Neutralizing betas without neutralizing alphas in funds of hedge funds November 29, 2004 Jimmy Liew, Ph.D. Craig W. French Dubin & Swieca Capital Management, LLC* Identification of the relevant factors that drive hedge fund returns is an important component to institutional quality fund of funds investing. We focus specifically on the importance of analyzing the alpha and beta return generators. Additionally, we discuss tail-risk management and the practical methods for mitigation of the point mis-estimation in mean-variance optimization of portfolios of hedge funds. * This presentation is for informational purposes only and does not constitute investment advice. It does not constitute an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle or any financial instrument, nor does it constitute an official confirmation of any transaction. All information contained in this presentation is not warranted as to completeness or accuracy and is subject to change without notice. Any comments or statements made in this presentation reflect the personal views and opinions of the authors, and do not necessarily reflect those of Dubin & Swieca Capital Management, LLC or its affiliates. Information contained herein is proprietary and may not be copied, reproduced or distributed without the prior written consent of the authors.