February 2019 Prosperously navigating unexpected events with great - PowerPoint PPT Presentation

February 2019

Prosperously navigating unexpected events with great skill and agility 2

WHO WE ARE PORTFOLIO MANAGEMENT EXPERIENCE TECHNOLOGY EXPERTISE • Unique insight • Portfolio Manager with 30 years of from entrepreneurs leading portfolio management experience international tech development across various asset classes at based on needs creation asset management companies (LGT, • Advisory Committee of tech leaders BLACK SWAN TAL, CIBC Asset Management), and who determine the global adoption a pension (British Petroleum) DEXTERITAS and success of new technologies (“BSD”) • Exceptional research team with a • Representation in all BSD-invested wide breadth of knowledge in tech sectors and sub-sectors, for research, finance, and engineering unrivalled expertise • Intense due diligence process for our stock selection process • Unique risk management overlay to minimize drawdowns and volatility 3

INVESTMENT METHODOLOGY IDEATION • BSD Investment Advisory Committee: seek out global growth themes and trends to overweight and underweight various subsectors PUBLIC COMPANIES • Experienced investment team sourcing trade ideas and discussing vital macro economical forces in play PORTFOLIO CONSTRUCTION • Draw on sector experiences from members of the committee and discuss emerging technology from the private and public space • Deep dive into industry verticals to identify beneficiaries in other primary, secondary, and tertiary markets IDEATION SECTOR ASSESSMENT • Life Cycle: Sectors in introduction and growth stages with high Total Addressable Market (TAM) • Competition: High barrier of entry with differentiated products and services within the sector SECTOR ASSESSMENT COMPANY ANALYSIS • Business Model: Public ccompanies with high recurring revenue, easily able to leverage network effects, strong negotiating power with suppliers and customers, and strong corporate governance • Size: Target small (500M+) to large cap public companies with established track record of executing the business. COMPANY ANALYSIS • Growth: Public companies with high and/or consistent revenue growth • Valuation: Determine if opportunities exist based on our fair value expectation of stocks versus current stock prices PORTFOLIO CONSTRUCTION • Weightings: Determine % of portfolio allocated to holdings based on risk-reward expectations • Diversification: Well-diversified across 35 to 40 holdings to maximize risk-adjusted returns • Hedging: Utilize derivatives and fixed income products to minimize drawdowns and generate alpha 4

PERFORMANCE GLOBAL TECH FUND MONTHLY PERFORMANCE SINCE INCEPTION Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD S&P 500 YTD 2013 1.32% 0.35% 2.82% 4.55% 9.60% 2014 -2.08% 3.63% -2.07% -4.39% 2.38% 2.80% 2.21% 3.53% -1.64% 4.95% 2.89% -1.51% 10.69% 11.43% 2015 0.53% 5.39% -0.16% 2.98% 0.90% -0.91% 0.43% -6.67% -1.48% 9.68% 0.63% -0.76% 10.16% 0.47% 2016 7.41% -2.78% 5.31% -0.02% 2.33% -0.29% 3.66% 0.65% 1.63% 0.38% -3.75% -0.71% -1.63% 9.50% 2017 4.97% 2.14% 2.99% 2.08% 3.85% -2.55% 2.68% 2.12% 0.51% 3.41% 0.11% -0.20% 24.49% 19.42% 2018 2.89% 0.63% -0.62% -1.57% 4.11% -1.63% 0.63% 1.72% -2.18% -7.87% 2.70% -7.41% -10.01% -6.55% 2019 7.09% 7.09% 7.87% FUND RETURNS PERFORMANCE METRICS* October 1, 2013 to January 31, 2019 80% FUND S&P 500 70% BSD S&P 500 60% Return Since Inception 49.49% 60.81% 50% YTD Return 7.09% 7.87% 60 Day Return -0.40% -1.32% 40% 20 Day Return 7.73% 7.17% 30% Daily Standard Dev. 0.84% 0.83% 20% Sharpe Ratio 0.56 0.67 10% Sortino Ratio 0.78 0.94 0% Correlation - 0.96 Sep-13 Nov-13 Jan-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 -10% BSD has outperformed our portfolio benchmark with lower risks through active diversification across various subsectors * Management fees and expenses may be associated with investments. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. The indicated rate of return is the historical compounded total return including changes in share value and reinvestment of all dividends. 5

PERFORMANCE HOW BSD COMPARES TO OTHER HEDGE FUNDS HEDGE FUND STRATEGIES* 2014 RETURN 2015 RETURN 2016 RETURN 2017 RETURN 2018 RETURN BSD Global Technology 10.69% 10.16% -1.63% 24.99% -10.02% Absolute Return 0.67% 2.86% 0.31% 3.91% -0.49% Multi-Region 1.71% -1.19% 1.95% 6.58% -5.90% Equal Weighted Strategies -0.56% -1.54% 3.78% 6.10% -5.35% Relative Value Arbitrage -3.06% -3.10% 1.03% 4.28% -1.17% Macro/CTA 5.09% -1.96% -2.93% 7.43% -3.25% Fixed Income - Credit -1.86% -4.38% 4.97% 4.55% -2.55% Global Hedge Fund -0.60% -3.64% 2.50% 8.04% -6.72% Equity Hedge 1.37% -2.33% 5.49% 12.78% -9.42% North America -4.13% -9.35% 4.14% 6.25% -7.62% Emerging Markets Composite -8.03% -5.26% 6.77% 8.99% -7.55% Market Directional 5.13% -8.58% 9.86% 4.68% -12.54% Event Driven -4.06% -6.94% 10.50% 7.22% 11.68% Our outperformance relative to other funds are indicative of our core competency in generating outsized returns and navigating a challenging market environment * Hedge fund index data is provided by Hedge Fund Research Index (HFRI) as of January 2018. 6

TOP 10 STRATEGIC TECH TRENDS FOR 2019-2021 7

CURRENT OPPORTUNITIES AND INVESTMENT PIPLINE BIG DATA HARDWARE • Due to the increasing popularity of the Internet and the growing demand for data transfer infrastructure, the telecommunications equipment sector and the IT equipment sector have started to overlap more and more in the last few years. • Worldwide IT spending is projected to total $3.8 trillion in 2019, an increase of 3.2 percent from expected spending of $3.7 trillion in 2018 • The number of cellular IoT connections is expected to reach 4.1 billion in 2024, increasing with a CAGR of 27%. • Big data is a key driver of overall growth in stored data. Big data will reach 403EB by 2021, up almost 8-fold from 51EB in 2016. Big data alone will represent 30% of data stored in data centers by 2021, up from 18% in 2016 8

BIG DATA HARDWARE 9

BIG DATA HARDWARE AGENDA BIG DATA HARDWARE ECOSYSTEM THE THREE Vs OF BIG DATA BIG DATA SOURCES BIG DATA COMMUNICATIONS AND PROCESSING ECOSYSTEM COMMUNICATIONS PROCESSING FUTURE TRENDS 10

BIG DATA HARDWARE BIG DATA HARDWARE ECOSYSTEM Sensing Hardware : Equipment that collects consumer inputs: smartphones (as personal location and activity sensors), security cameras (collect timestamp data and gender and age Output Sensing bracket), sensors (motion and Hardware Hardware temperature), POS terminals (collecting consumer purchasing behaviors), etc. The Cloud : Where all the data Data The collected from the sensing hardware is Analytics Cloud stored. Data Analytics : Where all the data gets analyzed and interaction decisions get made (can be housed in the cloud). Output Hardware : How the customer gets the desired experience. 11

BIG DATA HARDWARE THE THREE Vs OF BIG DATA THE THREE Vs OF BIG DATA Volume, Velocity, Variety 12

BIG DATA HARDWARE BIG DATA SOURCES IOT – CONNECTED DEVICES FORECAST Internet of Things on the rise – the number of cellular IoT connections is expected to reach 4.1 billion in 2024, increasing with a CAGR of 27%. 40000 Fixed phones Mobile phones PC/Laptop/Tablet Short-Range IoT Wide-Area IoT 35000 30000 25000 20000 15000 10000 5000 0 2018 2019 2020 2021 2022 2023 2024 13 Source: Ericsson

BIG DATA HARDWARE BIG DATA SOURCES SENSOR FUSION FOR AUTONOMUS DRIVING Autonomous vehicle technology, or "self- driving“, refers to vehicles that use sensory data of the surrounding environment to navigate without the use of human drivers. 14

BIG DATA HARDWARE BIG DATA SOURCES THESE COMPANIES ARE TESTING SELF-DRIVING CARS IN CALIFORNIA 104 55 51 39 14 12 11 11 8 6 5 5 Others 88 15

BIG DATA HARDWARE BIG DATA COMMUNICATIONS AND PROCESSING ECOSYSTEM Processing Communications In 2019, IT spending is projected to reach $3.8T 16 Source: Gartner

BIG DATA HARDWARE COMMUNICATIONS WORLDWIDE IT SPENDING FORECAST 195 192 181 439 405 369 US $, in billions 706 689 Data Center Systems 665 Enterprise Software Devices 1,034 987 931 IT Services Communications Services 1,442 1,425 1,392 2017 2018 2019 Due to the increasing popularity of the Internet and the growing demand for data transfer infrastructure, the telecommunications equipment sector and the IT equipment sector have started to overlap more and more in the past few years. 17 Source: Gartner

BIG DATA HARDWARE COMMUNICATIONS TELECOMMUNICATIONS EQUIPMENT COMPANIES Huawei 92.55 Cisco 48 Fujitsu 38.57 US $, in billions Nokia 27.73 Ericson 24.16 Huawei was the largest Nec Corporation 23.95 telecommunications Qualcomm 22.29 equipment company (revenue ZTE 16.71 across all business segments) in the world in Corning 10.12 2017 with revenues of more Motorola Solutions 6.38 than 90 billion U.S. dollars. Juniper 5.03 Ciena 2.8 18 Source: Statista