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Hedge Funds and Investing 1 Volume 1 Issue 2

Contents

Market SnapshotStock ProfileHedge Fund NewsHedge Fund ProfileEconomic Calender

Market Snapshot

The Dow Jones Industrial Average Index has been in a bullish mode for the past few weeks. The slowstochastic at 78.729 is high meaning that it could be overbought or bullish. The MACD is positive andrising whilst the RSI has stabilised at its current level.

The CBOE Volatility Index has remained low at 17.92 giving the markets room to further move upwards.

The US dollar looks likely to weaken over the next few weeks. If it does so, the Dow and the stocksgenerally may continue on its upward trend.

Stock ProfileSchulman Inc (SHLM)

1 Produced by HU. This issue is available for distribution with proper attribution. This magazine is for educationaland informational purposes only. Please seek advice from investment professional before making an investmentdecision.

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Schulman provides plastic compounds and resins to consumer products, industrial, automotive, andpackaging markets in North America, Europe, and Asia. It offers color and additive concentrates that givesplastic a certain color and/or physical features to manufacturers of plastic products, such as film forpackaging, household goods, toys, automotive parts, mechanical goods, and other plastic items. Thecompany also provides engineered compounds, which are products designed to maintain characteristics,such as chemical resistance, electrical conductivity, heat resistance, and/or high strength-to-weightratios.

Furthermore, A. Schulman offers various polypropylene and polyethylene resins and compounds, which are

used for interior trim, fascias, and bumper covers in automotive applications; toys, small appliances,sporting goods, and agricultural and watercraft products in roto-molding applications; and office suppliesin industrial/commercial applications. In addition, it involves in the formulation of polyvinyl chloride(PVC) compounds and elastomers to introduce various product attributes, including weatherability,consistency, ease of processing, material flexibility, and high-gloss or low-gloss finish.

The company offers thermoplastic PVC compounds, which are used for the manufacture of automotive,furniture, architectural, and consumer products, as well as Sunprene, a compound that serve as areplacement for rubber and other thermoplastic elastomers in automotive applications. Additionally, A.Schulman provides tolling services, as well as certain materials, such as additives or packaging primarily inEurope. The company was founded in 1928 and is headquartered in Akron, Ohio.

SHLM was upgraded to a buy in 2009:

UPGRADES & DOWNGRADES HISTORY

Date Research Firm Action From To

15-Jun-09 KeyBanc Capital Mkts Upgrade Hold Buy

These are the performance estimates given by analysts for SHLM:

Earnings Estimate Current Qtr

Feb-10

Next Qtr

May-10

Current Year

Aug-10

Next Year

Aug-11

Avg. Estimate 0.23 0.44 1.84 1.99

No. of Analysts 4 4 3 4

Low Estimate 0.19 0.36 1.68 1.73

High Estimate 0.32 0.53 1.94 2.20

Year Ago EPS -0.26 0.36 0.64 1.84

Revenue Estimate Current Qtr

Feb-10

Next Qtr

May-10

Current Year

Aug-10

Next Year

Aug-11

Avg. Estimate 290.60M 374.60M 1.46B 1.67B

No. of Analysts 1 1 1 1

Low Estimate 290.60M 374.60M 1.46B 1.67B

High Estimate 290.60M 374.60M 1.46B 1.67B

Year Ago Sales 272.69M 297.70M 1.28B 1.46B

Sales Growth (year/est) 6.6% 25.8% 14.2% 14.0%

Earnings History Feb-09 May-09 Aug-09 Nov-09

EPS Est 0.00 0.09 0.16 0.43

EPS Actual -0.26 0.36 0.21 0.76

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Difference -0.26 0.27 0.05 0.33

Surprise % % 300.0% 31.2% 76.7%

EPS Trends Current Qtr

Feb-10

Next Qtr

May-10

Current Year

Aug-10

Next Year

Aug-11

Current Estimate 0.23 0.44 1.84 1.99

7 Days Ago 0.23 0.44 1.84 1.99

30 Days Ago 0.23 0.44 1.84 1.99

60 Days Ago 0.17 0.36 1.33 1.65

90 Days Ago 0.10 0.32 0.93 1.19

EPS Revisions Current Qtr

Feb-10

Next Qtr

May-10

Current Year

Aug-10

Next Year

Aug-11

Up Last 7 Days 0 0 0 0

Up Last 30 Days 0 0 0 0

Down Last 30 Days 0 0 0 0

Down Last 90 Days

Growth Estimate SHLM Industry Sector S&P 500

Current Qtr. 188.5% 96.6% 350.0% N/A

Next Qtr. 22.2% 49.4% 133.5% N/A

This Year 187.5% 38.0% 86.3% N/A

Next Year 8.2% 20.8% 30.2% N/A

Past 5 Years (per annum) 13.68% N/A N/A N/A

Next 5 Years (per annum) 7.2% 8.74% 10.1% N/A

Price/Earnings (avg. for comparison

categories)13.65 16.24 16.39 N/A

PEG Ratio (avg. for comparison

categories)1.9 1.86 1.62 N/A

Hedge Fund News

Hedge funds returned 0.5 percent in February, led by North American managers, as global stock marketsrose on signs of recovery in corporate earnings and signs that U.S. interest rates will remain low according to Eurekahedge Pte.

Hedge funds that trade currencies are being targeted by politicians casting them as speculators out tosink the euro and push Greece into insolvency. They are also losing money.

An Ontario Securities Commission hearing into one of the worst hedge-fund scandals in Canadian history has come to the conclusion that retail investors in the Norshield funds were victims of dishonest conductand other securities-law violations.

Paulson and Soros, two huge and public hedge fund managers, recently took up stake in NovaGold, an

exploration based company that targets land for mining and then partners with huge firms like Barrick toactually mine the ground.

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Gartmore Group Ltd., the hedge-fund and mutual-fund manager that listed its shares on the LondonStock Exchange in December, reported a decrease in operating earnings for 2009 but said its business is

firmly on the mend and has received 273 million (about $409 million) in net new money so far this year.

Greece is seeking political, not economic, support, according to Prime Minister George Papandreou whourged the G20 nations to impose more stringent regulations on hedge funds.

Only nine months after Tribridge Investment Partners announced it had hired John Liptak to head thelaunch of its new Tribridge Asian Special Situations Fund, Citi has snatched Liptak to head up Asia-Pacific

distressed and special situations. Liptak will be responsible for both Japan and non-Japan Asia and willstart his new job at the end of March.

Wang Bing, former chief of Deutsche Bank's Saba proprietary trading desk in Asia, plans to start a hedge fund focusing on mispricing of securities in Asia's equity and credit markets.

Hedge Fund Profile

York Capital / New York

About York Capital

It has often been observed that change is a constant in human affairs and indeed in the world at large.This is especially so in the business world.

Driven by what Adam Smith termed the "invisible hand," mankind's tendency to progress creates anenvironment of corporate Darwinism, where companies that do not constantly act to improve theirbusinesses will perish. This dynamic, rooted in human nature itself, is the foundation of event investing.

York Capital Management was founded in 1991 with a simple goal: to provide consistent, superior risk-adjusted investment returns relatively independent of the overall market. In the years since, the firm haspursued this goal through a combination of focused research and investment selection, and disciplined risk

management.

With offices located in New York, Washington, DC, London and Hong Kong, York manages over 12 billiondollars worth of assets on behalf of institutions, endowments, foundations, fund of funds, wealthyindividuals and their families.

York Capital Managing Partners and Partners

James G. DinanFounder, Chairman, Chief Executive Officer

Jamie founded York Capital Management in September 1991 and is the Chairman, Chief Executive Officerand a Managing Partner of the Firm. He is also the Co-Portfolio Manager of the York Multi-Strategy, YorkCredit Opportunities, York Enhanced Strategies and York Event-Driven UCITS funds. From 1985 to 1991, heworked at Kellner, DiLeo & Co., where he became a General Partner and was responsible for investing inrisk arbitrage and special situation investments, including distressed securities, high yield bonds and shortselling. From 1981 to 1983, Jamie was an investment banker at Donaldson, Lufkin & Jenrette, Inc., wherehe was involved in a broad range of corporate finance and merger and acquisition activities. Jamie

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received a B.S. in Economics, summa cum laude, from the Wharton School of the University of Pennsylvania and an M.B.A. from the Harvard Business School.

Daniel A. SchwartzChief Investment Officer

Dan joined York Capital in March 1993 and is the Chief Investment Officer and a managing partner of theFirm. He is also the Co-Portfolio Manager of the York Multi-Strategy, Select and Credit Opportunitiesfunds. From 1990 to 1993, he worked as an Associate at Morgan Stanley & Co., Inc., spending two years inthe Investment Banking Group and one year in the Global Equity Derivatives Group. Dan is currently amember, in his capacity as a York employee, of the Investment Committee of Arch Bay Capital, LLC.Additionally, he is currently is a member of the Board of Trustees of the REITS division of YeshivaUniversity and a Member of the Board of American Friends of Shlava. Dan received a B.A., magna cumlaude, from Yeshiva University and an M.S. in Industrial Engineering from Columbia University.

In the next issue of Hedge Funds and Investing, York Capitals investment strategy and risk managementpolicy will be uncovered.

Economic Calender

Monday Mar 8 Tuesday Mar 9 Wednesday Mar 10 Thursday Mar 11 Friday Mar 12

Market Focus

Market Reflections

4-Week Bill Announcement11:00 AM ET

3-Month Bill Auction11:30 AM ET

6-Month Bill Auction11:30 AM ET

Market Focus

Market Reflections

ICSC-Goldman Store Sales7:45 AM ET

Redbook8:55 AM ET

Charles Evans Speaks9:30 AM ET

4-Week Bill Auction

11:30 AM ET52-Week Bill Auction

11:30 AM ET

3-Yr Note Auction1:00 PM ET

Market Focus

Bank Reserve Settlement

MBA Purchase Applications7:00 AM ET

Wholesale Trade10:00 AM ET

EIA Petroleum StatusReport

10:30 AM ET

10-Yr Note Auction1:00 PM ET

Treasury Budget2:00 PM ET

Weekly Bill Settlement

52-Week Bill Settlement

International Trade8:30 AM ET

Jobless Claims8:30 AM ET

Quarterly Services Survey10:00 AM ET

EIA Natural Gas Report10:30 AM ET

3-Month Bill Announcement11:00 AM ET

6-Month Bill Announcement11:00 AM ET

30-Yr Bond Auction1:00 PM ET

Fed Balance Sheet4:30 PM ET

Money Supply4:30 PM ET

Retail Sales8:30 AM ET

Consumer Sentiment9:55 AM ET

Business Inventories10:00 AM ET

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References

GoogleYahoo FinanceBig ChartsYork CapitalBloomberg