AlphaClone offers an investment strategy called "active indexing" that aims to provide hedge fund-like returns without the high fees typically associated with hedge funds. Active indexing uses a proprietary scoring system to select top-performing hedge fund managers based on an analysis of their public stock holdings disclosures, and constructs index funds tracking only those top managers. Backtests show the active indexing strategy has outperformed the S&P 500 index over the long-term while charging lower fees than traditional hedge funds.

1. AlphaClone
Active Indexing
Hedge Fund Skill Without the Fees

2. | © 2016, AlphaClone, Inc., Institutional Use OnlyNext Generation Investing 2
Hedge fund fee structure prevents most
investors from realizing benefits
Source: AlphaClone estimate. We apply the methodology outlined in the paper "Average Annual Fees on Investable Hedge Fund Indices", by
MSR Investments, to calculate estimated Gross and Net investment returns over the analysis period for the Credit Suisse AllHedge Index, a
dollar weighted hedge fund of funds index.. Inception (2004) hedge fund assets under management is $1 trillion (Source: Hedge Fund
Research).
Captured by
Manager,
$384, 62%
Returned to
Investors,
$234, 38%
Hedge Fund Gains (2004-2016)
(Billions)
CalPERSdumping
hedge funds
Pension & Investments 9/’14
New York City’s
Employees’ Retirement
System dumping
hedge funds
Crain’s 4/’16
San Francisco
Employees’ Retirement
System reduced hedge
fund allocation
Crain’s 1/’15

3. | © 2016, AlphaClone, Inc., Institutional Use OnlyNext Generation Investing 3
Take away the fees and hedge fund holdings
show stock selection skill
$315
$236
0
50
100
150
200
250
300
350
400
Dec-01
Apr-03
Aug-04
Dec-05
Apr-07
Aug-08
Dec-09
Apr-11
Aug-12
Dec-13
Apr-15
All 13F SP500
Backtested performance results are hypothetical and have inherent limitations. Actual results could differ materially from backtested performance and future results could differ
materially from backtested performance. Past performance is no indication or guarantee of future results. In the graph above, “All 13F” represents a strategy that invests quarterly
in the ten largest holdings disclosed on Form 13F-HR by each of the 500+ institutional investors tracked in AlphaClone’s database. The performance accounts for the lag in
timing of the disclosure and is gross of all fees.
§ All hedge funds and institutional
investors with >$100M in assets must
disclose their long holdings quarterly
on SEC Form 13F-HR
§ An index constructed from the largest
ten holdings disclosed by all filers out
performs the broader market over
time.
§ Indexes constructed from Form 13F
disclosures can be effective because
holding periods are relatively long (17
months).
“All 13F Top 10” Index vs S&P 500
Growth of 100 | 2001-2015

4. $422
$315
$236
0
50
100
150
200
250
300
350
400
450
500
Dec-01
May-02
Oct-02
Mar-03
Aug-03
Jan-04
Jun-04
Nov-04
Apr-05
Sep-05
Feb-06
Jul-06
Dec-06
May-07
Oct-07
Mar-08
Aug-08
Jan-09
Jun-09
Nov-09
Apr-10
Sep-10
Feb-11
Jul-11
Dec-11
May-12
Oct-12
Mar-13
Aug-13
Jan-14
Jun-14
Nov-14
Apr-15
Sep-15
All 13F Clone Score SP500
A systematic approach that indexes only select
managers can add significant value
Backtested performance results are hypothetical and have inherent limitations. Actual results could differ materially from backtested performance and future results could differ
materially from backtested performance. Past performance is no indication or guarantee of future results. In the above graph, “All 13F” represents a strategy that invests quarterly
in the ten largest holdings disclosed in Form 13F-HR by each of the 500+ institutional investors tracked in AlphaClone’s database. “Clone Score” represents a strategy that invests
quarterly in holdings disclosed in Form 13F-HR from managers with the highest Clone Score – a proprietary ranking methodology developed by AlphaClone to measure the
efficacy of following a manager’s holdings over time. The performance accounts for the lag in the timing of the disclosure and is gross of all fees.
4
13.2%
10.9%
15.9%
8.2% 8.5%
18.1% 15.5% 17.9%
9.5%
10.8%
15.1%
12.6%
14.8%
7.3% 6.3%
3 Year 5 Year 7 Year 10 Year 14 Year
All 13F Clone Score SP500
Growth of 100
2001-2015 Trailing Returns (annualized)

5. Our methodology identifies skilled managers
and actively indexes their holdings
q High quality proprietary dataset
q 500+ managers includes extinct funds
q $1T in hedge fund holdings
q Proprietary platform/process
q Scoring is continuous - captures
changes in manager performance
q Risk-centric index construction
q Proven track record (6 years live)
Next Generation Investing | © 2016, AlphaClone, Inc. 5

6. Active indexing combines the benefits of active
and passive investing
Fundamental
Active
Index
Systematic
Next Generation Investing | © 2016, AlphaClone, Inc. 6

7. AlphaClone is first to market with investable
products and has the longest verifiable track
record
Next Generation Investing | © 2016, AlphaClone, Inc. 7

8. The AlphaClone leadership team combines
financial, technology and creative expertise
Next Generation Investing | © 2016, AlphaClone, Inc. 8

9. Learn more about active indexing
Next Generation Investing | © 2016, AlphaClone, Inc. 9
AlphaClone, Inc.
1 Market Street
Steuart Tower, Suite 1208
San Francisco, CA 94105
(877) 919-2532
http://alphaclone.com

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In addition, this presentation includes information obtained from sources believed to be
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Next Generation Investing | © 2016, AlphaClone, Inc. 10