simodan hedge funds (2009) ltd

Simodan Hedge Funds (2009) LTD

Mayer Capital Management


Full Liquidity

Total Transparency

Excellent Past Performance


Investment philosophy: Fixed income - Macro-Global

Investment policy:

5) a. The Fund’s exposure to bonds of any kind, that are traded worldwide, will not, at any time, be less than 75% of the net value of the Fund’s assets.

b. In calculating the exposure mentioned in paragraph “a” above, bonds and/or capital notes creating exposure to equity instruments, will not be taken into account.


2) Unless otherwise notified by the Fund Manager, the exposure will not, at any time, exceed, 30% equity comprised in the net value of the Fund’s assets and 200% foreign currency of the net value of the Fund’s assets.

3) Any change in the investment policy will be reported by the Fund Manager on the Fund’s website, and written notice sent to the holders of the units.


Legal framework: Limited Partnership. Registration: Registered with the Register of Partnerships, the Ministry of Justice - Israel.Launch date: 2st Q 2010. Minimum investment: $500,000. Annual management fees: 2% (+ V.A.T). Trust fees: 0.1%Incentive fee: Nil.Entry fee: 0.5%. Entry/exit from the Fund: Daily (T+3). Unit price of the Fund: Published daily on the Company’s website + Bloomberg (ISIN: IL0011159899, Ticker: MCMMACA IT).

The Fund Manager will publish on its site at the beginning of each month, the composition of the Fund’s assets at the level of individual securities, as at the end of the preceding month.


Fund Trustee: Union Bank Trust Company Ltd.

Fund assets: The Fund’s assets are deposited with Bank Hapoalim Ltd,

in an account in the name “Union Bank Trust Company Ltd”.

Transparency: Unit holders in the Fund will receive a pin number enabling

access to and viewing of the Fund’s bank account.

Fund administrator: Union Bank Trust Company Ltd.

Auditors: Freidkes & Co. - CPA.

Legal advisor: “Yigal Shapira” Law Company.

Taxation: According to a ruling received from the income tax authorities: - An Israeli - resident limited partner is liable to tax at the rate of

25% on the Fund’s income.

- Foreign - resident limited partner is exempt from tax on the Fund’s

income.


By means of electronic code via the internet

--- Authorization to view

the Fund account

$ 500,000$ 500,000Minimum investment

Nil 20% above benchmark Incentive Fee

2% (+ V.A.T)2% Annual management

fees

Daily (T+3). QuarterlyBuy / sell

Daily on the Fund Manager’s website + On the Bloomberg system

(ISIN: IL0011159899

Ticker: MCMMACA IT)

Quarterly Rate published

MCM Fund Regular Hedge

Fund

Simodan Hedge Funds (2009) LTD Simodan bonds investments (2E)(!) – Mutual Fund

The fund's assets composition for May 2010

http://www2.barchart.com/dfutpage.asp?sym=TY&code=BSTK&section=

http://www2.barchart.com/dfutpage.asp?sym=US&code=BSTK&section=

http://www2.barchart.com/dfutpage.asp?sym=ES&code=BSTK&section=indices

http://quote.barchart.com/quote.asp?sym=QTM09&code=BSTK

http://www2.barchart.com/dfutpage.asp?sym=GC&code=BSTK&section=

http://www.tase.co.il/TASE/General/ETF/ETFMainData.htm?ShareID=01109214&CompanyID=001337&subDataType=0&




http://www.tase.co.il/TASE/General/Company/companyMainData.htm?ShareID=01096072&CompanyID=001306&subDataType=1&




Total currency exposure 149.87%


Total long exposure 115.53%


Total short exposure 132.64%


Total Government Bonds 66.46%


$ Yield (%) since 5/2003Data from T.A.S.E

102.20%

Redemption prices chart

Yie

ld (

%)


86.69% Cumulative yield (for the last 84 months - 30/4/03 - 30/4/10)

9.33% Average annual yield (for the last 84 months 30/4/03 - 30/4/10)

119.84%Cumulative yield

8.81%-Jan-May 2010

31.46%2009

11.63%-2008

17.60%2007

17.17%2006

6.93%2005

9.30%2004

28.86%2003

U.S Dollar YieldYear

Simodan (2E)(!) bonds investments fund performance


8.81-31.4711.62-17.6017.1706.949.3028.81Total

1.612.47-0.520.10-2.644.093.88December

1.41-5.51-3.856.320.07-5.523.40November

1.1311.24-0.002.130.42-0.30-3.34October

1.203.41-2.500.97-0.951.211.12September

1.73-3.85-2.870.512.582.02-1.41-August

3.963.001.132.603.052.89-5.08-July

0.79-1.871.93-3.73-5.73-4.424.16June

-6.4410.402.011.25-0.77-1.04-0.34-5.54May

0.63-8.030.46-3.788.922.240.43-8.01April

0.641.431.531.701.840.040.33-4.41March

1.71-0.44-0.13-2.842.49-2.970.211.36February

1.78-5.067.690.502.360.12-0.162.41-January

20102009200820072006200520042003

Monthly performance data from T.A.S.E

No. of up months: 53 (61%) Best monthly return: 10.4%No. of down months: 36 (39%) Worst monthly return: -11.24%STDEV (last 6 mo.): 0.74%


RISK MANAGEMENT• The Fund has a clear investment policy – at least 75% of the Fund's assets will be

exposed to bonds (of all kinds) and not more than 30% will be exposed to equity (including commodities).

• At least 90% of the Fund's assets will be invested only in liquid tradable assets.• The Fund's exposure to forex will not exceed 200%.• The Fund is active in derivatives. The fund will not collateralize more than 40% of

its assets regarding this activity.• The fund will invest not more than 10% of its assets in one single security (except

for government bonds).• The fund will strive to invest in ETF`s, and other index instruments as much as

possible.• All the above is supervised by three independent parties:

A. The Trustee (administrator) – at least once a week.B. The Bank (custodian) – daily.C. Computerized daily monitoring by Fund manager.

• Monthly publication of Fund's assets (a list of individual securities) on fund's site.• Limited partners in the fund will receive a PIN number enabling access to and

viewing of the fund's bank account at all times.


Fund Manager: Roy Mayer. Roy Mayer is the founder and owner of the Simodan Group. The Simodan Group was founded in 1990 and is active in two main areas:

Mutual Funds management and Hedge Funds management.The Company’s customers include institutions, public and private corporations, nonprofit societies, business corporations and private clients. Roy Mayer, B.A Economics, former CEO of fix income division at Leumi PIA Mutual Fund Management Ltd and prior to that, was executive representative of the Union Bank of Israel on the TASE(from 1982 onwards).


Hedge fundGeneral

A hedge fund is an investment fund that adopts a strategy purporting to create profit, whatever the market situation may be.

Legal structure

Most hedge funds are established as limited partnerships, where the fund manager is the general partner and the investors, the limited partners.

This legal structure has tax advantages as each investor in the fund (limited partner) has a different tax regime (foreign resident, Israeli resident, corporation, private client, etc.)


Macro-Global

This strategy is perhaps the most well known in the field of hedge funds. The strategy manager in macro-global funds attempts to take advantage of changes in policy and macro-economic developments and their impact on the various markets. This was done by many managers during the emerging period of the European Union, when interest rates of the currencies of the various countries of the Union converged to a single status. The fund managers that estimated that unification would go forward, bought Italian and Spanish denominated bonds bearing high yields, and against this sold short German and French bonds, on which the yields were relatively low. As the date of the unification approached, and on its completion, the managers reaped profits irrespective of the level at which the yield on the common European currency was fixed, namely the Euro.


Investment advantages of hedge fundsThe main advantage is lack of dependence on market behavior. The most popular investments are equity instruments and debt instruments. Equity instruments yield profit when the market rises, and lose when the market goes down. In equity instruments, profit depends mainly on changes in the yields: a drop in the yields will cause a rise in the bond rates and growth in profits, and a rise in yields may cause profit to go down below normal interest rates, and even lead to a loss.However, investing in hedge funds is not necessarily connected with the behavior of the markets. Regardless of whether the market is going up or down, or interest rates are rising or falling - the fund manager may earn a profit as well as a loss.


In contrast to investing in funds and bonds where the investor wants to beat the market, the investment manager in the hedge fund will wish to meet a pre-determined profit target - that is generally higher than the benchmark. In those circumstances, investing in hedge funds produces results having a low correlation with those of the market or of ordinary investments. This is one of the important requirements of an investment portfolio: to invest in assets having a low or negative correlation, thereby reducing the risk. For those reasons, investing in hedge funds enables a profit to be made whatever the market situation may be, and also benefit from a drop in the asset prices, exploit changes in the market in both directions, diversify investments and vary the assets. Hedge strategies are very wide and invest in equity instruments, debt instruments, currencies, commodities, interest rates and the like - in Israel and throughout the world. Risk management, that is the basis of the hedge-fund industry, allows risks to be limited and profits to be maximized.


Fund Facts:Inception Date: May 23rd 2010Fund Codes

ISIN: BMG3676W3154 Bloomberg Ticker: FORINEJ_BH

Management Fee: 1%Performance Fee: NoneMinimum Initial Investment: US $ 50,000Nav. Frequency: WeeklyDomicile: BermudaCurrencies: USD

Class J – Forum M.C.M Hedge Fund


Office:14 Moshe Dayan St.

Petach-Tikva 49518, Israel.

Tel: 972 – 3 - 9229901

Fax: 972 – 3 - 9229905

Cell: 972 – 54 - 4236167

Cell Euro: 372 - 53291295

Cell USA: 1 – 516 – 697 - 2001

Cell Canada: 1 – 514 – 621 - 3759

E-mail: [email protected]

Website: www.simodan.com

simodan hedge funds (2009) ltd

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