Holding Capital Asset Management (HCAM), directly or through its affiliates, has invested and participated in the general partnerships or managers of hedge funds since 1989.

HCAM makes seed investments in a variety of ways: providing money managers with working capital to cover overhead expenses, investing in the fund as a Day One "Demonstration Account" investor, or both. HCAM has invested from Day One in funds like Steel Partners and Bay Resources, both of which are billion dollar funds today, as well as others now also in nine figures.

HCAM's participation in general partnerships or management entities include:

• Value Partners, LP - a value-oriented equity fund based in Hong Kong.
• Target Asia Fund, LLC - a growth oriented fund based in Singapore focused on equity securities of Asian related companies.
• Validea Hedge Fund, LLC - a quantitative value-oriented fund in Connecticut.
• Karma Capital, LLC - an equity fund focused on Russia and other emerging markets based in Moscow.
• Broken Leg Investments, LLC - a global macro long equity fund, with a large exposure to the U.S.

HCAM has, to date, seed-invested with 25 managers.

In choosing hedge funds or money managers to seed and support - besides evidence of good and consistent performance - HCAM's qualitative criteria include the following:

• The manager must be highly ethical.
• The manager is willing to grow soundly with a good foundation. We are wary of people who want to grow too fast.
• The manager must put investment results and client interests first. A responsible fiduciary.
• We prefer the manager to have a strategy or investment approach that seems transparent, has good risk controls and makes sense (although we do not exclude black box or trading strategies with enough data points).
• We are normally reticent about managers who are over confident or arrogant. These reflect a lack of understanding of the vagaries of the investment process.
• We like managers who are collegial and listen to input.
• We like managers with a long term horizon and view - looking ahead 10-20 years as regards development of client services and their own businesses. (We do realize many startups, however, are more focused on making a living during the first couple of years).
• The manager should have most or a good share of his or her liquid net worth (if any) in the fund managed.