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GLG EMERGING MARKETS STRATEGY
This document is solely for the use of professional clients and is not for general public distribution
GLG Partners LPOne Curzon Street: London: W1J 5HB: United KingdomTel +44 (0)20 7016 7000: Fax +44 (0) 20 7016 7200
GLG Partners Corp.20th Floor: 390 Park Avenue: New York: NY 10022: USATel +1 212 224 7200: Fax +1 212 224 7210
GLG EMERGING MARKETS STRATEGY
September 2010
Agenda
� Overview 3
� Portfolio managers 4
� Team overview 5
� Investment process 6 - 7
� Risk management process 8
� Risk management framework 9
� Investment goals 10
� Fund performance overview 11
� We believe now is a unique time 12
� Fund terms 13
� GLG Emerging Markets team 15 - 18
� Advantages of GLG 19
� GLG risk framework 20
� Valuation policy 21
� Important information 22 - 26
2
Overview
� A macro Emerging Markets (“EM”) strategy focused primarily on liquid assets in currencies, fixed income (“FI”), credit, equity and their
derivatives
� Monthly liquidity
� Experienced portfolio managers
� Seasoned team of eight traders/analysts with relevant regional and asset class expertise
� Supported by GLG Partners LP (“GLG”) platform covering infrastructure, operations and legal
� Dozen strong team of GLG company analysts, economists and investment strategists
� Strong and independent risk management framework
Source: GLG Partners LP.
3
Karim joined GLG in September 2008 from Morgan Stanley where he was the
Global Co-Head of Emerging Markets. Before he moved to Morgan Stanley,
Karim was a Portfolio Manager at Tudor Capital where he managed one of the
firm’s emerging markets trading books. Prior to Tudor, Karim was the Global
Head of Emerging Local Markets Research at J.P. Morgan, and a member of
Bart joined GLG in September 2008 from Morgan Stanley where he was the
Global Co-Head of Emerging Markets. He joined Morgan Stanley in 2004 from
Vega Asset Management where he was an emerging markets Portfolio
Manager. Prior to this, he was a Director at Deutsche Bank in London from 1998
until 2003. Bart held a variety of positions at Deutsche Bank, culminating in his
Portfolio managers
Portfolio Manager,
Co-Head Global
Emerging Markets
Portfolio Manager,
Co-Head Global
Emerging Markets
Karim Abdel-Motaal Bart Turtelboom
Head of Emerging Local Markets Research at J.P. Morgan, and a member of
the firm's Emerging Markets Management Committee. During this time, he was
responsible for building J.P. Morgan's local currency research effort and
developing a suite of models and indices that have become benchmarks for the
asset class. Karim received a Ph.D. in Economics from Harvard University
until 2003. Bart held a variety of positions at Deutsche Bank, culminating in his
responsibility for coverage of the firm's largest emerging markets clients. Prior
to Deutsche Bank, Bart was an Economist for the International Monetary Fund in
Washington D.C. from 1994 until 1997. Bart received a Ph.D. in Economics from
Columbia University
The portfolio managers, Karim Abdel-Motaal and Bart Turtelboom, joined GLG in September 2008 having previously worked together at Morgan
Stanley. Whilst at Morgan Stanley, Karim and Bart managed the emerging markets sales and trading business taking proprietary trading positions
across all regions and asset classes
4
Team members’ expertise
LATAM EMEA ASIA
Portfolio Managers
Karim Abdel-Motaal � � � � � � � � 15+
Bart Turtelboom � � � � � � � � 15+
Investment Analysts
Al-Wadhah Al Adawi � � � 8
Akhilesh Baveja � � 5
Mark Diab � � 10
Rowan Logan � � 5
Leonardo Marroni � � � � 7
Experience (years)Equity
FX DerivativesFixed
IncomeCredit Quantitative
5
Leonardo Marroni � � � � 7
Anuj Mutreja � 10
Mazen Nomura � � � � � 10
Tal Sandhu � � � � � � � 8
Wim Vandenhoeck � � � � 15
Kelvin Woo � � � � 25
Yongbin Xu � 1
� Twenty to forty trades are identified
� Each trade small relative to NAV (eg. Attempt to
make 50bps, tolerate a loss of 25bps)
� Longs and shorts
� Geographically diversified
� Liquid
� Upside/downside of the trade is identified
� Confidence in upside/downside established
� High confidence trades tend to be attempts to
make 50-75bps
� Historical volatility used to back out the relevant
size, place the stop and target, and risk manage
(gap up and down)
� OTC data is used to put boundaries around the
possible size of a trade
Investment process: three steps to portfolio construction
Investment ideas Trade sizing Liquidity analysis and scaling
� We are risk budgeters. We work to a 10% annualised volatility target and try to maximise return on this budget in liquid emerging markets
� We do not target return. We target risk
� Trades enter the portfolio if they raise its risk-adjusted return
� If a trade leads the portfolio to violate the volatility and market neutrality parameters, it is eliminated, re-sized, or combined with an offsetting trade
� Adding and subtracting trades leads to a portfolio with an expected volatility of 10% and expected beta of zero
Portfolio construction
A portfolio of diversified trades is implemented, balanced across longs and shorts
6
1. Managers and team of
analysts/traders filter the universe
of Emerging Market asset prices
2. Significant price moves in relation
to history are flagged for further
analysis
3. Significant price moves in relation
to fair value are flagged for
further analysis
1. Managers and team of
analysts/traders evaluate macro-
fundamentals
2. Managers and team evaluate
bottom up fundamentals
3. Team draws on in house and
external economics expertise
4. Team draws on GLG team of
company and sector analysts
1. Broker dealer surveys are
conducted
2. Surveys of domestic market
participants are conducted
3. Team draws on internal and
external databases of debt flows,
coupon payments and
amortisations
4. Team draws on internal and
1. Managers and team maintain
high level of interaction with
official circles: Treasuries/
Ministries of Finance, Central
Banks and regulators
2. Managers and team maintain
high quality dialogue with local
bank and company
managements
3. Team travels extensively to
Investment process: four factor approach to idea generation
Asset prices Fundamentals Position technicals Local contacts
4. Analysis is at times quantitative
and at other times purely
qualitative
company and sector analysts 4. Team draws on internal and
industry databases of balance of
payment flows, foreign direct and
portfolio investment flows
3. Team travels extensively to
Emerging Markets countries to
develop and maintain contacts
Twenty to forty trades are identified
7
Risk management process: portfolio diversification and drawdown control
� Each trade enters the portfolio with a predefined stop loss and target, which can be quite wide
� The rules governing the evolution of the stop and the target are discussed ex-ante when we do the trade, i.e. what is the plan in the catastrophe and
spectacular scenario?
� Stops and targets are dynamic conditional on sets of fundamental and technical developments
� A portfolio level peak to trough drawdown of 5% time can trigger an unwind of a minimum of 80% of the portfolio risk and re-assessment*
� Normal times volatility
� Catastrophic jumps and event risk
� Defaults
� Devaluations
� Liquidity
� VaR constraints
� Single name constraints
� FX, Equity and Credit Concentration
limits
� Liquidity constraints
8
* This is a general guideline that may be amended from time to time by GLG Partners LP without prior notice to investors.
Equity limits
� 10% in single name
� 25% per sector
� 25% per country (not region)
Credit limits Jump to default risk limits based on implied credit riskiness of the issuer
FX & IR Limits FX & Interest rate limits based of CCY Tiers
Value at Risk (VaR) 3% daily limit, with 98% confidence interval
Risk management framework details*
Value at Risk (VaR) 3% daily limit, with 98% confidence interval
Liquidity: Entire portfolio can ideally be unwound in five normal business days or less assuming usual market conditions
*This risk management framework is indicative only. These guidelines are for informational purposes only and reflect the current internal GLG risk management framework. There is no requirement that GLG or the Fund observe
these guidelines, or that any action be taken if a guideline limit is reached or exceeded. These guidelines are indicative, subject to change and may be altered at any time, without prior notice, by GLG. Please refer to the Funds
prospectus for the Funds investment restrictions.
9
Investment goals consistent with the team’s trading experience
The portfolio management team will aim to achieve the following*:
Expected annual volatility (net of fees): 10%
Expected maximum drawdown: 5%
* There can be no guarantee that these objectives will be met nor that these targets will be achieved and a decision to invest in the Strategy should not be based on the Strategy’s target volatility. The Strategy’s performance
may be volatile and future returns are not guaranteed and loss of principle may occur.
We have a risk budgeting approach: we strive to deploy 10% annualised volatility and maximise return on that risk.
We target RISK not RETURN
10
-12%
-8%
-4%
0%
4%
8%
-5% 0% 5% 10%% R
etu
rns (S
&P
500)
% Return (GLG EM Fund)
-3%
-1%
2%
4%
-5% 0% 5% 10%
% R
etu
rns (JP
M G
B In
dex)
% Return (GLG EM Fund)
Fund performance overview: returns uncorrelated with major benchmarks*
GLG Emerging Markets Fund
vs. JPM EMBI+ Index
GLG Emerging Markets Fund
vs. MSCI EM Index
GLG Emerging Markets Fund
vs. S&P 500 Index
GLG Emerging Markets Fund
vs. JPM Global Bond Index
Period Return
November 2008 †
2.05%
December 2008 2.97%
Total return 2008 5.08%
January 2009 2.54%
February 2009 0.37%
March 2009 (2.84)%
April 2009 4.89%
May 2009 3.58%
June 2009 1.65%
July 2009 4.43%
August 2009 (0.28)%
September 2009 5.20%
Period Return
January 2010 1.62%
February 2010 0.03%
March 2010 7.15%
April 2010 0.84%
May 2010 (4.50)%
June 2010 0.22%
July 2010 2.96%
August 2010 0.31%
September 2010 1.37%
Total return 2010 10.06%
Since November 2008 56.14%
Realised annualised 11.59%**
-10%
-5%
0%
5%
10%
-5% 0% 5% 10%% R
etu
rn (M
SC
I EM
)
% Return (GLG EM Fund)
-4%
-2%
0%
2%
4%
-5% 0% 5% 10%
% R
etu
rns (JP
M E
MB
I+
Ind
ex)
% Return (GLG EM Fund)
vs. JPM EMBI+ Indexvs. MSCI EM Index
Source: GLG Partners LP, all returns are expressed in US dollar terms. †The Fund’s inception is October 2007. The current portfolio management team assumed responsibility on 1 November 2008.
*The net returns are calculated net of management fees of 2% per annum, and performance fees of 20% and represents the period 1 November 2008 to 30 September 2010. Performance of the GLG Emerging Markets Fund
reflects a share class that is not eligible to invest in “new issues” and as a result may differ from a share class that is eligible to invest in “new issues”.
**The Claim Resolution Agreement ("CRA") between Lehman Brothers International (Europe) ("LBIE") and its clients became unconditional 29 December 2009. Based upon the valuation methodology established in the CRA
and as a result of detailed reconciliation work between LBIE and GLG with respect to OTC positions, the GLG Emerging Markets Fund was able to book a gain of 8.3% to the NAV of Class A Unrestricted shares as at 31
December 2009. The realised annualised volatility number excludes this CRA related result. Past performance is not a reliable indicator of future results. Please refer to Important Information at the end of the presentation.
Market indices have been chosen to represent general market data. No representation is being made that these indices are appropriate for comparison to the Fund. The description of the indices are listed below: 1The S&P
500 is a value weighted index of the prices of 500 large-cap common stocks actively traded in the United States. The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two
largest American stock markets, the New York Stock Exchange and NASDAQ. 2 The JPM GABI consists of the JPM GABI US, a U.S. dollar denominated, investment-grade index spanning asset classes from developed to
emerging markets, and the JPM GABI extends the U.S. index to also include multi-currency, investment-grade instruments. 3The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is
designed to measure equity market performance of emerging markets. 4The EMBI+ tracks returns for actively traded external debt instruments in emerging market, and is also J.P. Morgan's most liquid U.S-dollar emerging
markets debt benchmark. The index segments further the universe of emerging markets as defined by the broader EMBI Global and EMBI Global Diversified, by placing a strict liquidity requirement rule for inclusion. Included
in the EMBI+ are US-dollar denominated Brady bonds, Eurobonds, and traded loans issued by sovereign entities.
11
September 2009 5.20%
October 2009 (1.48)%
November 2009 1.47%
December 2009 11.63%**
Total return 2009 35.00%
Realised annualised
volatility
11.59%**
We believe now is a unique time
Technical factors
� Risk capital is impaired: banks are still deleveraging under massive public sector scrutiny. Asset managers suffered massive outflows which have not yet been
replenished
� Regulatory change-post Basel II promises to raise dramatically the capital banks need to held against risk assets
� Legacy proprietary and special situations positions are complicating the lives of traders
Fundamental factors
� We are, in our opinion, in an historic macro trading environment. With the debate on the great depression and the great inflation underway and unresolved, there is
the potential for continued large tradable moves in interest rates, currencies and stocks
� Contagion from the G-10 credit crisis has caused significant mispricings in EM, particularly in the credit space
� The majority of the EM policy makers are not printing money and/or raising their budget deficits dramatically. This has historic multiyear implications for EM real
exchange rates, share of world output and share of world stock market capitalisation
� We believe some of the structural bullishness on EM as an asset class is warranted. We are in a period of integration into world trade and capital markets of a
number of large economies with rising number of, young, healthy, middle classes. Public finances are in our view in the best shape in a generation to withstand
further global macroeconomic uncertainty
12
Launch Date 29 October 2005**
Structure
Name GLG Emerging Markets Fund
Domicile Cayman Islands
Listing Not listed
Status Cayman Islands exempted company
Shares Classes USD, EUR , GBP, CNY
Valuation Monthly
Service providers
Subscriptions
Minimum Subscription Amount USD 100,000 or currency equivalent
Minimum Incremental Subscription USD 5,000 or currency equivalent
Redemptions
Redemption Notice Period 30 calendar days
Frequency of Redemptions Monthly
Redemption fees / Lock up None
Fees
Strategy terms*
* Please refer to the Prospectus of the Fund for more detail.
** The current portfolio management team assumed responsibility on 1 November 2008.
Service providers
Manager GLG Partners (Cayman) Limited
Investment Manager GLG Partners LP
Distributor GLG Partners Services LP
Fund Administrator International Fund Services (Ireland) Limited
Prime Broker(s) /
Custodian(s)
Deutsche Bank AG, Goldman Sachs
International, Morgan Stanley & Co International
Auditors Ernst & Young
Management Fee 2% per annum
Performance Fee 20% per annum
13
AppendixAppendix
Team history
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Karim Abdel-Motaal
Co-Head Global Emerging
Markets
JP Morgan
Head of Emerging Markets Research, member of proprietary
trading activities and European Emerging Market Management
Committee
Tudor
Capital
Morgan Stanley
Co-Head Emerging Markets
GLG Partners LP
Bart Turtelboom
Co-Head Global Emerging
Markets
International Monetary Fund
Research Department
Deutsche Bank
Emerging Markets Group
Responsible for senior client relationships
Vega Asset
Manager
Morgan Stanley
Co-Head Emerging Markets
GLG Partners LP
Al-Wadhah Al-Adawi
Equity Specialist
LATAM Specialist
HSBC Asset Management
Equity and Index Trading
EMSO Partners
Limited
Morgan
Stanley
GLG Partners LP
Akhilesh Baveja
Equity Analyst
Unit Trust of India
Investment Advisory
Al-Rajhi Financial Services GLG Partners
LP
Mark Diab Ernst & Young Dell Computer SDC Group Amwal GMark Diab
Equity Specialist
EMEA & Asia
Ernst & Young
Auditor
Dell Computer
EMEA Finance
Division
SDC Group
Portfolio Manager
Amwal
Managing Director Asset Management
G
L
G
Rowan Logan
Equity Analyst
SGAM UK
Equity Analyst
GLG Partners
LP
15
Team history
1985-1988 1992 1994 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Leonardo Marroni
Derivatives &Structuring
Specialist
Banca Caboto
Fixed income derivatives, equity structured products
Barclays Capital
Commodity structuring
GLG
Anuj Mutreja
Equity Specialist
Asia Specialist
Morgan Stanley
Equity Division
GLG Partners LP
Mazen Nomura
Derivatives and Credit
Specialist, Asia Expert
Nomura International
Credit Investment Group
Morgan Stanley
Emerging Markets Trader
GLG Partners LP
Tal Sandhu
Derivatives and
Structured Credit
Specialist, EMEA Expert
Sanpaolo-IMI
Interest Rate
Derivatives Trader
Banca Intesa
Equity Derivatives Trader
Morgan Stanley
EM Complex
GLG Partners LP
Wim Vandenhoeck
Fixed Income & Credit
Specialist
Banque
Paribas
Bank
Brussel
Lambert
Analyst
Harvell Capital Management LLC
Portfolio Manager
Aravali Partners LLC
Portfolio Manager
Six Seasons
GAM
Portfolio
Manager
G
L
G
Kelvin Woo
Fixed Income SpecialistBankers
Trust
Trader
Chase Manhattan Bank
North Asia EM Division
Morgan Stanley
Managing Director of EM Division
Consultant
for GLGG
L
G
Yongbin Xu
Quantitative AnalystM
C
E
G
L
G
16
Al-Wadhah Al-Adawi joined GLG in November 2008
from Morgan Stanley where he was a Proprietary Equity
Trader in Global Emerging Markets. Before he moved to
Morgan Stanley he was a Portfolio Manager at EMSO
Partners Limited, a specialist Emerging Market Fund
part of Citigroup Alternative Investments. Prior to EMSO
he worked with HSBC Asset Management as a Country
Analyst in the Global Emerging Market Team. Al-
Wadhah received a double major in Economics and
Finance from Boston University. He is also a CFA
Charter Holder.
Akhilesh joined SGAM Bahrain in October 2008 as an
analyst specialising in Saudi Arabian equities. Prior to
joining SGAM Bahrain, he was a Senior Analyst and
Associate Director with Al-Rajhi Financial Services
Company in Riyadh for two and a half years, primarily
covering the Saudi market. He also spent four years on
equity and equity derivative research at Unit Trust of
India Investment Advisory Services. Akhilesh holds a
Master of Management Science in Finance. Akhilest
Baveia joined GLG following the acquisition of SGAM’s
UK asset management business in April 2009.
Mark joined GLG in August of 2010 from Amwal Qatar
where he was Managing Director of Asset Management,
responsible for their Equity Asset Management Division
including the management of two mutual funds, several
institutional client portfolios and Amwal’s own proprietary
capital. A member of the Investment Committee, he also
represented the company as a Director on the Board of
several companies including Gulf Formaldehyde, a
subsidiary of QAFCO. Previously Mark was a Vice
President with SDC Group in London responsible for
their listed equity investments and direct investment
activities globally. Mark began his career as an Auditor
with Ernst & Young in Abu Dhabi. He holds an MBA
from the University of Cambridge, and a BA in
Team members
Akhilesh Baveja
Equity Specialist
Mark Diab
Equity SpecialistAl-Wadhah Al-Adawi
Equity Specialist
Following his BSc (Hons) in Investment and Financial
Risk Management at Cass Business School in London,
Rowan joined Société Générale Asset Management UK
Limited in 2004 as a Risk Manager focusing on their
range of equity portfolios. In 2007, Rowan joined the
Global Emerging Markets team as an Investment
Analyst studying equity investments for their range of
global and regional specific Emerging Market portfolios.
Rowan joined GLG following the acquisition of SGAM’s
UK asset management business in April 2009.
Leonardo joined GLG in January 2010 from Barclays
Capital where he was working in the Commodity Investor
Structuring team as responsible for product development
and execution of commodity investment derivatives.
Before joining Barclays Capital, Leonardo was working
in the Equity Structured Product Trading team at Banca
Caboto in London where he was responsible for
structuring and trading of algorithmic products. Prior to
this, Leonardo was part of the Interest Rates Derivatives
Trading team at Banca Caboto in Milan. Leonardo
graduated in Economics from Bocconi University, Milan.
Anuj joined GLG as an Analyst for the GLG Emerging
Markets Fund, focusing mainly on Asia. He previously
worked at Morgan Stanley, most recently running the
European small and mid cap research team and working
on the Asian and European technology teams in prior
years. Anuj graduated from St. Anne's College, Oxford
with an MEng and also holds a MSc. (Finance) from City
University Business School.
from the University of Cambridge, and a BA in
Economics from the American University of Beirut.
Rowan Logan
Investment Analyst
Leonardo Marroni
Derivatives Specialist
Anuj Mutreja
Equity Specialist
17
Mazen Nomura joined GLG in December 2008 from
Morgan Stanley where he was Head of EEMEA
Emerging Markets Credit Trading. During his 5 years at
Morgan Stanley he has traded EM credits
and structured credits as well as spending several years
as a liability-side structurer. Mazen started his trading
career at Nomura International's Credit Investment
Group, a specialist credit arbitrage desk, where he
traded Asian sovereign and corporate credits. He has
an MA in Political Science from Columbia University and
a BA in Economics from Rutgers University.
Tal joined GLG in December 2008 from Morgan Stanley
where he was an Executive Director and Head of
Complex Products in Emerging Markets. Before joining
Morgan Stanley, Tal was Co-Head of Equity Structured
Product Trading at Banca Intesa in London. Prior to this,
Tal traded Interest Rate Derivatives at
Sanpaolo IMI Bank. Tal graduated with
a MSc. Economics and Finance from the University of
Warwick and a BSc (hons) in Economics and Finance
from Brunel University.
Wim joined GLG in June 2010 from Six Seasons GAM
where he was a Portfolio Manager. Prior to this venture
he managed fixed income, credit and derivative
portfolios as a Partner in two investment advisors. He
also spent time at Bank Brussels Lambert and Paribas
Bank mainly in the capacity of Credit Analyst. Wim
graduated in Economics from Katholieke Universiteit
Leuven, Belgium and holds an MBA from Cornell
University.
Team members (cont’d)
Tal Sandhu
Derivatives Specialist
Wim Vandenhoeck
Fixed Income & Credit SpecialistMazen Nomura
Derivatives & Credit Specialist
Kelvin is an Asset Manager for the GLG Emerging
Markets team. He began working with GLG in May 2009
as consultant for the team, and joined the firm in May
2010 to work out of GLG's Hong Kong office focusing on
FX and Fixed Income in Asia. Prior to joining GLG,
Kelvin was a Managing Director at Morgan Stanley,
where he built their Emerging Markets business in Hong
Kong, and was in charge of all Asia-related trading
activities. Prior to Morgan Stanley, Kelvin was at Chase
Manhattan Bank in Hong Kong, where he had overall
responsibility for the firms North Asia Emerging Markets
business. Before Chase Manhattan Bank, Kelvin
worked at Bankers Trust in Hong Kong as an Analyst in
the Fixed Income Division. Kelvin received a Bachelor
of Social Sciences (Economics) from the University of
Hong Kong in 1984.
Yongbin joined GLG in August 2010 from Macquarie
Capital Europe where he was a Quantitative Analyst in
Equity Research. Yongbin received a D.Phil in
Mathematics from Oxford University.
Kelvin Woo
Fixed Income Specialist
Yongbin Xu
Quantitative Analyst
18
Advantages of GLG
Performance
� A focus on absolute returns
� An attractive track record of investment performance in both traditional and alternative strategies
� Winner of numerous major industry awards
Process
� A clear and explicit investment approach combining fundamental analysis with tactical trading
� Synergy of ideas across different strategies with specialised analysts working by both region and sector
� Emphasis on both qualitative and quantitative assessment of investment opportunities
� Dominant position with brokerage community provides enhanced access to third party resources
� Relationships with other external consultants and information providers
People
� An experienced and respected investment management team
� Single team, performance-oriented culture which continually attracts and retains top quality talent
19
� Opportunity for individual managers to leverage off other GLG investment specialists and analysts
Client Focus
� Dedicated client services team with direct access to the investment management team and risk team
� Real time portfolio valuation
� Individual client needs matched with tailored portfolios with detailed risk reports available each month
� Active asset and strategy allocation overlay
Infrastructure
� As at 30 September 2010, 408 staff supported by an institutional infrastructure
� A strong and independent risk management framework and deep resources in all support areas
� A strong and independent compliance function, with robust policies and procedures including conflicts, market abuse, KYC/AML
� Ongoing commitment to leading edge technology in front and back office, and support areas
� Support from the industry’s leading service providers
Portfolio risks
� Policy to monitor portfolio risks to ensure alignment with established risk limits
� Risk Committee (“RC“) headed by Emmanuel Roman, Co-CEO
� RC meets bi-monthly and considers firm-wide risk, sets individual Fund risk limits, adjudicates on risk breaches and advises on risk
developments and enhancements
� Risk Management (“RM“) headed by David Benjamin reports to RC
� Independence of portfolio risk monitoring from portfolio management
� Liquidity risk management, market risk management and event risk management
� Policy to manage and mitigate operational risk including breakdown in internal controls, systems and corporate governance
� SYSC Committee (Systems and Controls) headed by Emmanuel Roman, Co-CEO meets monthly to review regulatory matters
GLG risk framework
GLG has adopted a risk framework for consistently evaluating and managing the risks applicable to its business. The framework covers portfolio, operational and
outsourcing risks
Operational risks
� SYSC Committee (Systems and Controls) headed by Emmanuel Roman, Co-CEO meets monthly to review regulatory matters
affecting or arising within GLG and to act as a channel of communication between senior executives within the business so that
significant strategic, operational, financial or regulatory issues can be considered and reviewed on a regular basis
� Controls over business continuity and disaster recovery, IT systems and data loss/error, fraud and financial crime prevention; trade
and trade processing, counterparty risk, legal and regulatory risk and financial model risk
� Significant breaches reported to Chief Operating Officer, Simon White
� Experienced Compliance Officer, Robyn Grew
Outsourcing risks
� Policy to ensure that adequate due diligence and ongoing monitoring on third party service providers
� Significant risks reported to Chief Operating Officer, Simon White
� Service level agreements with all third party fund administrators
� Diversification and ongoing review of prime brokers and other trading counterparties
� Disclosure of third party service providers in Fund’s prospectus
� Independent auditors
20
� The Directors of the GLG Funds have appointed an Independent Pricing Committee (“IPC”) which has responsibility for approving prices and pricing mechanisms
for the GLG Funds. The IPC meets monthly or on an adhoc basis, as required and is comprised of a GLG Fund director, a representative from each Fund
Administrator and a representative from both senior management and risk management from GLG
� Ernst & Young are invited to attend and receive minutes from each meeting of the IPC
� IPC minutes are approved by all parties and final minutes are circulated to the Board of Directors of the GLG Funds
� There is an agreed pricing matrix for each Fund Administrator which lists the primary, secondary and tertiary (where applicable) pricing sources for all existing
instrument types. Examples of primary sources are closing prices from a recognised trading exchange and for secondary sources publicly available broker quotes or
Bloomberg generic prices
� Prices are reconciled on an asset line by asset line basis. Discrepancies that cannot be reconciled are referred where relevant to the IPC
� If no pricing source is available then the IPC will approve a suitable pricing methodology
� Price overrides are only approved where, for example, there has been a bad exchange mark or material news after the exchange has closed. All overrides are
Valuation policy
� Price overrides are only approved where, for example, there has been a bad exchange mark or material news after the exchange has closed. All overrides are
reported to the IPC
� Private placement positions are reviewed on a monthly basis and marked to fair value. Input from the Fund manager is expected and is considered but there is a
robust review process and the IPC approves the fair value marks on all private placements. The fair value guidelines from the International Private Equity and
Venture Capital (IPEVC) are used.
� Default policy is to price all securities to mid market and not to make any liquidity provision. Exceptionally where a GLG fund is facing a liquidity crisis a liquidity
provision may be approved by the IPC
� Where the IPC fails to reach agreement on an issue, the matter is referred to the Board of Directors the relevant GLG Fund
21
Important Information
This document has been prepared by GLG Partners LP, 1 Curzon Street, London W1J 5HB, which is authorised and regulated by the Financial Services Authority (“FSA”).
This document is provided to you for information purposes only and should not be used or considered as an offer or a solicitation to sell or buy the securities mentioned in it. Any decision by an investor to buyshares in a Fund must be made solely on the basis of the information and terms contained in that Fund's prospectus. Nothing in this document should be construed as investment advice, or as an opinionregarding the appropriateness or suitability of any investment or strategy. This document does not take into account the particular investment objectives, restrictions, financial or tax situation or needs of anyspecific investor or client. No representation is made that the objectives or goals of any investment fund or strategy will be met or that an investment will be profitable or will not incur losses.Opinions expressed herein may not necessarily be shared by all personnel of GLG Partners LP and its affiliates and are subject to change without notice. There can be no guarantee that the events orcircumstances envisaged in any forward looking statement will occur. Some of the GLG Funds are categorised in the United Kingdom (“UK”) as unregulated collective investment schemes for the purposes ofthe Financial Services and Markets Act 2000 (“FSMA”) and their Shares cannot be marketed in the UK other than in accordance with the provisions of the Financial Services and Markets Act 2000 (FinancialPromotion) Order 2005, the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemption) Order 2001 or in compliance with the rules of the FSA made pursuant toFSMA. Accordingly, participants in these Funds will not have the benefit of the rights designed to protect investors under the FSMA.The securities referenced in this document may not have been registered under the Securities Act of 1933 (the “1933 Act”) or any other securities laws of any other U.S. jurisdiction. Such securities may notbe sold or transferred to U.S. persons unless such sale or transfer is registered under the 1933 Act or exempt from such registration. This information does not constitute tax advice. Investors should consulttheir own independent advice with regard to their tax situation.The information is furnished as of the date shown or cited; no representation is made with respect to its accuracy, completeness or timeliness and no obligation to update or otherwise revise such informationis being assumed. All information is based on GLG Partners LP calculations unless otherwise stated.
Performance DataPerformance data of the GLG Funds is not based on audited financial data. Performance data of the Fund is based on the Fund’s Net Asset Value in accordance with the valuation methodology in the Fund’sPerformance data of the GLG Funds is not based on audited financial data. Performance data of the Fund is based on the Fund’s Net Asset Value in accordance with the valuation methodology in the Fund’sProspectus. Performance may be impacted by capital contributions and withdrawals and unless otherwise stated is net of management, performance and other fees as described herein and includesreinvestment of earnings. The Fund’s fees may be modified or waived for certain investors. Please refer to the Fund’s Prospectus for more information regarding the Fund’s fees and other terms. An investor’sactual performance and actual fees may differ from the data reflected herein due to among other factors, different share classes and eligibility to participate in “new issues”. It should also be noted that certainshare classes of the Fund may be closed, including the share class from which the performance data presented herein has been derived.
Past performance may not necessarily be repeated and is no guarantee or projection of future results. Past performance is not a guide to future performance and the value of investments andthe income derived from those investments can go down as well as up. Future returns are not guaranteed and a loss of principal may occur. Performance may be affected by economic andmarket conditions.
Market DataInformation about market indices is provided for the purpose of making general market data available as a point of reference only. There is no representation that any index is an appropriate benchmark forcomparison. Index returns do not take into account trading commissions and costs or other fees and expenses associated with the active management of portfolios. The volatility of indices may be materiallydifferent from the performance of the Fund. The Fund’s holdings may differ substantially from the securities that comprise the indices. Furthermore, the Fund may invest in different trading strategies from theindices and therefore it should be noted that the sector, industry, stock and country exposures, volatility, risk characteristics and holdings of the Fund may differ materially from those of the indices. Theperformance returns of the indices include the reinvestment of earnings and are obtained from Bloomberg and other third party sources. Although GLG believes these sources to be reliable, it is notresponsible for errors or omissions from these sources.
RisksIn certain jurisdictions the Fund may only be available to professional or otherwise qualified investors or entities. An investment in the Fund involves a number of risks that is outlined in the Fund’s Prospectus.There can be no guarantee that the Fund’s investment objectives will be achieved, and the investment results may vary substantially from year to year or even from month to month. The Fund may engage ininvestment practices or trading strategies that may increase the risk of investment loss and a loss of principal may occur. GLG will have total trading authority over the Fund, and the Fund will be dependentupon the services of GLG. The Fund’s fees and expenses as described in the Fund’s Prospectus may offset the Fund’s gains. In addition, there may be restrictions on transferring interests in the Fund,please refer to the Fund’s Prospectus for additional information.
Important Information (cont’d)
Country DisclosuresUnless otherwise stated, this document is communicated by GLG Partners LP, in reliance on regulatory permissions or an appropriate exemption. For investors located in:
United States: This document is communicated by GLG Partners Corp an affiliate of GLG Partners LP and GLG Inc.Unless otherwise stated the Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (“the 1933 Act”) or the securities laws of any of the states of theUnited States, nor is such registration contemplated. The Shares may not be offered, sold or delivered directly or indirectly in the United States or to or for the account or benefit of any “US Person” exceptpursuant to an exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act and any applicable state laws. The Shares are being offered outside the United States pursuantto the exemption from registration under Regulation S under the 1933 Act and inside the United States in reliance on Regulation D promulgated under the 1933 Act and Section 4(2) thereof. This informationdoes not constitute tax advice. Investors should consult their own independent advice with regard to their tax situation.There is no public market for the Shares and no such market is expected to develop in the future. The Shares offered hereby are subject to restrictions on transferability and resale and may not be transferredor resold except as permitted under the 1933 Act and applicable state securities laws pursuant to registration or exemption therefrom.The Fund has not been and will not be registered under the United States Investment Company Act of 1940, as amended (the "1940 Act") pursuant to the provisions of Section 3(c)(7) of the 1940 Act, whichexcludes from the definition of “investment company” a privately offered fund that is organised outside the US and whose US Person security holders consists exclusively of “qualified purchasers”, as definedin Section 2(a)(51) of the 1940 Act. As such, the Fund is not subject to or has the same regulatory requirements of US mutual funds.The Fund may arrange or permit the private placement in the United States of a portion of the Shares under the exemption provided by Section 4(2) of the 1933 Act and Regulation D promulgated thereunderto US Persons that are "accredited investors" (as defined in Rule 501(a) of Regulation D under the 1933 Act) and “qualified purchasers” (as defined in Section 2(a)(51) of the 1940 Act), under restrictions andother circumstances designed to preclude a distribution that would otherwise require registration of the Shares under the 1933 Act, cause the Fund to become subject to the registration requirements of the1940 Act, oblige the Fund or the Investment Manager to comply with requirements under the United States Commodity Exchange Act, or cause the assets of the Fund to be "plan assets" for the purposes ofthe United States Employee Retirement Income Security Act of 1974, as amended ("ERISA"), including presentation by such investors, prior to the delivery to them of Shares, of subscription documentationthe United States Employee Retirement Income Security Act of 1974, as amended ("ERISA"), including presentation by such investors, prior to the delivery to them of Shares, of subscription documentationcontaining specified representations and agreements.The Fund will not accept any subscriptions from investors that are employee benefit plans subject to Title I of ERISA, certain tax qualified plans subject to Section 4975 of the United States Internal RevenueCode of 1986, as amended, or other entities deemed to hold assets of such plans (together, "Benefit Plans") if after such subscription the Shares of any class held by Benefit Plans would be 25 per cent ormore of the total outstanding Shares of that class. If the Shares of any class held by Benefit Plans were to exceed this 25 per cent limit, the Fund’s assets might be considered "plan assets" under ERISA,which could result in adverse consequences to the Fund, the Investment Manager and the fiduciaries of the Benefit Plans.