Current Target Allocation4
Long Short Fund:
55%
Multi-Strategy Arbitrage
Fund: 25%
Opportunities Fund: 5%
Distressed Fund:
15%
Since Inception through 8/31/07:
12.01%
4.31%
2.77%
7.79%
Average Annualized Return
15.19%
5.25%
4.81%
8.95%
1 Year Return
25.41%
7.04%
9.36%
16.95%
2 Year Cumulative Return
41.14%
11.49%
12.14%
27.29%
3 Year Cumulative Return
-
-
-
0.13
Beta: S&P 500 DRI Index
-
-
-
-0.03
Beta: Lehman Agg. Bond Comp. Index
-3.15%
-2.44%
-
-0.42%
Largest Calendar Qtr. Drawdown
0.84
0.42
-
1.95
Sharpe Ratio
11.05%
3.67%
0.46%
2.58%
Annualized Standard Deviation
S&P 500 DRI Index
Lehman Agg. Bond
Composite Index
90-Day Treasury Bills
Aetos Capital Prime
Portfolio
As of 8/31/07:
Chief Investment Officer:
Anne Casscells - Menlo Park, CA
For More Information Please Contact: Andrea Bollyky (212) 201-2518 abollyky@aetoscapital.com
Terms5
Product Name: Aetos Capital Prime Portfolio
As of August 31, 2007
Product Description: The
Aetos Capital Prime Portfolio is a tactically allocated portfolio with moderate risk and return
objectives, comprised of allocations to Aetos Capital’s SEC-registered Funds, designed to provide U.S. and Offshore investors
a consistent
absolute return with lower volatility versus traditional markets. This Portfolio incorporates
a fundamentally based
investment process with a disciplined approach to strategy allocation, manager selection and portfolio monitoring where risk management
is
integrated in every step.
Total Firm Assets1: $11,511MM
Total FoHF Assets: $4,397MM
Total Strategy Assets2
: $2,398MM– Separate Accounts
$1,999MM
– Funds/Portfolios
$1,992MM – Portable Alpha3
Auditor: PricewaterhouseCoopers LLP
Custodian: SEI Private Trust Company, Inc.
90 Days
Notice Period
Quarterly
Redemptions
1 Year (2 Years for Opportunities Fund)
Lock-Up
Monthly
Contributions
$1 Million
Minimum Investment
Yes
High Water Mark
90-Day Treasury Bills
Hurdle Rate
10.0%
Performance Fee
1.00% (0.75% on investments of $25mm+)
Management Fee
2.41%
9.31%
1.11%
1.49%
0.99%
0.20%
0.69%
0.35%
0.15%
-0.57%
0.94%
1.27%
0.34%
2.00%
2006
2.70%
6.72%
1.36%
0.68%
-0.83%
0.75%
0.65%
1.20%
0.81%
0.78%
-0.51%
0.28%
1.26%
0.12%
2005
Standard
Deviation
YTD
Dec
Nov
Oct
Sept
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
-
2.37%
0.95%
0.51%
0.34%
-0.67%
-
-
-
-
-
-
-
-
2002
2.07%
10.98%
1.09
1.12%
1.42%
0.60%
0.79%
0.37%
1.30%
1.70%
1.69%
0.21%
-0.02%
0.21%
2003
2.61%
8.73%
1.02%
1.57%
0.69%
0.66%
0.00%
-0.18%
0.36%
-0.10%
-0.68%
-0.12%
0.72%
1.85%
2004
-
4.92%
-
-
-
-
-1.42%
-0.63%
0.40%
1.69%
1.52%
1.10%
0.50%
1.71%
2007
Investment Performance6 (US$)
Assets Under Management:
1 Total Firm Assets: Aetos Absolute Return – $4,397MM
Aetos Fund Advisory - $384MM
Aetos Capital Asia (Opportunistic Real Estate) - $2,940MM
Aetos Capital Management Asia (Public/Private Asian Securities) - $210MM
AEA Investors, LLC (Private Equity) - $3,580MM
2 Aetos Capital currently offers the following hedge fund of funds strategies to our clients:
Aetos Funds: SEC-registered, strategy-specific hedge fund of funds:
Aetos Capital Multi-Strategy Arbitrage Fund
Aetos Capital Distressed Investment Strategies Fund
Aetos Capital Long/Short Strategies Fund
Aetos Capital Market Neutral Strategies Fund
Aetos Capital Opportunities Fund
Aetos Portfolios: Tactical allocations to the Funds managed to specific return and volatility targets:
Aetos Capital Conservative Portfolio (lower volatility)
Aetos Capital Balanced Portfolio (low volatility)
Aetos Capital Growth Portfolio (moderate volatility)
Aetos Capital Prime Portfolio (moderate volatility)
Custom Portfolios: Customized allocations to the Funds managed to client-specific return and volatility targets
Separate Accounts: Direct investments made in the client's name with underlying managers
Portable Alpha Mandates: Can utilize both commingled vehicles and separate accounts
3 These assets are also included in the count for Funds and Portfolios and the Separate Accounts where relevant for portable alpha mandates which utilize hedge fund of funds.
5 Terms:
Terms associated with an investment in the Funds through the investment program described in the prospectuses
6 Investment Performance:
The Prime Portfolio is a model
portfolio/asset allocation program. This Portfolio may not reflect an investor’s actual portfolio as actual portfolios reflect each investor’s own objectives and risk
tolerances. The performance of the Portfolio is based
on the weighted performance over the respective periods of the Aetos Capital SEC-Registered Funds, weighted according to the allocations in
effect during the periods for the Portfolio as indicated above. Performance figures shown are net of investment
advisory and performance fees of 1.00% of assets annually and 10% of profits above
the three month Treasury bill return, respectively. The returns also reflect Fund level expenses, some of which have been waived and/or reimbursed by the Investment Adviser. Returns
would have
been lower without such waivers and reimbursements. Past performance is not indicative of future returns. The Aetos Capital Opportunities Fund commenced operations on August 1, 2005. Please
note that during
the periods prior to August 1, 2005, the Aetos Capital Opportunities Fund was not in existence.
Absolute return investing involves substantial risks, including the risk of loss of invested capital.
Absolute return investments are typically made through investments in illiquid, unregulated
investment funds that employ sophisticated investment techniques, often involving derivatives and leverage, in a wide range of financial instruments and markets. These
investments entail a wide
variety of risks, which remain substantial notwithstanding the risk management practices we employ in selecting and monitoring funds we invest in.
Prospective investors should consider the investment objectives, risks, and the charges and expenses discussed
above carefully before investing. The prospectus contains this and other
information; a free copy of the prospectus may be obtained by calling 212-201-2540. Please read the prospectus carefully before investing.
Aetos Capital, LP 875 Third Avenue New York, NY 10022 (212) 201-2500
Aetos Alternatives Management, LLC 2180 Sand Hill Road Menlo Park, CA 94025 (650) 234-1860
Aetos Capital: Portfolios and Products
4 Historical Allocations: