Element Global Opportunities Equity Portfolio

March 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: 100.06 67700 14-January-2011 Filipe Alves da Silva, CAIA Afonso Janurio

Investment Highlights
"Spring is in the air". These were the words of Christine Lagarde when referring to the world economy. Simple and elegant they mean that, little by little, the economy is healing and there is more space to breathe. This month we initiated a position in Avangardco, a Ukrainian company specialized in the production and distribution of eggs. This little known company, founded in 2003, is already responsible for the production of 6 billion eggs per year, making it the world's second largest producer (largest is the US based Cal-Maine producing 10bn eggs/yr). If the company continues on this growth trend, it will be number one very soon. Avangardco is vertically integrated, owning and operating each of the key stages of production, which allows it to enjoy above average margins. The company has a strong balance sheet, low debt, and despite being on a strong growth phase, it is generating positive free cash flow. There is also a free option. The company doesnt export to Russia or the EU because it (and Ukraine) still doesnt have the export permission to do so. Recent EU regulation mandated that egg producers increase the size of hen's cages, which decreased production by 10-15% and made egg prices in the EU soar. Avangard claims it complies with the new regulation. Opening the doors to the EU and/or Russia would create substantial value. As a catalyst to unlock value in the short-medium term, Avangardco will most likely be absorbed by its main shareholder (UFL) once it goes public. We paid 4 times 2011s earnings for it, a bargain in our opinion. The portfolio over performed it's benchmark by +0.12% this month and +3.87% in the quarter.

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 16-Mar

Monthly Performance
Jan 2011 2012 -1,11% 7,06% Feb 1,61% 5,19% Mar -2,05% 1,62% 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% 14,44%

Element Global Opportunities Equity Portfolio

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

Allocation by Country
Cash Others Brazil China Netherlands Italy Sweden Spain Switzerland Germany Australia France Canada United Kingdom Japan United States 0% 7,2% 7,2% 1,9% 6,4% 0,3% 0,3% 0,4% 6,9%

Materials
Health Care Consumer Staples Consumer Discretionary Energy Industrials Information Technology Financials 0%

7,2% 12,5%
19,4% 3,2% 3,2% 28,2% 8,6% 5% 10% 15% 20% 25% 30%

1,1%
5,0% 1,1% 2,3% 4,6% 3,1% 2,8% 49,6% 10% 20% 30% 40% 50% 60%

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

Weight
27,8% 6,6% 6,0% 6,0% 5,7% 4,8% 4,0% 4,0% 3,5% 3,5%
100%
83,9%

Currency Exposure

80%

60% 40%
20%
3,9% 6,4% 1,9% 3,1%

Total

71,8%

0% EUR USD CNY BRL CAD

0,2%

0,7%

GBP

UAH

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

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