ameranth

α AmaranthGlobal Equities Funds

September 2005

Recipient: Absolute Alpha Pty Ltd. No.: 117

2/α/ Amaranth Global Equities Funds

Contents

Firm Overview p.4

The Strategy: p.8Fundamental Equity Long/Short Investing

Sector Portfolios p.11

Track Record p.22

The Funds p.27

Biographies of Key Personnel p.30


Certain Principal RisksInvestments in Amaranth Global Equities Limited and Amaranth Global Equities LLC (the “Funds”) are speculative and involve a high degree of risk; investors must be prepared to lose all or substantially all of their investments in the Funds. The Funds are a suitable investment only for financially sophisticated investors who are independently capable of evaluating the merits and risks of the Funds. Principal risks of investing in the Funds include:

• Prior to December 2003, Amaranth Advisors L.L.C. and its affiliates (collectively, “Amaranth,” unless the context otherwise requires) had never managed a fund concentrating principally on long/short equity strategies.

• The past performance of the multi-strategy funds managed by Amaranth (the “Amaranth Multi-Strategy Funds”), which include fundamental long/short equity portfolios, is not representative of how the Funds would have performed during such periods as the Amaranth Multi-Strategy Funds implement a broadly diversified investment approach. Past performance is, in any event, not necessarily indicative of future results.

• Within the context of their long/short equity investment program, there is no material limitation on the strategies the Funds may implement or on the markets or instruments in which they may trade.

• The Derived Performance Information included herein is subject to material inherent limitations and does not reflect how the Funds would have performed during such periods or may in the future perform. This record must be considered as no more than an expression of possible investment objectives for the Funds were they to be successful.

• The Funds trade with a high degree of leverage.• The Funds’ performance may be volatile.• There is no secondary market for interests in the Funds, and none is expected to develop.• Interests in the Funds are not freely transferable and are subject to restrictive redemption provisions.• The Funds are subject to substantial fees and expenses.• Amaranth is subject to conflicts of interest in managing the Funds.• The Funds are dependent on the services of Amaranth, the Funds’ sole investment manager.• The Funds are not intended as a complete investment program.

FOR A MORE DETAILED DISCUSSION OF THESE AND OTHER RISKS, SEE THE ENDNOTES AT THE END OF THIS DOCUMENT AS WELL AS THE “RISK FACTORS” AND “CONFLICTS OF

INTEREST” SECTIONS THE FUNDS’ OFFERING MEMORANDA.


Firm Overview


Amaranth is a Global Multi-Strategy Hedge Fund Management Firm

• Founded by Nicholas Maounis in September 2000• Approximately $6.9 billion in assets under management

• First product was a global multi-strategy arbitrage fund• Among the strategies in the Amaranth Multi-Strategy Funds are: convertible

arbitrage, statistical arbitrage, energy trading, merger arbitrage, long/short equity investing, and credit arbitrage

• The Amaranth Global Equities Funds were created in December 2003

• 329 employees, including 131 investment professionals• Offices in Greenwich, Connecticut; Houston, Texas; Toronto, Canada; London,

UK; and Singapore

• Highly integrated team culture • Economic interests of our senior management and investment professionals are

closely aligned with our investors’ economic interests


Amaranth Manages a Diverse Group of Investment and Trading Strategies

• Amaranth is the culmination of the strategic and synergistic building of new investment and trading teams since the early nineties

• We continue to explore and develop opportunities in promising new investment arenas


Integration Both Defines and Distinguishes Amaranth

Infrastructure:

Dedicated portfolio financingcapabilitiesInternal back-officeTechnology development and supportIndependent risk management andcredit risk functions

FundamentalInvestment Processes:

Proprietary credit and equity analysis

Synergies among investmentstrategiesDynamic capital allocation

α

Proprietary Quantitative Tools:

Risk managementFinancial and valuationmodelsQuantitative analysis


The Strategy: Fundamental Equity Long/Short

Investing


The Funds Were Created to Take Advantage of Additional Capacity Available in Our Fundamental Equity Long/Short Strategies

• Fundamental equity long/short investing has been an important part of our multi-strategy portfolio since 1998

• In addition to adding synergistic value to our arbitrage strategies, our fundamental equity long/short strategies have proven to be individually successful

• By design, our multi-strategy portfolio has limited capacity for fundamental equity long/short investing

• Through the Amaranth Global Equities Funds, Amaranth is able to participate in investment opportunities available beyond the present capacity of the portfolio of the Amaranth Multi-Strategy Funds


Amaranth’s Platform Provides Competitive Advantages to Fundamental Equity Long/Short Investing

• We believe that synergies between our arbitrageurs, our credit analysts, our equity analysts and our quantitative team create competitive advantages for our fundamental equity long/short strategies

• Our familiarity with trading listed and OTC equity-linked products (for example, convertible bonds and options) and credit products (for example, corporate bonds and credit default swaps) gives us enhanced capabilities to invest in a manner tailored to our view on a company

• The securities lending and borrowing expertise of our portfolio finance group provides efficiency and security for our short positions

• Our thirteen-person risk management team imposes disciplined, proactive and reactive controls on the investment process

• Our infrastructure, built to support a global, multi-billion dollar multi-strategy fund, provides us with superior capabilities, controls and systems


Sector Portfolios


Our Fundamental Equity Long/Short Portfolio is Divided into Different Economic Sectors

• Each sector is managed separately by Portfolio Managers, each of whom brings a distinct investment philosophy to the portfolio

• Amaranth and each of its portfolio managers share a common philosophy in the management of risk

Manos Vourkoutiotis

Portfolio ManagerCanada

Marco PinzonPortfolio Manager

Insurance

Chris WinhamPortfolio Manager

Cyclicals

Subash ManiPortfolio ManagerFinancial Services

Emil WestergaardPortfolio Manager

Healthcare

Greg BrooksPortfolio Manager

REIT

Richard ShapiroPortfolio Manager

Consumer

James McFaddenPortfolio Manager

Utilities

Tom Crowley/Jill Mastoloni

Portfolio ManagersTechnology

Nicholas MaounisPresident


Canada Portfolio• Investment Approach

• Fundamental analysis based on company-specific modeling• Value investment focus• Identification of absolute under/over valued securities

• Catalyst-driven investments• Amaranth acts as the catalyst• Strong preference to work with management to help resurface value

• Relative-value pairs trading

• Fourteen-person Team

• Risk Guidelines• Target leverage ratio, defined as long market value plus short market value

divided by capital, typically less than 2x• Individual stop loss limits


Consumer Portfolio• Investment Approach

• Fundamental analysis based on proprietary research• Long-term fundamental investments based on:

• Proprietary sector research• Market and company-specific modeling• High conviction investments in absolutely under- and over-valued assets

• Various investment techniques, including:• Long-term value and growth investing • Catalyst-driven investing• Relative-value pairs trading

• Three-person Team


divided by capital, typically less than 2x• Target net long/short exposure generally less than 20%• Stop losses and targets set for sub-sectors and individual stocks


Cyclicals Portfolio• Investment Approach

• Top-down view of long term economic and industry cycles• Fundamental analysis based on proprietary research• Various investment approaches, including:

• Long-term value investing• Catalyst-driven investing• Relative-value pairs trading


• Risk Guidelines• Target leverage ratio, defined as long market value plus short market value divided by

capital, typically less than 2x• Target net long/short exposure generally less than 20%• Individual stocks generally range from 2%-6% concentration


Financial Services Portfolio• Investment Approach

• Fundamental analysis based on proprietary research• Portfolio consists of core positions (value and growth) and trading positions, both of

which are actively managed around:• Catalysts• Sub-sector views• Macro views

• Two-person Team

• Risk Guidelines• Target leverage ratio, defined as long market value plus short market value divided by

capital, typically less than 2x• Target net long/short exposure generally less than 20%• Stop losses and targets set for sub-sectors and individual stocks• Individual stocks typically range from 2%-6% concentration


Healthcare Portfolio

• Investment Approach• Long-term fundamental investments based on:

• Proprietary market research• Market- and company-specific modeling• High conviction investments in what are identified as absolutely under- and

over-valued assets• Three sub-sector heads focus on identifying global long/short investment

opportunities in:• Drugs – Pharmaceutical and Biotechnology• Medical Technology – Devices and Life Sciences• Healthcare Services

• Thirteen-person Team


divided by capital, typically less than 2x• Target net long/short exposure generally between 10% and 20%• Highly diversified portfolio


Insurance Portfolio• Investment Approach

• Fundamental analysis based on proprietary research • Portfolio construction comprises both core and trading positions• Investment approach includes:

• Long-term value investing• Relative-value trading• Catalyst-driven investing

• Two-person Team


divided by capital, typically less than 2x• Target net long/short exposures generally less than 20%• Maximum position concentration generally less than 6% • Implement stop loss and price objectives• Continuously retest investment thesis


REIT Portfolio• Investment Approach

• Mid- to long-term core investments based on:• Proprietary market research• Company-specific modeling• Proprietary valuation model that incorporates both quantitative and

qualitative analysis• Utilization of extensive industry contact list and sector experience

• Major investment focus predicated on three main themes:• Relative value of sector vs. other major asset classes• Sub-sector relative performance• Intra-sector, relative value pair trading

• Opportunistic investments in non-core real estate sectors



divided by capital, generally averages between 1.5x and 2x• Target net long/short exposure generally less than 20%• Individual stocks generally capped at 5%


Technology Portfolio• Investment Approach

• Fundamental analysis based on proprietary research• Investments across the technology sector with a focus on semiconductor and

semiconductor capital equipment companies• Various investment techniques, including:

• Long-term value investing • Catalyst-driven investing• Relative-value pairs trading


• Risk Guidelines• Leverage constraints vary by portfolio exposure• Target net long/short exposure generally less than 25%• Various derivatives based on sector indices can be utilized to hedge risk


Utilities Portfolio• Investment Approach

• Proprietary research, fundamental and regulatory analysis and industry experience• Focus on U.S. companies is accomplished by dividing the sector into four sub-

sectors:• Electricity distribution companies• Natural gas distribution companies• Regulated generation companies• Unregulated generation companies

• Four-person Team

• Risk Guidelines• Leverage ratio, calculated as long market value divided by capital, generally averages

between 1.5x and 2x• Target net long/short exposure generally less than 10%• Managing trades within sub-sectors to provide stability


Track Record


Actual 2005 Monthly Performance, Net of All Fees and Expenses* (Unaudited)

*Past results are not necessarily indicative of future performance. Particular investors’ returns will vary from the composite returns of the Funds due to the timing of subscriptions, withdrawals and redemptions, to each investor’s eligibility under NASD regulations to receive income from so-called “new issues” and other regulatory restrictions placed on certain investors participating in certain markets. 2005 performance information is unaudited and subject to adjustment. For more information regarding the risks inherent in an investment with Amaranth Global Equities LLC or Amaranth Global Equities Limited please see the Offering Memoranda for the Funds, which are available upon request.

+The index sponsor has not yet published this figure.

PLEASE SEE APPENDIX A AND THE ENDNOTES AT THE END OF THIS DOCUMENT AS THEY ARE AN INTEGRAL PART OF THE FOREGOING TABLES.

2.77%0.81%-0.91%3.72%0.14%3.18%-1.90%-1.77%2.10%-2.44%Barra S&P 500

4.72%N/A+1.12%2.68%1.91%0.51%-1.55%-1.14%2.03%-0.84%CSFB Tremont HFILong/Short Index

2.69%0.81%-1.06%3.77%0.26%3.36%-1.96%-1.72%2.04%-2.61%Russell 1000 Index

YearDec.Nov.Oct.Sept.Aug.Jul.Jun.MayApr.Mar.Feb.Jan.2005

11.67%1.10%2.72%3.09%3.76%-0.36%0.05%0.40%-0.64%1.09%Amaranth Global

Equities LLC

11.83%1.07%2.82%3.07%3.73%-0.38%0.05%0.44%-0.57%1.12%

Amaranth Global Equities Limited


Performance of Selected Indices


Actual 2004 Monthly Performance, Net of All Fees and Expenses*

*Past results are not necessarily indicative of future performance. Particular investors’ returns will vary from the composite returns of the Funds due to the timing of subscriptions, withdrawals and redemptions, to each investor’s eligibility under NASD regulations to receive income from so-called “new issues” and other regulatory restrictions placed on certain investors participating in certain markets. 2004 performance information has been audited. For more information regarding the risks inherent in an investment with Amaranth Global Equities LLC or Amaranth Global Equities Limited please see the Offering Memoranda for the Funds, which are available upon request.

PLEASE SEE APPENDIX A AND THE ENDNOTES AT THE END OF THIS DOCUMENT AS THEY ARE AN INTEGRAL PART OF THE FOREGOING TABLES.

10.88%3.40%4.05%1.53%1.08%0.40%-3.31%1.94%1.37%-1.57%-1.51%1.39%1.84%Barra S&P 500

11.56%2.57%3.24%1.44%2.36%0.09%-1.42%0.66%-0.36%-1.40%0.20%1.75%2.00%CSFB Tremont

HFILong/Short Index

9.49%3.45%4.10%1.49%1.11%0.32%-3.63%1.65%1.28%-1.92%-1.49%1.22%1.79%Russell 1000 Index


9.42%2.07%3.02%1.72%0.95%0.07%-1.12%-0.19%0.13%-1.30%-0.34%1.02%3.13%Amaranth Global

Equities LLC

4.78%2.05%3.06%2.30%1.41%-0.08%-1.57%-0.26%0.02%-1.68%-0.46%Amaranth Global Equities Limited


Performance of Selected Indices


Monthly Derived Performance Information, Net of All Fees and Expenses*+

8.60%0.19%1.08%1.31%-1.34%2.28%0.95%2.81%0.17%-2.66%-0.57%0.11%4.13%2003

17.67%1.19%6.19%3.34%2.10%-0.89%0.18%4.37%0.52%-3.77%0.92%0.05%2.55%2002

23.23%2.74%6.17%1.63%-2.73%-0.16%-5.39%-0.75%4.95%5.85%-4.08%-2.39%17.20%2001

-8.55%7.56%-12.93%-3.10%0.77%2000

YearDec.Nov.Oct.Sept.Aug.Jul.Jun.MayApr.Mar.Feb.Jan.

*The foregoing is derived performance information based on the performance of certain components of another Amaranth fund’s portfolio (the “Derived Performance Information”). Past performance – especially derived past performance – is not necessarily indicative of future results. Derived Performance Information is subject to material inherent limitations and must be construed only as an expression of possible investment objectives if the Funds are successful, not as representative of how the Funds would have performed or will perform. The actual performance of the Funds to date has not been consistent with the foregoing Derived Performance Information.+The statistics were generated with the use of PerTrac, a product of Strategic Financial Solutions, LLC. For additional information, please refer to PerTrac’s website, http://support.pertrac2000.com/statistics2000.asp.

PLEASE SEE THE ENDNOTES AT THE END OF THIS DOCUMENT AS THEY ARE AN INTEGRAL PART OF THE FOLLOWING CHART OF MONTHLY DERIVED

PERFORMANCE INFORMATION.


Derived Performance Information in a Weak Equity Market Environment*

PLEASE SEE APPENDIX A AND THE ENDNOTES AT THE END OF THIS DOCUMENT AS THEY ARE AN INTEGRAL PART OF THE FOREGOING TABLE.

*The statistics were generated with the use of PerTrac, a product of Strategic Financial Solutions, LLC. For additional information, please refer to PerTrac’s website, http://support.pertrac2000.com/statistics2000.asp. **The Cumulative Return is the total percentage return realized on an investment.+The above information is based on an assumed risk free rate of return of 2.68%, (the annualized return over the period for 3-month Treasury bills).

-0.57-0.08-0.490.61Annualized+Sharpe Ratio

-8.90%2.06%-7.50%11.56%Compound

Annualized Rate of Return

-0.81-0.15-0.730.91Annualized+Sortino Ratio

-26.71%7.04%-22.88%44.01%Cumulative Return**

17.27%

-1.60%

-3.65%

-3.73%

CSFB Tremont HFI

Long/Short Index

27.54%28.68%8.60%2003

-22.93%-22.10%17.67%2002

-13.61%-11.88%23.23%2001-13.69%-12.69%-8.55%Sept.-Dec. 2000

Russell 1000 IndexBarra S&P 500

Derived Performance

Information for Amaranth’s Equity

Long/Short Strategy


The Funds


Synopsis

• The Funds seek to generate superior risk-adjusted returns by capitalizing on investments across a variety of economic sectors including Canada, Consumer, Cyclicals, Financial Services, Healthcare, Insurance, REIT, Technology and Utilities.

• Capital allocation among sectors is opportunistic – not “optimized” quantitatively –and determined by the collective experience and views of Nicholas Maounis and the Portfolio Managers

• The Funds are part of a “Master-Feeder” structure, accommodating the needs of domestic (both subject to and exempt from U.S. taxation) and foreign investors

• The Funds currently have approximately $405 million in capital• Initial seed capital of $250 million provided by the Amaranth Multi-Strategy Funds• The Amaranth Global Equities Funds (under current market conditions) seek to

reach $1 billion in capital


Summary of Investment Terms• Subscriptions

• U.S. $5 million minimum initial investment• Subscriptions accepted monthly• No minimum investment for subsequent subscriptions

• Fees• 1.5% Annual Management Fee (plus “pass-through” of substantially all expenses related to the operation of the Funds, the Master Fund and Amaranth)• 20% Annual Performance Fee• High-Water Mark is employed

• Redemptions• Anniversary Redemption :

• Full or partial redemption, without fees, exercisable on the last day of the month during which the investment was made with 90 days’ prior notice

• Annual Appreciation Redemption :• Full or partial redemption, without fees, of appreciation (if any) accrued during a particular year exercisable

on each December 31 with 45 days’ prior notice • Quarterly Redemption :

• Full or partial redemption, exercisable on any January 31, April 30, July 31 and October 31, subject to a 7.5% “Gate” and a 2.5% redemption fee (applicable to the redemption amount and payable to the Fund) with 45 days’ prior notice

This summary of investment terms is qualified in its entirety by reference to the information set forth in the Offering Memoranda of the Funds, which contain material additional information relating to the summary of terms disclosed above. An investment decision may not be made prior to reading the applicable Offering Memorandum.


Biographies of Key Personnel


ManagementNicholas Maounis is the President and Chief Investment Officer of Amaranth, responsible for overseeing all investment functions as well as managing the firm. From 1992 to August 2000, Mr. Maounis was a Portfolio Manager for Paloma Partners Management Company and affiliated entities (“PPMC”). In this role, Mr. Maounis was responsible for trading a large U.S. convertible arbitrage portfolio and for managing up to 25 traders and assistants, employing a variety of investment strategies similar to those utilized by Amaranth. Previously, Mr. Maounis managed U.S. convertible-arbitrage portfolios for PPMC (1990-1992), Angelo, Gordon & Co. (1989-1990) and LF Rothschild, Unterberg, Towbin (1985-1989), where he was senior vice-president in charge of all convertible-arbitrage trading. Mr. Maounis graduated from the University of Connecticut with a Bachelor of Science.

Charles Winkler is the Chief Operating Officer of Amaranth. Mr. Winkler is responsible for managing all of the non-trading aspects of the firm and in that capacity is responsible for the management of Amaranth’s accounting, treasury, administration, compliance, investor relations, legal, marketing, technology, back-office, operations and human resources departments. From 1996 to 2001, Mr. Winkler was Senior Managing Director and Chief Operating Officer for Citadel Investment Group, L.L.C. and was a member of that firm’s Management Committee and Chairman of that firm’s Operations Committee. Prior to joining Citadel in 1996, Mr. Winkler was a Partner with the Chicago law firm of Neal Gerber & Eisenberg. His 17-year legal practice included providing tax and corporate counseling to investment advisers and private investment firms. Mr. Winkler graduated with Highest Honors from Emory University, receiving a Bachelor’s in Business Administration, and from Northwestern University School of Law, receiving a Juris Doctor.


ManagementRobert Jones is Amaranth’s Chief Risk Officer. After graduating from Harvard College (cum laude in Economics), Mr. Jones joined Fischer Black’s group at Goldman, Sachs & Co. to develop proprietary arbitrage strategies and risk-limited portfolio management techniques. After co-authoring two papers with Dr. Black, Mr. Jones joined Goldman’s equity arbitrage trading unit to run a listed and OTC derivatives book. In 1988, NYSE Chairman John Phelan invited Mr. Jones to assist him in evaluating and addressing operational risks exposed during the 1987 crash. In 1989, Mr. Jones joined PPMC where he managed an international derivative arbitrage portfolio. Most recently, Mr. Jones has led Stradivarius Capital, a firm helping quantitatively oriented hedge funds to identify and manage sources of performance uncertainty.

Jim Glynn is Amaranth’s Chief Financial Officer. Previously, Mr. Glynn was with PPMC for nine years, where he was Managing Director in charge of Portfolio and Corporate Accounting. His responsibilities included the daily valuation of portfolios, month-end closing of all general ledgers, the generation of information for reporting to investors and communicating with and analyzing PPMC’s external trading managers (including Amaranth). Prior to joining PPMC, Mr. Glynn was an audit manager with Grant Thornton Financial Service Group, where he specialized in auditing hedge funds and broker-dealers. Mr. Glynn graduated from The Wharton School at the University of Pennsylvania, where he received a Bachelor of Science in Economics with concentrations in Accounting and Finance. He is a member of the American Institute of Certified Public Accountants.


ManagementHylton Socher is Amaranth’s Chief Information Officer. From 1996 until 2004, Mr. Socher served as the CIO of Susquehanna International Group, where he grew a small technology team into a world-class group that supported one of the world’s preeminent market making and proprietary trading businesses. Previously, he was a Managing Director and Head of Information Technology for NationsBank Capital Markets (now Bank of America). Mr. Socher started his career at Chicago Research and Trading (CRT), a firm that was renowned for its early foray into technology-driven alternative investing and that was purchased by NationsBank. He has an undergraduate degree in Computer Science and Econometrics and a postgraduate degree in Computer Science from the University of the Witwatersrand in Johannesburg. He also received his Master of Business Administration in Finance from New York University.


Long/Short Equity Portfolio ManagersGreg Brooks is the Portfolio Manager for the REIT portfolio at Amaranth. Prior to joining Amaranth in August 2004, Mr. Brooks served as Senior Vice President and Portfolio Manager at Cohen & Steers Capital Management, with direct portfolio management responsibility over $7.5 billion in real estate securities portfolios. From 1997 until 2000, Mr. Brooks was Vice President at AEW Capital Management, acting as both a Senior Equity Research Analyst as well as a back-up equity trader. Prior to his tenure at AEW, he spent two years at Eaton Vance Management as Vice President and Investment Analyst. Mr. Brooks graduated from the University of Connecticut with a Bachelor of Science in Business Administration and received a Master of Science in Finance from Boston College’s Carroll School of Management. Mr. Brooks is a Chartered Financial Analyst Charterholder.

Tom Crowley is the Co-Portfolio Manager of the technology portfolio at Amaranth. Mr. Crowley joined Amaranth as a Senior Analyst on the technology team in 2003. Previously, he spent six years with Pioneer Investments in Boston. From 2000 until 2002, Mr. Crowley was the Portfolio Manager for the Pioneer Science and Technology fund. Mr. Crowley began his career with Pioneer Investments in 1996 as a Senior Technology Analyst. He graduated from Worcester Polytechnic Institute with a Bachelor of Science in Electrical Engineering and graduated Magna Cum laude from Babson Graduate School of Management with a Master of Business Administration with a concentration in Finance.


Long/Short Equity Portfolio ManagersSubash Mani is the Portfolio Manager for the financial services portfolio at Amaranth. Prior to joining Amaranth in August 2004, Mr. Mani was at SAC Capital Advisors, LLC from 2002 to 2004, where he worked as a financial services analyst. From 1999 to 2002, he served as a research associate with a focus on large cap banks at CSFB (and predecessors). Mr. Mani graduated in 1999 from the University of Michigan with a Bachelor of Science in Economics. He is a Chartered Financial Analyst Charterholder.

Jill Mastoloni is the Co-Portfolio Manager for the technology portfolio at Amaranth. Shejoined Amaranth in May 2001 as a Senior Trader and Analyst. Prior to joining Amaranth, Ms. Mastoloni was a Senior Analyst and Trader with Maple Row Management, an aggressive growth hedge fund, from 1997 until 2001. Prior to Maple Row, she spent five years as a trader at Morgan, Stanley and Co. within the Institutional Sales/Private Client Services Department. Ms. Mastoloni graduated from Cornell University with a Bachelor of Science in Business Administration and is a Chartered Financial Analyst Charterholder.


Long/Short Equity Portfolio ManagersJames McFadden is the Portfolio Manager for the utilities portfolio at Amaranth. From 1999 until August 2000, he managed the utilities portfolio for PPMC. Mr. McFadden managed a utilities portfolio at Silcap (Bass Brothers Trust) from 1995 to 1999. From 1987 to 1995, Mr. McFadden was a utilities analyst at Bear Stearns, Goldman, Sachs & Co., Drexel Burnham & Lambert and Merrill Lynch. In October 1995, while at Bear Stearns, Mr. McFadden was ranked the #3 utilities analyst by Institutional Investor and was runner-up in 1994. He graduated from the University of Notre Dame with a Bachelor of Science in Civil Engineering and received his Master in Business Administration from The Wharton School at the University of Pennsylvania.

Marco Pinzon is the Portfolio Manager for the insurance portfolio at Amaranth. Mr. Pinzon joined Amaranth as an insurance analyst in 2003 and became a Portfolio Manager in May 2005 when Amaranth separated the insurance portfolio from the broader financial services portfolio. From 1997 until 2003, Mr. Pinzon was a Vice President and insurance equity research analyst for Salomon Smith Barney. Prior to that, he was a property/casualty underwriting executive with Travelers Property and Casualty Corporation. Prior to that, Mr. Pinzon was with the American International Group. He holds a Bachelor of Arts in Economics from Rutgers University.


Long/Short Equity Portfolio ManagersRichard Shapiro is the Portfolio Manager for consumer products at Amaranth. From May 2002 until he joined Amaranth in April 2004, Mr. Shapiro was with the Lee Munder Capital Group, where he was responsible for investments in consumer equities. Prior to that, Mr. Shapiro was a Principal at 1to1 Venture Partners, a private equity firm focused on consumer-oriented investments. From 1996 to 1999, he served as an analyst focusing on consumer equities at Putnam Investments, after spending a year at Wellington Management Company. He graduated from the University of Southern California, Los Angeles, with a Bachelor of Science in Business Administration and received his Master in Business Administration from Georgetown University.

Emil Westergaard is the Portfolio Manager for the healthcare portfolio at Amaranth. Prior to joining Amaranth in August 2003, Mr. Westergaard spent over three years at Pequot Capital Management acting as a Principal and Director of Research for the Healthcare Fund and for the healthcare component of Pequot Partners Fund. From 1997 to 2000, Mr. Westergaard was Director and Global Head of Medical Technology Equity Research at UBS Warburg. Prior to this role, Mr. Westergaard served as an Associate working with Medical Technology Equity Research at Bear Stearns. Mr. Westergaard graduated with a Bachelor of Arts in Music History and Theory from the University of Chicago.


Long/Short Equity Portfolio ManagersChristopher Winham is the Portfolio Manager for the cyclicals portfolio at Amaranth. Prior to joining Amaranth in March 2005, Mr. Winham spent three years at SAC Capital Advisors LLC where he was an Investment Manager of a $300 million portfolio focused on cyclical investing. From March 2000 until April 2002, Mr. Winham was Vice President of Equity Research at Goldman, Sachs & Co. and provided fundamental research analysis of a broad universe of building material and homebuilding companies. Previous to his tenure at Goldman, Sachs & Co., Mr. Winham spent three years with Schroder & Co. in the same capacity. Mr. Winham graduated from the University of North Carolina at Charlotte where he received both a Bachelor of Science in Business Administration and a Master in Business Administration.

Manos Vourkoutiotis is the Portfolio Manager for the Canadian products and mandatory convertible securities portfolios at Amaranth. He managed similar portfolios for PPMC from 1998 until August 2000. Mr. Vourkoutiotis began his career in 1991 at RBC Dominion Securities, where he traded convertible securities for their equity derivatives group until 1993. He was a market maker in convertible securities for Nesbitt Burns from 1993 to 1997. He spent the following year at Gordon Capital, where he created a proprietary desk to trade convertible securities, merger arbitrage and special situations. Mr. Vourkoutiotis received a Bachelor of Commerce and graduated with high distinction in 1991 from the University of Toronto. He is a Chartered Financial Analyst Charterholder.


Appendix A

• The Barra S&P 500 index consists of common stock prices and is generally considered to be representative of the U.S. stock markets.

• The CSFB Tremont HFI Long/Short Index measures the performance of certain long/short equity funds within the hedge fund universe.

• The Russell 1000 Index measures the performance of the largest 1,000 U.S. incorporated large-capitalization companies within the Russell 3,000 index, an index that tracks the largest 3,000 U.S. companies based upon total market capitalization.


EndnotesIn the case of all portfolios, leverage ratios and net long/short exposures are merely guidelines, and are not binding or guaranteed in any respect.

Any comparison of a managed portfolio’s performance to an index of managed products or broad market indices is subject to material inherent limitations, in addition to those applicable to the use of the Derived Performance Information on pages 25 and 26. For example, the Barra S&P 500 index and the Russell 1000 Index represent long-only exposure to the stocks of a selected group of companies. The CSFB Tremont HFI Long/Short Index reflects the performance of a diversified pool of managed products that may apply strategies that differ from those applied by the Amaranth Funds for which information is presented.

The Derived Performance Information presented in the table on pages 25 and 26 was extracted from the performance of the multi-strategy Amaranth funds. Prior to December 2003, Amaranth had never previously traded a long/short portfolio on a stand-alone basis. This Derived Performance Information does not represent the performance of any actual account. The profit and loss included in calculating the rates of return presented in the table represent all the profits and losses attributable to Amaranth's long/short equity strategies during the periods indicated. No profit or loss has been excluded. However, Amaranth has at no point isolated the amount of equity attributable to these strategies, but rather managed these strategies as part of a fully-diversified portfolio, taking into account the diversification of the portfolio in determining position sizes, risk limits, stop-loss levels, etc. Amaranth has imputed the equity attributable to these strategies using what Amaranth believes to be reasonable assumptions based on Amaranth’s internal risk management systems and value-at-risk calculations. However, no representation is or could be made that the equity figures used are materially accurate in terms of the actual rates of return generated. Not only could Amaranth reasonably have imputed materially different amounts of equity to its long/short strategies, but also it is impossible to predict what the effect of trading these strategies on a stand-alone basis, as opposed to as one component of a broadly diversified fund, would have been on the positions actually taken or the results achieved.

Amaranth does not purport to present the Derived Performance Information as indication of how the Amaranth Global Equities Funds would have performed or will perform. The inherent uncertainties of the methods by which the equity was attributed to Amaranth’s long/short strategies, as well as material differences trading a stand-alone long/short portfolio as opposed to a long/short component of a fully-diversified portfolio, precludes any such claim. Rather, Amaranth has calculated the Derived Performance Information solely as an indication of what Amaranth believes would constitute possible investment objectives for the Funds if they trade successfully, of which there can be no assurance.


Endnotes (Continued)

Because of the extracted character of the Derived Performance Information, applicable U.S. regulations require that the following legend be included (although the legend is not fully accurate in its reference to “simulated results”because the profit and loss used in the Derived Performance Information is not simulated; however, the equity base is).

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

This document does not constitute an offer to sell or a solicitation of an offer to buy any interest in Amaranth Global Equities Limited or Amaranth Global Equities LLC. The information contained herein is qualified in its entirety by reference to information set forth in the Offering Memoranda of the Funds, which contain descriptions of the material terms (including, but not limited to, risk factors, conflicts of interests and tax implications) relating to investments in the Funds. Such information is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Each recipient of this information should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in either of the Funds, and should consult its own legal counsel and financial, accounting, regulatory and tax advisors to determine the consequences of such an investment.


Endnotes (Continued)

An investment in either of the Funds involves risks specific to an investment in that Fund. Amaranth and its affiliates may face certain conflicts of interest in relation to the Funds. Prospective investors are therefore urged to carefully read the applicable Offering Memorandum, including, but not limited to, the sections entitled “Management-Brokerage and Custody,” “Risk Factors” and “Conflicts of Interest” therein, which is incorporated herein by reference, so as to evaluate the risks and potential conflicts involved in light of its investment objectives and financial resources.

Past performance – especially the Derived Performance of a limited segment of a more diversified portfolio – is not necessarily indicative of future results, and an investment in any of the Funds is speculative and involves a high degree of risk, including the possibility of a total loss thereof. Amaranth cannot assure any investor that the Funds’ investment objectives will be met or that there will be any return of capital. Investment results may vary substantially on a monthly, quarterly and annual basis. The Funds are suitable for investment only by sophisticated persons for which an investment in one of the Funds does not represent a complete investment program and who fully understand and are capable of assuming the risks involved.

For further information, please contact Steve Johnson or Charles Winkler of Amaranth at:One American Lane

Greenwich, CT 06831United States of America

Telephone: +1-203-422-3333Facsimile: +1-203-422-3533

[email protected]

ameranth

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