Mayer Capital Management

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Mayer Capital Management
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Full Liquidity Total Transparency Excellent
Past Performance
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• Investment philosophy Macro-global.
• Investment policy
• a. The measure of the Funds exposure to bonds
  including capital notes of any kind, that are
  traded in Israel and abroad, will not, at any
  time, be less than 75 of the net value of the
  Funds assets.
• b. In calculating the measure of exposure
  mentioned in paragraph a above, bonds and/or
  capital notes creating exposure to equity
  instruments, will not be taken into account.

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2) Unless otherwise notified by the Fund
Manager, the measure of exposure will not, at any
time, exceed, in absolute terms, 30 equity
comprised in the net value of the Funds assets
and 200 foreign currency of the net value of the
Funds assets. 3) Any change in the investment
policy will be reported by the Fund Manager on
the Funds website, and written notice sent to
the holders of the units.
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Legal framework Limited Partnership.
Registration Registered with the Register of
Partnerships, the
Ministry of Justice - Israel. Launch date
December 2009. Minimum investment 500,000.
Annual management fees 2 ( V.A.T). Trust
fees 0.1 Incentive fee None. Entry fee
0.5. Entry/exit from the Fund Daily (T3).
Unit price of the Fund Published daily on the
Companys website
Bloomberg (ISIN IL0011159899). The
Fund Manager will publish on its site at the
beginning of each month, the composition of the
Funds assets at the level of individual
securities, as at the end of the preceding month.
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Fund Trustee Mizrahi - Tefahot Trust Company
Ltd. Fund assets The Funds assets are
deposited with Mizrahi-Tefahot Bank Ltd,
in an account in the name Trust company of
Mizrahi - Tefahot Bank. Transparency
Unit holders in the Fund will receive a secret
code enabling access to and viewing of the
Funds bank account. Fund administrator
Mizrahi - Tefahot Bank Ltd. Auditors Freidkes
Co. - CPA. Legal advisor Yigal Shapira Law
Company. Taxation According to a ruling
received from the income tax authorities
- An Israeli - resident limited partner is
liable to tax at the rate of 25 on
the Funds income. - Foreign - resident
limited partner is exempt from tax on the Funds
income.
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Simodan bonds investments (2E) fund
The fund's assets composition for the end of
November 2009
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SMD - Agach
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Currency-Linked, Government Bonds (Gilboa)
Currency-Linked, Non-Government Bonds
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Fund Manager Roy Mayer. Roy Mayer is the
founder and owner of the Simodan Group. The
Simodan Group was founded in 1990 and is active
in two main areas Mutual Funds management and
Hedge Funds management. The Companys customers
include institutions, public and private
corporations, nonprofit societies, business
corporations and private clients. Roy Mayer,
B.A Economics, former CEO and Manager in charge
of mutual funds specializing in bonds at Leumi
PIA Mutual Fund Management Ltd and prior to
that, was executive representative of the Union
Bank of Israel on the TASE (from 1982 onwards).
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Hedge fund General A hedge fund is an
investment fund that adopts a strategy purporting
to create profit, whatever the market situation
may be. Legal structure Most hedge funds are
established as limited partnerships, where the
fund manager is the general partner and the
investors, the limited partners. This legal
structure has tax advantages as each investor in
the fund (limited partner) has a different tax
regime (foreign resident, Israeli resident,
corporation, private client, etc.)
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Macro-Global This strategy is perhaps the most
well known in the field of hedge funds. The
strategy manager in macro-global funds attempts
to take advantage of changes in policy and
macro-economic developments and their impact on
the various markets. This was done by many
managers during the emerging period of the
European Union, when interest rates of the
currencies of the various countries of the Union
converged to a single status. The fund managers
that estimated that unification would go forward,
bought Italian and Spanish denominated bonds
bearing high yields, and against this sold short
German and French bonds, on which the yields were
relatively low. As the date of the unification
approached, and on its completion, the managers
reaped profits irrespective of the level at
which the yield on the common European currency
was fixed, namely the Euro.
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Investment advantages of hedge funds The main
advantage is lack of dependence on market
behavior. The most popular investments are equity
instruments and debt instruments. Equity
instruments yield profit when the market rises,
and lose when the market goes down. In equity
instruments, profit depends mainly on changes in
the yields a drop in the yields will cause a
rise in the bond rates and growth in profits, and
a rise in yields may cause profit to go down
below normal interest rates, and even lead to a
loss. However, investing in hedge funds is not
necessarily connected with the behavior of the
markets. Regardless of whether the market is
going up or down, or interest rates are rising or
falling - the fund manager may earn a profit as
well as a loss.
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In contrast to investing in funds and bonds where
the investor wants to beat the market, the
investment manager in the hedge fund will wish to
meet a pre-determined profit target - that is
generally higher than the benchmark. In those
circumstances, investing in hedge funds produces
results having a low correlation with those of
the market or of ordinary investments. This is
one of the important requirements of an
investment portfolio to invest in assets having
a low or negative correlation, thereby reducing
the risk. For those reasons, investing in hedge
funds enables a profit to be made whatever the
market situation may be, and also benefit from a
drop in the asset prices, exploit changes in the
market in both directions, diversify investments
and vary the assets. Hedge strategies are very
wide and invest in equity instruments, debt
instruments, currencies, commodities, interest
rates and the like - in Israel and throughout the
world. Risk management, that is the basis of the
hedge-fund industry, allows risks to be limited
and profits to be maximized.
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Office 14 Moshe Dayan St. Petach-Tikva 49518,
Israel. Tel 972 3 - 9229901 Fax 972 3 -
9229905 Cell 972 54 - 4236167 Cell Euro 372
- 53291295 Cell USA 1 516 697 - 2001 Cell
Canada 1 514 621 - 3759 E-mail
roy_at_simodan.com Website www.simodan.com