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  1. Augustus International Master Fund, LP November, 2020 Presented by REO Capital
  2. Disclaimer • These materials have been provided to you for information purposes only and may not be relied upon by you in evaluating the merits of investing in any securities referred herein. These materials are not intended as an offer or solicitation in any jurisdiction with respect to the purchase or sale of any security and are for professional investors only. Any investment decision should be made based solely upon the information contained in the final Offering or Information Memorandum. The Key Terms page set forth herein is subject to definitive agreements. • The interests described herein will not be registered under the laws of any jurisdiction, including the United States Securities Act of 1933 or the United States Investment Company Act of 1940, the laws of any state of the United States, or the laws of any foreign jurisdiction and may not be offered or sold without compliance to applicable securities laws. • Past performance is not indicative of future results. These materials are strictly confidential and may not be reproduced or redistributed in whole or in part, nor may their contents be disclosed to any other person. These materials are not intended to constitute legal, tax, or accounting advice or investment recommendations, and clients should consult their own advisors on such matters. The interests described herein are not deposits or obligations of any financial institution or guaranteed or endorsed in any way. This investment will not be listed on or traded under the rules of any exchange, and it may therefore be difficult to sell or obtain reliable information about its value or the extent of the risks to which it is exposed. The value of the investment may fall as well as rise, and investors may get back less than they invested. Where securities are issued in a currency other than the investor’s currency of reference, changes in exchange rates may have an adverse effect on the value of the investment. • Further information is available upon request. 2
  3. 3 Presentation Highlights Profit Generation: Strategic Advantaged Relationships Focused on Trading Technology • “ Special Situation, ” “Less Liquid ” Strategies (Private Debt, Life Settlements, Direct Lending, Debt Receivables, Litigation Finance, Crypto Arbitrage, Weather Derivatives Arb, etc.) • “Special Situation” Artificial Intelligence/Algorithmic Quant/Arbitrage • Ultra High Frequency Trading Applications – Event Driven (News) – Electronic Market-Making – Order Book Scalping • “First Loss” Proprietary Trading (Multi-Asset Class) Compelling Structure • Multi Sub-Advisor Investment Platform of Customized Managed Accounts • All Sub-Strategies Have a Structural (Non-Directional) Competitive Advantage • Superior Technology (AI, Blockchain, Big Data Analytics, etc.) – Automated Trading Algorithms – Risk Management • Any Prop Trading is Ultra Short-term, Market-Neutral, and Quantitative Unusually Attractive Risk/Reward Expectations
  4. 4 Fund Structure • Master Feeder Structure – Domestic Feeder: U.S. Taxable – Offshore Feeder: U.S. Tax-Exempt and Non-U.S. • Separately Managed Accounts (Pari Passu with Fund) • Possible Customization: UCITS, “White Label” • Managed Account Allocation Platform • Intraday (and Overnight) Stop Loss Risk Limits/Exposure/Buying Power Parameters • “First Loss” Co-Investment (“Skin in the Game”) Preferred Prop Traders Investors
  5. 5 Sub-Advisor SMAs vs. FOFs Avoid Expenses Embedded in Sub-Advisor “Fund” Customized Stop Loss Limits (Daily, Monthly) Negotiate Customized (Lower) Management/Performance Fees in SMAs Customized (Superior) Liquidity in SMAs • No Lock-Up • No Redemption Fees • Shorter Notice Period Intraday, Real-Time Portfolio Transparency in SMAs • P&L • Aggregated Net Exposure → Hedge Overlay
  6. Investment Philosophy “State-of-the-Art” Risk Management Technology Diversification Generate Superior Risk-Adjusted Returns/Non-Correlated to Securities Markets • Profit Attribution From Structural Competitive Advantages of Sub-Advisors • Compelling “Less Liquid, Special Situation” Strategies • Prop Trading Focus on Ultra Short-Term Trading Time Horizon and Liquidity; Market Neutrality • “First-Loss” Risk Protection Alignment of Interests via Managed Account Platform Power of Positive Compounding 6
  7. 7 Positive Compounding Short Term Losses vs. the Power of Positive Monthly Compounding Month Manager A Manager B Manager A Manager B Manager A | Manager B January +6.5% +1.0 Same Monthly Numbers Same Monthly Numbers February -4.4 +1.0 March +6.5 +1.0 April -4.4 +1.0 May +6.5 +1.0 June -4.4 +1.0 July +6.5 +1.0 August -4.4 +1.0 September +6.5 +1.0 October -4.4 +1.0 November +6.5 +1.0 December -4.4 +1.0 3 Year Total 10 Year Total Arithmetic Total: +12.6% +12.0% +37.8% +36.0% +126.0% +120.0% Geometric (Monthly Compounding)Total: +11.39% +12.68% +38.21% +43.07% +194.08% +229.98% Conclusions: . Over a longer period of time, the best way to maximize results is to not have losses in the short term. In other words, consistent positive monthly returns (even small returns) yield dramatically better results than volatile returns, especially when volatile returns include monthly losses. Monthly drawdowns are to be avoided. Alternative investments, such as hedge funds, are solutions to seek to achieve consistent positive returns in any market environment. Traditional (long- only) equity strategies are rarely profitable when the S&P 500 goes down. Many “special situation” hedge funds can be profitable when the S&P 500 goes down. For a taxable investor with a long-term horizon, the difference in total net return is even that much more significant when there is a “tax efficient” solution available to defer annual K1 taxes on investment gains. Accumulation of the slow & steady ROI in Manager B will outperform in the long run.
  8. 8 Portfolio (Platform) Construction “Special Situation” Less Liquid Strategies (Private Debt, Direct Lending, Life Settlements, Debt Receivables, Equipment Leasing, Litigation Finance, Weather Derivatives, Trade Finance, Syndicate Desk Activities, Exchange-Based Agency Trading/Market Making Activities, etc.) Electronic Market Making/Order Book Scalping Ultra Short-Term, High Frequency Trading “Special Situation” Artificial Intelligence/Algo Quant “First Loss,” Short-Term, Market-Neutral/Arbitrage Volatility Arbitrage (Options) “Multi” Asset Class • Equities • Fixed Income (including “Private Debt”) • Foreign Exchange • Commodities • Other “Multi” Global Market “Multi” Type of Security • Cash Settled • Options • Futures • Futures Options • ETFs • Indices • OTC “Special Situations” All Prop Positions/Securities Must Be Publicly-Traded, Exchange-Listed, and “Liquid” All Liquid Trading Strategies Must Offer an Automated, Quantitative Approach with Definable Technological Edges Eligible Strategies Characteristics of Eligible Strategies
  9. Sub-Advisor Selection 9 Portfolio (Platform) Construction Sourcing of Talent Due Diligence • Qualitative Background Verification/AML/KYC • Qualitative Analysis of Prop Trader’s Algorithmic Technological Edge • Quantitative Analysis of Historical Performance – Trading Frequency – Drawdowns – Track Record in “S&P 500 Negative Months” – Leverage – Correlation of Returns with Existing Fund Sub-Advisors & the S&P 500 “First Loss” Capital Investment (Prop Trader “Reserve”) Strategy Diversification Factor (re: Aggregate Fund Portfolio) “Uniqueness” of Any “Less Liquid” or “Special Situation” Strategy
  10. Capital Allocation Optimization Process 10 Portfolio (Platform) Construction Factors for Allocation to Platform’s Trading Managers (Sub-Advisors) • Sub-advisor Allocations are Weighted Largely According to Expected Risk- Adjusted Returns • Prop Trader Commitment of “First Loss” Capital (“Reserve”): – Limited Drawdown Frequency/Magnitude/Probability – Affects “Buying Power” & Economics • Alpha Generation – Structural Competitive Advantages of Any Allocations to “Less Liquid” & “Special Situation” Strategies – HFT Applications (Systematic Algorithmic Trading) • Market-Making • Order Book Scalping • Agency Commissions and Liquidity Rebates – Variable Revenue Generation via Discretionary Trading P&L • Weighted Probability of Loss/Stop-Loss Trigger vs. Upside Potential • Liquidity Cost of a Forced Liquidation • Analysis of Strategy in a Specific Market Environment (Opportunistic) • Correlation of Strategy to Other Fund Managers and to the S&P 500 in a Specific Market Environment • Time Horizon Expectation for P&L Realization HFT & “Special Situation” Strategies Generate Outsized “Alpha.” “First Loss” is Defensive Allocation. Risk Management Discretion to Liquidate/Overlay (Hedge) Individual Prop Traders or Aggregate Portfolio Currently, the Fund Allocates to 5-6 Sub-Advisors. As AUM Increases, the Number of Sub-Advisors Should Also Increase (Ultimately, 10-20 Managers).
  11. (Multi-Layered) Risk Management 11 Portfolio (Platform) Construction Prop-Trader “First Loss” Reserve Stop Loss Limits • 1% Daily • 2.5% Monthly • 5% Since Inception • The Sub-Advisor “Owns” any Excess Loss over 1% + 2.5% Limits “State-of-the-Art” Technology • Managed Account Platform for Platform Traders – Real Time, Tick-by-Tick Intraday Monitoring & Transparency • Trade Execution • Portfolio Composition (Positions) and Exposure • P&L vs. Stop Loss Limit – Liquidity > Dynamic Portfolio Management • Multiple Providers of Risk Management Software Risk Management Discretion • Stop-Loss Limits, Exposure Limits, Buying Power on Aggregate Portfolio • Overlays • Cash Balances Prime Broker Risk Analysis • Intraday • Overnight Fund Administrator Risk Analysis
  12. 12 Competitive Advantages Portfolio of Managed Accounts (MA). (We Customize & Control the Risk in Each MA.) See Page 5. The Fund’s Principal has an Extensive Network to Source Innovative Product and Abundant Trading Experience to Perform Sub-Advisor Due Diligence, Portfolio Construction, Risk Management, etc. Please See Bio on Page 14. Augustus Advisors LLC is Positioned as an OCIO (Outsourced CIO), Specializing in “Alternative Investments.” The Fund’s Principal is related to the family of a $14 billion dollar, Multi-Family Office (Offit Capital). Several family members are the core investors in the Fund. It Is Usually Difficult To Identify, Much Less Allocate Capital To, Either “First Loss” Prop Firms or Hft/Electronic Market-making/Order Book Scalping/News Event Strategies or to The “Less Liquid, Alternative,” Special Situation Strategies (I.E. Direct Lending, Life Settlements, Debt Receivables), Because They Are Usually Closed To External Investment or Lacking In Scalability And Capacity. They Usually Trade Inefficient Market Sectors And Face Limited Competition. Such Firms And Strategies Have Evidenced The Unique Ability to Make Consistent Positive Returns In All Market Environments, Assuming Reasonable Levels Of Volatility. • “First Loss” Allocations: Reduce Risk of Loss in the Portfolio • HFT and Special Situation Strategies: Compelling “Alpha” Generation Alignment of Interests: Both Fund Principals and Prop Traders Invest “A Significant % of Their Liquid Net Worth” in the Strategy. “First Loss” Reserve & Strict Stop Loss Limits Combine to Minimize Probability/Frequency/Magnitude of Losses
  13. Historical Performance According to our attorneys, because the nature of the current allocations of the Augustus Fund to our sub-advisor strategies is so radically different (less liquid, less correlated to securities markets, more nuanced, etc.) from those prop trading/algo quant strategies used exclusively in the past, it would be inappropriate and misleading to proactively display and promote the Fund’s 15 year historical performance history. This performance history is now available upon request only. Please refer to the attached Executive Summary, which includes a pro forma history of our current sub-advisor strategies based on existing weighted average allocation percentages, as well as details on each strategy and its own individual performance history. Beginning with October, 2018, on the advice of counsel, the Augustus Fund began to document our own new net monthly, audited performance history based on real money allocations to these products. We appreciate your understanding and consideration. 13 1st Quarters 2nd Quarters 3rd Quarters 4th Quarters Augustus S&P 500 2015 1.33 2.77 0.80 8.71 14.11 1.38 2016 3.74 2.55 4.06 5.98 17.32 11.96 2017 5.46 11.65 3.94 3.71 26.92 21.83 2018 2.05 3.46 4.49 2.05 12.58 -4.38 2019 2.25 0.78 -0.73 -1.05 1.23 29.51 2020 -0.31 0.63 0.32 -3.08 93.66 65.97
  14. Bio Mark Abeshouse is the General Partner of the Augustus International Master Fund LP. His primary responsibilities are to manage the Fund’s day-to-day activities involving capital allocation and portfolio risk management, operations and administration, marketing and client servicing, and the sourcing of potential prop traders anywhere in the world. Mr. Abeshouse is the Chairman and Managing Member of Augustus Capital I LLC, which is the successor firm to Augustus Capital LLC (formerly a FINRA broker-dealer), Augustus Trading LLC, and Augustus Advisors LLC. Augustus Capital I serves multiple functions as a small “ family office,” where it allocates its proprietary assets and those of its clients for whom it advises on global asset allocation, in various areas of “alternative investments” such as hedge funds, private equity, real estate, natural resources, etc. Augustus Trading LLC is a (dormant) Broker-Dealer Market Maker on the Pacific Stock Exchange. Augustus Advisors LLC is the General Partner to the management company entities of the Augustus Fund and a (pending) registered investment advisor. From 2015 through 2019, Mark was also the President of Horton Point LLC, a fintech investment platform focused on alternative investments (hedge funds). Currently, Mark is in conversation to become a principal and equity owner of a new firm specializing in a very innovative product in global real estate, in which the investor can, for the first time, manage real estate exposure risk and make money when the real estate cycle turns down. He has a diverse background on both the buy and sell sides of Wall Street as a trader and portfolio manager for major institutions. In the first half of his career to date, he was a U.S. government bond trader at Salomon Brothers, a trading desk manager (specializing in derivatives of all asset classes) at Morgan Stanley, and a discretionary global portfolio manager at Lazard Freres Asset Management. These experiences included time spent on the floors of various exchanges. Prior to founding Augustus Capital LLC in 1997, Mr. Abeshouse was a founding principal and Managing Director of the Aries Fund, a health care and biotech hedge fund, where he was responsible for risk management, business development, and marketing. He has had the following effective U.S. Securities Registrations: Series 3 (Commodity Features); Series 5 (Interest Rate Options); Series 7 (General Securities Representative); Series 15 (Foreign Currency Options); Series 24 (General Securities Principal); Series 63 (State Blue Sky); Series 65 (Registered Investment Advisor); and Series 79 (Investment Banking). He graduated Magna Cum Laude from the Wharton School of the University of Pennsylvania with a BS Economics with a major in Finance (1978) and Magna Cum Laude from the Graduate Business School of the University of Chicago with an MBA with a major in Finance (1980). He is a member of the Pi Gamma Mu and Beta Gamma Sigma Honor Societies. He is actively involved in a variety of community and charitable organizations. He is married to a corporate litigation attorney and has two children and a dog (miniature dachshund). He remains a sports enthusiast and card player. He resides in Westchester County, NY. 14
  15. 15 Organizational Team Note: Please refer to p. 16 for a list of our external institutional service provider firms. Manager Sourcing and Due Diligence • Mark Abeshouse Portfolio Management/ Risk Management • Mark Abeshouse • Underlying “Managed Account” Sub-Advisors Marketing/Investor Service • Mark Abeshouse • Jacquelyn McAvoy • Various Contract “Third Party Marketers Operations/ Administration • Mark Abeshouse • Jacquelyn McAvoy Legal/ Compliance • Rhonda Leonard, Esq. (External Counsel/ Consultant)
  16. 16 Fund Service Providers Multiple Prime Brokers: • Negotiated by Sub-Advisors Fund Administration/ Back Office: • Liccar Fund Services (U.S.); • Genesis Fund Services (Bahamas) Legal/Compliance/ Fund Registration: • Sadis & Goldberg LLP (U.S.); • Tesser, Ryan & Rochman LLP (U.S.); • King & Co. (Bahamas) Auditor: • Fulvio & Associates, LLP (U.S.) Correspondent Bank: • Signature Bank (U.S.) Regulation: • Pending registration as a Registered Investment Advisor (RIA) with both the SEC & New York State
  17. 17 Key Terms Management Fee Performance Fee Lock Up/Hurdle Rate Subscriptions Redemptions None/ None 20% Monthly 1.5% Monthly, 30-Day Written Notice
  18. Contact Information General Partner: Mark Abeshouse (Managing Member of the Fund’s Domestic & International Management Company Entities) Address: 110 Pondview Lane, New Rochelle, NY 10804 U.S.A. Telephone: 914-355-4371 (office) 914 450-2369 (mobile) eFax: 914-560-2174 Email: maa.augustusadvisors@gmail.com; AugustusCapital@yahoo.com; RayEspinoza@reocapitalllc.com 18