ALTERNATIVE INVESTMENT COMMENTARY*

The alternative sector ended the year on a positive note as the HFRI Fund-of-Funds Composite Index rose by
2.1% during the fourth quarter and 8.3% for 2019, which is the index’s best performance since 2013. Global
markets closed the year on a positive note as the Federal Reserve cut interest rates by 25 basis points and trade
uncertainty faded as the U.S. and China announced a “phase one” trade deal. Specifically, ‘Equity Hedged’ and
‘Event Driven’ strategies were among the best performing strategies as the HFRI Equity Hedged (Total) Index
and HFRI Event Driven (Total) Index increased by 5.7% and 2.9%, respectively, during the quarter. We
are very pleased with all of our manager’s performance in 2019 as the majority of them healthily outperformed
their respective benchmarks. In light of the outsized performance in the long equity markets, we want to remind
investors that our hedged managers should not be compared to equity indices as our manager’s net exposure at
times is significantly lower than equity indices, which have 100% market exposure at all times.

*Data taken from HFRI (Hedge Fund Research Indices) as of January 15th, 2020