FMG Diversified Bio-Med

Hedge Fund
2nd Quarter, 2004
NAV USD Class $127.84, EURO Class €114.27, GBP Class £125.76

Growth of $1000 Amex

FMG Div Bio- Amex Biotech
Pharma
$1,600 15% Med Index (BTK)
Period Index (DRG)

$1,400 Historical Returns

Last Quarter (0.25%) (0.84%) 1.42%
10% 2004 (YTD) 3.23% 6.50% (3.12%)
$1,200
2003 20.12% 44.91% 12.41%
2002 (7.90%) (41.74%) (21.69%)
$1,000
5% 2001 8.55% (8.47%) (14.78%)
$800 Portfolio Breakdown*
healthcare
0%
$600 7%
Cash
4%
$400 other
-5%
7% bio
$200 pharma/ 53%
spec.
$0 -10% pharma
07-00

12-00

05-01

10-01

03-02

08-02

01-03

06-03

11-03

04-04
14%
research/
servicesdevices/sup-
Monthly Return FMG Div Bio-Med 7% ply
Amex Biotech Index (BTK) Amex Pharma Index (DRG) 8%

Quarterly Commentary
A Global Multi-Manager Healthcare Hedge Fund - equity long/short - 11 Managers
The Fund lost 0.25% during the quarter and had its first negative month in June having generated 20 postive months in a row prior to
June. One manager was sold during the quarter. FMG continues to emphasize emerging managers with a small asset base and are in the
process of adding two new small yet very impressive managers in July.

Biotech stocks lost money during the quarter while pharma made a small gain. Biotech stocks came under further pressure at the end of
the quarter for example oncology (cancer) related drugs fell following the important cancer related conference called America Society of
Clinical Oncology (ASCO) despite exciting news on several clinical developments in cancer treatment. On average, oncology companies’
stock prices were significantly lower after the ASCO meeting despite the fact that, for the most part, the data presented were
overwhelmingly positive. The post-ASCO sell-off was the primary reason biotech underperformed the broader markets in June. By the end
of the month, it was not uncommon for companies lacking upcoming news flow to trade near 52-week lows.

Monthly Performance in US$ (%) Net of Fees

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2004 2.50% 0.66% 0.31% 0.92% 0.27% (1.43%) 3.23%
2003 0.39% 2.85% 2.34% 2.96% 1.77% 1.50% 1.45% 0.41% 1.27% 1.31% 0.73% 1.54% 20.12%
2002 (3.22%) (2.47%) 1.38% (3.01%) 0.67% (4.58%) (0.87%) 1.55% (3.10%) 0.86% 3.35% 1.60% (7.90%)
2001 (2.59%) (4.91%) (8.19%) 6.85% 6.71% 3.61% (2.47%) 1.13% (3.50%) 3.95% 5.27% 3.73% 8.55%
Performance since launch
FMG Div Bio- Amex Biotech Amex Pharma
Risk vs. Return
Statistical Analysis Med Index (BTK) Index (DRG)
since 07/00
Returns
10%
Compounded Annual Return 8.61% (5.12%) (6.27%)
Average Monthly Return 0.75% 0.10% (0.45%) 8%
Annualized Return

Cumulative Return 39.17% (18.98%) (22.81%) 6%

Largest Monthly Gain 10.38% 30.75% 8.15% 4%
Largest Monthly Loss (8.19%) (20.94%) (8.40%)
% Of Positive Months 70.83% 45.83% 52.08% 2%
Risk 0%
Standard Deviation 11.97% 36.57% 14.69% -2%
Sharpe Ratio (5.0%) 0.34 -0.10 -0.70
-4%
Downside Deviation (10.0%) 8.64% 25.36% 13.12%
Max Drawdown (16.45%) (58.62%) (37.64%) -6%
Months In Maximum Drawdown 6 25 21 -8%
Months To Recover 8 0 0 10% 15% 20% 25% 30% 35% 40%
Comparison To Benchmarks
Annualized Standard Deviation
Alpha 0.72% 0.84%
Beta 0.26 0.21 FMG Div Bio-Med Amex Biotech Index (BTK)
Correlation 0.80 0.26 Amex Pharma Index (DRG)
R-Squared 0.64 0.07

This summary is for information purposes only and doesn't constitute an offer to sell or a solicitation to buy. Citizens or residents of the United States may not invest in this
Fund. Past Performance is not indicative of future results.

www.fmgfunds.com