From: Lesley Groff < Sent: Tuesday, April 22, 2014 4:16 PM To: Jeffrey Epstein Subject: Fwd: ATorus Daily Portfolio Report - 4/18 Attachments: ATorus_BacktestNAV_041814.pdf; Untitled attachment 00405.htm Begin forwarded message: From: Michael Fowler Subject: =/b>ATorus Daily Portfolio Report - =/18 Date: April 22, 2014 11:37:00 AM EDT To: Lesley Groff Lesley, =nbsp; Welcome back! Hope you are well. Please see attached the =aily Portfolio Report for 4/18 and a short daily commentary. Also if =ou can ask Jeffrey whenever would be convenient to have a call or =eeting to discuss structure or any relevant matters per previous email. =hank you and have a good day. - Daily Commentary = Today, ALGN received an offer to =e acquired. This has been a large winner and the model has been long =or a considerable period of time. While it would be obviously more =eneficial in this case if we were position sizing on a discretionary =asis and allocated excess risk (even though "risk" is a relative term =epending on how you determine the measurement), the underlying =ssumption, and it is just that, is that by relying on a global =pportunity set the law of large numbers lowers aggregate downside =olatility. This is obviously based upon our assumption that the =istribution of market returns on (i) a rolling ROC basis and (ii) =easured in vol-days (net movement divided by avg. realized volatility) =onforms to a pareto distribution. While no distribution is perfectly =table when measured in discrete time, we find this distribution to have =he least amount of variance when measured from one interval to the =ext. Best Regards, Michael J. Fowler EFTA_R1_02143865 EFTA02715011