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B.C. MOON & COMPANY

B.C. MOON & COMPANY INVESTOR PRESENTATION DRAFT COPY. NOT AN OFFER TO PURCHASE OR SELL SECURITIES.

INVESTOR PRESENTATION

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Disclaimers

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These presentation materials have been prepared solely as a means to determine investor interest in BCM Investors Accredited Fund, LP or the BCM Investors Offshore Limited (the “Funds”). These materials are qualified in their entirety by the Fund’s Confidential Private Placement Memorandum (the “Offering Memorandum”) and the exhibits thereto. This is not an offer to invest in the Fund; any offers will be made only by means of the Offering Memorandum. Any decision to invest in the Fund must be based solely upon the information set forth in the Offering Memorandum and the exhibits thereto, each of which should be read carefully by prospective investors prior to investment. These presentation materials are confidential and may not be reproduced or distributed by the recipient, except that they may be provided to advisers to the recipient in connection with an evaluation of a potential investment. Prospective investors should be aware that an investment in the Fund is speculative and involves a high degree of risk. There can be no assurance that the Fund’s investment objectives will be achieved or that an investor will receive a return of or on its capital. In addition, there may be occasions when the Fund’s general partner, its affiliates and/or its members or employees may encounter potential conflicts of interest in connection with the Fund. An investment in the Fund is subject to restrictions on transfer and withdrawal. The Offering Memorandum discusses these and other important risk factors and considerations that should be carefully evaluated before making an investment in the Fund. Prospective investors should consult with their own legal, tax and financial advisers as to the consequences of an investment in the Fund.

Sources of Information. Certain of the economic and market information contained herein has been obtained from published sources and/or prepared by third parties. While such sources are believed to be reliable, none of the Fund, its general partner, the investment manager or their respective affiliates, employees and representatives assume any responsibility for the accuracy of such information.

Forward-looking Statements. These presentation materials may contain forward-looking statements within the meaning of the United States federal securities laws. Forward-looking statements are those that predict or describe future events or trends and that do not relate solely to historical matters. For example, forward-looking statements may predict future economic performance, describe plans and objectives of management for future operations and make projections of revenue, investment returns or other financial items. A prospective investor can generally identify forward-looking statements as statements containing the words “will,” “believe,” “expect,” “anticipate,” “intend,” “contemplate,” “estimate,” “assume” or other similar expressions. Such forward-looking statements are inherently uncertain, because the matters they describe are subject to known (and unknown) risks, uncertainties and other unpredictable factors, many of which are beyond the Fund’s control. No representations or warranties are made as to the accuracy of such forward-looking statements.

To ensure compliance with U.S. Internal Revenue Service Circular 230, you are hereby notified that: (a) any discussion of U.S. Federal tax issues contained or referred to herein is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties that may be imposed under the U.S. Federal Tax Laws; (b) such discussion is written to support matters addressed herein; and (c) prospective investors should seek advice based on their particular circumstances from an independent tax adviser.

B.C. Moon & Co. only transacts business in states where it is properly registered or notice filed, or excluded or exempted from registration requirements. Follow-up and individualized responses that involve either the effecting or attempting to effect transactions in securities, or the rendering of personalized investment advise for compensation, as the case may be, will not be made absent compliance with state investment adviser and investment adviser representative registration requirements, or an applicable exemption or exclusion. Our current disclosure statement is available for review upon request.

Not an Offer to Purchase or Sell Securities. This document is for informational purposes only. The information contained herein is subject to change. However, we are under no obligation to amend or supplement this document. This document does not constitute an offer to sell or the solicitation of an offer to buy any interest in the Fund. Interests in the Fund will only be available to parties who are “accredited investors” (as defined in Rule 501 promulgated pursuant to the Securities Act of 1933, as amended) and who are interested in investing in the Fund on their own behalf. Any offering or solicitation will be made only to qualified prospective investors pursuant to a confidential offering memorandum, and the subscription documents, all of which should be read in their entirety. An investment in BCM Investors Accredited Fund, LP or BCM Investors Offshore Limited involves a substantial amount of risk. Investments should only be made by investors who fully understand these risks and can withstand a loss of their entire investment. Past performance is no guarantee of future results. This document is being sent only to persons with whom we have a preexisting business relationship. If you have received this document and do not have a preexisting business relationship with us, please notify sender and discard this document immediately.

Table of Contents

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Overview

4

Performance

 

5

Managing Partner Portfolio Construction Investment Process

8

9

12

Risk Management Alignment of Interests Summary of Terms Contact Information

15

16

17

19

An Uncommon Fund

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Modeled after the original Warren Buffett Partnerships hedge fund of the 1950’s

Survival Investing Ethos

Special Situations

Value-Based

Catalysts

Activism

Concentrated

Opportunistic

Intelligent Leverage

Value Special Hedges Situations
Value
Special
Hedges
Situations

A rare framework in today’s world

Outstanding Performance

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Deep Value Insight

S&P 500 (TR)

2013

Q4 Performance

% +

+10.5%

2013

Year-to-Date Performance

% +

+32.4%

Total Return Since Inception*

% +

+36.8%

Annualized Return Since Inception*

% +

+5.2%

* Return from inception March 2012

Overview

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OBJECTIVE

STRATEGY

PORTFOLIO

FUNDS

PRINCIPAL

Produce superior long-term absolute and relative returns versus the S&P index in a scalable manner

Identify Value-based and catalyst driven Special Situation investments available at substantial discounts to intrinsic value

Build a portfolio of 8 – 15 very attractive, non market correlated investments which have high conviction through fundamental research

BCM Accredited Fund, LP (2016) BCM Investors Offshore Limited (2017)

Christopher Moon

6

Investment Philosophy

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VALUE

FUNDEMENTALS

CONCENTRATION

LONG-TERM VIEW

CATALYSTS

INTELLIGENT

LEVERAGE

Strict Value Discipline. Invest in opportunities in which market value is offered at a steep discount to intrinsic value

Owner Mindset. Approach investments as an owner of a business, rather than chasing momentum or technicals

Highly Selective. A handful of great, high-conviction ideas is better than a hundred mediocre ones

Take Time. Patient long-term investing creates a distinct advantage over short-term speculation

Unlock & Create Value. Generate market agnostic returns

Don’t Risk Ruin. Leverage cuts both ways

7

Christopher Moon

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Christopher Moon is the Managing Partner and Chief Research Officer of B.C. Moon & Co., LLC. As the principal behind Deep

Value Insight, a value investing newsletter, Mr. Moon has returned

% *since. His average return over the last four years has

been….*. Mr. Moon has been analyzing investment opportunities for over a decade. His specialties are deep value and risk arbitrage – spin-offs, mergers and bankruptcies. He also has experience in analyzing special situations involving high yield bonds, warrants and LEAPs, as well as analyzing and tracking activist investor campaigns.

*To be verified by an independent auditor.

Portfolio Construction

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“Generals”

Longs

Undervalued stocks

Neglected

Long time horizon

Favorable risk/reward

Shorts

Fads, Frauds, Failures

Flawed business

Unrealistic expectations

Negative catalysts

+

“Workouts”

Special Situations

Non-recurring; Catalyst

Internal/External

Spinoffs / Mergers

Tender Offers

Capital Structure Arbitrage

Reorganizations

Liquidations / Bankruptcies

Pro Forma

Activism

An exceptionally flexible search for opportunities…

9

Portfolio Construction

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We invest opportunistically in a mix of Special Situations & Long/Short, which produces outsized performance with low market correlation.

Our special situations focus and experience generates market agnostic returns and provides a source of additional capital for the Long/Short book and new ideas.

When used intelligently, leverage can produce outsized returns. Only seek opportunities with a high probability of an upside five times greater than the downside.

Through most cycles our exposure will remain net long.

Cash remains the default in the absence of greater opportunities.

We remain flexible and opportunistic in the search for value.

Concentration

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The portfolio will typically consist of 8 – 15 highest conviction ideas.

The portfolio will be built one solid idea at a time.

A few great, high-conviction ideas are better than a hundred mediocre ideas (other typical funds).

Performance over time correlates to the outcome of these particular ideas rather than to the performance of the market.

With only 8 stocks, for example, a portfolio achieves 80% diversification (assuming industries are diversified and uncorrelated). With 100 stocks, one achieves 88% diversification.

These ideas are scalable and can be any market capitalization across industries.

Investment Process – Stage 1

Investment Process – Stage 1 DRAFT COPY. Idea Generation • Constant information gathering by reading hundreds
Investment Process – Stage 1 DRAFT COPY. Idea Generation • Constant information gathering by reading hundreds
Investment Process – Stage 1 DRAFT COPY. Idea Generation • Constant information gathering by reading hundreds

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Idea Generation

Constant information gathering by reading hundreds of pages a day

Catalyst driven special situations, both endogenous and exogenous

Quantitative screening – combing the universe of statistically cheap companies on a fundamental basis

Paying attention to untold and misunderstood stories

Hidden assets that are overlooked and undervalued by the market

Trade shows, industry contacts, investor network, etc.

Sectors of continual review using cross industry knowledge

Top-down themes that are investable

Investment Process – Stage 2

Investment Process – Stage 2 DRAFT COPY. Significant Due Diligence • Management – Who/what drives the
Investment Process – Stage 2 DRAFT COPY. Significant Due Diligence • Management – Who/what drives the
Investment Process – Stage 2 DRAFT COPY. Significant Due Diligence • Management – Who/what drives the

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Significant Due Diligence

Management – Who/what drives the revenue? Interests aligned with shareholders?

Business Model – Key metrics, margin analysis, competitive set, sustainability/defensibility

Sum of the Parts/Valuation – Balance sheet reconstruction, free cash flow generation, strategic assets

Competitive Advantage – Strategic alliances, brand equity, high switching costs, high barriers to entry, recurring revenue

Customer Base – Deep analysis of the value of the customer, customer acquisition process and customer references

Free Optionality – Joint ventures, real estate and intellectual property

Investment Process – Stage 3

Investment Process – Stage 3 DRAFT COPY. Portfolio Optimization Dynamic Risk/Reward Sizing • Has the desired
Investment Process – Stage 3 DRAFT COPY. Portfolio Optimization Dynamic Risk/Reward Sizing • Has the desired
Investment Process – Stage 3 DRAFT COPY. Portfolio Optimization Dynamic Risk/Reward Sizing • Has the desired

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Portfolio Optimization

Dynamic Risk/Reward Sizing

Has the desired “Ratio” characteristic of highly skewed risk/reward

Dynamically re-size portfolio according to relative attractiveness Monitoring/Exit

Dispassionate seller with defined targets

Understand non-fundamental stock dynamics

Sell when catalysts play out or valuations become fair

Material change in the thesis occurs

Disciplined Risk Management

Risk/reward evaluation at all points of the investment cycle Review Process

Refine and analyze investment process over outcome

14

Decision

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What Becomes a Core Position?

Conducive context/industry fundamentals

Seasoned management aligned with shareholders

Compelling valuation with margin of safety and significant upside

Has the desired “Ratio” characteristic

Strategic assets and free optionality

Defensible model with high visibility and inflection point for acceleration of cash flow generation

Variant perception and multiple catalysts

Hiding in plain sight

Too complex and difficult to explain? Then simply pass.

Shorts

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Existence of combination of the following characteristics:

Overextended valuation/unrealistic expectations with negative catalysts

Adverse changes in competitive landscape

Misunderstood business models – lack of operating leverage

Secondary players priced as leaders

Deteriorating fundamentals – pricing power, margins, find the flaw in the model

Customer concentration risk

Promotional management/insider selling

Strong trading liquidity

Similar due diligence process – with focus on identifying flaws in key metrics

16

Risk Management

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Via Investment Process

OFFER TO PURCHASE OR SELL SECURITIES. Via Investment Process • Protection against declines arises from purchasing

Protection against declines arises from purchasing securities with a substantial margin of safety only after achieving high conviction through thorough analysis

Deep fundamental research with a focus on risk factors

Diversification across a variety of sectors

Catalysts drive highly productive recycling of capital

Trading experience and discipline to cut losses

Via Portfolio Structure

Limited use of leverage

Constant evaluation of the portfolio risk and of each position individually

Hedging of individual positions using available low cost alternatives

Hedging of portfolio level and macro level concerns

Employment of advanced options strategies

We are inherently risk-averse and this is integrated into our unique investment approach…

17

Alignment of Interests

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The Bottom Line

Simple rule – A fund manager must eat his or her own cooking.

The Principal retains essentially all of his net worth in the fund.

Funds

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BCM Investors Accredited Fund, LP

U.S. Accredited Individuals

U.S. Qualified Individuals

U.S. Accredited Entities

U.S. Qualified Entities

BCM Investors Offshore Limited

Non-U.S. Accredited Individuals

Non-U.S. Qualified Individuals

IRAs

Non-U.S. Accredited Entities

Non-U.S. Qualified Entities

Tax-Exempts

Offering

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FUNDS

BCM Investors Accredited Fund, LP BCM Investors Offshore Limited

MINIMUM

$1,000,000

FEES

Management: 1.5% Performance: 25% above 6% hurdle

SPECIFICS

High water mark | Two year lock-up Quarterly redemption; 45 day notice Quarterly admission TBD

BROKER/CUSTODY

ACCOUNTING

TBD

LEGAL

TBD

Contact Information

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B.C. Moon & Co., LLC

BCM Investors Accredited Fund, LP

BCM Investors Offshore Limited

Christopher Moon Managing Partner 917-246-7235 – Mobile christopher@bcmoon.com