Olesen Value Fund L.P.

Mar 2014 Update / Factsheet

Update We lost 0.1% net in March vs. +0.3% for the MSCI AllCountry World Index and +0.8% for the S&P 500. I continued accumulating the special situation investment I discussed but didnt name in last months update. This is D.E. Master Blenders 1753 BV, the Amsterdam-listed spin-off of Sara Lees coffee and tea businesses, which was acquired by an investor group for cash last fall.
Investment Returns Since Inception (After Fees)
Value of $100 invested at inception of the fund
$275 $250 $225 $200 $175 $150 $125 $100 $75

Dec08

Jun09

Dec09

Jun10

Dec10

Jun11

Dec11

Jun12

Dec12

Jun13

Mar14

Olesen Value Fund L.P. (after fees) MSCI All-Country World Index

Dec 1 '08 Dec 31 '09 2010 58.7% 20.2% 40.8% 12.3%

2011 -7.6% -7.2%

2012 2013 28.5% 23.1% 16.1% 26.5%

2014 YTD 1.4% 1.2%

Cum. Since Annualized Incep. Since Incep. 182.4% 21.5% 118.1% 15.7%

At this point, it looks like we will most likely earn almost 6% over our avg. holding period of about two months (approx. 40-65% annualized, depending on the timing of the final cash payout) on this very low-risk arbitrage. After the investor group had acquired over 95% of the shares following the completion of the tender offer to shareholders last fall, the stock was delisted from Euronext Amsterdam and a squeeze-out procedure was initiated in the Dutch courts in order to force the remaining shareholders to sell their shares to the investor group at the buy-out price. A couple of months later, the stock started trading in the U.S. grey market at a significant discount to the buy-out price (this was probably due to low liquidity and a lack of awareness about this trading opportunity among sophisticated arbitrageurs), while my research indicated it was highly unlikely that the court would not decide that the remaining holders would receive the same price as other shareholders. When I became aware of this arbitrage opportunity, I started accumulating the stock. As expected, on April 8 the court ruled that the remaining shareholders shall receive the buy-out price within the next few weeks. Please see the Q1 investor letter or the accompanying email for more details. Portfolio Summary Net Exposure by Geography Financial services 23% North America 41% Advertising/communications 16% Europe 27% Transportation 11% Asia & other <1% Distribution 7% Net exposure 68% Insurance 6% Cash, currency hedges and other, net 32% Special situations 5% Net asset value 100% Information technology 1% Manufacturing <1% Net Exposure by Asset Class Long positions gross 68% Common stocks 58% Short positions gross -0% Warrants, long-dated 9% Net exposure 68% Net exposure 68% Cash, currency hedges and other, net 32% Cash, currency hedges and other, net 32% Net asset value 100% Net asset value 100% Investment Philosophy Seek to generate substantial capital appreciation over the long term, with minimal risk of loss Define risk as permanent loss of capital; tend to view volatility as opportunity, not necessarily a risk Value investing philosophy, using a bottom-up approach No leverage Fund Manager The fund has $31 mil. in assets and is managed by Christian Olesen Virtually 100% of my net worth, except for my cash reserves, is invested in the fund Previously worked as analyst/trader for Xaraf Management, a group within Paloma Partners, a Greenwich, CT-based hedge fund with approx. $2 billion in AUM Graduated from Wharton (Finance, Accounting) and holds the CFA designation Auditor: Grant Thornton Administrator: Custom House Global Fund Services Custodian: Interactive Brokers Legal counsel: Sadis & Goldberg
+1 (610) 866-6200 Christian.Olesen@OlesenValueFund.com www.OlesenValueFund.com
Olesen Capital Management LLC, 701 W. Broad Street, Suite 209, Bethlehem, PA 18018, U.S.A.