2. This presentation is intended to be for information purposes only and it is not intended as promotional
material in any respect. Reliance should not be placed on the views and information in these presentations
when making individual investment and/or strategic decisions.
A fund’s investment objectives, risks, charges and expenses should be considered carefully before investing.
This document contains information in summary form only and its accuracy or completeness cannot be
guaranteed.
No liability is accepted for any loss of whatsoever nature arising from the use of this information. Application
for units in this fund may only be made on the basis of a prospectus relating to the fund and this document
may only be distributed to those eligible to receive that prospectus.
The distribution of this document may be restricted in certain jurisdictions and it is the responsibility of any
person or persons in possession of this document to inform themselves of, and to observe, all applicable laws
and regulations of any relevant jurisdictions.
The prospectus contains this and other important information about the Fund of Funds. To obtain a prospectus
free of charge, call SGG Corporate & Fund Administration Services, 412F, Route d’Esch, L-2086, Luxembourg.
Please read the prospectus carefully before investing or sending money.
Contact Information
Emerald Managements S.a.r.l.,
412 F Route d’Esch,
L-2086 Luxembourg
Email: info@emeraldfof.com
Website: www.emeraldfof.com
Paul Hunt: +32 496 520 624 | paul@emeraldfof.com
Boaz Alpern: +972 526 304 849 | boaz@emeraldfof.com
Disclaimer
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3. Why Emerald Diversified?
As experienced institutional investment solutions provider, our challenge will always be to offer low volatility
investment products that are non-correlated to traditional financial markets. Our mission is to allow our
investors to navigate uncertain times through an investment vehicle possessing a fully diversified profile and
whose allocation is focused on funds specialized in non-correlated commodities trading, real-estate related
services and structured credit.
We also want to offer solid and predictable returns in addition to the low volatility we seek. We aim to pass on
to our investors the dual benefit of a reduction in overall portfolio volatility and performance enhancement
when allocating to Emerald Diversified Fund of Funds.
Emerald Diversified FoF achieves these objectives by selecting experienced managers possessing established
and successful multi-year track records in the specialized sectors we have identified as capable of generating
returns with only a limited exposure to market fluctuations. An example of this for instance are investments
commodity trading credit, where margins remain constant regardless of commodity prices.
We target an annual performance of 7-9% net of fees and so far our track demonstrate both low volatility and
the predictability of returns which provides the appropriate degree of stability for institutional portfolios.
The Emerald Diversified FoF is aligned with overall investment sector trends and offers a genuine opportunity for
institutional portfolio diversification sought by investors today. Research from Russell 2012 Global Survey on
Alternative investing shows that the most significant global trend in recent years is the transition of institutional
investors from traditional investments such as bonds and stocks into alternative investments, having 22% of their
investments into alternatives.
The respondents indicated 3 reasons for their investments choices:
1) Diversification
2) Volatility management and low correlation to traditional investments
3) Return potential
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4. For the investor, a fund of funds serves as a proxy, which performs professional due diligence on carefully
selected managers, and monitors and oversees the funds in its portfolio. Additionally, experienced fund of
fund managers allow for a rare and unique visibility on sometimes highly profitable but less known assets, and
the ability to access these managers with a lower investment threshold.
Emerald Diversified FoF is a convenient “one-stop-shop” investing in various specialized funds, each belonging
to different areas of the alternative investments universe, uncorrelated to one another, hence our investment
philosophy based on the following three key parameters:
1. Any portfolio should have an allocation to non-market correlated assets.
2. This allocation should include funds, which are uncorrelated to each other in their core business.
3. These funds must demonstrate attractive characteristics of the alternative investments spectrum.
Our Allocation Profile
Property Related funds: These are funds that own real estate properties and therefore are “asset backed” but
their core activity is to generate income and capital appreciation not from passive renting out of these
properties but from business activity conducted by the fund in these properties.
Green and SRI Funds: These are funds that conduct a business activity that supports the environment,
sustainability or any other Socially Responsible Investments and has such added value to its commercial
activity e.g. fund that owns and manages timber plantations, recycling or new energy funds, housing for
disabled members of the community. Such funds are generally“asset backed”.
Trade Finance Funds: These funds provide asset backed finance for the purpose of carrying out various types
of transactions in the commodity value chain. These are usually short-term commitments (3 months on
average).
Structured Finance Funds: These funds provide structured asset backed and medium-term (2-5 years) loans
primarily to listed SME’s.
Emerald Diversified Benefits
The above allocation represents our allocation guidelines by sector
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5. Manager Selection
We believe that risk management begins with stringent fund manager selection. We track a pool of 30 proven
managers, each a specialist in one of our allocated sectors. Our selection criteria especially focus on key
personnel, intellectual edge, experience, investment discipline, counterparty risk and track consistency.
We apply thorough procedures for due diligence and ongoing monitoring/supervision of underlying funds. We
also closely monitor other funds which demonstrate the qualities and return potential which meet Emerald
Diversified’s investment requirements. Potential candidates to be included in the portfolio are subject to
monitoring over a significant period of time.
Risk Management
Qualitative
Assessment
We select a peer group of
asset managers for each
asset class, in order to
understand their added
value
Quantitative
Performance Metrics
We run several data
metrics to understand his
return/risk profile for the
asset class
Portfolio Fit
Fund’s strategy and risk/
return must align within
our existing portfolio
selection parameters
Portfolio Liquidity
Managing risks associated with liquidity is achieved by utilizing several protection layers:
¤ The fund holds 10% in cash to meet potential redemption requests.
¤ The fund applies redemption fees scaling down from 5% in year one to 0% after five years, in order to
encourage medium to long-term investments, which in turn will reduce demand for sudden
redemptions.
¤ A substantial allocation to trade finance funds which can easily and rapidly be redeemed and provide
liquidity for the fund.
¤ The underlying funds, which hold less liquid physical assets, represent a smaller allocation within the
fund. These underlying funds are carefully evaluated to ensure they can meet our redemption needs
(i.e. similar to those required by long-term institutional investors).
Non-correlation
As a non-market correlated diversified fund of funds, we add another level of risk reduction by achieve genuine
diversification by allocating to managers with differing core businesses, various asset classes, managers, and
spread our allocation to several geographical regions.
Third-party
We mitigate counterparty risk by employing partners possessing a well-established international reputation,
each approved by the regulator.
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6. Why Luxembourg?
We decided to base the Emerald Diversified FoF in Luxembourg because the advantages offered by this well-
established jurisdiction enhanced the benefits we want to pass on to our investors. We have listed a few facts
characterizing the upside of Luxembourg based funds:
1st European Fund center - 2nd global Fund center
Luxembourg offers the best investor protection in the world
Flexible investment structures best addressing investor needs
Demonstrable track record in designing efficient regulated funds and investment vehicles
A wide range of specialised service providers
Political and economic stability
Established financial center with long-standing experience in fund administration and asset management.
Favorable legal, regulatory and tax framework.
Efficient supervision of the financial sector.
Highly qualified, multilingual workforce.
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7. The Emerald Diversified Team has the capability and expertise to provide investors with optimal results and
peace of mind, and to enhance security and performance, with the guidance of the Fund Advisor and the Risk
Manager.
General partners
Mr. Boaz Alpern is Co-founder & CEO of Emerald Alternative Investments Group Ltd. Previously
Boaz served in several investment management positions, mostly with Institutional investors.
Boaz holds a MBA in finance from the Hebrew University in Jerusalem, and a Bachelor degree in
psychology from the Hebrew University in Jerusalem.
Mr. Xavier Deu Pujal is currently Chief Marketing Officer of Carlisle Management Company. He
has worked in the USA as wholesale distribution, futures and options trader, as well as risk
management officer. In Europe, he has been involved in securitization, Private Equity and
Alternative Asset Management. Xavier is an Economist from the UAB of Barcelona and holds a
MA in International Finance and Economics from Brandeis University.
Mr. Paul Hunt owns an advisory company distributing funds to the wealth management
market globally. Paul started his financial services career in 1987, working as an investment
broker in Guernsey. He then worked as an investment manager for Lloyds bank in Guernsey for
several years before moving to Europe to take up a position as regional manager of a large
offshore insurance company.
Adv. Michael Shmuelevitz is Co-founder & Chairman of Emerald Alternative Investments
Group Ltd. Michael has 12 years experience in offshore investments specializing in unique, non-
market correlated investments in the global arena. Michael is an advocate of the Supreme Court
in Israel for over 25 years. He holds LL.B. degree from Tel Aviv University, LL.M. from University of
Natal, Durban South Africa.
Team & Counterparties
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Fund Advisor – Inoks Capital
INOKS Capital is an independently
owned alternative investments house
based in Geneva and has been active as
such in structured trade finance since its
creation in 2004. INOKS Capital has been
managing private portfolios and a fund,
with superior risk adjusted returns.
Administrator: SGG Corporate & Fund
Administration Services
SGG’s global network covers 5
continents, with 20 offices and 23 remote
offices. Their local staff have the in-depth
knowledge as well as the cultural
background to provide clients with
prime quality service.
Custodian: ING Bank Luxembourg
ING Luxembourg is part of a Group
operating in nearly 40 countries and
employs 94,500 staff, appreciated
throughout the world by over 67 million
customers. These customers include
individuals, small companies or major
multinationals, public institutions and
government authorities.
Risk Manager - NOVACAP
NOVACAP is an independent
management company authorized and
regulated by the Commission de
Surveillance du Secteur Financier in
Luxembourg, and with license and
capability to provide superior risk
management services to independent
asset managers.
Auditor: Deloitte Luxembourg
Among the Big 4 Audit firms globally and
Top 3 in Luxembourg. Will audit the fund
annually, at the end of each year.
Legal Advisor: Baker & McKenzie
Baker & McKenzie is a global law firm,
with a presence in over 46 countries,
being one of the leaders in Luxembourg
and in the fund management industry.
8. Fund Highlights
¤ A Fund of Funds dedicated to non-market correlated investments
¤ Diversification across the spectrum of alternative assets
¤ Highly respected regulated environment in Luxembourg
¤ High quality partners (Administrators, Custodian and Accountant)
¤ Independent risk manager and fund advisor
¤ Robust Due Diligence process and continuous professional monitoring
¤ No leverage intended
¤ Expected target return of 7% - 9% p.a. net of all fees
Fund Emerald Diversified Fund of Funds
Type of Fund SICAV SIF
Investment Manager Emerald Management Sarl
Fund Advisor Inoks Capital Asset Management
Administrator Société Générale Bank & Trust
Custodian Société Générale Bank & Trust
Legal Advisor Baker & McKenzie
Auditor Deloitte Luxembourg
Currencies USD
Subscription Monthly , 5 business days notice
Redemption 30 business days prior to valuation day
Redemption Fees 5% in Year 1 reducing by 1% per annum over 5 years
Restrictions Qualified investors only
Min. Subscription USD 150,000
Add. Subscription USD 10,000
Management Fees 2.0% per annum
Performance Fees 20% above 8.0% hurdle HWM
ISIN“Class A” LU0999629255
Institutional share class also available. Details provided upon request.
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