Concentration of Investments. Other than cash and cash equivalents, investment positions with a single issuer will comprise no more than 7.5% of the aggregate value of the long investments of the Company (valued using the methodologies set forth in Section 11(a) of the Investment Management Agreement, the “Long Market Value”). For the avoidance of doubt, the largest four investment positions with single issuers will not aggregate to more than 30% of Long Market Value. Each such determination is made at the time of the applicable investment. Positions established primarily for hedging purposes (including, without limitation, index positions) will not be subject to this limit. For the avoidance of doubt, capital structure arbitrage positions in an issuer will be deemed separate investments for the purposes of calculating this limit. Leverage: The Investment Manager expects to utilize leverage in order to increase its investment capacity. Leverage may take a variety of forms, including total return swaps and other derivatives, loans for borrowed money, trading on margin and the use of inherently leveraged instruments. If leverage exceeds, or is planned to exceed, 80% of Net Asset Value (i.e., $1.80 of Long Market Value for $1 of Net Asset Value) for any longer than fifteen Business Days, the Investment Manager, together with the Company, will timely notify the rating agency set forth on Exhibit C of such condition and of the Company’s remediation plan with respect thereto to update the agency on the then current investment strategy.
Concentration of Investments. The Fund’s investment portfolio may become concentrated in a limited number of companies in specific industry sectors. Accordingly, the return of the Fund may be dependent upon the performance of a relatively small number of investments or the performance of a one or a few industry sectors. This may involve the Fund in more risk than funds with broadly diversified equity or bond portfolios since the performance of the specific stock, industry, market sector or asset class could significantly and adversely affect the overall performance of the Fund. In addition, this concentration means that the Fund is not intended to be, and would generally not be suitable as, a complete investment program for any investor. Reliance on Key Individual HIMI is relying upon the services of its President, Xxxxx Xxxxx, to fulfil its obligations as the Fund’s investment manager. Should Xx. Xxxxx become incapable of providing portfolio management services to the Fund for any reason, HIMI would seek to provide a replacement, or retain a sub-advisor, but if it was unable to do so it would need to take steps to terminate the Fund. Illiquidity of Units While the Units are transferable, Units are being offered on a private placement basis, and any such transfer will be subject to resale restrictions under applicable Canadian securities laws. Units are redeemable, but these redemption rights may be suspended in certain circumstances. Consequently, investors may be unable to liquidate their Units, and are therefore cautioned that an investment in Units will not be suitable for investors with a short investment horizon. Furthermore, this lack of liquidity, plus the fact that Unit certificates are generally not issued, means that Units generally cannot be used by a Unitholder as collateral for any loan the Unitholder may have, whether undertaken in order to purchase Units or otherwise. .
Concentration of Investments. E.6.1 Although we will endeavour to diversify the Portfolio in accordance with the investment objectives and guidelines set out in Schedule G, Client Schedules, the Portfolio may hold a few, relatively large positions in securities in relation to the capital of the Portfolio. Consequently, a loss in any such position could result in significant losses to the Portfolio and a proportionately higher reduction in the net asset value of the Portfolio than if the Portfolio’s capital had been spread among a wider number of positions.
Concentration of Investments. Although the Issuer likely views it ideal to diversify its investment portfolio, it may at certain times hold relatively few investments, with or without intention. The Issuer could be subject to significant losses if it C-15Exhibit C holds a large position in a particular investment that declines in value or is otherwise adversely affected, including the default of an issuer. Legal Risk The Issuer may be subject to a number of unusual risks, including inadequate investor protection, contradictory legislation, incomplete, unclear and changing laws, ignorance or breaches of regulations on the part of other market participants, lack of established or effective avenues for legal redress, lack of standard practices and confidentiality customs characteristic of developed markets and lack of enforcement of existing regulations. Furthermore, it may be difficult to obtain and enforce a judgment in certain of the countries in which assets of the Issuer are invested. There can be no assurance that this difficulty in protecting and enforcing rights will not have a material adverse effect on the Issuer and its operations.
Concentration of Investments. Other than cash, cash equivalents and United States government obligations, no single investment in the investment portfolio will constitute more than 20% of the portfolio. No more than 10% of the assets in the investment portfolio will be held in private equity securities. •
Concentration of Investments. Other than cash and cash equivalents, and following the initial ramp-up period, investment positions with a single issuer will comprise no more than 7.5% of the aggregate value of the investments of the Company (valued using the methodologies set forth in Section 10(a) of the Agreement, the “Market Value”). Each such determination is made at the time of the applicable investment. For the avoidance of doubt, for purposes of calculating this limit, investment positions with multiple issuers managed or sponsored by the same manager, collateral manager or sponsor will be considered separate issuers. The HPS Investment Account may not be invested in residential mortgage-related securities without the prior consent of the Company for each such proposed investment. Following the initial ramp-up period, commercial mortgage-related securities will comprise no more than 25% of the Market Value of the HPS Investment Account. Monitoring: The Investment Manager will provide monthly risk and performance reports to the Company regarding the investment performance of the Investment Manager and will review risk and performance in detail with the Company on a quarterly basis.
Concentration of Investments. Other than cash, cash equivalents and United States government obligations, no single investment in the investment portfolio will constitute more than 20% of the portfolio. · Liquidity: Assets will be invested in such fashion that Greenlight Re has a reasonable expectation that it can meet any of its liabilities as they become due. Greenlight Re will review with DME the liquidity of the portfolio on a periodic basis. · Monitoring: Greenlight Re will require DME to re-evaluate each position in the investment portfolio and to monitor changes in intrinsic value and trading value and provide monthly reports on the investment portfolio to Greenlight Re as Greenlight Re may reasonably determine. · Leverage: The investment portfolio may not employ greater than 5% indebtedness for borrowed money, including net margin balances, for extended time periods. DME may use, in the normal course of business, an aggregate of up to 20% net margin leverage for periods of less than 30 days. Exhibit A-2 GRIL GUIDELINES
Concentration of Investments. Other than cash or cash equivalents and United States government obligations, (1) no single investment in the investment portfolio will constitute more than 10% of the portfolio, (2) the 10 largest investments shall not constitute greater than 50% of the total investment portfolio, and (3) the investment portfolio shall at all times be comprised of a minimum of 50 debt or equity securities of publicly traded companies (or their subsidiaries). · Liquidity: Assets will be invested in such fashion that GRIL has a reasonable expectation that it can meet any of its liabilities as they become due. GRIL will review with DME the liquidity of the portfolio on a periodic basis. · Monitoring: GRIL will require DME to re-evaluate each position in the investment portfolio and to monitor changes in intrinsic value and trading value and provide monthly reports on the investment portfolio to GRIL as GRIL may reasonably determine. · Leverage: The investment portfolio may not employ greater than 5% indebtedness for borrowed money, including net margin balances, for extended time periods. DME may use, in the normal course of business, an aggregate of up to 20% net margin leverage for periods of less than 30 days. Exhibit B INITIAL CAPITAL CONTRIBUTIONS As of August 31, 2010 Initial Capital Contributions DME $ 30,017,120.00 Greenlight Re $ 874,454,592.00 GRIL $ 39,000,000.00 Exhibit C POWER OF ATTORNEY The undersigned, in connection with and subject to the terms and conditions of that certain Amended and Restated Agreement (the “Agreement”) by and among Greenlight Reinsurance, Ltd., Greenlight Reinsurance Ireland, Ltd., DME Advisors, LP (collectively, the “Participants”) and Greenlight Capital Re, Ltd. (for limited purposes), dated as of August [ ], 2010, hereby designates and appoints DME Advisors, LP, a Delaware limited partnership (“DME”), as agent and attorney-in-fact, with full power and authority and without the need for further approval of the undersigned (except as may be required by applicable law) to have the exclusive power on behalf of the undersigned to:
Concentration of Investments. The Fund’s investment portfolio may become concentrated in a limited number of companies in specific industry sectors. Accordingly, the return of the Fund may be dependent upon the performance of a relatively small number of investments or the performance of a one or a few industry sectors. This may involve the Fund in more risk than funds with broadly diversified equity or bond portfolios since the performance of the specific stock, industry, market sector or asset class could significantly and adversely affect the overall performance of the Fund. In addition, this concentration means that the Fund is not intended to be, and would generally not be suitable as, a complete investment program for any investor.
Concentration of Investments. Other than cash, cash equivalents and United States government obligations and gold, no single investment in its Investment Portfolio will constitute more than 20% of the Investment Portfolio. ● Liquidity: Assets will be invested in such fashion that Greenlight Re has a reasonable expectation that it can meet any of its liabilities as they become due. Greenlight Re will review with the Investment Advisor the liquidity of the portfolio on a periodic basis. ● Monitoring: Greenlight Re will require the Investment Advisor to re-evaluate each position in its Investment Portfolio and to monitor changes in intrinsic value and trading value and provide monthly reports on its Investment Portfolio to Greenlight Re as Greenlight Re may reasonably determine. ● Leverage: Greenlight Re’s Investment Portfolio may not employ greater than 15% indebtedness for borrowed money, including net margin balances, for extended time periods. The Investment Advisor may employ, in the normal course of business, up to 30% indebtedness for periods of less than 30 days. ● Currency hedging activities are excluded from leverage calculations: Where the Investment Advisor enters into a secondary investment with the primary purpose of reducing the risk of another existing investment then the investment advisor may exclude the secondary investment from the calculation of leverage provided that the Investment Advisor receives approval from Greenlight Re’s Chief Financial Officer. Such authority is limited such that no more than 10% of indebtedness may be excluded from leverage calculations for such secondary investments. to Limited Partnership Agreement GRIL Guidelines
