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Business Plan
CONFIDENTIAL – NOT FOR DISTRIBUTION
January 2012
This document is issued by Odin Capital Management Ltd. which is authorised and regulated by the Financial Services Authority. This document is only made available to Professional Clients. Information contained in this document is provided on a strictly confidential basis only and does not constitute an offer to sell or a solicitation of an offer to buy any security, nor is it advice or a recommendation to enter into any transaction. Any offer to sell or a solicitation of an offer to buy or sell shall be made solely by a Confidential Offering Memorandum. This document is being circulated on a confidential basis only and may not be distributed to unauthorized parties and is subject to modification, updating, validation and amending. All investments involve a risk of loss of capital and no guarantee or representation can be made that an investment will generate profits or that an investment will not incur loss of invested capital.
Disclaimer
Odin Capital Management Ltd - Strictly confidential
Odin Capital Management Ltd - Strictly confidential
Structure 4
Service providers 5
Organisational chart 6
Associated company: Odin Trading Ltd 7
Performance and risk 8
The Odin Capital Management edge 9
Capacity 10
Marketing strategy 11
Terms 12
Contents
UK investment management firm founded in 2006 & registered with the FSA since 2008
Fully functional offices in Surrey, next to London, with a robust and efficient technology infrastructure
In-house Compliance and BCP procedures
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Odin Capital Management Ltd - Strictly confidential
Structure
A mature structure
Odin Financial LtdBVI offshore fund
Odin Capital Management LtdUK investment manager
Management
Qualified investors Founder & CIO
Risk & OperationsInformation Technology
Macro quant 1 PM
Macro quant 2 CFO (TBD)
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Odin Capital Management Ltd - Strictly confidential
Fund Service providers
• JP MorganCustodian• NewedgeClearing broker
• CCP Accountancy ServicesAuditor• Fidelity Corporate Services• Director 2Directors
• Charter Group Fund AdministrationAdministrator
• Fidelity Corporate ServicesLegal Counsel
• Rees PollockInvestment manager auditor
• XXXInvestment manager counsel
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Odin Capital Management Ltd - Strictly confidential
Organisational chart
Patrick Moerth, Founder & CIO2006-2011: Odin Capital
2002-2006: Credit Suisse, Global Macro quant strat2001-2002: Feri Alternative, HF analyst
PhD Economics from Univ. St Gallen, CFA, CAIA, FRM
Tigrane Kibarian, Risk & Operations2008-2011: Odin Capital
2004-2008: Goldman Sachs, portfolio restructuring2001-2004: General Electric, corporate finance
2000-2001: Arthur Andersen, AuditMBA from ESSEC – French Grande Ecole
Deepak G.C., Information Technology2009-2011: Odin Capital
MSc Computing
TBA, Macro quant strat2009-2011: Odin Capital
2008-2009: Barclays, structured products2007-2008: Lehman, structurer
2006-2007: Calyon, FX research2002-2006: IBM, developer
MBA from Bocconi, Software Engineer
TBA, Portfolio manager2009-2011: Family office prop trader
2006-2008: Absolute Capital, portfolio manager2005-2006: Barep (SocGen HF), risk manager
French Engineer
TBA, Macro quant strat2009-2011: Odin Capital
2004-2008: Project manager, Travelsky Group, ChinaMBA from Oxford, Msc Computer Science in Beijing
1st prize of China Physics competition - CFA, FRM, IMC
TBD, CFO
10 in-house proprietary traders active on US and European equity indices, bonds, currency and commodity futures
Manager runs operations, letting Odin Capital staff fully dedicated to fund management
Independent and segregated business with no access to client information or positions
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Odin Capital Management Ltd - Strictly confidential
Associated company: Odin Trading Ltd
Discussions between PM’s and
traders about market structure
Ability to spot top traders for Odin
Capital
Discussions about quant strategies based on market
observations
ODIN TRADING Ltd
SYNERGIES WITH ODIN CAPITAL
Key performance & risk metrics
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Odin Capital Management Ltd - Strictly confidential
Performance & risk
*Performance overview exhibits net returns since inception accounting for 1% management fee and 25% performance fee subject to a high watermark as well as operational and trading costs.
*
J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec Year Sharpe ratio MSCI World2006 1.82% 1.98% 2.70% 6.44% -0.02% -1.81% 4.37% 16.28% 17.95%2007 2.18% 2.60% 5.22% 0.01% 0.70% 5.28% 4.83% 11.27% 1.94% 3.19% 2.09% 7.03% 56.83% 7.09%2008 9.71% 4.40% 10.84% 0.21% 1.48% 4.61% 1.21% 6.49% 1.82% 7.01% 3.27% 3.36% 69.31% -42.08%2009 0.29% -0.01% 1.63% -6.49% -0.42% 0.26% 0.11% 0.16% -0.25% -0.01% -0.01% -0.13% -4.98% 26.98%2010 0.50% -0.96% 1.13% 0.87% 5.41% 2.04% 0.49% 0.26% 3.47% 0.73% -1.36% 1.88% 15.24% 9.55%2011 1.91% 1.55% 2.82% -1.31% -6.04% 3.49% 1.65% 0.36% 3.70% 0.49% 8.56% -9.17%
Return p.a 27.13%
Standard dev. p.a 10.95%
Sharpe ratio 2.3
Positive months 80.0%
Upside potential ratio 1.92
Omega 7.25
Maximum drawdown -7.28%
Modified VaR -3.64% -8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
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Odin Capital Management Ltd - Strictly confidential
The Odin Capital Management edge
•Low or negative correlation to equities and most hedge funds
•Robust investment process: consistently positive track record through different economic environments & cycles
•Access to talent: unique ability to select traders with good performance metrics and scalable strategies from Odin Trading Ltd
Correlations CS/Tremont Hedge Fund Index
CS/Tremont Global Macro Index
CS/Tremont Managed Futures Index
Odin Capital Management -0.36 -0.09 0.05
•In-house trading and programming expertise: market observations analysed and translated into systematic strategies
2006 2007 2008 2009 2010 2011
+16.28% +56.83% +69.31% -4.98% +15.24% +8.56%
•Fee structure of 1%/25%: fully aligns interest of investor with that of Odin Capital
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Odin Capital Management Ltd - Strictly confidential
Capacity
80%
5%
5%
5%5%
Strategies for 20MMUSD AUM
Global MacroQuant strategies equity indicesQuant strategies bondsQuant strategies currenciesQuant strategies commodities
40%
15%15%
15%
15%
Strategies for 200MMUSD AUM
Global macro
Quant strategies equity indices
Quant strategies bonds
Quant strategies currencies
Quant strategies commodities
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Odin Capital Management Ltd - Strictly confidential
Marketing strategy
USD and EUR share classes
Subscriptions and redemptions at month end
Minimum subscription 100,000USD
Redemptions free of charge with 30 days notice
0.5% charge for shorter notice redemptions
High-water mark applies
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Odin Capital Management Ltd - Strictly confidential
Terms
No gate or lock-up period
Monthly redemptions
1% management fee
25% performance fee