Hedge Funds and Investing1 Volume 1 Issue 1

Contents
Market Snapshot
Stock Profile
Hedge Fund News
Hedge Fund Profile
Economic Calender

Market Snapshot

The Dow has pulled back from its advance but still remains above its 10 day moving average. Slow stochastic has
moved down to 70 which is near its high threshold, MACD is just below 0 being neutral and the RSI has moved back
down to 50 also neutral. This seems to be a short term pullback.

The CBOE Volatility Index, is still at relatively low level at 21.37 and could still fall further, meaning that the
markets could make a further advance.

The US dollar is in a bullish mode. If it continues its advance, then the markets will fall otherwise, the markets
will advance.

Stock Profile

1
Produced by HU. This issue is available for distribution with proper attribution. This magazine is for educational
and informational purposes only. Please seek advice from investment professional before making an investment
decision.
AMAZON stock ticker: AMZN

Amazon is an online retailer in North America and globally. The company operates various retail Web sites,
including amazon.com, amazon.co.uk, amazon.de, amazon.fr, amazon.co.jp, amazon.ca, and amazon.cn. Its
product categories include books; movies, music, and games; digital downloads; electronics and computers; home
and garden; toys, kids, and baby; grocery; apparel, shoes, and jewelry; health and beauty; sports and outdoors;
and tools, auto, and industrial.

The company serves its consumer customers through its retail Websites and focuses on selection, price, and
convenience. It also offers programs that enable seller customers to sell their products on its Websites and their
own branded Websites. In addition, the company serves developer customers through Amazon Web Services, which
provides access to technology infrastructure that developers can use to enable virtually any type of business.
Further, it manufactures and sells the kindle e-reader.

Additionally, the company offers co-branded credit card programs, fulfillment, and other marketing and
promotional services, such as online advertising. Amazon.com, Inc. was founded in 1994 and is headquartered in
Seattle, Washington.

Analysts have upgraded AMZN several times this year:

UPGRADES & DOWNGRADES HISTORY

Date Research Firm Action From To

8-Feb-10 Collins Stewart Upgrade Hold Buy

1-Feb-10 Standpoint Research Upgrade Sell Underperform

29-Jan-10 BWS Financial Upgrade Sell Strong Buy

27-Jan-10 Kaufman Bros Upgrade Hold Buy

15-Jan-10 MKM Partners Initiated Buy

The following are analysts’ earnings and revenue estimates for AMZN:
Current Qtr Next Qtr Current Year Next Year
Earnings Est
Mar-10 Jun-10 Dec-10 Dec-11

Avg. Estimate 0.61 0.55 2.91 3.80

No. of Analysts 30 29 33 29

Low Estimate 0.53 0.40 2.48 3.08

High Estimate 0.81 0.73 3.60 4.37

Year Ago EPS 0.41 0.32 2.04 2.91

Current Qtr Next Qtr Current Year Next Year

Revenue Est
Mar-10 Jun-10 Dec-10 Dec-11

Avg. Estimate 6.83B 6.38B 32.15B 39.34B

No. of Analysts 31 31 33 29

Low Estimate 5.80B 5.51B 27.68B 31.91B

High Estimate 7.21B 6.77B 34.89B 43.12B

Year Ago Sales 4.89B 4.65B 24.51B 32.15B

Sales Growth (year/est) 39.7% 37.1% 31.2% 22.4%

Earnings History Mar-09 Jun-09 Sep-09 Dec-09

EPS Est 0.31 0.31 0.33 0.72

EPS Actual 0.41 0.32 0.45 0.85

Difference 0.10 0.01 0.12 0.13

Surprise % 32.3% 3.2% 36.4% 18.1%

Current Qtr Next Qtr Current Year Next Year

EPS Trends
Mar-10 Jun-10 Dec-10 Dec-11

Current Estimate 0.61 0.55 2.91 3.80

7 Days Ago 0.61 0.55 2.91 3.80

30 Days Ago 0.55 0.52 2.60 3.49

60 Days Ago 0.54 0.51 2.56 3.42

90 Days Ago 0.54 0.51 2.53 3.38

Current Qtr Next Qtr Current Year Next Year

EPS Revisions
Mar-10 Jun-10 Dec-10 Dec-11

Up Last 7 Days 1 1 2 2

Up Last 30 Days 22 17 33 20

Down Last 30 Days 1 1 0 0

Down Last 90 Days

Growth Est AMZN Industry Sector S&P 500

Current Qtr. 48.8% 13.2% 24.2% N/A

Next Qtr. 71.9% 16.1% 24.0% N/A

This Year 42.6% 13.2% 22.1% N/A

Next Year 30.6% 14.3% 15.3% N/A

Past 5 Years (per annum) 34.402% N/A N/A N/A

Next 5 Years (per annum) 27.69% 12.17% 12.52% N/A

Price/Earnings (avg. for comparison

40.55 15.28 15.45 N/A
categories)

PEG Ratio (avg. for comparison

1.46 1.26 1.23 N/A
categories)

Hedge Fund News

Citigroup Inc. is in talks to sell a hedge-fund business with about $4 billion in assets as the company continues to
whittle down a $547 billion pool of assets marked for sale, according to people familiar with the sale talks.

Asia ex-Japan hedge funds declined 2.42% in January, after gaining a record 37.4% in 2009, according to the
Singapore-based hedge fund tracker Eurekahedge.

A recent survey by the UK’s Financial Services Authority has revealed that hedge funds do not pose a dangerous risk
to financial institutions that lend to them, according to The Independent. This will be of relief to the embattled
asset class, which, along with private equity, is preparing itself for increased regulatory scrutiny from European
Union (EU) regulators.

Hedge fund firm RAB Capital is to organise an auction to let investors sell-off stakes in its Special Situations fund,
the Financial Times reported.

European Union lawmakers are optimistic about reaching a compromise deal on controversial hedge fund and private
equity fund legislation. The new rules would regulate managers of hedge funds and private equity funds on an EU-
wide basis for the first time.
Hedge Fund Profile

Ascend Capital / San Francisco

Company Philosophy

STRIVING FOR CONSISTENT, SUPERIOR RISK-ADJUSTED PERFORMANCE

Ascend Capital's mission is to generate superior risk-adjusted returns that maximize gains and minimize volatility
over a broad range of market conditions.

We believe that our Fundamental investment strategy is robust, scalable and can be a consistent source of alpha
for our clients.

Our philosophy is well matched with our clients' expectations: to consistently achieve outstanding risk-adjusted
performance through superior skill in security selection, capital allocation, and risk management.

About Ascend
A team of highly experienced professionals with exceptional credentials work in a collaborative environment with the common goal of
generating alpha for our clients

• Firm was founded in 1999 by Malcolm Fairbairn

o 14 years as a long/short equity portfolio manager with positive returns in 13 out of 14 years
o 15 years of hedge fund experience through multiple market cycles and financial market crises
• 18 Investment Professionals (27 employees) including:

o 6 CFAs
o 7 MBAs
o 3 PhDs and 1 MD
• Our Research Professionals have significant personal exposure to the fund's performance and the majority
of the Portfolio Manager's net worth is invested side by side with our investors

Malcolm Fairbairn

Prior to launching the firm, Mr. Fairbairn was Managing Director of Structured Equities for Citadel Investment
Group. He received his M.B.A from Harvard Business School in 1994 and was awarded his B.S. and M.S. degrees in
Chemical Engineering from Massachusetts Institute of Technology in 1985.

This Week’s Economic Calender

Monday Feb 22 Tuesday Feb 23 Wednesday Feb 24 Thursday Feb 25 Friday Feb 26

Market Focus » Market Focus » Market Focus » Weekly Bill Settlement Naranyana Kocherlakota
Speaks
Market Reflections » Market Reflections » Durable Goods Orders
Bank Reserve Settlement 8:30 AM ET
Janet Yellen Speaks ICSC-Goldman Store MBA Purchase GDP
Jobless Claims
10:30 AM ET Sales Applications
8:30 AM ET 8:30 AM ET
7:45 AM ET 7:00 AM ET
 Redbook New Home Sales Sandra Pianalto Speaks Chicago PMI
8:55 AM ET 10:00 8:35 AM ET 9:45 AM ET
4-Week Bill Announcement
11:00 AM ET AM ET
S&P Case-Shiller HPI Consumer Sentiment
9:00 AM ET Ben Bernanke Speaks Ben Bernanke Speaks 9:55 AM ET
3-Month Bill Auction 9:00 AM ET
10:00 AM ET
11:30 AM ET
Consumer Confidence Existing Home Sales
6-Month Bill Auction 10:00 AM ET 10:00
EIA Petroleum Status FHFA House Price Index AM ET
11:30 AM ET
State Street Investor Report 10:00 AM ET
Confidence Index 10:30 AM ET William Dudley Speaks
30-Yr TIPS Auction
10:00 AM ET EIA Natural Gas Report 10:15 AM ET
1:00 PM ET
5-Yr Note Auction 10:30 AM ET
4-Week Bill Auction 1:00 PM ET
11:30 AM ET 3-Month Bill Daniel Tarullo Speaks
Announcement 1:30 PM ET
2-Yr Note Auction 11:00 AM ET
1:00 PM ET
6-Month Bill Farm Prices
James Bullard Speaks Announcement 3:00 PM ET
5:00 PM ET 11:00 AM ET

James Bullard Speaks

12:30 PM ET

7-Yr Note Auction

1:00 PM ET

Fed Balance Sheet

4:30 PM ET

Money Supply
4:30 PM ET

Equity Settlement Equity Settlement Equity Settlement Equity Settlement Equity Settlement
2-25-10 2-26-10 3-01-10 3-02-10 3-03-10

Market Moving Indicator

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any aspect of such info may change without notice. Econoday does not provide investment advice, and does not
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Consensus Info Available
Actual Data Source: Haver Analytics | Consensus Data Sources: Market News International Final Data and Analysis
Available
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References

Google
Yahoo Finance
Big Charts
Ascend website
Bloomberg