5. presentation by aetos alternative management, llc ...retirement.ladwp.com/agendaitems/agenda -...
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5. Presentation by Aetos Alternative Management, LLC - Hedge Fund of Funds Annual. Performance Review
5
AETOS CAPITAL
1
AETOS CAPITAL
Absolute return investing involves substantial risks, including the risk of loss of invested capital. Absolute return investments are typically made through investments in illiquid, unregulated investment funds that employ sophisticated investment techniques, often involving derivatives and leverage, in a wide range of financial instruments and markets. These investments entail a wide variety of risks, which remain substantial notwithstanding the risk management practices we employ in selecting and monitoring the funds in which we invest. Potential investors in absolute return vehicles are urged to familiarize themselves with these risks before investing.
Hedge Fund Strategies
Confidential Discussion Materials
Water & Power Employees’ Retirement Plan
November 10, 2010
AETOS CAPITAL
2
TABLE OF CONTENTS
Section I Overview of the Water & Power Employees’ Retirement Plan Portfolios
Section II Overview of Aetos Capital, LP
Section III Investment Philosophy and ProcessPortfolio Construction and Monitoring
Appendix A Overview of the Aetos Capital Funds
Appendix B Biographies
AETOS CAPITAL
3
-1.30%-0.77%11.03%6.39%4.47%13.76%-14.20%4.34%Water & Power Employees' Retirement Plan1
(Inception: February 1, 2007)
3.20%
29.99%
26.46%
5.93%
0.15%
-
2009
2.38%
2.58%
3.88%
7.95%
0.10%
1.60%
YTD 2010
13.24%6.87%3.16%17.86%44.44%6.81%LADWP Benchmark3
-26.64%-15.57%14.42%-13.98%4-36.99%3.93%S&P 500 DRI Index
-14.79%4
28.79%4
5.61%4
1.60%
Return Since
Inception
-30.59%-22.29%10.20%-40.71%7.77%MSCI World Index
16.13%
0.66%
-
Fiscal Year2 Year
(7/1/08–6/30/10)
7.00%
3.93%
-
2007(2/1/07 –12/31/07)
3.51%0.12%1.36%90-Day Treasury Bills
24.41%
-
Fiscal Year 3 Year
(7/1/07–6/30/10)
9.50%
-
Fiscal Year 1 Year(7/1/09–6/30/10)
5.24%Barclays Capital Aggregate Index
-
2008
Board of Administration of the Water & Power Employees' Retirement Plan (on behalf of the Retiree Health Benefits Fund)2
(Inception: September 1, 2010)
1 Performance returns shown are net of fees for the Water & Power Employees' Retirement Plan Portfolio, which funded on February 1, 2007.2 Performance returns shown are net of fees for the Board of Administration of the Water & Power Employees' Retirement Plan (on behalf of the Retiree Health Benefits Fund) Portfolio, which funded on September 1, 2010.3 LADWP Benchmark: Annualized rate of return of 90-Day Treasury Bills plus 300 basis points.4 Represents performance since the inception of the Water & Power Employees' Retirement Plan Portfolio, which funded on February 1, 2007.
WATER & POWER EMPLOYEES' RETIREMENT PLAN
Water & Power Employees’ Retirement Plan Portfolios February 1, 2007 through September 30, 2010 (net of fees in US$ terms):
AETOS CAPITAL
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PORTFOLIO ALLOCATIONS
Equity Hedged: 35%
Event-Driven Arbitrage: 19%
Fixed Income Arbitrage: 10%
Quantitative: 5%
Distressed: 20%
Directional Equity: 3%
Short-biased Equity: 2%
Convertible Arbitrage: 6%
Strategy Allocations1
Number of Managers = 33
Number of Strategies = 8
Median Position Size = 3.0%
Average Position Size = 2.9%
Maximum Position Size = 6.8%
Aetos Capital Long/Short Strategies Fund: 40% Aetos Capital Multi-Strategy Arbitrage Fund: 40%Aetos Capital Distressed Investment Strategies Fund: 20%
As of October 1, 2010
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10
Event Driven Arbitrage Convertible Arbitrage Fixed Income Arbitrage Directional Equity Equity Hedged Short-biased Equity Distressed Long/Short Credit Short-biased Credit Quantitative
Historical Strategy Allocation
1 Allocations are subject to change over time.
AETOS CAPITAL
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0%
100%
200%
300%
400%
500%
600%
9/30/0212/31/023/31/03 6/30/03 9/30/0312/31/033/31/04 6/30/04 9/30/0412/31/043/31/05 6/30/05 9/30/0512/31/053/31/06 6/30/06 9/30/0612/31/063/31/07 6/30/07 9/30/0712/31/073/31/08 6/30/08 9/30/0812/31/083/31/09 6/30/09 9/30/0912/31/093/31/10 6/30/10 9/30/10
0.03
0.16
0.04
0.10
Beta: Barclays CapitalAggregate Index
0.170.17Aetos Capital Portfolio
0.200.20Aetos Capital Multi-Strategy Arbitrage Fund
0.140.14Aetos Capital Distressed Investment Strategies Fund
0.210.19Aetos Capital Long/Short Strategies Fund
Beta: MSCIWorld Index
Beta: S&P 500 DRI
PORTFOLIO EXPOSUREModel Aetos Capital Portfolio (Inception: September 1, 2002) and Actual Portfolio (Inception: February 1, 2007)Through September 30, 2010 (net of fees in US$ terms):
Historical Exposures
Gross Exposure
Long
Net Exposure
Short
As of 9/30/10:Gross Exposure: 240%Long: 138%Short: 102%Net Exposure: 36%
AETOS CAPITAL
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-1.00
-0.50
0.00
0.50
1.00
1.50
2.00
2.50
3.00
1 Year 3 Years 5 Years Since Inception
Aetos Capital Portfolio Barclays Capital Aggregate Index S&P 500 DRI Index MSCI World Index
0%
5%
10%
15%
20%
25%
1 Year 3 Years 5 Years Since Inception
Aetos Capital Portfolio Barclays Capital Aggregate Index S&P 500 DRI Index MSCI World Index
-21.77%
0.26
17.06%
6.45%
MSCI World Index
-0.170.90-0.62Sharpe Ratio
-21.95%
15.98%
4.82%
S&P 500 DRI Index
-
0.49%
5.15%
LADWP Benchmark*
-2.44%--7.31%Largest Calendar Qtr. Drawdown
3.83%0.49%4.34%Annualized Standard Deviation
5.51%2.05%4.75%Average Annualized Return
Barclays Capital Aggregate Index
90-Day Treasury Bills
Aetos Capital PortfolioAs of 9/30/10:
PORTFOLIO CHARACTERISTICSModel Aetos Capital Portfolio (Inception: September 1, 2002) and Actual Portfolio (Inception: February 1, 2007)Through September 30, 2010 (net of fees in US$ terms):
Standard Deviation Sharpe Ratio
Footnote: Performance returns shown from February 1, 2007 through September 30, 2010 reflect the Water & Power Employees' Retirement Plan Portfolio net of fees. Performance figures shown for the period prior to February 2007 are those of the Aetos Capital Funds comprising the Water & Power Employees Retirement Plan Portfolio, weighted according to the allocations on February 1, 2007 (“Aetos Capital Portfolio”). The performance figures shown for the Aetos Capital Portfolio are net of investment advisory and performance fees of 0.75% of assets annually and 10% of profits above the three month Treasury bill return, respectively. For performance fee calculation purposes, it is assumed that an investor redeems each December 31 and invests each January 1. The returns also reflect Fund level expenses, some of which have been waived and/or reimbursed by the Investment Adviser. Returns would have been lower without such waivers and reimbursements. Past performance is not indicative of future returns.* LADWP Benchmark: Annualized rate of return of 90-Day Treasury Bills plus 300 basis points.
AETOS CAPITAL
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-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
9/1/02 - 12/31/02 2003 2004 2005 2006 2007 2008 2009 YTD 2010
Aetos Capital Portfolio 90 Day T-Bills S&P 500 DRI Index Barclays Aggregate Index MSCI World Index LADWP Benchmark*
6.45%
1.30%
-1.69%
-8.28%
2.13%
6.76%
MSCIWorld Index
5.15%4.82%5.51%2.05%4.75%Since
Inception (9/1/2002)
5.42%0.64%6.20%2.31%3.49%5 Year
4.87%-1.74%6.85%1.78%2.75%4 Year
3.88%-7.16%7.43%0.82%1.34%3 Year
3.21%1.26%9.36%0.16%4.98%2 Year
3.16%10.16%8.17%0.12%7.69%1 Year
LADWP Benchmark*
S&P 500 DRI
Index
Barclays Capital
Aggregate Index
90-Day Treasury
Bills
Aetos Capital
Portfolio
Annualized Return As of
9/30/10:
Investment Performance
PERFORMANCE DETAILModel Aetos Capital Portfolio (Inception: September 1, 2002) and Actual Portfolio (Inception: February 1, 2007)Through September 30, 2010 (net of fees in US$ terms):
Footnote: Performance returns shown from February 1, 2007 through September 30, 2010 reflect the Water & Power Employees' Retirement Plan Portfolio net of fees. Performance figures shown for the period prior to February 2007 are those of the Aetos Capital Funds comprising the Water & Power Employees Retirement Plan Portfolio, weighted according to the allocations on February 1, 2007 (“Aetos Capital Portfolio”). The performance figures shown for the Aetos Capital Portfolio are net of investment advisory and performance fees of 0.75% of assets annually and 10% of profits above the three month Treasury bill return, respectively. For performance fee calculation purposes, it is assumed that an investor redeems each December 31 and invests each January 1. The returns also reflect Fund level expenses, some of which have been waived and/or reimbursed by the Investment Adviser. Returns would have been lower without such waivers and reimbursements. Past performance is not indicative of future returns.* LADWP Benchmark: Annualized rate of return of 90-Day Treasury Bills plus 300 basis points.
Jan - 0.75% 1.50% 0.45% 1.76% 1.47% -1.77% 0.53% 0.58%Feb - 0.19% 0.58% 1.15% 0.49% 0.35% 1.12% -0.25% 0.63%Mar - 0.30% -0.02% 0.26% 0.88% 1.09% -1.39% -0.23% 1.95%Apr - 1.36% -0.67% -0.31% 0.89% 1.32% 0.45% -0.35% 0.97%May - 1.88% -0.16% 0.64% -0.34% 1.57% 1.67% 2.97% -2.04%Jun - 1.04% 0.29% 0.69% 0.44% 0.31% -0.21% 1.27% -0.58%Jul - -0.19% -0.22% 0.95% 0.51% -1.93% -0.63% 2.13% 1.02%Aug - 0.59% 0.03% 0.37% 0.45% -1.39% -0.52% 1.54% 0.37%Sep -0.42% 1.04% 0.49% 0.73% 0.28% 0.95% -6.24% 2.35% 1.54%Oct 0.16% 1.03% 0.27% -0.69% 0.72% 1.62% -4.21% 0.46% -Nov 0.55% 0.99% 1.38% 0.43% 1.27% -0.08% -2.30% 1.65% -Dec 1.05% 0.87% 0.84% 1.23% 1.23% 0.53% -0.91% 0.95% -
YTD 1.34% 10.31% 4.38% 6.06% 8.92% 5.88% -14.20% 13.76% 4.47%
201020092002 2003 2004 2005 2006 2007 2008
AETOS CAPITAL
AG Mortgage Value Partners, L.P. Farallon Capital Offshore Investors, Inc.
Anchorage Capital Partners GMO Reversion to Mean Fund
AQR RT Fund, L.P. Ishin Fund LLC
Aurelius Capital Partners, L.P. Joho Partners, L.P.
Bay Pond Partners, L.P. King Street Capital, L.P.
Bracebridge FFIP, L.P. Marshall Wace TOPS Fund Limited
Brookside Capital Partners Fund II, L.P. Millgate Partners II, LP
Cadian Fund, L.P. North River Partners, L.P.
CamCap Energy, L.P. Oceanwood Global Opportunities Fund, LP
Centerbridge Credit Partners, LP Parsec Trading Corporation
CNH Convertible Arbitrage II Fund Ltd. Tiger Consumer Partners, L.P.
Conatus Capital Partners, L.P. Ursus Partners, L.P.
Davidson Kempner Distressed Opportunities Fund Viking Global Equities L.P.
Davidson Kempner Partners, L.P. Watershed Capital Partners, L.P.
8
MANAGER LIST
Aetos Capital PortfolioUnderlying Hedge Fund Manager List1
October 1, 2010
1 Subject to change over time. Excludes managers under redemption.
AETOS CAPITAL
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Fees & Terms
90-Day Treasury BillsHurdle Rate
10% of profitsIncentive Fee
YesHigh Water Mark
0.75%Management Fee
HedgeServ LimitedAdministrator
Quarterly / 90 DaysRedemption Frequency / Notice Period
PricewaterhouseCoopers, LLCAuditor
1 YearLock-Up Period
Monthly / 30 DaysContribution Frequency / Notice Period
WATER & POWER EMPLOYEES' RETIREMENT PLAN
Board of Administration of the Water & Power Employees'
Retirement Plan (on behalf of the Retiree Health Benefits
Fund) Portfolio
Water & Power Employees' Retirement Plan Portfolio
$35,110,877
February 1, 2007
$7,620,186Current Amount as of September 30, 2010:
September 1, 2010Funding Date:
AETOS CAPITAL
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Experience• Fiduciary perspective and capital markets experience• Best practices from the highest quality institutions• Broad and deep team of specialists focusing on investment research and operational due diligence• Senior professionals average over 20 years of market experience
Expertise• Specializing exclusively in alternative investment strategies for institutional clients • Independent firm – registered investment advisor with SEC-registered 1940 Act investment vehicles*• Research driven process• Historic emphasis on operational risk management• Focus on client education and knowledge transfer
Judgment• Demonstrable record of success:
– Manager identification– Tactical strategy allocation– Portfolio construction and risk management– Insightful and comprehensive monitoring
• Customized approach• Extension of staff
* Aetos Alternatives Management, LLC, a wholly-owned subsidiary of Aetos Capital, LP, is a registered investment advisor. Such registration does not imply in any manner whatsoever that Aetos has been sponsored, recommended, or approved, or that its abilities or qualifications have in any respect been passed upon by the United States or any agency or any office thereof. You should consider the investment objectives, risks and charges and expenses of the Aetos Funds carefully before investing. The prospectus contains this and other information. Please call 212-201-2540 to request a prospectus and read it carefully before investing.
AETOS CAPITAL, LP – ALTERNATIVES MANAGEMENT
AETOS CAPITAL
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INVESTMENT OFFERINGSFlexibility to accommodate tailored solutions across the spectrum of absolute return strategies incorporating a high degree of knowledge transfer
Multi-Strategy Hedge Fund of Funds Portfolios• Available through commingled hedge fund of funds and/or direct
investments• Managed to specific return and volatility targets• Custom allocations available• Onshore and offshore funds
Single-Strategy Hedge Fund of Funds• Available through commingled hedge fund of funds and/or direct
investments• Implementation of tactical allocations
Separate Accounts & Strategic Relationships• Direct investments with underlying managers• Combination of direct investments and commingled hedge fund of
funds
Aetos Alternatives Management• $5 billion assets under management*• 99% institutional investors
* Includes invested assets as of December 31, 2009, plus assets awarded but not yet funded.
Aetos CapitalPrime Portfolio
Aetos Capital Balanced Portfolio
Aetos CapitalGrowth Portfolio
Und
erly
ing
Man
ager
s
Long/Short Strategies
Fund
Multi-Strategy
ArbitrageFund
Distressed Investment Strategies
Fund
AETOS CAPITAL
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ORGANIZATIONAL OVERVIEW
*Independent Board of Directors of the Aetos Capital SEC-Registered 1940 Act Commingled Hedge Funds of Funds
Rose RennerBernadette McHugh-TorresLindsey Kramer Rebecca AsheDawn Griffin
Business Management AdministrationJoan HopkinsLauren BuchmannKari DevineRita StembergaKeaisha MillerInara Koshkarli
Operations
Independent Board of Directors of Aetos Capital Funds of Hedge Funds*
Anne CasscellsChief Investment Officer
Portfolio Management and Research
Daniel FaganResearch Analyst
Julie YenResearch Analyst
Adam DurityRisk Systems Analyst
Operational, Business and Legal Due Diligence
Dana A. TroetelVice President
Legal
Scott SawyerDirector
Chief Financial Officer
Reid ConwayVice President
Chief Compliance Officer
Harold J. SchaaffManaging Director
General Counsel
Joseph J. McDonaldDirector
Operational Risk
Susan S. LiuAssociate
Operational Risk
Michael F. KleinChief Risk Officer
Anne CasscellsCo-President & Chief Investment Officer
James T. GibbonsManaging Director &
Senior Portfolio Manager
Investment Committee
Michael F. KleinCo-President & Chief Risk Officer
Bradley C. RudnerVice President
Elizabeth A. LeungAssistant Vice President
Client Relations and Business Development Team
Andrea M. BollykyManaging Director
Head of Business Development
Susan E. LittleAssociate
Andrew M. PoffelAssistant Vice President
Accounting / Tax Services
Deepak WadhwaNicole IspassDavid Marcato Zaniffa HoseinNiki Rees
Information Technology
Mohammad IdreesSalah SirajMarie McHugh
A.J. ChenResearch Analyst
Filbert CuaResearch Associate
Jonathan BishopDirectorResearch
James T. GibbonsManaging Director
Senior Portfolio Manager
Andrew WallingDirectorResearch
Michael SpathDirector
Portfolio Manager
AETOS CAPITAL
13
INVESTMENT PHILOSOPHY
• We partner with clients to provide tailored solutions across the spectrum of hedge fund strategies
• We integrate risk management into all aspects of the investment process focusing on manager, operational, portfolio, and strategy/investment risk
• We follow an investment process which combines excellence in research, risk management, manager due diligence, and portfolio construction to increase the probability of consistent and uncorrelated investment results
• We maintain a bias towards fundamentally oriented managers and complement experienced and established firms with emerging talent
• We focus on managers with demonstrated investment and business skill, deep organizations, sustainable performance, and consistent risk profiles
• We determine the allocation to hedge fund strategies and managers merging quantitative and qualitative factors, using mean-variance optimization tools, reviewing correlations among managers and incorporating position limits, ranges and liquidity constraints
• We invest with managers who provide portfolio transparency and access to principals affording a clear understanding of each manager’s investment strategy, competitive advantage, and underlying drivers of returns
AETOS CAPITAL
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INVESTMENT PROCESS
With institutional standards in mind, we follow a disciplined and repeatable investment process which incorporates client specific inputs and guidelines with significant knowledge transfer
Fundamental &Macroeconomic Research
Manager Evaluation &Selection
Portfolio Construction
Monitoring & ReportingProcess
Integrated Risk Management
Establish ClientSpecific Risk & Return
Objectives
Customize ClientInvestment Guidelines
DetermineImplementation
Process
Establish ReportingRequirements
AETOS CAPITAL
15
INTEGRATED RISK MANAGEMENT
Control EnvironmentPricing & Valuations
Transparency & ReportingExternal Service Providers
Systems & Disaster RecoveryTrading, Settlement &
ReconciliationAccounting & Audit
OperationalRisk
CorrelationsPerformance Attribution
LiquidityScenario Analysis & Stress Tests
Strategy & Manager Diversification Exposure Profiles
QuantitativeRisk
Value at Risk Factor Risks & Exposures
- Equity- Fixed Income- Credit- Volatility- Liquidity- Concentrations- Derivatives- Leverage
Strategy /Investment Risk
ManagementRisk
Quality of FranchiseAlignment of Interests
Organizational StabilityInvestment Discipline
Integrity & EthicsClient Mix
Legal
Risk management is integrated in every step of the investment process. We evaluate risk in each of its four constituent parts and focus on the key variables in each
AETOS CAPITAL
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FUNDAMENTAL AND MACROECONOMIC RESEARCHWe classify investment strategies, determine the key drivers of performance, develop forward-looking views, set risk and return expectations, and undertake fundamental macroeconomic research
Multi-Strategy
Liquidity-DrivenStrategies
Skill-DrivenStrategies
Global Growth Equity Markets
Interest Rates Shape of Yield Curve Credit Spreads
Volatility
Macroeconomic Environment
DistressedLong-Bias CreditShort-Bias Credit
Variable-Bias Credit
ArbitrageMerger Arbitrage
Convertible ArbitrageStatistical Arbitrage
Event-Driven ArbitrageCapital Structure Arbitrage
Fixed Income ArbitrageRelative Value Arbitrage
Long/Short EquityShort-Bias Equity Directional-Equity
Market Neutral Sector Funds
Quantitative Strategies
Tactical TradingGlobal TAA
Fundamental Macro Commodity
CurrencySystematic Macro
CTAs
AETOS CAPITAL
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MANAGER EVALUATION & SELECTION PROCESSMeticulous process reflecting nearly three decades of collective hedge fund experience is critical to discovering top investment talent
Universe Evaluate
• Extensive universe of established and emerging managers - Proprietary Network - Prime Brokers - Conferences - Databases
• Sorted by strategy and sub-strategy
• Qualitative assessment of manager’s “edge”- Philosophy & Process - Pedigree - Risk Management - Organizational Structure
• Quantitative analysis of track record - Exposure to Market Factors - Style Drift - Leverage - Issue Concentration
Focus
• Meetings with multiple levels of investment professionals
• Site visits and meetings with CFO and other compliance and operations personnel to assess systems, control environment, disaster recovery and evaluation processes
• Confirm peer, counterparty and client references through proprietary network to gain insight on investment skill, integrity, ethics and coherence of team
• Conduct background checks for regulatory, civil and criminal violations, verify education and experience
• Evaluate correlation to existing managers and contribution to risk of portfolio
• Negotiate capacity and liquidity terms, side letters, fees and transparency requirements
• Construct portfolios which are concentrated by manager and diversified by strategy
Invest
AETOS CAPITAL
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ELEMENTS OF MANAGER EVALUATION & ANALYSISWe employ a team-based approach where senior investment professionals lead the manager research, operational due diligence and legal review processes, assisted by strategy specific analysts.
Hedge FundHedge Fund
Transparency
Investment Strategy
Access to Principals
Investment RecordLeverage
Professional Background& Experience
Concentration OrganizationalStability & Depth
Legal Terms
Operational Controls
Pricing Policies
Scale & Growth of Assets
Business Strategy
Operational, Business & Legal Due Diligence
InvestmentResearch
Investment Memo: Assessment of investment team, strategy, risk controls, track record and strategic rationale
Due Diligence Worksheet: Assessment of business infrastructure, fund terms, portfolio composition, pricing policies, trading procedures, back office, valuation and oversight
Legal Review Worksheet: Review of subscription documents, articles of association and private offering memorandum
Risk Scorecard: Summary evaluation to rate manager’s profile, quality of controls, oversight and diligence processes
AETOS CAPITAL
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PORTFOLIO CONSTRUCTION
Qualitative & Quantitative Assessment
Expected Risk and ReturnLeverageCapacity
Manager & Sector Allocation
Investment TrendsInvestment Forecast &
OutlookUnder & Over-Weight
Concentrations
Strategy & Sub-Strategy Allocation
Mean-Variance Optimization Position LimitsCapacity Liquidity
Optimization
Scenario Simulation & Stress Testing
Simulate Historical Performance Factor Analysis
Evaluate Conditional Outcomes
Investment Committee constructs portfolios that are diversified by manager, sub-strategy and strategy using a blend of qualitative assessments and quantitative tools
Portfolio
AETOS CAPITAL
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MANAGER AND PORTFOLIO MONITORINGContinually evaluate the market environment, opportunity set and risk profile of each strategy and perform ongoing due diligence on individual managers
Hedge FundOrganization
LeverageConcentration
ExposuresRisk Controls
EnvironmentVolatilityLiquidityMarket
StrategyRisk/ReturnFunds FlowCorrelations
Market Environment Review
Portfolio LevelAnalysis & Review
Hedge Fund LevelQuantitative & Qualitative
Review
Performance, Valuation & Pricing Confirmation
• Market returns, volatilities, correlations, mean reversion
• Drivers of risks & returns• Flow of funds• Strategy outlooks
• Portfolio return, volatility, Sharpe ratio, return distribution, skew, kurtosis, drawdowns
• Exposure aggregations, concentrations
• Contribution to return• Manager correlations• Market correlations & betas• Factor analysis• Scenario simulations & stress testing
Qualitative:• Organizational stability• Scheduled operational reviews
• Pricing procedure report per managerHistorical returnVolatilityReporting behaviorRegression analysisPeer group analysisExposure report review
• Review by Aetos Pricing Committee• Independent board oversight
Quantitative:• Performance• Exposures• Concentrations• Attribution
analysis• Factor analysis• Leverage
• Asset allocation• Peer group
analysis• Customized
exposure reports• Market
comparisons
AETOS CAPITAL
21
WHY INVEST WITH AETOS?
Experience• Our senior investment professionals each have at least ten years of institutional experience investing in hedge fund
strategies as fiduciaries• Our professionals have extensive investment, capital markets, and trading experience across equities, fixed income,
derivatives, arbitrage and distressed investments
Philosophy• Our goal is to preserve capital and maximize alpha – we believe in a fundamentally based process and disciplined
approach to strategy allocation, manager selection, and monitoring• We invest with the highest quality hedge fund managers, including both established and emerging talents, where we
have conviction in both their investment process and operational structure• We require access to principals and portfolio information from our managers
Process• We integrate risk management into our investment process and construct portfolios which are diversified by strategy
and manager using a blend of qualitative assessments and quantitative tools
Partnership• As fiduciaries by background and perspective, we recognize our responsibility to clients and offer the highest level
of service by providing thoughtful research, market insights, tailored solutions, and customized reporting
AETOS CAPITAL
22
AETOS CAPITAL LONG/SHORT STRATEGIES FUND
1.30%0.64%6.20%2.31%2.75%5 Years Annualized Return
-
-
-
-21.95%
0.17
15.98%
4.82%
-7.16%
10.16%
S&P 500 DRI Index
---0.19Beta: S&P 500 DRI Index
---0.21Beta: MSCI World Index
---0.04Beta: Barclays Capital Aggregate Index
-21.77%-2.44%--10.55%Largest Calendar Qtr. Drawdown
0.260.90-0.40Sharpe Ratio
17.06%3.83%0.49%5.53%Annualized Standard Deviation
6.45%5.51%2.05%4.25%Average Annualized Return
Since inception through 9/30/10:
-8.28%7.43%0.82%-1.74%3 Years Annualized Return
6.76%8.17%0.12%1.29%1 Year Annualized Return
MSCIWorld Index
Barclays Capital Aggregate Index
90-Day Treasury Bills
Aetos Capital Long/Short
Strategies Fund As of 9/30/10:
Performance (net of fees in US$ terms)1
Strategy Allocation as of October 1, 2010
Number of Managers = 15 Average Position Size = 6.7%Number of Strategies = 4 Maximum Position Size = 11.9%Median Position Size = 7.5%
Directional Equity: 7%Short-biased Equity: 4%
Equity Hedged -Generalist: 59%
Equity Hedged -Sector Specialist: 30%
1 Performance figures shown are net of investment advisory and performance fees of 0.75% of assets annually and 10% of profits above the three month Treasury bill return, respectively. For performance fee calculation purposes, it is assumed that an investor redeems each December 31 and invests each January 1. The returns also reflect Fund level expenses, some of which have been waived and/or reimbursed by the Investment Advisor. Returns would have been lower without such waivers and reimbursements. Past performance is not indicative of future returns.
Jan - -1.02% 1.99% -0.02% 2.35% 2.03% -3.13% 0.90% -1.76%Feb - -0.63% 0.96% 1.62% 0.09% 0.42% 1.92% -0.72% 0.77%Mar - -0.27% -0.30% 0.43% 1.56% 1.35% -1.48% -0.30% 1.68%Apr - 1.86% -1.38% -0.65% 1.26% 1.63% 0.68% -1.09% 0.15%May - 1.68% -0.20% 1.05% -1.22% 1.86% 2.93% 3.09% -2.77%Jun - 1.28% 0.28% 0.98% 0.14% 0.67% -0.37% -0.40% -1.48%Jul - 0.98% -0.22% 1.13% 0.31% 1.32% -0.48% 1.16% 1.37%Aug - 1.05% -0.25% 0.82% 0.93% -1.67% -0.63% 0.81% -0.14%Sep -1.08% -0.23% 0.98% 0.99% -0.08% 0.94% -9.54% 1.38% 2.95%Oct 0.53% 1.56% 0.97% -1.35% 0.85% 1.82% -2.53% -1.25% -Nov -0.31% 1.04% 1.79% 1.02% 1.82% 0.24% -0.73% 1.90% -Dec 1.00% 0.92% 1.01% 1.84% 0.99% 0.87% -0.19% 0.00% -YTD 0.13% 8.47% 5.72% 8.09% 9.31% 12.04% -13.25% 5.53% 0.65%
201020082006 20072002 2003 2004 2005 2009
AETOS CAPITAL
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AETOS CAPITAL MULTI-STRATEGY ARBITRAGE FUND
-
-
-
-21.95%
0.17
15.98%
4.82%
0.64%
-7.16%
10.16%
S&P 500 DRI Index
---0.20Beta: MSCI World Index
-
-
-21.77%
0.26
17.06%
6.45%
1.30%
-8.28%
6.76%
MSCIWorld Index
--0.20Beta: S&P 500 DRI Index
--0.16Beta: Barclays Capital Aggregate Index
-2.44%--14.05%Largest Calendar Qtr. Drawdown
0.90-0.31Sharpe Ratio
3.83%0.49%5.64%Annualized Standard Deviation
5.51%2.05%3.81%Average Annualized Return
Since inception through 9/30/10:
6.20%2.31%1.76%5 Years Annualized Return
7.43%0.82%-0.31%3 Years Annualized Return
8.17%0.12%9.96%1 Year Annualized Return
Barclays Capital Aggregate Index
90-Day Treasury Bills
Aetos Capital Multi-Strategy Arbitrage Fund
As of 9/30/10:
Performance (net of fees in US$ terms)1
Strategy Allocation as of October 1, 2010
Number of Managers = 9 Average Position Size = 10.0%Number of Strategies = 5 Maximum Position Size = 17.0%Median Position Size = 9.0%
Event-Driven Arbitrage: 47%
Fixed IncomeArbitrage: 25%
Quantitative – Multi-Strategy: 6%
Convertible Arbitrage: 15%
Quantitative – Statistical Arbitrage: 7%
1 Performance figures shown are net of investment advisory and performance fees of 0.75% of assets annually and 10% of profits above the three month Treasury bill return, respectively. For performance fee calculation purposes, it is assumed that an investor redeems each December 31 and invests each January 1. The returns also reflect Fund level expenses, some of which have been waived and/or reimbursed by the Investment Advisor. Returns would have been lower without such waivers and reimbursements. Past performance is not indicative of future returns.
Jan - 1.68% 1.21% 0.23% 1.60% 1.43% -0.93% -0.14% 1.64%Feb - 0.74% 0.37% 0.50% 0.91% 0.37% 0.48% 0.59% 0.37%Mar - 0.94% 0.07% 0.36% 0.75% 0.59% -2.09% -0.16% 1.91%Apr - 1.21% 0.34% -0.21% 0.62% 1.21% 0.51% -0.08% 1.40%May - 2.04% -0.04% 0.63% 0.37% 1.42% 1.28% 2.72% -1.66%Jun - 0.78% 0.20% 0.58% 0.48% -0.04% -0.37% 2.57% 0.15%Jul - -0.63% -0.35% 1.24% 0.47% -5.59% -0.87% 2.48% 0.79%Aug - 0.36% 0.28% 0.07% 0.38% -1.04% -0.22% 1.56% 0.66%Sep -0.18% 1.45% -0.03% 0.34% 0.68% 1.29% -6.13% 2.62% 0.80%Oct 0.41% 0.90% 0.10% -0.17% 0.88% 1.63% -8.53% 1.32% -Nov 1.23% 1.28% 0.86% 0.13% 1.02% -0.46% -4.24% 1.01% -Dec 0.86% 1.03% 0.77% 0.87% 1.28% 0.11% -1.87% 1.18% -YTD 2.33% 12.41% 3.83% 4.66% 9.86% 0.69% -21.10% 16.78% 6.18%
201020082002 2003 2004 20092005 2006 2007
AETOS CAPITAL
24
AETOS CAPITAL DISTRESSED INVESTMENT STRATEGIES FUND
-
-
-
-21.95%
0.17
15.98%
4.82%
0.64%
-7.16%
10.16%
S&P 500 DRI Index
---0.14Beta: MSCI World Index
-
-
-21.77%
0.26
17.06%
6.45%
1.30%
-8.28%
6.76%
MSCIWorld Index
--0.14Beta: S&P 500 DRI Index
--0.03Beta: Barclays Capital Aggregate Index
-2.44%--6.46%Largest Calendar Qtr. Drawdown
0.90-1.72Sharpe Ratio
3.83%0.49%3.83%Annualized Standard Deviation
5.51%2.05%8.66%Average Annualized Return
Since inception through 9/30/10:
6.20%2.31%6.39%5 Years Annualized Return
7.43%0.82%4.03%3 Years Annualized Return
8.17%0.12%12.45%1 Year Annualized Return
Barclays Capital Aggregate Index
90-Day Treasury Bills
Aetos Capital Distressed
Investment Strategies Fund
As of 9/30/10:
Performance (net of fees in US$ terms)1
Strategy Allocation as of October 1, 2010
Number of Managers = 9 Average Position Size = 11.1%Number of Strategies = 2 Maximum Position Size = 17.9%Median Position Size = 10.1%
Distressed - Long Bias: 40%
Distressed - Variable Bias: 60%
1 Performance figures shown are net of investment advisory and performance fees of 0.75% of assets annually and 10% of profits above the three month Treasury bill return, respectively. For performance fee calculation purposes, it is assumed that an investor redeems each December 31 and invests each January 1. The returns also reflect Fund level expenses, some of which have been waived and/or reimbursed by the Investment Advisor. Returns would have been lower without such waivers and reimbursements. Past performance is not indicative of future returns.
Jan - 1.79% 2.53% 0.51% 1.63% 1.59% -1.33% 0.60% 2.19%Feb - 0.70% 0.60% 1.39% 0.59% 1.13% 0.72% -0.39% 0.72%Mar - 0.70% 0.32% -0.26% 1.21% 0.95% -0.65% -0.32% 2.22%Apr - 2.58% 0.18% -0.41% 0.74% 1.67% 0.52% 0.83% 1.46%May - 1.55% 0.28% 0.23% 0.63% 1.55% 0.06% 2.21% -1.64%Jun - 2.29% 1.02% 0.69% 0.05% 0.03% -0.48% 1.90% -0.41%Jul - 0.02% 0.36% 1.47% 0.49% -0.45% -0.70% 2.12% 0.53%Aug - 0.71% 0.53% 0.90% 0.68% -1.23% -0.57% 2.16% 0.50%Sep 0.08% 2.21% 0.77% 0.44% 0.51% 1.26% -2.23% 1.95% 1.05%Oct -0.28% 1.89% 0.78% 0.00% 1.89% 1.05% -3.16% 1.81% -Nov 1.99% 1.21% 2.05% 0.61% 1.52% -0.69% -2.42% 1.65% -Dec 1.23% 1.88% 1.57% 0.91% 1.31% 0.20% -1.01% 1.81% -YTD 3.05% 18.97% 11.53% 6.62% 11.84% 7.22% -10.76% 17.55% 6.73%
20102002 2003 2004 20092005 2006 2007 2008
AETOS CAPITAL
25
Anne Casscells, Co-President and Chief Investment OfficerMs. Casscells is a Managing Director of Aetos Capital and the Co-President and Chief Investment Officer of Aetos Capital’s absolute return strategies. Prior to joining Aetos in 2001, Ms. Casscells was Chief Investment Officer of the Stanford Management Company, where she was responsible for the investment of over $10 billion in endowment funds and other assets of Stanford University, including absolute return investments and a portable alpha program she developed while there. Prior to joining Stanford, Ms. Casscells was a Vice President in Goldman Sachs’ Fixed Income Division and an analyst at Morgan Stanley & Company. Ms. Casscells earned her Masters of Business Administration from the Stanford Graduate School of Business, where she was an Arjay Miller Scholar, and Bachelor of Arts in British Studies, cum laude, from Yale University. She is a member of the Asset Managers Committee convened by the President’s Working Group on Financial Markets which authored Best Practices for the Hedge Fund Industry, April 15, 2008. She has also served as a trustee of the Stanford Business School Trust, she was a member of the Board of Directors of Northern California Public Broadcasting (formerly KQED), where she was Treasurer and head of the Finance Committee. Currently, Ms. Casscells serves as an off-board member of the finance and investment committees. She also was an Advisor to the Finance Committee of the David & Lucile Packard Foundation. She is the co-author with Robert Arnott of two articles titled Demographics and Capital Markets Returns and Will We Retire Later and Poorer? She also co-authored with Clifford S. Asness an unpublished monograph titled Comparing Apples-to-Apples the Stock Market is Expensive, April 2004.
Michael F. Klein, Co-President and Chief Risk OfficerMr. Klein is a Managing Director of Aetos Capital and the Co-President and Chief Risk Officer of Aetos Capital’s absolute return strategies. Prior to joining Aetos Capital in 2000, Mr. Klein was a Managing Director of Morgan Stanley & Co. and was President and a Director of the Morgan Stanley Institutional Open and Closed-End Funds. Mr. Klein joined Morgan Stanley in 1995 and was involved in both the firm’s institutional asset management and retail funds businesses. Prior to joining Morgan Stanley, he practiced law at the international law firm of Rogers & Wells in New York. Mr. Klein is a magna cum laude graduate of Colgate University where he was elected to Phi Beta Kappa, and received his Juris Doctor degree from Boston College Law School where he was graduated cum laude. Mr. Klein currently serves as an independent trustee of the Morgan Stanley family of mutual funds.
Andrea M. Bollyky, Managing Director, Head of Business DevelopmentMs. Bollyky is a Managing Director of Aetos Capital and leads the business development and client relations activities for Aetos Capital’s absolute return strategies. Prior to joining Aetos Capital in 2004, Ms. Bollyky was a Principal with Clay Finlay Inc., a specialist global equity management firm with $8 billion under management and offices in New York, Tokyo and London where she was responsible for managing the firm's global business development and marketing activities. Prior to joining Clay Finlay in 1995, Ms. Bollyky was an Account Executive with Gartmore Capital Management, a global asset manager headquartered in London where she was responsible for managing the firm’s North American consultant relations and client service activities. Earlier in her career, Ms. Bollyky was a Manager with SEI Corporation and a member of the International Investment Group, which created multi-manager investment products offered to the pension, endowment and foundation markets. Ms. Bollyky was also involved in the evaluation and analysis of investment managers for use in the firm's multi-manager investment strategies and for recommendations to the firm's consulting clients. She began her career as a Research Analyst affiliated with the Hungarian Ministry of Finance in Budapest Hungary. Ms. Bollyky was educated at Lehigh University, where she received a Bachelor of Arts in International Business with a concentration in Economics and Eastern European Studies, and the Economic University of Budapest.
BIOGRAPHIES
AETOS CAPITAL
26
James T. Gibbons, Managing Director, Senior Portfolio ManagerMr. Gibbons is a Managing Director of Aetos Capital and is a senior portfolio manager and member of Aetos Capital’s absolute return strategies investment team. Prior to joining Aetos Capital in 2002, Mr. Gibbons served as a Senior Vice President at Evaluation Associates Capital Markets, where he was responsible for research and due diligence on a large group of relative value and event driven hedge fund managers. During his career at Evaluation Associates Mr. Gibbons and team managed up to $2.6 billion in assets. Before joining Evaluation Associates, Mr. Gibbons spent ten years with AIG in New York, London and Tokyo. He served as chief investment officer for various AIG insurance entities and Managing Director for AIG Global Investment Corp. His responsibilities included asset allocation as well as the management of fixed income, equity and non-traditional investment teams that invested $13 billion. Earlier in his career, Mr. Gibbons worked for Unilever in their treasury units in the U.S. and London. Mr. Gibbons received his Bachelor of Science degree in Finance from Georgetown University.
Harold J. Schaaff, Managing Director, General CounselMr. Schaaff is a Managing Director and General Counsel of Aetos Capital. Prior to joining Aetos Capital in 2001, Mr. Schaaff was a Managing Director of Morgan Stanley and the President and a Director of the Morgan Stanley Institutional Open and Closed-End Funds. Prior to 2000, Mr. Schaaff was a Managing Director and General Counsel for Morgan Stanley Investment Management. Mr. Schaaff joined Morgan Stanley in 1989. Prior to 1989, Mr. Schaaff practiced securities law for Sullivan & Cromwell in New York. Mr. Schaaff received his Bachelor of Arts degree from Brown University and his Juris Doctor degree from the University of California at Los Angeles where he was a member of the Order of the Coif and a John M. Olin Law and Economics Scholar.
Jonathan Bishop, Director, ResearchMr. Bishop is a member of Aetos Capital’s absolute return strategies investment team. Prior to joining Aetos Capital in 2004, Mr. Bishop worked at SG Barr Devlin, where he focused on mergers, acquisitions and restructuring advisory assignments in the energy and power sectors. Mr. Bishop's assignments included advising Pacific Gas & Electric Company on its restructuring under Chapter 11 of the U.S. Bankruptcy Code. Mr. Bishop graduated from the University of Virginia where he received a Bachelor of Science in Commerce with a concentration in Finance from the McIntire School. Additionally, Mr. Bishop is a CFA Charterholder.
Joseph J. McDonald, Director, Manager of Operational RiskMr. McDonald is a Director and Manager of Operational Risk of Aetos Capital’s absolute return strategies investment team. Prior to joining Aetos Capital in 2006, Mr. McDonald was Director of Risk Management in the Alternative Investment Group at Morgan Stanley. During this time he was responsible for the initial and ongoing operational due diligence of third party alternative investment managers sourced through the firm’s Graystone Research advisory platform. He also served as the Risk Manager for the Alternative Investment Group, with oversight responsibilities for the Graystone Research and Morgan Stanley Managed Futures businesses. Prior to 2005, Mr. McDonald was a Vice President in the Credit Risk Management and Advisory Group at Goldman Sachs in New York. In this role he was responsible for assessing and monitoring the firm’s counterparty risk to hedge funds and other alternative investment vehicles. Mr. McDonald received a B.A. in History from Cornell University and an M.B.A from Columbia University.
BIOGRAPHIES
AETOS CAPITAL
27
Scott D. Sawyer, Director, Chief Financial OfficerMr. Sawyer is a Director and Chief Financial Officer of Aetos Capital’s absolute return strategies investment team. Prior to joining Aetos Capital in 2004, Mr. Sawyer was a Client Portfolio Manager at General Electric Asset Management where he was responsible for the daily investment and operational oversight of third party accounts investing in various U.S. and international equity strategies. Prior to 2002, Mr. Sawyer was Manager of Fund Operations at General Electric Asset Management where he was responsible for the budgetary, control and reporting requirements for numerous families of mutual funds. Prior to joining General Electric Asset Management, Mr. Sawyer was an Audit Manager at PricewaterhouseCoopers, LLP. Mr. Sawyer graduated from Bucknell University where he received his Bachelor of Science in Accounting.
Michael Spath, Director, Portfolio ManagerMr. Spath is a Director of Aetos Capital’s absolute return strategies investment team. Prior to joining Aetos Capital in 2007, Mr. Spath developed a quantitative credit-equity trading strategy with Creedon Keller & Partners. Mr. Spath previously had a 13 year career at Goldman Sachs, where he was a Vice President in the Fixed Income Division. From 2000-2002, Mr. Spath was Co-Business Manager of Goldman Sachs’ Credit Derivatives Department. Prior to that arrangement, he was a Senior Deal Captain in the Collateralized Debt Obligation Group, a Vice President in Fixed Income Research and an Associate in the Mortgage Department. Mr. Spath has a B.A. in Economics and Computer Science from Brown University and is also the author of Dangerous Delusions: America on the Brink; A Critical Solution to America’s Political and Economic Dilemma, 1995.
Andrew Walling, Director, ResearchMr. Walling is a member of Aetos Capital’s absolute return strategies investment team. Prior to joining Aetos Capital in 2005, Mr. Walling worked in the Investment Banking Division of Lehman Brothers. As a member of the Global Technology Group, Mr. Walling was responsible for providing both corporate finance and M&A expertise as well as deal execution to firm clients in the enterprise software and semiconductor industries. Mr. Walling graduated from Princeton University magna cum laude with a B.A. from the Woodrow Wilson School of Public and International Affairs, where he was elected to Phi Beta Kappa. He also earned a Masters of Business Administration from the Stanford Graduate School of Business. Mr. Walling is a CFA Charterholder.
Reid Conway, Vice President, Chief Compliance OfficerMr. Conway is a member of the Aetos Capital’s legal team. Prior to joining Aetos Capital in 2004, Mr. Conway was an Assistant Vice President at Alliance Capital, where he was responsible for mutual fund sales literature compliance with NASD rules and regulations and assisted with issues relating to mutual fund regulation. Prior to joining Alliance Capital, Mr. Conway was an Associate at J.P. Morgan Investment Management, where he provided legal support in connection with new product development and general mutual fund matters. Prior to joining J.P. Morgan Investment Management, Mr. Conway worked at Seward & Kissel LLP as a mutual fund paralegal. Mr. Conway graduated from Stanford University where he received a Bachelor of Arts degree in Developmental Psychology and earned his Masters in Business Administration from New York University.
BIOGRAPHIES
AETOS CAPITAL
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BIOGRAPHIESBradley C. Rudner, Vice President, Business DevelopmentMr. Rudner is a Vice President of Aetos Capital and is involved in the business development and client relations activities of Aetos Capital’s absolute return strategies. Prior to joining Aetos Capital in 2007, Mr. Rudner was a Vice President in the institutional marketing group at Lazard Asset Management LLC. Mr. Rudner has been working in the investment field since 2000, when he joined Lazard Asset Management. He received his B.A. in Economics from Duke University.
Dana A. Troetel, Vice President, LegalMs. Troetel is a member of Aetos Capital’s legal team. Prior to joining Aetos Capital in 2006, Ms. Troetel was an Associate in the Investment Management Group of the law firm of Davis Polk & Wardwell, where she was responsible for the structuring and registration of private equity and hedge funds. Ms. Troetel is a magna cum laude graduate of the University of Rochester and received her Juris Doctor degree from Columbia University where she was a Harlan Fiske Stone Scholar.
Elizabeth A. Leung, Assistant Vice President, Business DevelopmentMs. Leung is a member of Aetos Capital’s absolute return business development and client relations team. Prior to joining Aetos Capital in 2008, Ms. Leung was an Assistant Vice President at Credit Suisse Asset Management and at David J. Greene and Company, where she was responsible for product marketing and client servicing. Earlier in her career, Ms. Leung was an institutional marketing and sales associate at Lazard Asset Management and AllianceBernstein Institutional Investment Management. Ms. Leung is a cum laude graduate of Wellesley College and is currently attending New York University’s Stern School of Business.
Andrew M. Poffel, Assistant Vice President, Business DevelopmentMr. Poffel is a member of Aetos Capital’s absolute return business development and client relations team. Prior to joining Aetos Capital in 2010, Mr. Poffel worked in institutional marketing and client service at Legg Mason Capital Management. Mr. Poffel previously worked in Legg Mason, Inc.’s Wealth Management division and began his career in the Real Estate Investment Banking Group at Legg Mason Wood Walker. Mr. Poffel received his B.S. in Business Administration from the University of Richmond. Additionally, Mr. Poffel is a CFA Charterholder.
Filbert Cua, Research AssociateMr. Cua is a member of Aetos Capital’s absolute return strategies investment team. Prior to joining Aetos Capital in 2010, Mr. Cua worked as an analyst for Citigroup Global Markets in Hong Kong, and as an analyst for Perry Capital in both their Hong Kong and New York offices. Mr. Cua graduated from the University of Pennsylvania summa cum laude with a B.S. in Economics from the Wharton School (concentration in Finance) and a B.A.S. in Computer Science from the School of Engineering and Applied Science. He also earned his Masters of Business Administration from the Stanford Graduate School of Business, where he was an Arjay Miller Scholar.
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Susan E. Little, Business Development AssociateMs. Little is a member of Aetos Capital’s absolute return business development and client relations team. Prior to joining Aetos Capital in 2007, Ms. Little graduated from Lehigh University where she received a Bachelor of Arts in Classics and History.
Susan S. Liu, Operational Due Diligence AssociateMs. Liu is a member of Aetos Capital’s absolute return operational due diligence team. Prior to joining Aetos Capital in 2008, Ms. Liu was an Associate at Lehman Brothers in the Credit Risk Management Group. Ms. Liu began her career as a Corporate Actions Analyst and Trading Assistant at Shenkman Capital Management. Ms. Liu graduated from Lehigh University where she received a Bachelor of Science.
A.J. Chen, Research AnalystMr. Chen is a member of Aetos Capital’s absolute return strategies investment team. Prior to joining Aetos Capital in 2006, Mr. Chen graduated from the University of California, Berkeley where he received a Bachelor of Arts degree in Molecular Cell Biology and Chinese Language and Literature.
Adam Durity, Risk Systems AnalystMr. Durity is a member of Aetos Capital’s absolute return strategies investment team. Prior to joining Aetos Capital in 2009, Mr. Durity worked as a Technology Analyst in the Computing Platform Engineering group at Goldman Sachs. Mr. Durity graduated from Duke University where he received a Bachelor of Science in Engineering as well as a Bachelor in Science of Computer Science.
Daniel Fagan, Research AnalystMr. Fagan is a member of Aetos Capital’s absolute return strategies investment team. Prior to joining Aetos Capital in 2010, Mr. Fagan worked as a corporate finance analyst in the Private Placements group at RBC Capital Markets. Mr. Fagan graduated from Stanford University where he received a Bachelor of Arts in Economics and Philosophy, graduating with Distinction in both fields.
Julie J. Yen, Research AnalystMs. Yen is a member of Aetos Capital’s absolute return strategies investment team. Prior to joining Aetos Capital in 2008, Ms. Yen worked as the Business Manager and Chief Operating Officer of The Stanford Daily Publishing Corp., and served as the Treasurer for the Organization’s endowment. Ms. Yen graduated from Stanford University where she received a Bachelor of Arts with Honors.
BIOGRAPHIES
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AETOS CAPITAL, LP
Aetos Capital, LP
Offices: New York, Menlo Park, Tokyo, Hong Kong, Beijing, Shanghai
* Includes invested assets as of December 31, 2009, plus assets awarded but not yet funded.
Hedge Funds Of FundsCustom Absolute Return Portfolios
Portable Alpha
Aetos Alternatives Management
• $5 billion*• 99% institutional capital
Aetos Capital Asia
Opportunistic Real Estate
• $4 billion• 95% institutional capital