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From: Neal Berger
To: [email protected] 
Subject: Eagle's View Capital Management, LLC- February 2015 Performance Update... 
Date: Mon, 16 Mar 2015 02:12:06 +0000 
Eagles View Capital Management, LLC February 2015 
Performance Update 
Mar 15, 2015 
Risk Management- What do we expect? 
Click here to view our most recent investor tearsheet 
Dear Partners/Friends, 
If nothing else, February poignantly highlighted the idiosyncratic and uncorrelated 
nature of Eagle's View's return profile. While mainstream asset classes and the hedge 
fund industry overall had a very strong month, Eagle's View by contrast, had one of its 
poorest showings. To be sure, we feel confident that this cuts both ways and we believe 
the opposite may hold true likely with greater frequency. 
Sometimes a Manager is best judged by his more challenging periods. Although it may 
seem counter-intuitive, we are proud of the way we handled a series of challenging 
situations during February. Eagle's View was able to showcase the power of our 
portfolio construction, diversification, and risk management, despite the fact that we had 
a losing month. 
As we are all aware, short-term losses are part of this business. We believe the manner 
in which a Manager is able to contain and handle these losses truly shows the skill and 
talent of that Manager. Given that Eagle's View Capital Partners, L.P. has historically 
been profitable in 82.50% of all months, February was one of those rare instances 
whereby we were able to showcase how our risk management and portfolio construction 
allowed us to contain losses to relatively modest levels that were well within the 
boundaries of what we would consider prudent risk management despite a confluence of 
outsized losses from our underlying investments. 
Performance of Eagle's View Capital Partners, L.P. is estimated at -0.89% for February 
with YTD performance estimated at +0.07% net of all fees and expenses. 
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Performance of Eagle's View Offshore Fund, Ltd. Class G is estimated at -1.70% for 
February with YTD performance estimated at -1.45% net of all fees and expenses. 
Performance of Eagle's View Offshore Fund, Ltd. Class B ("High Alpha") is estimated at -2.37% 
for February with YTD performance estimated at -1.72% net of all fees and expenses. This 
Share Class seeks to generate substantially higher returns through a more concentrated portfolio 
of some of our historically higher return opportunities. Investors in this Class should have a 
willingness to accept increased volatility and risk in exchange for the potential of higher returns. 
Although only midway through the month, March is looking positive at this time despite 
the challenges facing the equity markets and other markets thus far during the month. 
Obviously, performance will change between now and month-end, however, we are 
seeing more normalized and positive performance at this time for the Eagle's View 
funds. 
During February, the Eagle's View Funds suffered a negative month due to a 
combination of a few outsized losses coupled with a lack of counter-balancing outsized 
gains acting as an offset. Although the majority of the Managers invested in by Eagle's 
View Capital Partners, L.P. were positive during February, we had three large and 
outsized losses within our portfolio that occurred concurrently during the month of 
February. This included a Manager losing nearly -12% for the month, one with losses of 
-8.50% for the month, and a third with losses of -6.20% for the month. Of the Managers 
that were positive, only Quantitative Global Macro rose to the level of material offset to 
these losing positions gaining +5.94% for the month. The other Managers who were 
positive were only reasonably so. That said, given the three substantial and outsized 
losses from underlying strategies, we believe containing our overall losses at the 
portfolio level to less than -1% serves to highlight our portfolio construction, risk 
management, and diversification. To be sure, it is never a pleasant experience for us to 
lose any money whatsoever. 
The Eagle's View offshore funds suffered these similar outsized losses, except, the 
majority of Managers within the offshore Funds were negative and therefore providing 
little in the way of offsetting gains. Still, we believe our losses at the portfolio level 
remained contained and within the boundaries of prudent risk management versus our 
overall return expectations. We are in the business of investing in a diversified portfolio 
of positive expectancy investments, however, month to month, this positive expectancy 
doesn't always insure a monthly gain and February was one such example. 
Ironically, of the three major losing investments, the only one that is not 'actionable' on 
our part is the Manager who posted -12% for the month. This Manager performed 
within the boundaries of expectations in light of their 8-year 40% annualized return 
profile and had been sized by us to anticipate this type of possible drawdown. 
To be specific, when we use the term 'actionable', we are referring to a deep 
investigation of the cause of these losses coupled with a full or partial redemption from 
the Manager due to a divergence of our expectations versus the actual course of events 
that took place. 
The Manager who generated an -8.50% loss for the month had never experienced a loss 
even close to this figure in the past. In fact, this loss was four times greater than their 
prior largest monthly loss. We had extensive conversations with this Manager and 
simply put, we believe this was a failure of risk management causing a loss that 
exceeded the outer boundaries of what we expected of this Manager. As such, it has 
become actionable on our part. 
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Finally, the -6.20% loss was nearly double the largest prior loss that Manager had 
experienced. This has also become actionable due to a failure of risk management 
amongst other factors. 
As the reader can see from the above, we reference risk management quite a bit. This 
begs the question of what we expect a prudent and sharp risk manager should consider 
acceptable losses within a liquid strategy. While this is a very involved and lengthy 
discussion, and obviously, participants will have a varying answers to this question, we 
are providing our own opinion of what we expect in terms of risk management. We are 
simplifying things a great deal and merely providing our 'rule of thumb' metrics 
allowing for certain nuances in practice. As we've always stated, this is more art than 
science. 
We believe monthly losses and maximum levels of peak to trough drawdown should be 
a function of return expectations (for illustrative purposes, we will use annual return 
expectations). Eagle's View ascertains a rough annual return expectation for each 
investment based upon both qualitative and quantitative metrics coupled with our 
market experience as former traders ourselves. Based upon those annual return 
expectations, we do not believe a sharp risk manager would allow for greater than a 25-
33% monthly loss versus those annual return expectations as an outer boundary (i.e. a 
Manager with a 10% annualized return expectation shouldn't have monthly losses 
exceeding a -3% handle in our view). On a peak to trough basis, we believe a prudent 
risk manager should target 60-70% as an outer boundary versus their annualized return 
expectations. These rules of thumb apply to liquid strategies (which is what Eagle's 
View seeks to invest in), and, we must allow for truly unforeseen events such as 
earthquakes, natural disasters, etc. To be sure, we hold Eagle's View to the same 
standard when constructing, managing, and sizing our portfolio investments. 
During the month of February, Eagle's View held to this standard, despite a couple of 
our underlying Managers who exceeded these boundaries. When portfolio managers 
experience losses, we commonly hear about how unusual or anomalous their markets 
were during the period. Our response is, a prudent Manager should expect the 
unexpected. Just as Eagle's View was able to withstand the unexpected, so should our 
underlying Managers. Fear of cutting losses at the bottom as once compelling trades 
seemingly become more compelling leads to stubbornness in cutting or exiting positions 
and the potential for losses that exceed the outer boundaries of prudence in the context 
of one's annualized return expectations. As a former trader, I have sold the bottom and 
bought the top countless times. That said, living to fight another day, and, "playing 
right" should always take precedence over short-term opportunities regardless of how 
compelling. Losses are not shameful nor sinful, rather, it's allowing those losses to 
exceed appropriate boundaries that flirts with danger and becomes a slippery slope. 
Broadly speaking, Eagle's View is in the business of seeking to capitalize upon market 
inefficiencies without regard to the overall direction of markets. Ultimately, if we are correct 
that markets are in for a period of heightened volatility, this should enhance our returns even if it 
comes at the expense of increased volatility of our returns. Market inefficiencies are often 
created during more volatile and turbulent markets, although, during the initial stages of market 
dislocations, existing positions can often suffer as those strategies in the business of capitalizing 
upon these moves need to re-adjust. Over the longer term, we believe increased volatility is a 
positive for our strategy should it occur. 
Eagle's View seeks to maintain a relatively balanced book in terms of factor exposure. However, 
we have added some positions that we believe would benefit from heightened volatility and 
substantial market moves should they occur. Of course, we are broadly diversified across what 
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we believe to be positive expectancy strategies and we believe our core return stream should 
continue along in a positive course with acceptable levels of volatility regardless of market 
conditions. 
We are accepting new investment within our Fund of Funds products as well as within our 
Advisory business. Please contact me with further interest in our products/services. 
Disclaimer: Past performance is not indicative of future results. This newsletter is provided for 
informational uses only and should not be used or considered an offer to sell, buy or subscribe 
for securities, or other financial instruments. Prospective investors may not construe the 
contents of this newsletter or any prior or subsequent communication from us, as legal, tax or 
investment advice. Each prospective investor should consult his/her personal Counsel, 
Accountant, and other Advisors as to the legal, tax, economic and other consequences of hedge 
fund investing and the suitability of such investing for him/her. Further, the contents of this 
newsletter should not be relied upon in substitution of the exercise of independent judgment. 
The information contained herein has been obtained from sources generally deemed by us to be 
reliable, however, all or portions of such information may be uniquely within the knowledge of 
parties which are unaffiliated with us or our affiliates and, therefore, may not be amenable to 
independent investigation or confirmation. In such cases, we have not undertaken to 
independently investigate or confirm the accuracy or adequacy of such information, but we have 
no reason to believe that such information was not accurate and adequate, to the best of our 
knowledge, when given. The index comparisons herein are provided for informational purposes 
only and should not be used as the basis for making an investment decision. There are 
significant differences between client accounts and the indices referenced including, but not 
limited to, risk profile, liquidity, volatility and asset composition. Funds included in the HFRI 
Monthly Indices must report monthly returns; report net of all fees retums; report assets in US 
Dollars, and have at least $50 million under management or have been actively trading for at 
least twelve (12) months. Fund of Funds invest with multiple managers through funds or 
managed accounts. The strategy designs a diversified portfolio of managers with the objective of 
significantly lowering the risk (volatility) of investing with an individual manager. The Fund of 
Funds manager has discretion in choosing which strategies to invest in for the portfolio. A 
manager may allocate funds to numerous managers within a single strategy, or with numerous 
managers in multiple strategies. The minimum investment in a Fund of Funds may be lower than 
an investment in an individual hedge fund or managed account. The investor has the advantage 
of diversification among managers and styles with significantly less capital than investing with 
separate managers. PLEASE NOTE: The HFRI Fund of Funds Index is not included in the HFRI 
Fund Weighted Composite Index. It is important to note that investing in hedge funds involves 
risks. Please request and read the Private Placement Memorandum for a complete description 
of the risks of hedge fund investing. Hedge fund investing may involve, in addition to others, the 
following risks: the vehicles often engage in leveraging and other speculative investments which 
may increase the risk of investment loss; they can be highly illiquid; hedge funds are not 
required to provide periodic pricing or valuation information to investors; they may involve 
complex tax structures and thus delays in distributing important tax information may occur; 
hedge funds are not subject to the same regulatory requirements as mutual funds and they 
often charge high fees. Opinions contained in this Newsletter reflect the judgment as of the day 
and time of the publication and are subject to change without notice. Eagle's View Capital 
Management, LLC provides investment advisory services to clients other than the Funds, and 
results between clients may differ materially. Eagle's View Capital Management, LLC believes 
that such differences are attributable to different investment objectives and strategies between 
clients. Past performance is not a guarantee of future results. If you are not the intended 
recipient or have received this communication in error please notify the sender immediately and 
destroy this communication. Any unauthorized copying, disclosure or distribution of the material 
in this communication is strictly forbidden. 
Kindest regards, 
Neal Berger 
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President 
Eagles View Capital Management LLC 
212.421.7300 
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Eagles View Capital Management LLC 135 East 57th St. 23rd Floor New York 
NY 
10022 
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