Hedge Funds and Investing1 Volume 1 Issue 1 Contents Market Snapshot Stock Profile Hedge Fund News Hedge

Fund Profile Economic Calender Market Snapshot

The Dow has pulled back from its advance but still remains above its 10 day moving average. Slow stochastic has moved down to 70 which is near its high threshold, MACD is just below 0 being neutral and the RSI has moved back down to 50 also neutral. This seems to be a short term pullback. The CBOE Volatility Index, is still at relatively low level at 21.37 and could still fall further, meaning that the markets could make a further advance. The US dollar is in a bullish mode. If it continues its advance, then the markets will fall otherwise, the markets will advance. Stock Profile


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AMAZON stock ticker: AMZN Amazon is an online retailer in North America and globally. The company operates various retail Web sites, including amazon.com, amazon.co.uk, amazon.de, amazon.fr, amazon.co.jp, amazon.ca, and amazon.cn. Its product categories include books; movies, music, and games; digital downloads; electronics and computers; home and garden; toys, kids, and baby; grocery; apparel, shoes, and jewelry; health and beauty; sports and outdoors; and tools, auto, and industrial. The company serves its consumer customers through its retail Websites and focuses on selection, price, and convenience. It also offers programs that enable seller customers to sell their products on its Websites and their own branded Websites. In addition, the company serves developer customers through Amazon Web Services, which provides access to technology infrastructure that developers can use to enable virtually any type of business. Further, it manufactures and sells the kindle e-reader. Additionally, the company offers co-branded credit card programs, fulfillment, and other marketing and promotional services, such as online advertising. Amazon.com, Inc. was founded in 1994 and is headquartered in Seattle, Washington. Analysts have upgraded AMZN several times this year:

Date 8-Feb-10 Collins Stewart

Research Firm

Action Upgrade Upgrade Upgrade Upgrade Initiated

From Hold Sell Sell Hold

To Buy Underperform Strong Buy Buy Buy

1-Feb-10 Standpoint Research 29-Jan-10 BWS Financial 27-Jan-10 Kaufman Bros 15-Jan-10 MKM Partners

The following are analysts’ earnings and revenue estimates for AMZN:
Current Qtr Earnings Est Mar-10 Avg. Estimate No. of Analysts Low Estimate High Estimate Year Ago EPS 0.61 30 0.53 0.81 0.41 0.55 29 0.40 0.73 0.32 Jun-10 2.91 33 2.48 3.60 2.04 Dec-10 3.80 29 3.08 4.37 2.91 Dec-11 Next Qtr Current Year Next Year

Current Qtr Revenue Est Mar-10 Avg. Estimate No. of Analysts Low Estimate High Estimate Year Ago Sales Sales Growth (year/est) 6.83B 31 5.80B 7.21B 4.89B 39.7% 6.38B 31 5.51B 6.77B 4.65B 37.1%

Next Qtr Jun-10

Current Year Dec-10 32.15B 33 27.68B 34.89B 24.51B 31.2% 39.34B 29 31.91B 43.12B 32.15B 22.4%

Next Year Dec-11

Earnings History EPS Est EPS Actual 0.31 0.41

Mar-09 0.31 0.32

Jun-09 0.33 0.45

Sep-09 0.72 0.85


Difference Surprise %

0.10 32.3%

0.01 3.2%

0.12 36.4%

0.13 18.1%

Current Qtr EPS Trends Mar-10 Current Estimate 7 Days Ago 30 Days Ago 60 Days Ago 90 Days Ago 0.61 0.61 0.55 0.54 0.54 0.55 0.55 0.52 0.51 0.51

Next Qtr Jun-10 2.91 2.91 2.60 2.56 2.53

Current Year Dec-10 3.80 3.80 3.49 3.42 3.38

Next Year Dec-11

Current Qtr EPS Revisions Mar-10 Up Last 7 Days Up Last 30 Days Down Last 30 Days Down Last 90 Days 1 22 1 1 17 1

Next Qtr Jun-10 2 33 0

Current Year Dec-10 2 20 0

Next Year Dec-11

Growth Est Current Qtr. Next Qtr. This Year Next Year Past 5 Years (per annum) Next 5 Years (per annum) Price/Earnings (avg. for comparison 40.55 categories) PEG Ratio (avg. for comparison 1.46 categories) 48.8% 71.9% 42.6% 30.6% 34.402% 27.69%

AMZN 13.2% 16.1% 13.2% 14.3% N/A 12.17%

Industry 24.2% 24.0% 22.1% 15.3% N/A 12.52%

Sector N/A N/A N/A N/A N/A N/A

S&P 500







Hedge Fund News Citigroup Inc. is in talks to sell a hedge-fund business with about $4 billion in assets as the company continues to whittle down a $547 billion pool of assets marked for sale, according to people familiar with the sale talks. Asia ex-Japan hedge funds declined 2.42% in January, after gaining a record 37.4% in 2009, according to the Singapore-based hedge fund tracker Eurekahedge. A recent survey by the UK’s Financial Services Authority has revealed that hedge funds do not pose a dangerous risk to financial institutions that lend to them, according to The Independent. This will be of relief to the embattled asset class, which, along with private equity, is preparing itself for increased regulatory scrutiny from European Union (EU) regulators. Hedge fund firm RAB Capital is to organise an auction to let investors sell-off stakes in its Special Situations fund, the Financial Times reported. European Union lawmakers are optimistic about reaching a compromise deal on controversial hedge fund and private equity fund legislation. The new rules would regulate managers of hedge funds and private equity funds on an EUwide basis for the first time.

Hedge Fund Profile Ascend Capital / San Francisco Company Philosophy

STRIVING FOR CONSISTENT, SUPERIOR RISK-ADJUSTED PERFORMANCE Ascend Capital's mission is to generate superior risk-adjusted returns that maximize gains and minimize volatility over a broad range of market conditions. We believe that our Fundamental investment strategy is robust, scalable and can be a consistent source of alpha for our clients. Our philosophy is well matched with our clients' expectations: to consistently achieve outstanding risk-adjusted performance through superior skill in security selection, capital allocation, and risk management. About Ascend A team of highly experienced professionals with exceptional credentials work in a collaborative environment with the common goal of generating alpha for our clients • Firm was founded in 1999 by Malcolm Fairbairn o 14 years as a long/short equity portfolio manager with positive returns in 13 out of 14 years o 15 years of hedge fund experience through multiple market cycles and financial market crises 18 Investment Professionals (27 employees) including: o 6 CFAs o 7 MBAs o 3 PhDs and 1 MD Our Research Professionals have significant personal exposure to the fund's performance and the majority of the Portfolio Manager's net worth is invested side by side with our investors

Malcolm Fairbairn Prior to launching the firm, Mr. Fairbairn was Managing Director of Structured Equities for Citadel Investment Group. He received his M.B.A from Harvard Business School in 1994 and was awarded his B.S. and M.S. degrees in Chemical Engineering from Massachusetts Institute of Technology in 1985. This Week’s Economic Calender
Monday Feb 22
Market Focus » Market Reflections »

Tuesday Feb 23
Market Focus » Market Reflections »

Wednesday Feb 24
Market Focus »

Thursday Feb 25
Weekly Bill Settlement

Friday Feb 26
Naranyana Kocherlakota Speaks

Bank Reserve Settlement
Janet Yellen Speaks

Durable Goods Orders 8:30 AM ET GDP Jobless Claims 8:30 AM ET 8:30 AM ET

10:30 AM ET

ICSC-Goldman Store Sales 7:45 AM ET

MBA Purchase Applications 7:00 AM ET

Redbook 4-Week Bill Announcement 11:00 AM ET 3-Month Bill Auction 11:30 AM ET 6-Month Bill Auction 11:30 AM ET 30-Yr TIPS Auction 1:00 PM ET 8:55 AM ET S&P Case-Shiller HPI 9:00 AM ET Consumer Confidence 10:00 AM ET State Street Investor Confidence Index 10:00 AM ET 4-Week Bill Auction 11:30 AM ET 2-Yr Note Auction 1:00 PM ET
James Bullard Speaks

New Home Sales 10:00 AM ET
Ben Bernanke Speaks

Sandra Pianalto Speaks

Chicago PMI 9:45 AM ET Consumer Sentiment 9:55 AM ET Existing Home Sales 10:00 AM ET
William Dudley Speaks

8:35 AM ET
Ben Bernanke Speaks

10:00 AM ET

9:00 AM ET

EIA Petroleum Status Report 10:30 AM ET 5-Yr Note Auction 1:00 PM ET

FHFA House Price Index 10:00 AM ET EIA Natural Gas Report 10:30 AM ET 3-Month Bill Announcement 11:00 AM ET 6-Month Bill Announcement 11:00 AM ET
James Bullard Speaks

10:15 AM ET
Daniel Tarullo Speaks

1:30 PM ET

Farm Prices 3:00 PM ET

5:00 PM ET

12:30 PM ET

7-Yr Note Auction 1:00 PM ET Fed Balance Sheet 4:30 PM ET Money Supply 4:30 PM ET
Equity Settlement 2-25-10 Equity Settlement 2-26-10 Equity Settlement 3-01-10 Equity Settlement 3-02-10 Equity Settlement 3-03-10 Market Moving Indicator Important Legal Notice: Econoday has attempted to verify the information contained in this calendar. However, any aspect of such info may change without notice. Econoday does not provide investment advice, and does not represent that any of the information or related analysis is accurate or complete at any time. Legal Notices © 1998-2010 Econoday, Inc. All Rights Reserved. Actual Data Source: Haver Analytics | Consensus Data Sources: Market News International Econoday Suggestion Box: We welcome your ideas on how we can serve you better. Merit Extra Attention Other Key Indicator Consensus Info Available Final Data and Analysis Available

References Google Yahoo Finance Big Charts Ascend website Bloomberg

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