From: Ari Glass <S> Sent: Wednesday, September 20, 2017 8:50 PM To: [email protected] Subject: shana tova Firstly and foremost I wanted to wish you a happy an= healthy new year. I hope it's a good one for you.<=p> At some point after the holiday over the next month =r two I'd like to speak about your year-end redemption.</=> When we last spoke you fairly observed that while ou= risk adjusted returns were good at some point absolute returns are needed= I took the message to heart and went about making a few changes int=nded to achieve this objective. Additionally some other opportunities have recently presented themselves to the fund th=t should result in higher returns. Before I discuss the changes, first I do want to poi=t out just how good our risk adjusted returns are. I've a ttachrd the report put out by Soc Gen which has results for approximately 1200 h=dge funds. When ranked by annualized returns over max drawdown we sit between the 98th and 99th p=rcentile of all hedge funds. I understand you can't eat lack o= risk but I thought I'd point it out because the return to risk rati= is what shows talent (even if the risk needs to be raised to achieve desired return). This is fixable, lack of talen= is not. A 2 Sortino is generally considered to be very good. =e are now north of a 7. The goal was /has always been to raise the VAR (Valu= at risk) on the portfolio to approximately 80 BPS daily (versus what we b=lieve the industry to average of 1%). We currently sit at approximat=ly 50 BPs and have averaged around that this year. It being below its target is still largely a function of =wo things: a low recent market volatility and saving room for managers in =he pipeline to be onboarded that we are excited about. However, For a good reason we will still not be very=soon reaching our risk target and that is that in the past few months (inc=uding in the coming portfolios being onboarded in the past few weeks) the =mount of "non-risk" portfo