HedgeCoVest offers its investors (“Investors”) the opportunity to achieve performance results similar to those realized by investors in the hedge funds managed by the investment managers on HedgeCoVest’s platform (“Hedge Funds”) without the liquidity constraints that apply to investors in the Hedge Funds. Specifically, an Investor can set up an account with HedgeCoVest and direct the assets in the account to be invested in a substantially similar manner as one or more Hedge Funds selected by the Investor. HedgeCoVest makes this possible by utilizing real-time portfolio trading information received from the investment managers of the selected Hedge Fund(s) and then purchasing and selling the same (or similar) securities on behalf of the Investor in the same or similar manner and at the same or similar time as the investment manager(s) do for the selected Hedge Fund(s). In cases where it is not possible for HedgeCoVest to execute the selected Hedge Fund’s trades or strategy in an identical manner for an Investor, HedgeCoVest will attempt to synthetically reproduce such trades so that the Investor’s account achieves substantially similar results as the selected Hedge Fund. Although HedgeCoVest uses its best efforts to replicate the selected Hedge Fund’s performance and trades, there may be times when different strategies will have different levels of “slippage” (i.e., a measure of the difference between the selected Hedge Fund’s portfolio and HedgeCoVest’s replication of that portfolio in the Investor’s accounts), which is beyond the control of HedgeCoVest.

This performance sheet depicts model returns, quantitative statistics, risk calculations and other information prepared by HedgeCoVest based on the historical gross performance figures and information provided by the investment manager. The performance results shown herein do not represent actual performance achieved by HedgeCoVest or any Investor and do not reflect actual trading history in any HedgeCoVest-sponsored investment product or managed account. Hypothetical, simulated or “model” performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. In addition, the performance data provided by an investment manager on which HedgeCoVest bases its model returns represents the views and biases of such investment manager only, have not been independently verified by HedgeCoVest and may contain errors for which HedgeCoVest may be unable to compensate for when calculating the model risks and returns depicted in this performance sheet. As a result, the performance reflected herein is estimated, may be based on incomplete information and is subject to change. Furthermore, simulated trading programs are generally designed with the benefit of hindsight. No representation is being made that any Investor account will or is likely to achieve profits or losses similar to those shown. Actual results for each Investor may vary, and there is no guarantee that HedgeCoVest will be able to duplicate the returns shown herein for any particular investor.

All data presented are the simulated results of a hypothetical, separately managed account and assume that the account had been opened by an Investor on the same date as the inception date of the selected Hedge Fund and that all trades in the account substantially replicated the trades of the selected Hedge Fund for the duration of the account. These results also reflect HedgeCoVest’s retroactive application and deduction of the highest management fee chargeable to Investors (2.5% per annum, based on assets in the account), including the compounding effect of such fee over time. HedgeCoVest does not currently plan to charge its clients any performance-based compensation, and these results accordingly do not reflect the deduction of any performance-based fees. These model results also do not reflect the deduction of any other fees and expenses such as ticket charges, commissions, or trading fees, due to the variable and unpredictable nature of such fees. Thus, actual performance in any particular account may be lower than that presented herein due to the deduction of trading fees and expenses that cannot be predicted for purposes of this model performance presentation. HedgeCoVest also retains the right to waive or reduce its fees with respect to any Investor account in its discretion.

These materials should only be considered current as of the date of publication without regard to the date on which an Investor may receive or access the information. HedgeCoVest maintains the right to delete or modify information without prior notice to Investors.

Charts, tables and graphs contained in this document are not intended to be used to assist prospective or actual Investors in determining which securities to buy or sell or when to buy or sell securities. Nothing herein is intended to be a recommendation to buy or sell any particular securities or to invest in any particular strategy.

There is no guarantee that HedgeCoVest will be successful in achieving the investment objectives of any particular Investor. Performance data and risks are historical and are not indicative of future returns, and past performance of any investment manager or HedgeCoVest and their respective principals and employees is not a guarantee of future results. Investment in the selected Hedge Fund strategy shown herein entails various risks, including the risk of complete loss. Performance variances among Investors may occur due to various factors, including the timing and amount of investment and general market fluctuations. Investment returns may be volatile, especially over short time horizons.

Before investing in a HedgeCoVest account, potential Investors are advised to read carefully all related documentation and to consult with their tax, legal and financial advisors. This performance sheet is being provided to potential Investors on a confidential basis solely to assist potential Investors in deciding whether or not to proceed with a further investigation of an investment in an account managed by HedgeCoVest. This performance sheet is confidential and may not be duplicated or distributed without HedgeCoVest’s prior written consent.

Rider 2

The S&P 500 Index (the “S&P 500”) is referred to only because it represents an index typically used to gauge the general performance of the U.S. securities markets. The use of this index is not meant to be indicative of the asset composition or volatility of the portfolio of securities held by any managed account, which may or may not have included securities which comprise the S&P 500, and which may hold considerably fewer than the number of different securities that make up the S&P 500. As such, trading in an account managed by HedgeCoVest should be considered riskier than an investment in the S&P 500.

 

All indices designed, calculated and published by S&P Dow Jones Indices, LLC, a subsidiary of The McGraw-Hill Companies, Inc., and/or its affiliates, are the property of S&P Dow Jones Indices, LLC, or one or more of its affiliates. Standard & Poor’s, S&P are registered trademarks of Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc. Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. The trademarks have been licensed to S&P Dow Jones Indices LLC. HedgeCoVest makes no representations about the accuracy or appropriateness of the data reported by S&P Dow Jones Indices, LLC, and S&P Dow Jones Indices, LLC does not endorse the contents of this presentation.