10 Funston Ave

San Francisco, CA 94129

Performance
In December, the fund returned +5.30% after costs and fees. For the year 2021, the
fund returned +15.86% after costs and fees.

2021 Performance (net of costs, gross of fees 1)

Sharpe: 1.68
Annualized Volatility: 10.12%
Max Drawdown: -5.23%
Return Over Maximum Drawdown (RoMaD): 3.25
Returns attributed to stock selection: 86% (only ~14% attributed to factor risk)

Numerai’s Relative Performance (net of costs and fees2)

2020 2021 Compound Return

Numerai 7.68% 15.86% 24.76%

EurekaHedge Equity Market Neutral 3.62% 6.86% 10.73%

BarclayHedge Equity Market Neutral -1.29% 7.86% 6.47%

Aurum Equity Market Neutral -17.35% 12.93% -6.66%

Clearly on a relative or absolute basis, Numerai’s performance has been exceptional.

Over 2020 and 2021 an investment in Numerai would have substantially outperformed
every equity market neutral index we have data for after costs and fees.

Numerai’s fund has:

1. strong absolute performance (2021 Sharpe was 1.68)
2. strong relative performance (beating market neutral indexes by ~10% to ~30%)
3. low drawdown in periods of market stress (peak to trough drawdown for 2021
was -5.23% and 2020 was -6.52%)
4. a return stream uncorrelated with traditional quant factors (in 2021, <14% of
Numerai’s returns are attributable to factor risks and Numerai’s fund has a -.032
correlation with AQR’s factor exposed market neutral fund).

1 We report metrics like Sharpe gross of fees, because not every investor is in the same fee class
2 Assuming Founding Class fees of 1% management fee
Numerai’s 2021 Growth
• The total number of Numerai models staking more than 0.1 NMR grew from 1,146 to
3,757 (3.3x)
• The total number of Numerai Signals models staking more than 0.1 NMR grew from
55 to 550 (10x)
• The total staked on all models grew from $4.7m to $23.5m (5x)
• Numerai’s dataset grew to 4x the number of rows and 3.3x the number of features
• The AUM grew from $8.5m to $51.6m as we closed our first institutional investor (6x)

Numerai’s master plan is to monopolize intelligence, monopolize data, monopolize money

and decentralize the monopoly. In 2021, we grew intelligence (measured by staked Numerai
models) by 3.3x and data (measured by features available in our dataset) by 3.3x. This
growth in intelligence and data is responsible for our exceptional performance which led to
a 6x increase in the money we manage in 2021 (measured by AUM).

Numerai’s Goal for 2022

Given that Numerai is the only internet hedge fund, there is no reason to believe that
we can’t keep growing like an internet company. For a traditional quant fund, it would
be overly ambitious to attempt to triple the number of models in a year or triple the
size of its data in a year. But for Numerai this level of growth is not only possible, it is
what Numerai was designed to do.

Even though Numerai has some of the best performance in the market neutral category
already, the world hasn’t yet begun to see the power of a distributed internet hedge
fund where the expected growth of the core inputs (data, intelligence) are measured in
hundreds of percent per year.

It’s typical for breakthroughs in AI to follow a certain trajectory. Think of Deepmind’s

AlphaGo learning to play Go.

AlphaGo’s trajectory:
It looks bad.
It looks human.
It looks as good as the best humans.
It looks like an alien super intelligence.

Numerai’s trajectory:
Numerai looks bad (pre-2019).
Numerai looks like a decent quant fund (2020).
Numerai looks like one of the best quant funds (2021).
Numerai looks like an alien super intelligence (20XX?).
Our primary goal for 2022 is to reach alien super intelligence.

Sincerely,
Richard Craib
Founder & CEO
 Addendum 1
Portfolio Exposure

Regional Exposure

As of Date 12/31/21

Number of Positions 952

Americas Developed
Gross Exposure 604.29% Asia Developed
EMEA Developed
Net Exposure 0.05% Emerging Markets
Beta to MSCI ACWI .03
Forecast Vol. 8.48%

Market Cap Exposure Sector Exposure

Financials
Health Care
Materials
Consumer Staples
Consumer Discretionary
Large Industrials
Mid Information Technology
Small Energy
Micro Utilities
Communications Services
Real Estate

Addendum 2
Bloomberg Risk Model

1 We report metrics like Sharpe gross of fees, because not every investor is in the same fee class
2 Assuming Founding Class fees of 1% management fee
This document is confidential, provided for information purposes only and may not be redistributed. This document does not contain all of the
information required to make investment decisions including a full accounting of the potential risks involved in any investment. Therefore, this
document alone should not be relied upon to make investment decisions. Investments in funds or accounts managed by Numerai GP, LLC
contain a high degree of risk including the risk of loss of principal. There can be no guarantee that any of the investment objectives described
will be achieved or that any of the forward looking projections described are accurate or complete. None of the statements contained in this
communication constitute a buy sell or hold recommendation for any financial instrument. Past performance does not guarantee future results.
To the extent that this document conflicts with the Confidential Offering Memorandum of any fund managed by Numerai GP, LLC , such
Confidential Offering document will prevail.

This document does not represent an offer to purchase or sell any security or the interests of any fund managed Numerai GP, LLC or its
affiliates. Such an offer may only be made to persons who qualify to invest and in jurisdictions in which such an offer is legal. Offers to invest in
funds or accounts managed by Numerai GP, LLC may only be made by individuals who are authorized to make such an offer and may only be
made pursuant to the delivery of a Confidential Offering Memorandum for such fund. As indicated, certain performance may be presented net
of management fees, incentive fees, taxes and other fund or account expenses; other performance may be presented gross of such fees and
expenses, which fees and expenses, when deducted, will materially lower performance. Returns reflect the reinvestment of dividends and other
earnings. Performance results may be based on unaudited, preliminary information and are subject to change. The investment performance of
the Fund summarized herein reflects an investment for a specific period of time. Actual performance results experienced by an investor may
vary significantly from the results shown for a number of reasons, including, without limitation, different investment periods, the timing of
capital subscriptions, withdrawals and/or redemptions, and different fees/allocations or expenses from those presented.

Unless otherwise indicated, market indices included in this letter are only intended to provide contextual general market results during the
stated period; such market indices do not represent an appropriate benchmark against which to compare the Fund’s performance. A comparison
of the Fund’s performance to a single market index may be inappropriate as the Fund engages in strategies that are not included in the index
and will not be as diversified as such comparative index, among other reasons, and such differences may result in material differences. Further,
the Fund is actively managed and intends to use leverage in connection with the investment strategy, while such indices are unmanaged, may
not employ leverage, and may not be subject to fees and expenses, including transaction costs, typical of private investment funds and accounts.

The estimated performance set forth herein are presented on a net of fee basis and reflect the deduction of, among other things: Management
Fees of 1%.