Element Global Opportunities Equity Portfolio

November 2011

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.

Fund Details
Net Asset Value : Portfolio Assets (): Launch date: Portfolio Managers: 88.48 58600 14-January-2011 Filipe Alves da Silva, CAIA Afonso Janurio

Investment Highlights
The past months have not been for the faint of heart: equity markets experienced wild swings, driven by macro news. The European debt crisis has spread to Italy and Spain and we have come to a point that European leaders need to make hard decisions for the Euro to prevail. In the US, corporate earnings are strong, increasing by 15%, having now surpassed the 2007 high, but while many stocks look cheap on various valuation models, these bargains have lingered like unsold toys on shop shelves after Christmas. This month we initiated positions in PepsiCo and Addvantage Technologies. PepsiCo is the result of the merger between Pepsi-Cola and Frito-Lay in 1965, and now holds 19 brands in its portfolio that have more than $1 billion in sales each. This gives great stability to PepsiCos cash-flows, while it keeps on expanding earnings at a good rhythm, reaching for untapped growth in emerging markets, growing its good for you (healthy) portfolio and taking advantage of secular trends in food habits, as people eat more and more on the go. PepsiCo is trading at low valuations, especially when compared with its historic average and the quality and stability of its results. Addvantage Technologies distributes new and refurbished cable-television equipment. The company's motto is that it can deliver the equipment to its clients in a short period of time thus being able to charge a premium price for that service. For this, the company keeps a large inventory. Addvantage is family owned (49%) business that has a strong balance sheet. From our talks with management, they should decide what to do with their oversized cash position by next year, which should pave the way for a dividend or/and share buybacks, as the company is trading considerably below book value. The portfolio underperformed its benchmark by -1.30% for the month.

Investment Guidelines
Max. Long Exposure: Min. Long Exposure: Equity Hedging: 130% 70% Fund 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 85 82 14-Jan 11-Feb 11-Mar 8-Apr 6-May 3-Jun 30-Jun 22-Jul 18-Aug 16-Sep 14-Oct 11-Nov

MSCI World Local

Portfolio

Monthly Performance
Jan 2011 -1.11% Feb 1.61% 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 -11.52%

Element Global Opportunities Equity Portfolio

Allocation by Sector
Cash Utilities Telecommunication Services Materials 1.6% 6.0% 5.8% 8.5%

Allocation by Country
Cash Others Brazil China Netherlands Italy Sweden Spain Switzerland Germany Australia France Canada United Kingdom Japan United States 0% 7.2% 2.0% 7.1% 0.4% 0.4% 0.5%

Health Care
Consumer Staples Consumer Discretionary Energy Industrials Information Technology Financials 0% 5% 4.6% 4.5%

10.2%
20.4%

7.8%
1.6% 5.3% 1.6% 1.6% 4.9% 4.1% 3.9% 51.7% 10% 20% 30% 40% 50% 60%

27.3% 11.1% 10% 15% 20% 25% 30%

Top 10 Positions
i Sha res MSCI Worl d ETF Hedged Fi del i ty Chi na Speci a l Si tua ti ons IBM Mi cros oft Corpora ti on Appl e Inc GAP Inc Teva Pha rma ceuti ca l s Archer Da ni el s Mi dl a nds BMW Tel efoni ca

Weight
39.8% 6.3% 6.2% 6.0% 4.4% 4.2% 4.0% 3.8% 3.8% 3.6%
100%
80% 60% 40% 20% 0% -20%
96.0%

Currency Exposure

7.1%

2.0%

2.7%

-7.7%

Total

82.1%

EUR

USD

CNY

BRL

CAD

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 Funds assets that are invested in equity markets and that benefit from the appreciation of equity markets. Currency Hedging Transaction implemented to protect the Funds 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 Funds 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 Fidelity China Special Situations IBM Microsoft Corporation Apple Inc GAP Inc Teva Pharmaceuticals Archer Daniels Midlands BMW Telefonica Amadeus IT Holdings Corning Inc Jakks Pacific MRV Engenharia PepsiCo OPAP BlackRock Monument Mining IMAX Corporation Cninsure La Seda de Barcelona Energold Drilling Addvantage Technologies Cash

Weight
39.8% 6.3% 6.2% 6.0% 4.4% 4.2% 4.0% 3.8% 3.8% 3.6% 3.0% 2.2% 2.1% 2.0% 1.6% 1.4% 1.3% 1.3% 1.0% 0.8% 0.7% 0.4% 0.2% 0.0% 100.0%

Total