PRESENTACION_WESTON_MAYO_16_2007 Use SHIFT ENTER to open the

The Wimbledon Funds

www.westoncapital.com

Hedge Funds & Fund-of-FundsInvestment Concepts and Practices

MAY 16, 2007

WESTON

CAPITALASSET MANAGEMENT LLC

C A P I T A LW E S T O N

2

Important Disclosures This presentation is for informational and discussion purposes only and is not intended to be, nor shall it be construed as, advice or any recommendation or an offer, or the solicitation of any offer, to buy or sell an interest in any security, including an interest in Grand Slam Fund Limited or in any private fund advised or sponsored by Weston Capital Asset Management Ltd., Weston Capital Management LLC or any of their affiliates. Any such offer or solicitation may be made only by delivery of such private fund’s confidential offering documents (collectively, the “Memorandum”) to qualified eligible investors. Unless the context otherwise requires, references to Weston shall collectively mean Weston Capital Management Ltd. and its affiliates.

The information contained herein is not complete, is subject to change, and is subject to, and qualified in its entirety by, the more complete disclosures, risk factors, and other terms and conditions that are contained in the Memorandum. The information is furnished as of the date shown or cited, and is subject to updating; no representation is made with respect to its accuracy, completeness or timeliness. Before making any investment, you should thoroughly review the Memorandum with your professional advisor(s) to determine whether an investment in a fund is suitable for you in light of your investment objectives and financial situation. This presentation is not intended to be, nor shall it be construed as, investment advice or a recommendation of any kind. Any financial indices shown are unmanaged, assume reinvestment of income and do not reflect the impact of any management or performance fees. The instruments traded by any fund are not limited to the instruments comprising any one index. There are limitations in using financial indices for comparison purposes for the foregoing and because such indices may have different volatility, credit and other material characteristics (such as number or type of instrument or security).

Any statements, assessments or assumptions or the like (“Statements”) non-factual in nature, including those regarding possible future events, strategies, opportunities or growth, constitute only subjective views, beliefs, opinions or intentions, as of the date shown, which are subject to change due to a variety of factors, including fluctuating market conditions. No representation is made that such non-factual Statements are now, or will continue to be, complete or accurate in any way. Future evidence and actual results could differ materially from those set forth in, contemplated by, or underlying these Statements. Such non-factual Statements should not be construed as an investment recommendation or advice, should not be relied on and involve inherent risks and uncertainties, both general and specific, many of which cannot be predicted or quantified and are beyond a fund’s or Weston’s control. Weston is under no obligation to revise or update any Statements. Investments are subject to and will change in the discretion of the Investment Manager, Weston Capital Asset Management Ltd.

No representation is made that a fund will or is likely to achieve its objectives, that Weston’s investment process or risk management will be successful, or that an investor in any fund will or is likely to achieve results comparable to those shown or will make any profit or will not suffer losses. Net asset value and return on an actual investment will fluctuate. Performance differences for certain investors may occur due to various factors, including timing of investment. Past performance is not indicative of future results.

See also accompanying Hedge Fund Risk & Other Disclosures beginning on page 28, which must be read carefully in conjunction with the information contained herein. Weston Financial Services LLC (“WFS”), a broker-dealer registered with the Securities and Exchange Commission and member of the NASD, may perform services for a private fund advised by Weston or a private investment fund in which such fund may invest. Affiliates and/or related parties of WFS and other Weston entities, by virtue of ownership and/or other rights, may indirectly benefit from investments in a fund.

Certain information herein has been obtained from third party sources and, although believed to be reliable, has not been independently verified and its accuracy or completeness cannot be guaranteed. Under no circumstances may a copy of this presentation be shown, copied, transmitted, or otherwise given to any third person other than your financial, tax and/or investment advisors without our consent.


3

Outline Market for “Alternative Investments” Hedge Funds Fund of Funds Performance Comparisons Investment Management Concepts Portfolio Construction Process Manager Selection Process Due Diligence Benefits Drawbacks


4

Alternatives – the Market Changed considerably the last 10 years

Increased allocations $TRILLIONS in hedge funds, private equity and real estate

Increased competition THOUSANDS of managers and products

Increased regulatory scrutiny SEC / FSA / NASD / NFA

Movement among asset classes – ongoing shifts / trends

Decrease in mutual fund allocations (on a comparative not absolute basis)

Substantial increase in hedge fund / FOF exposures Increase in private equity Real estate maintained


5

Alternatives – the Market Growth in the industry

“In the US alone, the number of mutual funds grew from 361 managing less than $50bn in 1970 to 3,085 managing more than $1 trillion in 1990. Today there are more than 8,500 US-based mutual funds managing almost $9 trillion.”

Source: Financial Times, June 21, 2006

“Hedge fund assets…[are] more than $1.2 trillion in 2007, there are more than 9,000 hedge funds, 351 of which manage $1bn or more.”

Source: The Ticker, April 30, 2007


6

Focus on Hedge Funds What makes hedge funds different from mutual funds?

Ability to “short” securities

Use of derivatives Options, swaps, futures Decrease risk defensively Add risk opportunistically

Leverage

More concentrated positions

Performance incentives


7

Focus on Hedge Funds Result – primary goal

Deliver positive, absolute returns vs. mutual fund or index alternatives

Lower the risk of loss Especially effective in bear markets


8

What Are the Types of Hedge Fund Strategies? 3 Generic Types

Directional or Tactical Strategies Long Short Long / Short combination Market neutral

Relative Value – Arbitrage Strategies Exploit relative prices

Event Driven Strategies Announcements Changes in corporate structure


9

Common Names of Hedge Fund Strategies Equity Focus

Equity Long Short Market Neutral Statistical Arbitrage Merger Arbitrage Emerging Markets

Credit Focus Fixed Income Arbitrage Credit Long Short Direct Lending


10

Common Names of Hedge Fund Strategies Equity and Fixed Income combinations

Convertible Bond Arbitrage Capital Structure Arbitrage Distressed Debt

Managed Futures Commodity Trading Advisors (CTAs) Global Macro Volatility Arbitrage

Multi-strategy Combinations of all / some of the above


11

What is a Fund of Funds? Portfolio of other funds

Combinations of hedge funds Construction is a function of risk appetite

Provide diversification

Minimize downside risks

Deliver un-correlated returns to the markets


12

Attributes Built for diversification

“[Family office Greycourt] mainly uses fund of funds for clients that have not had hedge fund exposure… just to get them a core diversified exposure. And then, if they want to build out with individual hedge funds, as opportunities arise, they can do that.”

Source: InvestHedge, July/August 2006


13

Attributes Built for access to managers

“…investors like the fund of funds model, not just for the diversification but also for access. [These] are investors that want the best managers and, often, the feeling is that as individuals they may not have the opportunity to access the best of breed fund managers, except through a fund of funds structure.”

Source: InvestHedge, July/August 2006


14

Attributes Built to protect the investor

“Large redemptions and closings of a few well-known hedge funds have had minimal effect on …. fund-of-hedge-fund managers.”

Source: Investment News, August 22, 2006

Comparison – HFRI Index vs. S&P 500


HFRI Fund of Funds Composite vs. S&P 500

-50%

0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

Jan

-90

Jan

-91

Jan

-92

Jan

-93

Jan

-94

Jan

-95

Jan

-96

Jan

-97

Jan

-98

Jan

-99

Jan

-00

Jan

-01

Jan

-02

Jan

-03

Jan

-04

Jan

-05

Jan

-06

Jan

-07

Month

To

tal

Retu

rn

HFRI Index S&P 500


16

Investment Management Concepts When building a FOF product, construction is a function of:

Diversification Geography Strategy – non-correlation Performance attribution – time buckets

Ability to meet potential liabilities Liquidity constraints Volatility and performance objectives

The changing market Think intuitively Be analytical Look forward


17

Investment Management Concepts Play to your strengths

Know what you don’t know Find the answer Don’t guess

Avoid being overconfident

Accept the fact you will not always be right


18

Strategy Allocation Process Based on a “top down” process – developed from multiple

sources of feedback in the markets

Percent investment weighting allocated to each hedge fund strategy

Approved and monitored by an Investment Committee

Maintained by the portfolio manager


19

Manager Selection Process Goal is to source managers efficiently

Ongoing screening process using multiple databases

Traders / other hedge funds / investment banks - feed us information

Prospect List is maintained – list of “hopeful” managers

Constant review and improvement of the list


20

Manager Approval Process Notes from meetings

Qualitative Scorecard

Quantitative analysis

Operational research – valuations, policies, documentation

Complete DDQ (Due Diligence Questionnaire)

New Manager Application

Sign-offs


21

Due Diligence Process Visit the hedge fund’s offices Speak face to face with the manager and his staff Ask for last three years of audits Verify the accuracy of the promotional materials Check the backgrounds on senior staff Monitor returns before you invest Understand how securities are priced Beware of “carve-outs” Investigate the use of “side-letters”


22

Due Diligence Where does fiduciary responsibility belong?

Who is taking the appropriate care?

How is due diligence being done?

How frequently is it updated?


23

Due Diligence “…Performing due diligence on hedge funds is tough. ‘If we

had a staff of another five or six people, maybe we would try and do what [fund of funds] do, but it’s a very exhaustive process, given the number of managers you need to cover….

[You have to analyze] manager risk, the different strategies, the diversification among those strategies. How can you stay on top of 20 or 30 managers given the lack of transparency?’”

Source: InvestHedge, January 2007


24

Due Diligence “For individual investors [buying hedge funds], it’s who

they know, what their friends are doing …very much word-of-mouth when picking hedge fund managers …

Says one fund of funds executive, ‘I think they’re a bit crazy.’”

Source: thestreet.com, September 2006


25

Due Diligence “…due diligence in the hedge fund industry is done by fund-

of-funds managers whose task is to create a pool of good choices and invest… in them, like mutual funds select the best stocks.”

Source: thestreet.com, September 2005


26

Potential Drawbacks to Alternative Investments Risk / reward ratio is not being satisfied

Lack of transparency

Hedge funds are not regulated

Strategies MIGHT be more difficult to understand – and therefore harder to re-explain

Insufficient liquidity

Not enough track record


27

Benefits of Alternative Investments Absolute return potential – in excess of benchmarks

Risk reduction, downside protection

Lower volatility

Added diversification – areas not previously accessible

Professional management Well educated Highly experienced

Conscientious as fiduciaries


28

Hedge Fund Risks & Other Disclosures

The Funds represent speculative investments and involve a high degree of risk. An investor could lose all or a substantial portion of his/her investment. Investors must have the financial ability, sophistication/experience and willingness to bear the risks of an investment in a Fund.

An investment in a Fund should be discretionary capital set aside strictly for speculative purposes.

An investment in a Fund is not suitable or desirable for all investors. Only qualified eligible investors may invest in the Funds.

The Funds’ offering documents are not reviewed or approved by federal or state regulators.

The Funds may be leveraged (including highly leveraged) and a Fund’s performance may be volatile.

An investment in a Fund may be illiquid and there may be significant restrictions on transferring interests in a Fund. There is no secondary market for an investor’s investment in a Fund and none is expected to develop.

A Fund may have little or no operating history or performance and may use hypothetical or pro forma performance which may not reflect actual trading done by the manager or advisor and should be reviewed carefully. Investors should not place undue reliance or hypothetical or pro forma data.

The private funds managed by Weston Capital Management LLC, Weston Capital Asset Management LLC and/or its affiliates (collectively, the "Funds") are unregistered private investment funds or pools that may invest and trade in many different markets, strategies and instruments (including securities, non-securities and derivatives) and are not subject to the same regulatory requirements as mutual funds, including mutual fund requirements to provide certain periodic and standardized pricing and valuation information to investors. There are substantial risks in investing in the funds, which are applicable to the underlying private funds in which the Funds invest, as well as to the Funds. You should note carefully the following:


29

A Fund’s discretionary manager or advisor has total trading authority over such Fund.

A Fund may use a single advisor or employ a single strategy, which could mean a lack of diversification and higher risk.

A Fund (for example, a fund of funds) and its managers or advisors may rely on the trading expertise and experience of third-party managers or advisors, the identity of which may not be disclosed to investors.

A Fund may involve a complex tax structure, which should be reviewed carefully.

A Fund may involve structures or strategies that may cause delays in important tax information being sent to investors.

A Fund may trade commodity interests (directly or indirectly). The risk of loss in trading commodity interests its substantial.

A Fund may execute a substantial portion of trades on foreign exchanges, which could mean higher risk.

A Fund’s fees and expenses- which may be substantial regardless of any positive return - will offset such Fund’s trading profits.

The Funds are not required to provide periodic pricing or valuation information to investors.

The Funds and their managers/advisors may be subject to various conflicts of interest.

Hedge Fund Risks & Other Disclosures

The above summary is not a complete list of the risks and other important disclosures involved in investing in the Funds and is subject to the more complete disclosures contained in the Funds’ respective confidential offering documents’ which must be reviewed carefully.


30

Hedge Fund Risks & Other DisclosuresFund descriptions, performance, and summaries are provided for illustration purposes only, are not complete, are as of the date indicated and are subject to the terms, conditions, and disclosures contained in a Fund’s confidential offering documents, including important risk factors. Past performance is no guarantee of future returns, particularly with respect to short-term performance. Net asset value and return on an actual investment will fluctuate. Performance differences for certain investors may occur due to various factors, including timing of investment and special allocations. No representation is made that a Fund will or is likely to achieve its objectives or that an investor in any Fund will or is likely to achieve results comparable to those shown or will make any profit at all or will not suffer losses. This information is not intended to be, nor should it be construed or used as, investment, legal or tax advice or an offer to sell, or a solicitation of any offer to buy, an interest in any Fund. Investments in the Funds may be made only by means of confidential offering documents furnished to qualified prospective investors. Before making any investment, investors should carefully review such offering documents with their financial and tax advisor to determine whether an investment in the Funds is suitable for them. Any statements regarding future events are based upon the author’s or source’s expectations or beliefs, should not be relied on and involve inherent risks and uncertainties, both general and specific, many of which cannot be predicted or quantified and are beyond Weston’s or any Fund’s control. Future evidence and actual results could differ materially from those set forth in, contemplated by, or underlying these statements. In light of these risks and uncertainties, there can be no assurance that these statements will prove to be accurate in any way.

The financial indices shown are unmanaged, assume reinvestment of income and do not reflect the impact of any management or performance fees. The instruments traded by the funds in the portfolio are not limited to the instruments comprising any one index. There are limitations in using financial indices for comparison purposes because of the foregoing and because such indices may have different volatility, credit and other material characteristics. S&P 500 is an unmanaged, capital-weighted index representing the aggregate market value of the common equity of 500 companies primarily traded on the NYSE.

Documents

PRESENTACION_WESTON_MAYO_16_2007 Use SHIFT ENTER to open the