Cloud Gate - Founders' Share

Class

Fund Investment Objectives

Cloud Gate Capital is a fundamental long/short equity fund focused on US market opportunities. We seek long investments with 30% - 40% upside over a 12 to 24 month period based on sustainable free cash flow supported by powerful business drivers. Our short portfolio is structured around single name securities based on similar cash flow themes with near term catalysts and therefore tend to have shorter holding periods than our long portfolio. We seek to construct portfolios with a differentiated set of holdings with the goal of creating return streams that are uncorrelated over time to the broader equity markets and other long/short funds. Also, a byproduct of our longer-term holding periods is a relatively higher level of tax efficiency. Through 12/31/13, the F-Share class has a Sharpe Ratio of 2.4 and a Beta to the S&P of 0.4. AUM is not disclosed. Launched in October, 2012 by co-portfolio managers and long-time collaborators, Brian Newman and David Heller, the Fund was seeded by the Bluhm Family Office due to their long-standing investment relationship. In addition, the Bluhm relationship provides access to a proprietary set of businesses and their leadership for sourcing ideas and due diligence, particularly in the areas of real estate, gaming, hospitality, and insurance. Also, on occasion, we provide LPs with the opportunity to co-invest in less liquid investments in SPVs separate from the Fund and managed by the Bluhm Family Office.