Alchemy Fund by sdsdfqw21


									                                               Alchemy Fund

                                                                                                                                                                                                    July 2008
                                         Fund Objective
“The fund is a single manager
multi-strategy fund investing
                                         The Alchemy Fund is a multi-strategy fund utilizing principally equity pair-wise long/short and fixed income pair-wise long/short strategies with the goal
in the entire range of South
                                         of achieving positive absolute returns regardless of market conditions.
African instruments using a
number of different strategies.          Investment Strategy
The fund is suitable for inves-
tors who have a long-term in-            Equities: In order to exploit mispricing at the single instrument level, and to not become disguised “sector beta jockeys”, economic sector neutrality is
vestment horizon.”                       sought through long/short economic sector pairs where company-level mispricing is apparent. Such sector neutrality also concurs with our skepticism of
                                         forecasting, all other things being equal. This can clearly only be exploited where under- and overvalued candidates exist within a particular sector.
                                         Despite the common belief that companies within sectors and industries are often overpriced (or underpriced) simultaneously, our experience is that this
                                         is often not the case in the short and medium term. We believe specific “sentiment gaps” within a sector can be exploited, and that this is a pure form of
About the fund
                                         utilizing our alpha generating ability. Additionally, limited outright long (or short) single company strategies will also be used in extreme valuation cases.

Multi-Strategy                           Bonds: We use entirely similar thinking in this asset class, but substitute our sector neutral stance with general duration neutrality, again obviating the
                                         need to attempt forecasting - in this case future yield curve gyrations.
Fund Status
Open                                     Fund Manager

Fund Manager
                                         Rowan Williams-Short:
Rowan Williams-Short
Pierre Marais                            Rowan Williams-Short (Age 45 – MSc ,CFA; FIFM) In 1989, Rowan joined Old Mutual Investments (later OMAM, now OMIG), where he spent 5 years in a
Douw Steenekamp                          variety of positions including bond analyst, equity and fixed interest derivatives analyst, bond portfolio manager and head of derivatives. He left Old
Dudu Tembo                               Mutual in 1994 to join Prudential Portfolio Managers (South Africa) as an analyst and was appointed as a Director and CIO responsible for all aspects of SA
                                         portfolios. In 1999 Rowan joined African Harvest Fund Managers as the CIO of the African Harvest Value Equity and the Fixed Interest teams and
                                         subsequently was appointed CEO of the amalgamated African Harvest Fund Managers. He left African Harvest Fund Managers to join Nedgroup
                                         Investment Advisors (UK) in 2005 as the CIO and was based in London. Rowan established Orthogonal Investments (Pty) Ltd in 2006 and is the CIO.

                                         Pierre Marais
                                         Pierre Marais (48 - PhD, MBA) has 10 years of investment experience. He completed a Post-doctoral fellowship at Oxford University in 1991. From 1992,
                                         Pierre spent six years at Engen Petroleum Ltd where he held the positions of Product Manager and Strategic Projects Manager. Pierre joined Prudential
                                         Portfolio Managers in 1998 where he spent a year as an equity analyst. In 1999 he joined African Harvest Fund Managers as an equity analyst and was later
                                         appointed as a portfolio manager. Pierre is a founding partner of Orthogonal Investments (Pty) Ltd and is currently an analyst and portfolio manager.

                                         Key Features

                                                                                     Peregrine Investment Managers                                                        Variable rate debenture (VRD)
                                           Authorised FSP                                                                       Investment Structure
                                                                                     (Pty) Ltd                                                                            with vesting trusts

                                           Domicile                                  South Africa                               Issuer                                    PIM Investments (Pty) Ltd

                                           Currency                                  ZAR                                        Subscription                              Monthly

                                           Fund Inception                            1 April 2007                               Redemption                                Monthly (30 days notice)

                                           Fund Trustees                             Citadel Trust Limited                      Initial Lock-up                           No lock-up period.

                                           Administrator                             Maitland Fund Services (Pty) Ltd           Fund Auditors                             PKF (Jhb) Inc.

                                           Prime Broker                              Peregrine Equities (Pty) Ltd               Legal Advisors                            Deneys Reitz Inc.

Peregrine Investment                       Management Fee                            1%                                         Performance Fee                           20%
Managers (Pty) Ltd
6A Sandown Valley Crescent
Sandown, 2196, Sandton
South Africa

                                         Important Information
Tel: +27 11 722 7400
Fax: +27 11 722 7565
                                         This document is a summary only, for full disclosure of details, please refer to the investor memorandum or contact Quinzereen Scheepers. As with all investment                  strategies, there is a risk of loss. Past performance is not necessarily indicative of future results, values can go up and down. Peregrine Investment Managers (Pty) Ltd
                                         is an asset management company registered with the Financial Services Board (FSB) as an authorised discretionary Financial Services Provider, licence number 532.
Authorised Financial Services Provider   This is a confidential document and is directed at the recipient and/or the recipient’s advisors and is not publicly available. It is for information purposes only and in
                                         no way constitutes an offer or solicitation of funds.

                                         Hedge funds are not regulated by the Financial Services Board.

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