Patriot Capital, LLC. University of Connecticut Fund Overview

1. Patriot Capital, LLC. University of Connecticut Fund Overview Wednesday, September 10, 2014 Brian H. Dobson | (203) 613-1210 | Brian.Dobson@UConn.edu William Luby | (917) 887-9082 | William.Luby@UConn.edu Olukayode David Koleosho | (281) 788-2813 | Olukayode.Koleosho@UConn.edu Ramkrishna Javalkar| (404) 200-2178 | Ramkrishna.Javalkar@UConn.edu Kenneth Gustaitis| (203) 217-1703 | Kenneth.Gustaitis@UConn.edu

2. Overview • Patriot Overview • Investment Philosophy • Industry Thesis • Ratings Summary • Valuation • Industry Trends • Company Overviews

3. Patriot Overview

4. Patriot Capital Overview • Formed in 2005, Patriot Capital, LLC. is a leading wealth management institution. • Assets under management: $500 mln as of June 1, 2008 • Focused Group of 20 employees in research, trading, marketing, and IT, based in Stamford, Connecticut • We are a long/short fund. • Fundamental Research • Patriot’s research analysts combine industry expertise with signature quantitative financial modeling, field-based research, and industry channel checking in order to drive business performance. • Our large information set and in depth research gives us a competitive advantage in the market compared to other managers. • Team members focus on the factors driving market activity, and are not guided by a pre-set coverage universe.

5. Biographies

6. Team Overview Brian Dobson: Chief Investment Officer • Professional • 2003-2003 Alliance Bernstein, New York – Portfolio Manager • 2003-2005 Susquehanna Financial Group, Stamford – Equities Analyst • 2001-2003 The Buckingham Research Group Inc., NYC – Equities Analyst • 1999-2001 Prudential Securities/Prudential Equity Group, NYC – Equity Analyst • Education • Marist College, B.S. 1999 • University of Connecticut, School of Business, M.B.A. 2002

7. Team Overview William Luby: Head of Trading • Professional • 2000-2005 SAC Capital, Stamford – Trader • 1993-2000 JP Morgan Chase, NYC – Sales Trader • 1990-1993 Carnival Cruise Lines, Miami – VP Finance • Education • University of South Carolina, B.A. 1990 • University of Connecticut, School of Business, M.B.A. 2002

8. Team Overview Olukayode David Koleosho: Director of Research • Professional • 2001-2003 Major Bank, NYC – Senior Equities Analyst • 2000-2001 Small Fish Capital., NYC – Equities Analyst • 1998-2000 Trump Property Group, NYC – Managing Director • 1995-1998 MGM Mirage, Las Vegas – Operations Analyst • 1993-1995 Sugar Shack Hotels, NYC – Brand Manager • Education • South East Missouri State, B.A. 1993 • University of Connecticut, School of Business, M.B.A. 2002

9. Team Overview Ramkrishna Javalkar: Assistant Director of Research • Professional • 2001-2003 Wachovia Bank, NYC – Equities Analyst • 1999-2001 Merrill, Lynch, Pierce, Fenner and Smith, NYC – Equities Analyst • 1997-1999 Deutsche Bank Investment Bank, NYC – Analyst • Education • Walchand - India, B.E. 1997 • University of Connecticut, School of Business, M.B.A. 2002

10. Team Overview Kenneth Gustaitis: Senior Risk Officer • Professional • 2002-2005 UBS Investment Bank, NYC – Senior Vice President - Risk • 2000-2002 UBS Investment Bank, NYC – Financial Analyst • 1998-2000 GE Asset Management, CT – Associate Analyst • Education • CRM Charter Holder • University of Rhode Island, B.A. 1998 • University of Connecticut, School of Business, M.B.A. 2002

11. Investment Philosophy

12. Investment Philosophy Philosophy Patriot Capital strives to provide the highest possible financial returns to our clients using original market analysis and risk management. To do this we invest in under-valued and over-valued U.S. equities. Target Returns We target returns of 15% per annum.

13. Investment Decision Making Process

14. Investment Process: Approval Decision Making Tree

15. Organizational Chart

16. Risk Monitoring

17. Risk Monitoring Committee Patriot Capital’s Risk Monitoring Committee • Six member committee of risk professions has regular bi-weekly meetings • Committee is formed of the Chief Risk Officer, Director of Research and the Head of Trading, with the balance made up of objective outside directors • In addition to regular meetings Patriot Capital LLC can call emergency meetings as market conditions require • We also have stop loss requirements.

18. Risk Monitoring Committee The RMC Team Dr. Norman Moore, Associate Professor, University of Connecticut Areas of Expertise: Corporate financial management, treasury management, financial engineering, value analysis, international corporate finance, and derivatives. Tim Nguyen, Investment Analyst, University of Connecticut Foundation Areas of Expertise: Treasury and alternative investment vehicles. Tracey Kreps CFA , Fund Manager, Equities, ICMA-RC Areas of Expertise: Asset allocation and portfolio risk Time Nguyen specializes in Treasury and alternative investment vehicles.

19. Risk • How do we manage risk? • We have explicit maximum position limits that cannot be surpassed • We use stop losses as a tool to manage/monitor downside risk • Gross long, gross short and net market exposure are constantly monitored • Patriot Capital has a limit on the amount of total leverage that can be employed • Liquidity levels are maintained to meet tenders and/or unforeseen market turmoil

20. Allocation Current Positions

21. Returns

22. Patriot Capital’s Core Universe

23. Industry Thesis

24. Industry Thesis: Lodging • Current Industry Fundamentals • It is clear that the softening economy is having a negative impact on hotel demand • Cycle LTM occupancy peaked at 63.7% in 06/06. • The good news is that since then, LTM occupancy has only fallen 140 bps to 62.3% as of 06/2008. • LTM RevPAR growth also peaked in 06/2006, at 9.4%. Current LTM RevPAR growth is 3.7%. • Low supply growth has been the mitigating factor. LTM supply is only up 1.9%. • Weak dollar boosting inbound international travel, helping to offset any domestic softness. • Given pipeline and credit markets, supply not likely to accelerate past 2% any time soon. • Low supply should temper any downturn. In past downturns, high supply compounded ills. • Valuation • Multiples appear to have overshot to the downside. • Relative to the 10-year treasury, hotel stocks are trading at spreads not seen since 3Q01.

25. Lodging Trends – What Are the Most Current Trends? Exhibit 2. 3Q08 QTD RevPAR Trends by Market/Segment Exhibit 1. 3Q08 QTD Occupancy Trends by Market/Segment Exhibit 3. 3Q08 QTD ADR Trends by Market/Segment Exhibit 4. 3Q08 QTD RevPAR - Detailed Market Analysis

26. Lodging Trends – Where We’ve Been, Where We’re Going Exhibit 1. Supply & Demand Growth Rates – All US Hotels Exhibit 2. ADR and RevPAR – All US Hotels Exhibit 3. Occupancy Rate – All US Hotels Exhibit 4. RevPAR and ADR Growth Rates – All US Hotels

27. Lodging Trends – Where We’ve Been, Where We’re Going Exhibit 1. Supply & Demand Growth Rates – Upper Upscale Exhibit 2. ADR and RevPAR – Upper Upscale Exhibit 3. Occupancy Rate – Upper Upscale Exhibit 4. RevPAR and ADR Growth Rates – Upper Upscale

28. Timeshare Overview – Three Distinct Businesses Exhibit 1. Distribution of a $1 in Timeshare Revenues • Develop and Sell Intervals • Plan, finance, and build common areas and accommodation units. • Typically, each unit is divided into 50 weeks (2 are reserved for maintenance) and then marketed and sold. Over time, title passes from developer to timeshare owners. • After infrastructure is developed (lobby, pools, etc.), unit construction is phased to match demand levels. • Profit is net of selling price less cost of land, construction, marketing, and overhead. Timing skews cash outflow to project’s early phases and inflows to later phases, distorting return characteristics. • Finance Purchase of Intervals • Most buyers finance their purchase through developer, making a small down payment (10%) and borrowing the rest. • Buyers focus on monthly cash outlay, not total cost, so interest rates on timeshare mortgages are closer to credit card rates than rates on primary mortgages or home equity loans. • Profit is spread between interest receivable (high) and developers cost of capital (low), with spreads ranging from 500-1,000 bps. Receivables are bundled and sold too. • Manage Resorts and Rental Pool • Developer usually manages resort, overseeing maintenance, housekeeping, F&B/recreation facilities, and finance/accounting. • Maintenance fees fund resort operations and management fee. Management fee equals 5-10% of cost to run resort. • Manager also runs rental pool to rent unsold or unused units on transient basis. Renting unsold units is pure profit to manager, while rental income from unused units is split with the unit’s owner. Exhibit 2. Timing of Cash Inflow/ Outflow in Typical Timeshare Project

29. Timeshare Is a Meaningful Earnings Driver of Hotel Companies Exhibit 1. Timeshare Revenues by Company (in millions) • Key Points • Major lodging brands improved tarnished image of “timeshare” concept • Major source of earnings for HLT, WYN HOT, MAR • Excellent way to leverage existing resorts • Land and infrastructure sunk cost • Good “kicker” to attract developers • “Captive” potential base of buyers • Destinations enhance attractiveness of guest loyalty programs • Three distinct businesses • Developing and Selling Intervals • Financing purchases • Managing resorts • Timing of cash flows is an issue • Outflows high in early project stages • Inflows low and build in later phases • Percentage of completion accounting causes accounting profits and cash flows to misalign Exhibit 2. Timeshare Margin

30. Industry Thesis: Gaming • Las Vegas Strip Not Immune to Economic Trends • Near-term outlook is challenging, particularly for mid-market and lower-end properties given economic climate. • Strong international visitation, driven by a weak dollar, has helped mitigate some of the domestic slowdown. • High-end results mixed, but redo of Bellagio VIP space skews trend. Macau synergies becoming more apparent. • 2007’s merger mania is over as credit markets remain closed; keep an eye on sovereign wealth funds. • While the market still faces additional supply growth from the likes of City Center and Wynn Encore, current credit conditions have delayed notable projects, such as Echelon and MGM’s JV with Kerzner. • All Eyes Turn to Macau • Venetian opened in late August and MGM Grand Macau opened in mid-December. This year will see minimal new supply additions as LVS’s Four Seasons on Cotai is the only scheduled 2008 opening. • Western operators have been successful in building market share with superior product. • The question is – by how much will new supply grow the market and can infrastructure handle growth. • Government is significantly invested in success of Macau and will pull out all stops to help growth. • Keeping an Eye on the Consumer • Housing, sub-prime, and gas prices weighing on consumer, as economy is in or near recession. • Economy, new competition, and recently instituted smoking bans have hurt gaming revenue in many markets. • Old adage that gaming is “recession-resistant,” not “recession-proof,” is clearly being put to the test. • Still on Sidelines in Gaming Equipment Sector • Negative factors: nadir of replacement cycle, limited jurisdictional growth, lower capex by highly leveraged newly private operators, delayed or cancelled projects, slowdown in gaming operations, and lower interest rates. • Big benefits of wide-scale server-based gaming rollouts still seem elusive. • While technology, jurisdiction growth, and new casinos are key drivers, beleaguered casinos don’t spend on slots. • WMS strong gaming platforms have offset the weak macro environment.

31. Outlook: Las Vegas Strip Exhibit 1. Key Las Vegas Trends – Most Recent Month • Recession resistance of gaming being tested as housing crisis, gas prices, rising unemployment, and falling consumer confidence start to impact LV • Baccarat has been holding up better than overall table and slots trends due to its reliance on the higher end. The introduction of western casinos in Macau has stimulated more cross-market play, which has benefited results at WYNN, LVS, and MGM. • Reduced air capacity into McCarran Airport is a concern. • Weak economy appears to be eroding ability of casinos to raise room rates. Given high margin of rooms business, negative RevPAR could place significant pressure on margins and profits • Significant new supply still looms in the next couple of years, while the delay of Echelon is a clear positive for City Center and Encore. • The good news is that the crippled capital markets may delay or ultimately derail other projects that do not have the backing of established Las Vegas operators and their big strong balance sheets. Exhibit 2. Key Las Vegas Trends – Last 12 Months Source: Nevada Gaming Control Board

32. Outlook: Atlantic City Exhibit 1. Table Win – % Change Year-Over-Year • AC continues to struggle with new competition in PA and NY, a smoking ban, and a soft economy. • By mid-October, casino floors will need to be 100% non-smoking. Smoking is currently allowed on a quarter of the gaming floor. • Table trends holding up slightly better than slots. • AC still trying to transition from a daytrip market to Vegas-style overnight destination. The Borgata and the Caesars Pier led this trend. New market entrants like MGM and PNK should continue this trend. • The market will continue to face additional competition when the two stand alone slot facilities open in Philadelphia and LVS’s development in Bethlehem opens in the 3Q09. • AC targeting younger, more “upscale” crowd to drive non-gaming revenues, similar to LV model. This crowd more table oriented, which also means Table play from this demographic is higher, which means PA slot parlors not as much competition. • WaterClub expansion at Borgata will hold a grand opening in late June. New rooms should maximize utilization of recently expanded public space. • Growth in non-gaming revenue should outpace gaming revenue for next several years. • Multiple projects slated for the market: PNK’s $1.5 bln development on site of old Sands, MGM’s $5 bln marina project, the Wally Barr/Curtis Bashaw site next to AC Hilton and Revel Entertainment’s $2 bln project next to Showboat. However, timing and construction is currently unclear due to capital market conditions. • Bader Field development also under consideration. Exhibit 2. Slot Win – % Change Year-Over-Year Source: New Jersey Casino Control Commission

33. Outlook: International • Macau is a play on the growing Chinese economy. Gaming revenue should surpass $12 billion by 2008, nearly doubling the LV Strip. Key question is if Macau can develop enough mass market demand to support projected growth in non-gaming offerings: hotels, conventions, retail, entertainment, and F&B. Historically, Macau catered mainly to day-trippers. • Singapore recently liberalized gaming laws, allowing two new mega-resorts. LVS won the first license and is building a $3.6 bln resort which opens next year. The second license – for the Sentosa Island project – was awarded to Genting/Universal Studios. • In Japan, the Liberal Democratic Party lost is parliamentary majority. The LDP had been moving toward legalizing casino and its remains unclear what the prospects for this legislation are. Many Asian countries are looking to gaming after the success of Macau and pending developments in Singapore. We expect eventual passage of major gaming legislation in several Asian countries in the next decade. • In the U.K., the Casino Advisory Panel selected Manchester as its preferred location for a super casino license. However, the House of Lords voted to not pass the legislation that would have allowed the sole super casino along with 16 smaller casinos. The new PM, Gordon Brown doesn’t support a super casino. The whole casino issue in the UK remains muddied. Distribution of Macau Gaming Revenue: VIP, Mass, and Slot Gaming Revenue Macau ($ bln) Source: Macau SAR Gaming Inspection and Coordination Bureau (DICJ)

34. Macau: • New Reforms • On April 22, Macau’s Chief Executive Edmond Ho made public comments to the Macau legislature on reforms to the market. The government reforms, which were general in nature, will: 1) restrict future competition; 2) limit the number of gaming positions; 3) offer additional restrictions to junket operators; and 4) require licensing of property level gaming executives. That said, the reforms are a big plus for LVS, WYNN, and MGM, as it will encourage more resort facilities and discourage the legacy strictly gaming parlors. • The new reforms will cap the number of concession or sub concession at its current number of 6. The decision not to allow additional licenses was expected. However, it is a positive as it restricts future competitors from entering the market. • Set limits on the number of slots and table games. The government has not yet stated a quantitative number of allowable positions. The reasoning is to encourage more property level non-gaming amenities and increase overall tourism. • There are currently 29 casinos in Macau. The maximum number will be 40, but it will not impact any of the already proposed developments that have been discussed with the government. • The government will set heavier restrictions on junket operators. We would view more stringent restriction of the junkets as a net positive, exactly what or how stringent the restrictions will be are yet to be determined. • Senior gaming executives need to be licensed. This should have no effect on MGM, LVS, or WYNN as senior officials already needed to be licensed to comply with gaming regulators domestically. It should add a level of legitimacy to the market and serve to keep out individuals who may have a checkered background.

35. Industry Thesis: Cruiselines • Fundamentals Are Not As Bad As Many Expected • Commodities are beginning to show some signs of faltering and we think it’s time to revisit the cruise stocks. • Our proprietary research indicates that the bull run in commodities may be coming to an end. This is supported by sell side research. • We see the cruiselines as a “first derivative” and “second derivative” play on falling oil prices, compared to most other consumer discretionary businesses that we see as only “second derivative” plays. • Fundamentals Are Not As Bad As Many Expected • After challenges in 2006 and 2007, cruise industry fundamentals are looking better in 2008, as the performance of the cruiselines often decouples from the broader economy. • Cruise demand and pricing has proven surprisingly resilient given current economic concerns about housing, gas prices, inflation, employment, and other pressures . • Cruiselines represent an attractive and value-oriented vacation alternative for economically stressed U.S. consumers, however, declining consumer sentiment is having a negative impact on booking strength. That said, the cruiselines did a good job last year of booking more of this year’s inventory, so their capability to ride out this soft patch of bookings has been enhanced. While cruiselines are not recession proof; we believe they are recession resistant. • Capacity growth is lower in the Caribbean, where trends have been softer, and higher in Europe where trends have been stronger.

36. Cruise Stocks – Historic P/E Multiple Analysis CCL - 2004E EPS CCL - 2005E EPS CCL - 2006E EPS CCL - 2007E EPS

37. Cruise Stocks – Historic P/E Multiple Analysis CCL - 2008E EPS CCL - 2009E EPS

38. Cruise Stocks – Historic P/E Multiple Analysis RCL - 2004E EPS RCL - 2005E EPS RCL - 2006E EPS RCL - 2007E EPS

39. Cruise Stocks – Historic P/E Multiple Analysis RCL - 2008E EPS RCL - 2009E EPS

40. Cruise Industry – Oil Price Trends in Bunker and Crude Oil • Oil Prices Have Hurt Cruise Stocks • Despite its relatively small portion of the overall operating expenses of cruise ships, oil prices and cruise stocks appear inversely related. • Historically, fuel was 4-5% of revenue for CCL and 4.5-6% of revenue for RCL. • Today it is over 7-8% for CCL and 8-9% for RCL. • CCL’s annual EPS is impacted by $0.23 for a 10% move in fuel prices from current levels. • RCL’s annual EPS is impacted by $0.14 for a 10% move in fuel prices from current levels. Relative Performance of Cruise Stocks vs. Fuel Prices

41. Cruise Industry – RevPAR and Net Yields • Net Yields and RevPAR Are Not Directly Correlated • Despite concerns about consumer spending and a possible recession, it is important to remember that cruise industry performance is not directly correlated with RevPAR trends in the lodging industry or broader economic trends. • Cruise fundamentals often decouple from broader economic and consumer trends. Periods of record RevPAR growth in the lodging industry have often coincided with periods of exceptionally weak yields in the cruise industry. • The cruise industry is not recession proof; however, we believe it is recessions resistant, given that in difficult economic times more consumers may turn to less expensive vacation alternatives with a higher perceived value, such as cruises.

42. Potential Trades

43. Cruiselines Long • Oil Prices • The charts to the right show the potential EPS accretion and stock appreciation for both RCL and CCL under various oil price and P/E scenarios. • While the correlation is not perfect over time, for the purposes of this analysis, we assume the cost of bunker fuel and MGO increase or decrease proportionally with WTI. We hold all other variables (yield assumptions, operating expense, interest, D&A, etc.) constant, and then calculate what our 3Q08, 4Q08, 2008, and 2009 estimates would be under those various oil price scenarios. • For CCL, we use a straight percentage change. For RCL, we use the sensitivity benchmarks the company provides about the potential change in fuel expense given a $10 change in WTI. Using this method for RCL helps us capture the impact of its hedges. CCL does not hedge, so just using the changes in the spot price of WTI should capture changes in its fuel expense. Carnival Fuel Sensitivity Royal Caribbean Fuel Sensitivity

44. Lodging Wyndham Worldwide • Three business segments: lodging, vacation exchange and rental, and vacation ownership. • Lodging business is mostly franchising with small, but growing management business. Key drivers are RevPAR and unit growth. • Vacation exchange and rental operates RCI timeshare exchange network and serves as rental agent for third-party owned vacation properties, mostly in Europe. Key drivers are RCI membership, dues and exchange fees per member, rental transactions, and average rental prices. • Vacation ownership is developing, selling, financing, and managing timeshare resorts. Key drivers are tour volume and volume per guest. • Lodging/timeshare peers, CHH, MAR, and HOT, trade between 6.6-8.3x 2009 EBITDA. Timeshare comps SVLF and BXG trade at 5-6x EBITDA. BXG was recently purchased at 8.0x LTM EBITDA. • Using 7.5x for lodging, 7.0x for vacation exchange and rental, and 6.0x for timeshare, we get $30 target price, 63% above current levels. Figure 1. SOTP Analysis Figure 2. Implied Multiple SOTP Analysis

45. WYNN Vs LVS

46. Sample Trade

47. Questions? • Q&A

48. Disclosure • This presentation is an assignment for the Alternative Investments: In Search of Alpha course at the University of Connecticut and in no way reflects the views of its presenters or their employers. • This presentation is a hypothetical classroom exercise and the investment advise contained within is just that. As such, this group presentation does not constitute a public appearance for any of its members.