common reason the fund is being rejected is the lack of
transparency whereas sometimes serious misinformation is captured.
#1
Fund investment field: Real Estate (RE)
Rejection reason: Conflict of interest
Explanation: Fund manager and RE developer are from
the same corporation where fund investors‘ interest might
be improperly represented.
#2
Fund investment field: Forex
Rejection reason: Inappropriate background
Explanation: The director of fund management company
was sentenced for criminal activity and is associated to
mafia connections.
#3
Fund investment field: Life Settlements
Rejection reason: Incorrect Valuation
Explanation: Fund Management had the right to evaluate
fund value by themselves or correct the valuation done by a
third party.
#4
Fund investment field: Global Macro
Rejection reason: Side pockets
Explanation: Illiquid assets are held in separate “side
pocket accounts” and belong only to those investors that
are already invested not to the new ones.
CASE STUDIES
SELECTIVE
ALTERNATIVES

19. 19 | © 2016 All rights reserved
Why MC Investments?
> Highly focused and specialized expertise: 30+ years of cumulative experience in the
hedge fund space
> Proven track record of successful manager selection for intermediaries and investors in
16 countries worldwide including the Baltics, China, Czech Republic, Hong Kong,
Indonesia, Israel, Luxembourg, Middle East, the Netherlands, Russia, Singapore, Sweden,
Switzerland, the UK, USA who jointly allocated more than $100m.
> Nimble, flexible, adaptable: services tailored to your specific mandates and assignments
you have for us
> Cost efficiency: cost argument in favor of outsourcing has long been established;
however, we provide additional layer of effectiveness as we are based in Lithuania
SELECTIVE
ALTERNATIVES WHY WE

20. 20 | © 2016 All rights reserved
Our expertise and service excellence has been
recognized by the following renown industry awards:
SELECTIVE
ALTERNATIVES OUR AWARDS
Wealth Management Firm of the Year - Lithuania
By Wealth & Finance International Magazine
In 2015 and 2014
Most Outstanding Financial Advisory Boutique - Lithuania
By The Corporate Livewire Innovation and Excellence Awards
In 2015
Holistic wealth management service provider of the year - Lithuania
By International Hedge Fund Awards
In 2014 and 2013

21. 21 | © 2016 All rights reserved
Our final recommendation
For more information please contact:
Marius Ciuzelis
Managing partner
T: +370 698 40 095
E: Marius.Ciuzelis@mcwealth.lt
SELECTIVE
ALTERNATIVES
DISCLAIMER
This publication is for general information only. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument.
Past performance is no guarantee for future results. You should note that high performance targets can only be achieved through accepting
higher risk of the portfolio. Where included in this document, benchmarks and index data provided are for illustrative purposes only. The
portfolio / strategy mentioned does not formally track any such benchmarks or indices and no representation is made as to relative future
performance or tracking deviation. In some circumstances it may be difficult for the investor to sell or realise such investments or obtain reliable
information about their value. Where an investment is denominated in a currency other than the investor‘s currency, changes in rates of
exchange may have an adverse effect on the value, price of, or income derived from the investment. The investments discussed may not be
suitable for all investors. Before committing to an investment, you should seek for the professional investment, legal, tax or accounting advise.
All information provided in this publication is considered reliable. In the event of changing market circumstances MC Investments will not be
held responsible for any damages experienced by investors.