HEDGE FUND INVESTMENT OPTIONS

NAME

TYPE

FEES

MINIMUM
INVESTMENT

COMMENTS

Goldman Sachs Performance Partners

Contact: Steve

Radakovich

212-357-343

Fund of Funds --

Absolute Return Fund

1% (1.25% less than $5 million) plus 5% incentive after 8% preferred return

$2,000,000

Includes futures and macro strategies.

Cambridge Associates

Contact: Katey DeTraglia

617-457-7500

Tom Ballantyne

617-457-7560

Hedge fund consultant/ manager --

Develop, organize select and monitor diversified group of absolute return manager.

Retainer fee --

50 basis points of assets under management for 1st $100 million subject to annual minimum of $135,000.

Extensive experience with foundations.

Hennessee Group

Contact: Lee

Hennessee

212-857-4420

Hedge fund manager

-- Develop, organize, select and monitor diversified group of absolute return managers.

Would complete special one-time project to complete above tasks for $100,000.

Normally retainer fee is 1% (negotiable). Fees offset by investment fund rebates. Special project is $100,000.

Has developed proprietary hedge fund performance data base.

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NAME

K-2 Advisors

Contact: Doug

Douglas

212-486-5252

Fund of funds -- Absolute return fund. Would develop customized portfolio for Foundation.

Retainer fee -- 1.25% plus 10% incentive after 7% preferred return.

$1,000,000

-- 35% arbitrage strategies

-- 65% market neutral/relative value

-- $260 million under management

Lyster Watson & Co.

Contact: Rob

Watson

212-599-6900

Hedge fund manager -- Develop, organize, select and monitor diversified group of absolute return. manager. Also has new fund of funds product.

Fund of funds (1% per annum).

Retainer fee --

1% plus incentive subject to negotiation.

Teleos Management, L.L.C.

Contact: Christopher Stella

203-629-6565

Investment manager with two fund of fund products:

(1) Teleos - Global Macro Fund that exploits trends and mis-pricings in global markets.

2% management fee plus 25% incentive after hurdle rate of 3 mos. U.S. Treasury bills

$1,000,000

Excellent risk adjusted returns

(2) Kailas - Fund of funds to achieve long term capital appreciation of approximately 12% to 15%, net of fees.

1% management fee plus 10% incentive fee

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$1,000,000

New fund but have generate excellent risk adjusted returns

NAME

Monticello Associates -- Denver, CO

Contact: Steven Halvorsen 303-572-6300

Full service investment consultant. Has hedge fund experience. Prefers consulting role on total portfolio. Normally does not complete special projects.

2½-5 basis points of total investment portfolio.

Small firm but has good reputation.

TIFF Alternative Investments Absolute Return Pool (ARP) -- Contact: Nina Scherago

434-817-8200

Fund of funds --

Class A - 3 yr. lockup

Class B - 1 yr. lockup

44% - Event arbitrage

38% - Hedged equity

18% - Other

Fund I - Closed

Fund II - In process of being organized

Class A - 30 pb per annum

Class B - 45 pb per annum

$1,000,000

Sponsored by Investment Fund for Foundations.

Board of Advisors:

-Jack Meyer, CEO Harvard Mgmt Co.

-David Scocuson, CIO Yale Univ.

Evaluation Associates Capital Markets, Inc.

-- Norwalk, CT Contact:

Patrick J. Moriarty

203-855-2241

Hedge fund consultant/ manager --

Develop, organize select and monitor diversified group of absolute return manager.

1% management fee plus 10% split after preferred return.

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NAME

Grosvenor Capital Management -- Chicago, IL

Contact: Steven Brewster

312-263-7777

Fund of funds, but would consider customized portfolio.

Retainer fee:

1st 10M 140 basis points

Next 15M 120 basis points

Nex5 25M 100 basis points

$3 billion of assets dedicated to various fund of funds.

Capital Hedge Fund Advisors

Contact: Ben Borton

312-658-0958

Fund of funds (Index)

Joint venture with Zurich Capital Markets

Also provide customized portfolio consulting services.

Fund of fund --

Effectively zero. Only pay fee at fund level. Capital Hedge Fund Advisors receives negotiated fee from investment manager.

$1,000,000

Fund of Fund arrangement rather unique.

Tremont Advisors, Inc. -- Rye, NY Contact:

Hedge fund consultant-

Develop, organize select and monitor diversified group of absolute return manager.

Develop and maintains CSFB/ Tremont Hedge Fund Index

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