Absolute Return Strategies Presentation slide image

Absolute Return Strategies Presentation

Monthly Analysis: Individual Funds Analysis of: - Organizational/firm issues How fund is positioned/where taking risk - Drivers of performance Monthly performance attribution Top holdings/themes and their contribution to performance for each client-invested fund are discussed during monthly analyst calls. Analysts seek to identify signs of style drift or significant changes in portfolio positioning A Watch List Report is prepared for funds when Cliffwater has significant concerns that merit closer monitoring, and may lead to a redemption recommendation Global Macro-Systematic HFRI Macro (Total) Index Information Ratio vs. Beta to MSCI ACWI (5 Years) 1.0 +Global Macro-Systematic Peer droup" + 0.5- -0.5- -10 -0.5 0.0 Beta Rolling 36-Month Standard Deviation May 91 Dec 93. Dec 96 Dec 99 Distribution of Monthly Returns. ++ Jan 1990 - May 2017 ▲ Bmk 1: HFRI Fund Weighted Composite Index ▼Bmk 2: HFRI Fund of Funds Composite Index Monthly Fund Returns vs. MSCI ACWI Returns (5 Years) Best Fit Curve ** 女 Global Macro-Systematic Cumulative & Monthly Returns HFRI Macro (Total) Index ▲ Bmk 1: HFRI Fund Weighted Composite Index Jan 1990 - May 2017 Bmk 2: HFRI Fund of Funds Composite Index Total, Alpha & Beta Returns Fund Bmk 1 Bmk 2 Total Return (%) 14 1 Month 0.49 0.46 -0.17 3 Month 0.17 1.39 0.82 1 Year 1.02 8.31 5.55 3 Years 1.82 2.96 1.75 5 Years 0.94 4.93 3.71 10 Years 2.46 3.04 0.90 Since Inception 10.31 9.93 6.66 Alpha Return (%) vs. MSCI ACWI 3 Years 1.32 0.63 -0.07 5 Years -0.18 0.75 0.44 10 Years 1.10 0.59 -1.20 Since Inception 5.95 483 2.23 Beta Return (%) vs. MSCI ACWI 3 Years 0.02 1.86 1.34 5 Years 0.70 3.76 2.85 10 Years 0.26 1.36 1.00 Since Inception 0.89 1.63 0.95 Jan 90 Dec 93 Dec 96 Dec 99 Dec 02 Dec 05 Dec 08 Dec 11 Dec 14 May 17 Historical Returns (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CY Fund CY Bmk 1 CY Bmk 2 2017 -0.45 0.80 -0.49 Dec 02 2016 1.02 2015 2.51 0.49 1.49 -0.95 -0.08 -0.93 2.22 0.20 0.56 -1.19 -0.05 -2.31 0.14 0.52 3.54 2.78 0.79 -1.47 0.89 -1.61 -0.34 -1.23 -0.31 -0.08 1.39 -1.42 0.90 1.03 5.44 0.51 -1.26 -1.12 -0.27 2014 -0.85 1.44 -0.90 0.06 0.57 2013 1.53 -0.68 0.41 2012 1.27 0.79 -1.32 -0.58 2011 2010 2009 2008 -0.72 1.28 -1.09 2.37 -2.30 -1.95 0.16 1.59 0.82 -1.58 -0.10 -0.12 -0.61 -0.09 3.54 1.08 4.22 -1.22 -0.03 1.20 -1.25 -1.57 0.40 -1.42 -1.74 0.70 -0.40 150 1.08. -0.20 2.25 0.24 -0.06 -1.08 -0.17 0.83 0.52 0.47 2.01 -0.23 -0.03 -1.84 -0.06 1.02 1.66 -0.51 -1.24 -0.92 -0.65 -0.25 -0.12 -0.06 1.69 2.74 2.23 -0.92 3.34 -1.17 0.49 0.37 1.71 -0.52 2.17 -1.30 1.19 -2.62 1.18 -1.21 1.63 0.73 1.11 5.58 2.98 3.37 -0.44 9.13 8.96 -0.06 6.36 4.79 -4.16 -5.25 -5.72 8.06 4.34 10.25 5.70 19.98 4.83 -19.03 -21.37 11.47 Performance Statistics Rolling 36-Month Alphal Fund Benk 1 Bmk2 Standard Deviation (%) 3 Years 3.96 3.85 3.34 5 Years 3.78 3.64 3.27 Since Inception 7.18 6.62 5.51 Information Ratio 3 Years 0.33. 0.40 -0.03 g Monthly Ret 5 Years -0.05 0.46 0.21 Avg Std Since Inception 0.91 1.16 0.51 Ku Return Dev Omega Ratio Fund 0.82 2.07 0.66 3 Years 1.07 1.241 1.03 Bmk 1 0.79 1.91 -0.62 5 Years 1.04 2.03 1.66 Dec 92 Bmk 2 0.54 1.59 -0.63 Since Inception 3.04 2.82 2.38 Dec 96 Cumulative Drawdown Dec 99 Dec 02 Dec 05 Dec 08 Dec 11 Dec 14 May 17 Created with MPI Stylus Beta vs. MSCI ACWI 3 Years 0.01 0.32 0.24 5 Years 0.07 0.32 0.25 Since Inception 0.17 0.33 0.22 Correlation to Fund -10 3 Years 0.18 0.16 5 Years 0.35 0.35 Since Inception 0.63 0.65 Serial Correlation 3 Years -0.16 0.23 0.24 5 Years -0.16 0.11 0.15 Since Inception 0.17 0.30 0.35 May 17 -6 -5 -4 This report is not an advertisement, is being distributed for info or solicitation of an offer for the purchase or sale of any secu which would cause substantial harm to you, Cliffwater LLC, or t Each of Hedge Fund Research, Inc. and MSCI Inc. is the source a Jan 90 Dec 92 Dec 95 Dec 98 Dec 01 Dec 04 Dec 07 Dec 10 Dec 13 Created with MPI Stylus @2017 Cliffwater LLC. All rights reserved. CONFIDENTIAL | Page 3 This report reflects information only through the date hereof. The preparation of this report does not indicate that Cliffwater LLC has conducted full due diligence on the fund or the likelihood that Cliffwater LLC would recommend the fund if such diligence was completed. All third-party information has been obtained from sources believed to be reliable but its accuracy is not guaranteed. We have not conducted an independent verification of this information. Cliffwater LLC shall not be responsible for investment decisions, damages, or other losses resulting from The charts shown above are provided for illustrative purposes only. The charts are intended to show examples of Cliffwater's hedge fund client reporting only and, therefore, in lieu of showing the performance of an individual hedge fund, we have shown the performance of a hedge fund index, the HFRI Macro (Total) Index. CLIFFWATERLC | 34
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