MCM Mayer Capital Management

Simodan Hedge Funds (2009) LTD

Mayer Capital Management


Full Liquidity

Total Transparency

Excellent Past Performance


Investment philosophy: Macro-global.

Investment policy:

1) a. The measure of the Fund’s exposure to bonds including capital notes of any kind, that are traded in Israel and abroad, will not, at any time, be less than 75% of the net value of the Fund’s assets.

b. In calculating the measure of exposure mentioned in paragraph “a” above, bonds and/or capital notes creating exposure to equity instruments, will not be taken into account.


2) Unless otherwise notified by the Fund Manager, the measure of exposure will not, at any time, exceed, in absolute terms, 30% equity comprised in the net value of the Fund’s assets and 200% foreign currency of the net value of the Fund’s assets.

3) Any change in the investment policy will be reported by the Fund Manager on the Fund’s website, and written notice sent to the holders of the units.


Legal framework: Limited Partnership. Registration: Registered with the Register of Partnerships, the Ministry of Justice - Israel.Launch date: 1st Q 2010. Minimum investment: $500,000. Annual management fees: 2% (+ V.A.T). Trust fees: 0.1%Incentive fee: None.Entry fee: 0.5%. Entry/exit from the Fund: Daily (T+3). Unit price of the Fund: Published daily on the Company’s website + Bloomberg (ISIN: IL0011159899).

The Fund Manager will publish on its site at the beginning of each month, the composition of the Fund’s assets at the level of individual securities, as at the end of the preceding month.


Fund Trustee: Union Bank Trust Company Ltd.

Fund assets: The Fund’s assets are deposited with Bank Hapoalim Ltd,

in an account in the name “Union Bank Trust Company Ltd”.

Transparency: Unit holders in the Fund will receive a secret code enabling

access to and viewing of the Fund’s bank account.

Fund administrator: Union Bank Trust Company Ltd.

Auditors: Freidkes & Co. - CPA.

Legal advisor: “Yigal Shapira” Law Company.

Taxation: According to a ruling received from the income tax authorities: - An Israeli - resident limited partner is liable to tax at the rate of

25% on the Fund’s income.

- Foreign - resident limited partner is exempt from tax on the Fund’s

income.

Simodan Hedge Funds (2009) LTDRegular Hedge Regular Hedge

Fund Fund MCM Fund MCM Fund

Rate published Rate published Quarterly Quarterly

Daily on the Fund Daily on the Fund Manager’s website + On Manager’s website + On the Bloomberg system the Bloomberg system

(ISIN: IL0011159899)(ISIN: IL0011159899)..

Buy / sell Buy / sell QuarterlyQuarterlyDaily (T+3). Daily (T+3).

Annual management Annual management fees fees

2% 2% 2% (+ V.A.T)2% (+ V.A.T)

Incentive Fee Incentive Fee 20% above benchmark 20% above benchmark --- ---

Minimum investmentMinimum investment$ 500,000$ 500,000$ 500,000$ 500,000

Authorization to view Authorization to view the Fund account the Fund account

--- --- By means of electronic By means of electronic code via the internet code via the internet

Simodan Hedge Funds (2009) LTDSimodan bonds investments (2E)(!) – Mutual Fund

The fund's assets composition for the end of March 2010

Security % of Portfolio Rate of ExposureProfile

ExposureMaalot Midrug

rating

Link to the security on the Stock

ExchangeWeb / Barchart

Future Contracts

UK 10 Year Gilt - Short -18.63 18.63 Bond linkU.S 30 Year T-Bond - Short -41.60 41.60 Bond link

S&P 500 - Short -17.77 17.77 Stocks link

Chinese yuan 23.71 23.71 Forex link

Gold 9.98 9.98 Stocks link

Total Future Contracts -44.31 111.69

C.P.I Linked Bonds

Index Bond 40 5.26 5.26 Bonds AAA linkPsagot Bond 40 5.48 5.48 Bonds AAA linkTotal C.P.I Linked Bonds 10.74 10.74

Bonds not linked

Mabat Shahar 5+ Short (x2) 8.10 16.20 Bonds linkKesem Tel Bond-Shekel - Short 8.39 8.39 Bonds linkTotal Bonds not linked 16.49 24.59


Forex Bonds

USA Tips (Treasury Inflation Protected Securities) 8.16 8.16 Forex/Bonds AAA

German gov`t T. Bills (CPI linked) 8.34 8.34 Forex/Bonds AAA

World Currencies Basket - not tradeable 2.09 2.09 Forex/Bonds D

Prisma Norwegian krone 7.92 7.92 Forex/Bonds AAA link

Danish gov`t T. Bills (Danish krones) 3.49 3.49 Forex/Bonds AAA

Australian gov`t T. Bills (Australian dollars) 3.55 3.55 Forex/Bonds AAA

Canadian gov`t T. Bills (Canadian dollars) 8.11 8.11 Forex/Bonds AAA

Singapore gov`t T. Bills (Singapore dollars) 8.81 8.81 Forex/Bonds AAA

Sweden gov`t T. Bills (C.P.I. Linked) (Swedish krones) 7.61 7.61 Forex/Bonds AAA

EIB bonds (Brazilian real) 8.65 8.65 Forex/Bonds AAA

Total Forex Bonds 66.73 66.73

Total exposure to stocks 27.75

Total exposure to bonds 162.29

Total exposure to forex 95.76

Total liquidity in NIS 1.70 1.70

Total liquidity in forex 5.32 5.32 Forex

Total exposure - Long 111.16

Total exposure - Short 102.59

Total 288.22

Security % of Portfolio Rate of ExposureProfile

ExposureMaalot Midrug

rating

Link to the security on the Stock

ExchangeWeb / Barchart


Year Yield in N.I.S (% ) Yield in US $ (% )2004 7.53 9.30

2005 14.26 6.93

2006 7.55 17.17

2007 7.05 17.60

2008 -12.64 -11.63

2009 30.53 31.46

Jan-Mar 2010 -4.44 -2.85

Cumulative yield 54.14 81.75 Cumulative yield (for the last 60 months -

31/3/05-31/3/10)37.67 61.70

Average annual yield (for the last 60 months -

31/3/05-31/3/10)6.60 10.09

Simodan bonds investments (2E)(!) - Mutual FundPerformance 2004-3/2010


***The data is updated monthly. Last update - 30/11/2009

SMD - Agach


Currency-Linked, Government Bonds (Gilboa)

Currency-Linked, Non-Government Bonds


Fund Manager: Roy Mayer. Roy Mayer is the founder and owner of the Simodan Group. The Simodan Group was founded in 1990 and is active in two main areas:

Mutual Funds management and Hedge Funds management.

The Company’s customers include institutions, public and private corporations,

nonprofit societies, business corporations and private clients.

Roy Mayer, B.A Economics, former CEO of fix income division at Leumi PIA Mutual Fund

Management Ltd and prior to that, was executive representative of the Union Bank of Israel

on the TASE (from 1982 onwards) .


Nahum Hirsch LoebThe Baron Rothschild’s Stockbroker

in Frankfurt 1881-1930(Perished in Theresienstadt 1861-1942)

Edith nee Loeb Josef Mayer Stockbroker in Frankfurt 1922-1934 (1893-1974) (1896-1969)

Accreditation was given toJosef Mayer -18/4/1922

as a Stockbroker on behalfof the German Republic

150 Years of Experience


Hedge fundGeneral

A hedge fund is an investment fund that adopts a strategy purporting to create profit, whatever the market situation may be.

Legal structure

Most hedge funds are established as limited partnerships, where the fund manager is the general partner and the investors, the limited partners.

This legal structure has tax advantages as each investor in the fund (limited partner) has a different tax regime (foreign resident, Israeli resident, corporation, private client, etc.)


Macro-Global

This strategy is perhaps the most well known in the field of hedge funds. The strategy manager in macro-global funds attempts to take advantage of changes in policy and macro-economic developments and their impact on the various markets. This was done by many managers during the emerging period of the European Union, when interest rates of the currencies of the various countries of the Union converged to a single status. The fund managers that estimated that unification would go forward, bought Italian and Spanish denominated bonds bearing high yields, and against this sold short German and French bonds, on which the yields were relatively low. As the date of the unification approached, and on its completion, the managers reaped profits irrespective of the level at which the yield on the common European currency was fixed, namely the Euro.


Investment advantages of hedge fundsThe main advantage is lack of dependence on market behavior. The most popular investments are equity instruments and debt instruments. Equity instruments yield profit when the market rises, and lose when the market goes down. In equity instruments, profit depends mainly on changes in the yields: a drop in the yields will cause a rise in the bond rates and growth in profits, and a rise in yields may cause profit to go down below normal interest rates, and even lead to a loss.However, investing in hedge funds is not necessarily connected with the behavior of the markets. Regardless of whether the market is going up or down, or interest rates are rising or falling - the fund manager may earn a profit as well as a loss.


In contrast to investing in funds and bonds where the investor wants to beat the market, the investment manager in the hedge fund will wish to meet a pre-determined profit target - that is generally higher than the benchmark. In those circumstances, investing in hedge funds produces results having a low correlation with those of the market or of ordinary investments. This is one of the important requirements of an investment portfolio: to invest in assets having a low or negative correlation, thereby reducing the risk. For those reasons, investing in hedge funds enables a profit to be made whatever the market situation may be, and also benefit from a drop in the asset prices, exploit changes in the market in both directions, diversify investments and vary the assets. Hedge strategies are very wide and invest in equity instruments, debt instruments, currencies, commodities, interest rates and the like - in Israel and throughout the world. Risk management, that is the basis of the hedge-fund industry, allows risks to be limited and profits to be maximized.


Office:14 Moshe Dayan St.

Petach-Tikva 49518, Israel.

Tel: 972 – 3 - 9229901

Fax: 972 – 3 - 9229905

Cell: 972 – 54 - 4236167

Cell Euro: 372 - 53291295

Cell USA: 1 – 516 – 697 - 2001

Cell Canada: 1 – 514 – 621 - 3759

E-mail: [email protected]

Website: www.simodan.com

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MCM Mayer Capital Management