Element Global Opportunities Equity Portfolio

February 2012

The Element Global Opportunities Equity Portfolio has the mandate to go anywhere in pursuit of attractive investment opportunities, using a bottom-up investment approach. Being equity focused, the portfolio has at least 70% of its assets invested in international equity markets. The portfolio uses as benchmark the MSCI World (Local) but it does not seek to mimic or track this index in any way, which may lead both geographic and sectorial allocation differences.

Portfolio Details
Net Asset Value : Portfolio Assets (): Launch date: Portfolio Managers: 98.46 65200 14-January-2011 Filipe Alves da Silva, CAIA Afonso Janurio

Investment Highlights
Equity markets continued last month's trend, posting strong gains across the board. The most important event was the half trillion Euros, 3 year 1% money, the ECB lent to financial institutions. This should be enough to alleviate the banks funding stress and stabilize the banking system, at least for a while. Despite this chunky check, we will continue to shy away from banks. We continue not to know what is under the hood, making it is very hard or even impossible to access the risks. There are plenty of other fish in the sea. This month we added Ted Baker to the portfolio. Ted is a British clothing retail company. We tried to buy Ted in the beginning of 2011 but the order was not executed and we decided not to chase the stock. I (Filipe) traveled to London this month, and one of the first things on my list was to go to a Ted Baker store. The store and the products look great, and my girlfriend, Joana, bought a pair of shoes that are the perfect example of Ted's culture of applying a twist to their products: on the back of the shoes it reads "Cinderella is proof that a pair of shoes can change your life". Teds also has a JV of Turkish barber shops called "Ted's Grooming Room". I gave it a try and both me, and most important Joana, liked the end result. My only problem is there not being one in Geneva! In retail companies there is nothing like a field trip. Ted baker is still a relatively small operation, with most of its 246 stores located in the UK. This leaves Ted plenty of room to grow abroad, and trading at 17 times we feel we are paying a reasonable price for an excellent business with lots of potential. The portfolio outperformed its benchmark by +0.68% in February.

Investment Guidelines
Max. Long Exposure: Min. Long Exposure: Equity Hedging: 130% 70% May use options on single name equities or equity indices to hedge downside risk Hedged on a best effort basis

Currency Hedging:

Weekly Performance Chart

106 103 100
97 94 91 88

MSCI World Local

Portfolio

85 82 14-Jan 18-Feb 25-Mar 29-Apr 3-Jun 1-Jul 5-Aug 9-Sep 14-Oct 18-Nov 16-Dec 20-Jan 17-Feb

Monthly Performance
Jan 2011 2012 -1,11% 7,06% Feb 1,61% 5,19% Mar -2,05% Apr 3,30% May -1,25% Jun -1,72% Jul -1,37% Aug -7,23% Sep -7,20% Oct 8,70% Nov -2,83% Dec YTD

-1,18% -12,57% 12,61%

Element Global Opportunities Equity Portfolio

Allocation by Sector
Cash Utilities Telecommunication Services 1,1% 4,7% 5,2% 6,8%

Allocation by Country
Cash Others Brazil China Netherlands Italy Sweden Spain Switzerland Germany Australia France Canada United Kingdom Japan United States
0% 6,8% 6,5%

2,2% 6,9%
0,3% 0,3% 0,3% 7,3% 1,1% 5,2% 1,1% 2,3% 5,0% 3,1% 2,7% 48,9% 10% 20% 30% 40% 50% 60%

Materials
Health Care Consumer Staples Consumer Discretionary Energy Industrials Information Technology Financials 0% 5% 3,2% 3,2%

7,3% 11,6%
20,5%

27,4% 8,8% 10% 15% 20% 25% 30%

Top 10 Positions
i Sha res MSCI Worl d ETF Hedged Mi cros oft Corpora ti on Fi del i ty Chi na Speci a l Si tua ti ons IBM Appl e Inc Peps i Co BMW Teva Pha rma ceuti ca l s GAP Inc Ama deus IT Hol di ngs

Weight
27,7% 6,6% 6,1% 5,8% 5,5% 4,6% 4,2% 4,0% 3,7% 3,5%
100%
84,9%

Currency Exposure

80%

60%
40% 20%
2,3% 6,9%

Total

71,8%

2,2%

3,5%

0% EUR USD CNY BRL CAD

0,2%

GBP

Glossary
Bottom-up Investing A bottom-up strategy overlooks broad sector and economic conditions and instead focuses on selecting a stock based on the individual attributes of a company. Advocates of the bottom-up approach simply seek strong companies with good prospects, regardless of industry or macroeconomic factors. Net Asset Value The total value of a companys assets less the total value of its liabilities is its net asset value (NAV). For valuation purposes it is common to divide net assets by the number of shares in issue to give the net assets per share, also known as the price per share. Long Exposure Percentage of the Portfolios assets that are invested in equity markets and that benefit from the appreciation of equity markets. Currency Hedging Transaction implemented to protect the Portfolios foreign currency positions (non-Euro) from an unwanted move in exchange rates. Top 10 Positions Top holdings are those securities in which the latest percentage of the Portfolios total assets are invested. They do not include hedging derivatives. A full list of holdings, including derivatives, is available upon request.
E L E M E N T C A P I T A L

Contacts
For more information please contact Afonso Janurio or Filipe Alves da Silva directly or send an email to element.cap@gmail.com

LONDON

GENEVA

Disclaimer: Past performance is not indicative of future performance. Reference in this document to specific securities should not be construed as a
recommendation to buy or sell these securities.

Element Global Opportunities Equity Portfolio

Complete List of Holdings

Name
iShares MSCI World ETF Hedged Microsoft Corporation Fidelity China Special Situations IBM Apple Inc PepsiCo BMW Teva Pharmaceuticals GAP Inc Amadeus IT Holdings Archer Daniels Midlands Telefonica MRV Engenharia Corning Inc Jakks Pacific BlackRock OPAP IMAX Corporation Renault Monument Mining Energold Drilling Cninsure Premier Exhibitions La Seda de Barcelona Addvantage Technologies Cash

Weight
27,7% 6,6% 6,1% 5,8% 5,5% 4,6% 4,2% 4,0% 3,7% 3,5% 3,5% 2,9% 2,2% 1,9% 1,6% 1,3% 1,2% 1,2% 1,2% 1,2% 1,1% 0,8% 0,5% 0,5% 0,2% 7,0% 100,0%

Total

Disclaimer: Past performance is not indicative of future performance. Reference in this document to specific securities should not be construed as a
recommendation to buy or sell these securities.