June 2018 Prosperously Navigating Unexpected Events with Great Skill and Agility

June 2018 Prosperously navigating unexpected events with great skill and agility

2 AGENDA

Who We Are Investment Methodology Performance Top 10 Strategic Tech Trends for 2018-2020 Current Opportunity and Investment pipeline - GAMING Summary

3 WHO WE ARE

PORTFOLIO MANAGEMENT EXPERIENCE TECHNOLOGY EXPERTISE

• Unique insight • Portfolio Manager with 30 years of from entrepreneurs leading portfolio management experience international tech development across various asset classes at based on needs creation asset management companies (LGT, TAL, CIBC Asset Management), and BLACK SWAN • Advisory Committee of tech leaders a pension (British Petroleum) who determine the global adoption DEXTERITAS and success of new technologies • Exceptional research team with a (“BSD”) wide breadth of knowledge in • Representation in all BSD-invested research, finance, and engineering tech sectors and sub-sectors, for unrivalled expertise • Intense due diligence process for our stock selection process

• Unique risk management overlay to minimize drawdowns and volatility

4 INVESTMENT METHODOLOGY IDEATION • BSD Investment Advisory Committee: seek out global growth themes and trends to overweight and underweight various subsectors PUBLIC COMPANIES • Experienced investment team sourcing trade ideas and discussing vital macro economical forces in play PORTFOLIO CONSTRUCTION • Draw on sector experiences from members of the committee and discuss emerging technology from the private and public space • Deep dive into industry verticals to identify beneficiaries in other primary, secondary, and tertiary markets IDEATION SECTOR ASSESSMENT • Life Cycle: Sectors in introduction and growth stages with high Total Addressable Market (TAM) • Competition: High barrier of entry with differentiated products and services within the sector SECTOR ASSESSMENT COMPANY ANALYSIS • Business Model: Public ccompanies with high recurring revenue, easily able to leverage network effects, strong negotiating power with suppliers and customers, and strong corporate governance • Size: Target small (500M+) to large cap public companies with COMPANY established track record of executing the business. ANALYSIS • Growth: Public companies with high and/or consistent revenue growth • Valuation: Determine if opportunities exist based on our fair value expectation of stocks versus current stock prices

PORTFOLIO CONSTRUCTION • Weightings: Determine % of portfolio allocated to holdings based on risk-reward expectations • Diversification: Well-diversified across 35 to 40 holdings to maximize risk-adjusted returns • Hedging: Utilize derivatives and fixed income products to minimize drawdowns and generate alpha 5 PERFORMANCE

GLOBAL TECH FUND MONTHLY PERFORMANCE SINCE INCEPTION Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Benchmark YTD 2013 1.32% 0.35% 2.82% 4.55% 9.60% 2014 -2.08% 3.63% -2.07% -4.39% 2.38% 2.80% 2.21% 3.53% -1.64% 4.95% 2.89% -1.51% 10.69% 8.40% 2015 0.53% 5.39% -0.16% 2.98% 0.90% -0.91% 0.43% -6.67% -1.48% 9.68% 0.63% -0.76% 10.16% -0.10% 2016 -7.41% -2.78% 5.31% -0.02% 2.33% -0.29% 3.66% 0.65% 1.63% 0.38% -3.75% -0.71% -1.63% 13.95% 2017 4.97% 2.14% 2.99% 2.08% 3.85% -2.55% 2.68% 2.12% 0.51% 3.41% 0.11% -0.20% 24.49% 20.55% 2018 2.89% 0.63% -0.62% -1.57% 4.11% 5.44% 7.11% PERFORMANCE METRICS* FUND RETURNS October 31, 2013 to April 30, 2018 BSD Global Technology Hedge Fund Blend of 50% Nasdaq Composite Index and 50% Russell 2000 Index FUND BENCHMARK ** 75%

Return Since Inception 57.11% 63.89%

YTD Return 1.28% 1.41% 36% 60 Day Return -1.28% -3.34% 20 Day Return -0.23% -3.09% Daily Standard Dev. 0.72% 0.95% -3% Sharpe Ratio 0.87 0.74

Sortino Ratio 1.20 1.03 -42% Correlation — 0.96

BSD has outperformed our portfolio benchmark with lower risks through active diversification across various subsectors

* Management fees and expenses may be associated with investments. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. The indicated rate of return is the historical compounded total return including changes in share value and reinvestment of all dividends. ** The benchmark is a blend of 50% Nasdaq Composite Index and 50% Russell 2000 Index. The blended index is chosen as the indices are generally followed as indicators of the performance of technology stocks and growth stocks, and our portfolio has approximately 50% of positions more correlated with the Nasdaq Composite Index, and 50% of positions more correlated with the Russell 2000 Index. 6 PERFORMANCE

HOW BSD COMPARES TO OTHER HEDGE FUNDS

HEDGE FUND STRATEGIES* 2014 RETURN 2015 RETURN 2016 RETURN 2017 RETURN

BSD Global Technology Hedge Fund 10.69% 10.16% -1.63% 24.99% Absolute Return 0.67% 2.86% 0.31% 3.91% Multi-Region 1.71% -1.19% 1.95% 6.58% Equal Weighted Strategies -0.56% -1.54% 3.78% 6.10% Relative Value Arbitrage -3.06% -3.10% 1.03% 4.28% Macro/CTA 5.09% -1.96% -2.93% 7.43% Fixed Income - Credit -1.86% -4.38% 4.97% 4.55% Global Hedge Fund -0.60% -3.64% 2.50% 8.04% Equity Hedge 1.37% -2.33% 5.49% 12.78% North America -4.13% -9.35% 4.14% 6.25% Emerging Markets Composite -8.03% -5.26% 6.77% 8.99% Market Directional 5.13% -8.58% 9.86% 4.68% Event Driven -4.06% -6.94% 10.50% 7.22%

Our outperformance relative to other funds are indicative of our core competency in generating outsized returns and navigating a challenging market environment

* Hedge fund index data is provided by Hedge Fund Research Index (HFRI) as of January 2018. 7 TOP 10 STRATEGIC TECH TRENDS FOR 2018-2020

8 CURRENT OPPORTUNITIES AND INVESTMENT PIPLINE

• DIGITALIZATION & ELECTRIFICATION The automotive revenue pool will grow and diversify with new services potentially becoming a ~USD 1.5 Trillion market in 2030 • 5G DEPLOYMENT The 5G market will grow to $1.23 Trillion by 2026, according to a new report by Ericsson announced at the Mobile World Congress • DIGITAL TWINS The digital twin market is expected to grow at a CAGR of 37.87%, to reach USD 15.66 Billion by 2023 • AUTOMATION & ROBOTIZATION After growing at a compound rate of 17 per cent a year, the robot market will be worth $135 Billion by 2019, according to IDC • OLED – Organic Light Emitting Diode The OLED market is expected to be valued at USD 48.81 Billion by 2023, growing at a CAGR of 15.2% between 2017 and 2023 • GAMING Gaming market to grow at a CAGR of +11.0% toward 2021 to reach $180.1 Billion • HYPERCONVERGED INFRASTRUCTURE The hyper-converged infrastructure market is expected to reach USD 12.6 Billion by 2022, at a CAGR of 43.59% between 2016 and 2022

9 CURRENT OPPORTUNITIES AND INVESTMENT PIPLINE

GAMING

• Modern personal computers owe many advancements and innovations to the game industry: sound cards, graphics cards and 3D graphic accelerators, faster CPUs, and dedicated co-processors like PhysX are a few of the more notable improvements. • As of 2017, games industry generated $121.7 Billion in revenues worldwide, and were the third-largest segment in the U.S. entertainment market, behind broadcast and cable TV. • Gaming market to grow at a CAGR of +11.0% toward 2021 to reach $180.1 Billion • Global Esports economy will reach $905.6 Million in 2018 as brand investment grows by 48% • The global Esports audience will reach 380 Million this year, made up of 165 million Esports Enthusiasts and 215 Million Occasional Viewers • On its current trajectory, the Esports industry will reach $1.4 Billion by 2020

10 GAMING

VIDEO GAMING ECOSYSTEM

Esports Publishers

2017 Total $122B Users +14.3% Distributors YoY

Hardware

Source: Newzoo 11 GAMING PUBLISHERS

2017 TOP 15 COMPANIES BY GAME REVENUE

$18.10 Bn

$10.50 Bn

$8.00 Bn

$7.10 Bn

$6.50 Bn Chinese Tencent $5.60 Bn is the clear leader in the space $5.30 Bn

$5.10 Bn

$3.60 Bn

$2.40 Bn

$2.27 Bn

$2.21 Bn

$2.09 Bn

$1.94 Bn

$1.91 Bn

Source: Newzoo 12 GAMING PUBLISHERS

TOP 10 BEST-SELLING GAMES YEAR-TO-DATE

1 2 3 4 5 Far Cry 5 Monster Hunter: World Dragon Ball: FighterZ Call of Duty: WWII Grand Theft Auto V Ubisoft Capcom Bandai Namco Activision TakeTwo Interactive

6 7 8 9 10 NBA 2K18 PUBG Sea Of Thieves MLB 18: The Show Mario Kart 8 TakeTwo Interactive Bluehole Microsoft Sony Nintendo

Source: Forbes 13 GAMING PUBLISHERS

TOP MOBILE GAME PUBLISHERS

Supercell Netmarble Key games: Clash Royale, Brawl Stars, Key games: Lineage 2: Revolution, Clash of Clans, HayDay, Boom Beach Marvel Contest of Champions Structure: Majority owned by Chinese Structure: Privately held tech firm Tencent King Digital Entertainment Niantic Key games: Candy Crush Saga, Bubble Key games: Pokemon GO, Ingress Witch Saga 3, Hearthstone: Heroes of Structure: Independent (Investment from Warcraft (Blizzard) Google, Nintendo, The Pokémon Structure: Acquired by Activision Blizzard Company and other investors) EA Mobile Tencent Key games: Star Wars: Galaxy of Key games: Honour of Kings, WeFire, Heroes, Madden NFL Mobile, FIFA Clash Royale Mobile Soccer Structure: Publicly listed Structure: Public NetEase Mixi Key games: Fantasy Westward Journey, Key games: Monster Strike Onmyoji, Ghost Structure: Public Structure: Publicly listed GungHo Online Entertainment Machine Zone Key games: Puzzle & Dragons, Super Key games: Game of War, Mobile Strike, Senso Final Fantasy: A New Empire Structure: Public Structure: Privately held

14 GAMING DISTRIBUTERS

2012-2021 GLOBAL GAMING MARKET CAGR 2012-2021

$180.10Bn Total +11.0% $165.90Bn

PC Games $151.90Bn Console Games $137.90Bn

Mobile Games $121.70Bn Mobile $106.26 +26.8% $94.56 $106.50Bn $82.03 $93.10Bn $70.33 $84.80Bn $55.98 $76.50Bn $42.60 $70.60Bn $31.65 $24.59 $17.60 $12.71 Console $38.16 $39.62 $32.86 $34.48 $36.46 $30.53 $29.79 $31.95 +11.0% $31.77 $29.84

PC $30.53 $31.65 $31.95 $32.86 $33.10 $33.42 $34.84 $34.22 $26.12 $29.07 +11.0%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Source: Newzoo 15 GAMING DISTRIBUTERS

TOP 10 COUNTRIES BY GAMING REVENUE

Canada United Kingdom $1,968 M $4,238 M

8 5 4 France Germany China $2,977 M 7 $4,430 M $32,536 M 10 2 USA 9 Italy 3 Japan 1 6 $25,426 M $1,881 M $14,048 M Spain Republic of Korea $1,918 M $4,203 M

China generates one quarter of gaming revenue worldwide

Source: Newzoo 16 GAMING DISTRIBUTERS

TOP VIDEO GAMES DIGITAL DISTRIBUTERS

Steam Amazon.com Structure: Owned by Valve Structure: Publicly listed Corporation (Private) GOG.com Xbox Live Structure: Owned by CD Projekt Structure: Owned by Microsoft (Private) (Publicly listed) GamersGate PlayStation Store Structure: Privately held Structure: Owned by Sony (Publicly listed) Green Man Gaming Structure: Privately held Origin Structure: Owned by Electronic Battle.net Arts (Publicly listed) Structure: Owned by Activision Blizzard (Publicly listed) Uplay Structure: Owned by Ubisoft GameStop (Publicly listed) Structure: Publicly listed

Source: Newzoo 17 GAMING HARDWARWE

HOW IS PLAYING

Asus ROG Xiaomi Black Shark Razer iPhoneX Game Smartphone Game Smartphone Game Smartphone

Mobile

Sony PS4 Microsoft XBox One X Nintendo Switch

Console

CyberPowerPC Dell Alienware HP Omen X Gamer Xtreme Corsair One Pro

Sony Play Station 2 is the best selling console ever – 138M units sold 18 GAMING HARDWARWE

2008-2017 UNIT SALES OF GAME CONSOLES

Nintendo Microsoft Sony

53.56M 48.33M 37.81M 32.81M

23.83M 20.18M 13.9M 10.86M 18.14M 8.75M 13.53M 11.16M 10.36M 13.95M 10.69M 10.51M 9.56M 9.32M 8.76M 8.27M

24.51M 23.18M 23.19M 22.28M 19.88M 19.12M 20.84M 21.53M 20.15M 20.47M

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: Newzoo 19 GAMING HARDWARWE

GPU & GAMING ACCESSORIES

Discrete GPUs

Nvidia and AMD control nearly 100% of discrete GPU market Smartphones are also using GPUs, mostly Adreno GPUs from Qualcomm, PowerVR G PUs from Imagination Technologies and Mali GPUs from ARM

Gaming accessories are representing $5B-$10B Market

Top 5 Best Gaming Gear Brands Razer (Private) SteelSeries (Private) Logitech Microsoft Corsair (Private)

20 GAMING USERS

2014-2021 NUMBER OF ACTIVE VIDEO GAMERS WORLDWIDE

2,725M 2,600M 2,471M 2,341M 2,210M 2,080M 1,958M 1,815M

2014 2015 2016 2017 2018 2019 2020 2021

Source: Newzoo 21 GAMING USERS

WHO IS PLAYING

Female Male 45% 55%

50 years and older 23%

36 to 39 years old 20%

18 to 35 years old 28%

Under 18 years old 29%

Source: Statista 22 GAMING ESPORTS

MAY 2018 MOST WATCHED GAMES ON TWITCH BY ESPORTS HOURS

RANK TITLE TOTAL HOURS ESPORTS HOURS Dota 2 1 38.8M 17.9M Valve Corporation (Private) League of Legends 2 81.2M 17.2M Riot Games (Private) Counter-Strike: Global Offensive 3 26.1M 15.6M Valve Corporation (Private) Overwatch 4 30.9M 13.2M Activision Blizzard Hearthstone 5 33.5M 5.0M Activision Blizzard Tom Clancy's Rainbow Six: Siege 6 9.2M 2.3M Ubisoft PLAYERUNKNOWN'S BATTLEGROUNDS 7 43.8M 1.7M Bluehole (Private) StarCraft II 8 4.4M 1.5M Activision Blizzard Street Fighter V 9 2.4M 1.2M Capcom World of Warcraft 10 13.1M 1.1M Activision Blizzard

Esports hours consists of content from professionally organized esports competitions and does not include individual (pro-player) streams. This content combined with consumer content makes up the total hours watched. Source: Newzoo 23 GAMING ESPORTS

MAY 2018 MOST WATCHED GAMES ON TWITCH BY TOTAL HOURS

RANK TITLE TOTAL HOURS ESPORTS HOURS Fortnite 1 142.3M 0.4M Epic Games (Private) League of Legends 2 81.2M 17.2M Riot Games (Private) PLAYERUNKNOWN'S BATTLEGROUNDS 3 43.4M 1.2M Bluehole (Private) Dota 2 4 38.8M 17.9M Valve Corporation (Private) Hearthstone 5 33.5M 5.0M Activision Blizzard Overwatch 6 30.9M 13.2M Activision Blizzard Counter-Strike: Global Offensive 7 26.1M 15.6M Valve Corporation (Private) World of Warcraft 8 13.1M 1.1M Activision Blizzard Grand Theft Auto V 9 11.4M 0.0M Take-Two Interactive Detroit: Become Human 10 9.2M 0.0M Quantic Dream SA (Private)

2016-2021 ESPORTS GLOBAL REVENUE GROWTH

Expected Revenue Growth +27.4% CAGR 2016-2021

Expected $1650M Revenue Growth $1471M Revenue +38.2% Growth YoY $1154M +33.0% YoY $906M

$655M $493M

2016 2017 2018 2019 2020 2021

Source: Newzoo 25 GAMING ESPORTS

2018 ESPORTS GLOBAL REVENUE EXPECTATIONS

6% In 2018 China and North America 18% 32% expected to generate 2018 Total $509M $906M 56% +38.2% of the global YoY esports revenue

38%

Source: Newzoo 26 GAMING ESPORTS

2018 ESPORTS EXPECTED GLOBAL REVENUE STREAMS Merchandise & tickets $95.50 +16.2 YoY Video game streaming platforms: Game publisher Fees 11% $116.30 Sponsorship $359.40 +11.0 YoY 13% 2018 Total 40% +53.2 YoY $906M +38.2% YoY Media rights 18% Fb.gg $160.70 +72.1 YoY 19%

Advertising $173.80 Source: Newzoo +23.8 YoY 27 GAMING ESPORTS

TOP ESPORTS ORGANAIZERS Riot and ESL combined, are responsible for more than half of these organizer hours. Beyondthesamit MLG League of Legends, developed and published by Riot Games, is easily the Riot Games most popular and lucrative eSports 5% game out there. Starladder 5% At the 2017 Season World 9% 28% Championship, the final competition of the 2017 League of Legends competitive season, 24 teams received Valve invitations to play for a prize pool of 9% 573M $4,596,591 (the initial prize pool was Total organizer $2,250,000, while the rest was fan hours contributions). Samsung Galaxy, a South Korean team and member of 10% KeSPA, took first place in the competition and walked away with Other 23% $1,723,721. SK Telecom T1 finished second and won $620,539, while Royal 11% Never Give Up and Team WE finished ESL in third and fourth to take home $321,761 apiece. Dreamhack

Source: Newzoo 28 GAMING ESPORTS

ESPORTS GLOBAL AUDIENCE GROWTH

Expected In 2018 Asia-Pacific will account for 52% of Esport Enthusiasts Revenue Growth +14.4% CAGR Esports enthusiasts 2016-2021 Occasional viewers Total Audience Total Audience +13.8% $307M +19.3% YoY $281M YoY $246M $215M $192M $160M $250M $216M $189M $165M $143M $121M

2016 2017 2018 2019 2020 2021

Source: Newzoo 29 SUMMARY

• We bring unique, proven strengths • Principal with 30 years of portfolio management experience • Dynamic stock selection methodology • Disciplined risk management process

• Our expertise in technology is unparalleled • Team consisting of seasoned entrepreneurs that have co-founded billion dollar companies • Global networks of advisors and analysts examining tech vendors and tech end-users

• Significant out-performance in risk-adjusted returns • The BSD Global Tech Hedge Fund returned 65.23% since inception versus our benchmark** return of 75.95% • Exhibited ~73% of the benchmark volatility as of May 31, 2018 • Hedging strategy acts as an “insurance policy” in anticipation of adverse market events, by limiting drawdowns and often generating alpha