ECP Emerging Europe Value

Fund Ltd.

Fund Investment Objectives

The investment approach is a combination of an event driven, idea-generation process and a disciplined value screening. Events (or catalysts) range from regulatory or political changes and M&A to personal changes on the level of management and shareholders. Value is always analyzed in relative terms with careful selection of anchors within the emerging and the European markets. The managers apply a top-down risk-control overlay but the investment style remains exclusively centred on bottom-up selection. Country and sector allocations are entirely a product of the bottom-up selection. A particular emphasis is also placed on sharp changes in market liquidity which often creates substantial arbitrage opportunities. The manager believes that this investment approach is particularly suited to the environment in the Emerging European markets. We seek to generate profits by exploiting such opportunities through active management. We try to estimate fair value using tested, rigorous valuation disciplines which combine macro, industry and company specific approaches. At the same time, and due to the constantly evolving nature of the Emerging European markets the reference points for estimating fair value are subject to periodic adjustments. We pay very close attention to investment flows and liquidity. Our investment process does not rely on consensus or long-term forecasts. Primary Benchmark is BBHFEMEQ (Bloomberg Hedge fund EM Equities) Secondary Benchmark is MXMU Index(MSCI EM Europe)