Risk Road Map: Navigating the Evolving Risk Landscape in the Hedge Fund World

Moderator: Brian Ruane, BNY MellonPanelists: Dolores A. Atallo, Deloitte

Viju Joseph, Eton Park Capital Management, L.P. Eric Jacobs, King Street Capital Management, L.P.

BNY Mellon Alternative Investment Services October 20, 2011

1

Who will win The World Series?

A. Texas RangersB. St. Louis Cardinals

2

How would you describe your firm?

A. Hedge Fund with less than $1BNB. Hedge Fund with $1BN - $5BNC. Hedge Fund with more than $5BND. Institutional InvestorE. Industry InfluencerF. High Net Worth Investor

3

Other than market risk, which type of risk would you rank as a most important risk factor?

Redefining RiskA defining characteristic of Hedge Funds is their focus on managing risk. As we all know, fund managers have always focused on managing and mitigating market/investment risk.

A. Liquidity / Funding Risk B. Counterparty / Credit RiskC. Operational / Fraud Risk D. Regulatory Risk

4

Which type of risk do you feel is currently the most manageable?

Redefining Risk

A. Liquidity / Funding Risk B. Counterparty / Credit RiskC. Operational / Fraud Risk D. Regulatory Risk

5

Risk RoleAt your firm today, how empowered is your Chief Risk Officer?

A. Veto rightsB. Reporting functionC. Can close out trades

6

Evolving Governance Models

Moderator: Brian Ruane, BNY MellonPanelists: Dolores A. Atallo, Deloitte

Viju Joseph, Eton Park Capital Management, L.P. Eric Jacobs, King Street Capital Management, L.P.

7

Operational Risk How have the resources allocated to your operation changed in the last 3 years?

A. B. C. D.

0% 0%0%0%

A. Increased by 10-20%B. Increased more than 20% C. Stayed the sameD. Reduced

8

Operational Risk

Moderator: Brian Ruane, BNY MellonPanelists: Dolores A. Atallo, Deloitte

Viju Joseph, Eton Park Capital Management, L.P. Eric Jacobs, King Street Capital Management, L.P.

9

Managing Funding and Liquidity Risk

Moderator: Brian Ruane, BNY MellonPanelists: Dolores A. Atallo, Deloitte

Viju Joseph, Eton Park Capital Management, L.P. Eric Jacobs, King Street Capital Management, L.P.

10

Managing Counterparty Risk

Moderator: Brian Ruane, BNY MellonPanelists: Dolores A. Atallo, Deloitte

Viju Joseph, Eton Park Capital Management, L.P. Eric Jacobs, King Street Capital Management, L.P.

11

Disclosing Risk Many hedge funds are providing risk reporting to investors.

Today, what type of risk reporting do you provide/receive?

A. B. C. D. E. F.

0% 0% 0%0%0%0%

A. Position based reporting from fundB. Returns based reporting from fundC. Both position based & returns

based reporting from fundD. Position level reporting from fund E. Reporting from a third partyF. None

12

Disclosing RiskFive years from now, what risk reporting would you expect?

A. B. C. D. E. F.

0% 0% 0%0%0%0%

A. Position based reporting B. Returns based reportingC. Both position based &

returns basedD. Position level reportingE. OtherF. None

13

The Future of Risk Management

Moderator: Brian Ruane, BNY MellonPanelists: Dolores A. Atallo, Deloitte

Viju Joseph, Eton Park Capital Management, L.P. Eric Jacobs, King Street Capital Management, L.P.

14