Anwar et al v. Fairfield Greenwich Limited et al

Filing 352

FILING ERROR - DEFICIENT DOCKET ENTRY - SEE DOC. #369 - DECLARATION of Timothy A. Duffy in Support re: #321 MOTION to Dismiss.. Document filed by Pricewaterhousecoopers L.L.P.. (Attachments: #1 Exhibit A, #2 Exhibit B, #3 Exhibit C, #4 Exhibit D, #5 Exhibit E, #6 Exhibit F, #7 Exhibit G, #8 Exhibit H, #9 Exhibit I, #10 Exhibit J, #11 Exhibit K, #12 Exhibit L, #13 Exhibit M, #14 Exhibit M2, #15 Exhibit O, #16 Exhibit O2, #17 Exhibit O3, #18 Exhibit P, #19 Exhibit P2, #20 Exhibit P3, #21 Exhibit Q, #22 Exhibit R, #23 Exhibit S)(Duffy, Timothy) Modified on 12/29/2009 (kco).

Anwar et al v. Fairfield Greenwich Limited et al

Doc. 352 Att. 8

EXHIBIT H

Dockets.Justia.com

GREENWICH SENTRY P A R m E R S , L.P.
FINANCIAL STATE1IENTS

FOR 1 H E PERIOD M A Y L 2006 (COM1IENCEl\'IENf OF OPERATIONS) l H R O U G H DECEl\'ffiER 31. 2006

GREENWICH S E N I R Y P A R m E R S , L.P. F I N A N C I A L STATE1...I E N f S F O R 1 H E PERIOD 1 I A Y 1. 2006 ( C O M 1 I E N C : a I E N f OF OPERATIONS) l H R O U G H D E C : a m E R 31. 2006

CONIENIS

RepOit o f I n d e p e n d e n t Auditors

1

S t a e l l l e n t o f Assets. Lirlbilities a i d P a t n e r s ' Crlpitrd

,
3

Scheckile o f h l v e s t l l l e n t s

S t a e l l l e n t o f O p e r a ions

4

Stmelllent o f C h a l g e s in P a t n e r s '

C~itrd

5

S t a e l l l e n t o f Cash H o w s

6

Notes to Finalcirtl. Stritelllents

i-U

April 24, 2 0 0 i

PrkewaterkoueCooper. LLP Ckutered A<,n"tult. PO B o x 82 ROj'll Trust Tower, Suilo 3000 Toronto D o m i n i o n C , n t r e Toronto, Ontario C ' M . d . M5K 1G8 T , l , j i t o n , [phone] FIIC,imile [phone]

RellOl1 of h u l e l l e n d e n t A u d i t o r s
To
th~ Pal'hl~I'S

Gl'~~ll\vich

of S f t l h ' ) ' Pal'hl~I'S, L . P .

I n Oil' opinion, the ~ccomp~n)ing st~tement o f assets, li~bilities mul p a l t n e r s ' c~pit:l1, including the s c h e d u l e o f i n n s t m e n t s , ~ n d t h e r e b t e d s t ~ t e m e n t s o f o p e r ~ t i o n s , c 1 u l g e s i n p m t n e r s ' c ~ p i t ~ l ~ n d cash flows p r e s e n t f~iJ1y, i n :l1l nmteli~l respects, the fil11nci~1 position o f Gl'~ll\vich S~llhT Pal'hl~I'S, L . P . (the " P m t n e r s h i p " ) ~s o f D e c e m b e r 31. 2 0 0 6 ~nd the results o f its oper~tions, the c111nges i n its p m t n e r s ' c~pit:li ml<l its c~sh flows for the p e l i o d fi'om ! l . h y 1. 20lX5 (inception) to D e c e m b e r 3 1 . 2006 i n c o n f o l l l l i t y w i t h ~ c c o l U l t i n g p l i n c i p l e s gener~l1y ~ccepted i n t h e U n i t e d St~tes o f A m e l i c ~ . These fin~nci~l st~tements ~re the r e s p o n s i b i l i t y o f the P m t n e r s h i p ' s m a l m g e m e n t Olll' responsibility is to express ~n opinion o n these filmnci~l st~tements based o n Olll' ml<lit. W e conducted Ol~' :llIdit o f these finallci~l st:ltements i n ~ccord~nce w i t h ~lJ(liting stmuL1rds gener~l1y ~ccepted i n the United St~tes o f Amelic~. Those st~nd~rds require tlmt we p b n mu\ perfollll the ~lJ(it to obt~in reason~b1e ~ssll'~nce ~bout w h e t h e r the fin~nci~l st~tements ~re fi'ee o f n m t e l i ~ l m i s s t ~ t e m e n t . A n ~lJ(lit includes exmllining, o n ~ test b~sis, t \ l d e n c e supporting the mllolUlts ml<l (isc1oslll'es i n the fin~nci~l st~tements, ~ssessmg the ~ccOlUlting p l l n c i p l e s u s e d ~nd significmlt estinmtes n m ( k b y the P altnership ' s mmmgement. ~nd e n h m t i n g the onr~l1 fin~nci~l st~temen t present~tion We b d i e n tlmt Oil' mtdit p r o \ i d e s ~ re~soll~b1e b~sis foc 0111' opinion.

Chal't~nd

ArtOlUltallts,

Li",llS~d

P u b l i c AccolUltallts

PricewaloroouseCooP'''' refers to t h , C.nodian firm o f P r i c e w . t e r o o w e C o o P ' ' ' ' LLP and the other m ' m b e r f i r m ' o f P r ; : ; , w a t e r o o w e C 001"'" 1nlomatioM.1 Limit,d, . ., h o f whioh i , · " 1 " " ' 1 0 and irrl'P'ndoent Iego! ' n t i l y

GREENWICH S E N I R Y P A R m E R S , L.P. S T A T E 1 I E N T O F A S S E T S , L I A B I L I T I E S AND P A R m E R S ' CAPITAL A T DECEMBER 31. 1 0 0 6

~

Assets in secmities, r.t lllmket wdue ( c o s t 1006: U S D 1 0 3 0 i , i l 9 ) Cmil mid cash e q u i v a e n t s Dividends receivr.ble Other assets Totrtl. assets
Liabilities A c c m e d eA"penses mid r.ccounts pr.yr.bl e Contributions received in r.dvmlce W i t h d r m v a s pr.yr.ble
Inve~tlllents

2.1 2.2

$

1030i,il9 44i,9-t9 i,023 nOi8 10, i i 5 , i 6 9

3.1 2.8

61.951 200,000 20,000 181.951 $ 10.493,818

Totrtl. lir.bilities Pm111en' C a l l i t a l

TIle r.ccolllpmung notes m'e

al

integrrtl. pmt o f t h e s e finmlcirtl. str.telllents

2

GREENWICH SENTRY PARTNERS, L P SCHEDULE OF INVESTMENTS AT DECEMBER 3 1 , 2 0 0 6

I nve S t n " ' " i n s ; emitie S at market value D e b t s;ellli~es Unite,l S " ' E S U S Treasury bill due 2i1i2IJJ7 U S Treasury bill due 2i8l2IJJ7 U S Treasury bill due 2i15i2IJJ7 U S Treasury bill due 2i22i2IJJ7 U S Treasury bill due 3I1i2IJJ7 U S Treasury bill due 3I8I2IJJ7 U S Treasury bill due 3I15i2IJJ7 U S Treasury bill due 3I22i2IJJ7 U S Treasury bill due 3I29i2IJJ7 U S Treasury bill due 4i5i2IJJ7 U S Treasury bill due 4i12i2IJJ7 U S Treasury bill due 4i19i2IJJ7 U S Treasury bill due 4i26l2IJJ7 U S Treasury bill due 5i3l2IJJ7 U S Treasury bill due 5i10121JJ7 Totol U n i t e , l S t o E S Totol D e b t
s;ellli~es s;ellli~es,

Principal amouri

C"

Markel value

P e r c e r i a g e of partners' c a p l a l

675,cm 675,cm 675,cm 675,cm 675,cm 675,cm 675,cm 675,cm 825,cm 825,cm 675,cm 675,cm 675,cm 675,cm 675,cm

I

672,010 671,::68 670,673 670,032 669,370 668,722 668,101 667,420 814,935 814,127 665,483 664,841 664,180 663,539 662,918

I

672,010 671,338 670,673 670,032 669,370 668,722 668,101 667,420 814,935 814,127 665,483 664,841 664,100 663,539 662,918

640% 640% 639% 638% 6.38% 637% 637% 6.::6% 777% 776% 634% 634% 633% 632% 632%
~23'10 ~23'10 ~23'10

I 10,307,719 I 10,307,719
a t llI",ket ""llIe

I 10,3]7,719 I 10,3]7,719 I 10,3]7,719

T o t o l l n v e s " , , , , , , in

I 10,307,719

T h e a c c c m p a n i n g n o t e s a r e an i n t e g r a l p , . - t c f t h e s e f i n a n c i a l s t a t e m e n t s

3

GREENWICH S E N I R Y P A R m E R S , L.P. STATE1\'IENf O F O P E R A T I O N S F O R T I I E P E R I O D 1 I A Y 1. 2006 (COM1IENCE1\'IENf O F OPERATIONS) T I I R O U G H D E C E 1 . f f i E R 3 1 . 2006

Inwstment income Intere~t i n c o m e Dividends Other income Total inwsnnent income

$

64,192 iO,595 4,514 139301

E.\.llenses M a H l g e m e n t fees A d m i n i s t n t i o n fees Expense reimbnrsemen t O t h e r expenses T o t a l eXIlenses Net inwstment income

3.1 3.1 3.1

16,003 9,808 3,919 46, i l 9

i6A49
$ 62,852

R e a l i z e d gain i n v e s t m e n t s N e t r e a l i z e d g a i n on i n v e s t m e n t s N e t r e a l i z e d g a i n on i n v e s t m e n t s

$ $

402,932 402,932

N e t i n c r e a s e i n n e t assets r e s u l t i n g f r o m o l l e r a l i o n s

$

465, i 8 4

TIle accompaning notes are a l integral prut o f t h e s e finrulcial statements

4

GREENWICH S E N I R Y P A R m E R S , L.P. S T A T E 1 I E N T O F CHANGES I N P A R m E R S ' CAPITAL F O R T I I E P E R I O D M A Y 1. 2006 (COM1IENCEl\'IENT O F OPERATIONS) T I I R O U G H D E C E 1 . f f i E R 3 1 . 2006

Genend. Patner

Limited
Patner~

Totr.l

Brurulce as o f M r . y 1. 2006 Contl"i buti OIlS Withdrmvas Net investlllent incOille Net reruized grun on investlllents Rerulocmion t o G e n e r a P r u t n e r Brurulce as o f December 31. 2006

$

$

$

349 2.240 92,639
$

10,6i2.450 (644.416) 62.503 400,692 (92,639)
$

10,6i2.450 (644.416) 62,852 402,932

95.228

10398.590

$

10.493,818

TIle r.ccompruung notes ru'e

al

integrru prut o f t h e s e finrulciru str.tements

5

GREENWICH S E N I R Y P A R m E R S . L.p" STATE1\'IENf O F CASH F L O W S F O R T I I E P E R I O D 1 I A Y 1. 2006 ( C O M 1 I E N C E l \ ' I E N f O F OPERATIONS) T I I R O U G H D E C E 1 . f f i E R 3 1 . 2006

C a s h flows u s e d i n 0 l l e r a t i n g a c t h i t i e s N e t i n c r e a s e in n e t a s s e t s r e m l t i n g f r o m o p e r a t i o n s Adju~tment for: Net increase in financiaJ. a.ssets at £"lir value through profit O f loss N e t i n c r e a s e in c h i d e n d s r e c e i v a b l e N e t i n c r e a s e in o t h e r a s s e t s N e t i n c r e a s e in a c c m e d e x p e n s e s a i d a c c o u n t s p a y a b l ~ N e t cash u s e d i n o p e r a t i n g activities C a s h flows lH"o\ided b y f i n a n d n g a c t h i t i e s Cont:liblltiOils Withdrawals N e t increase in cont:liblltiOils r e c e i v e d in a d v a n c e N e t i n c r e a s e in w i t h d r a w a l s p a y a b l e N e t cash p r o v i d e d by financing a c t i v i t i e , Net increase in cash and cash equivalents Cmil a n d cash equivalents at beginning o f t h e p e l i o d C a s h a n d c a s h e q u i v a l e n t s a t e n d o f the l l e r i o d

$

465.i84

(10.30i.il9) (i.023) (13.0i8) 61.951 (9.800.085)

10.6i2A50 (64-4AI6) 200.000 20.000
10.248.034 44i.9-t9

$

44i.9-t9

TIle accompmung notes m"e a l integraJ. pmt o f t h e s e finmlciaJ. statements

6

GREENWICH S E N I R Y P A R m E R S . L.P. NOTES TO FlNANCIAL STATE1...I E N f S FOR T I I E PERIOD 1 I A Y L 1006 (COM1-IENCE1-IENT OF OPERATIONS) T I I R O U G H DECE1.ffiER 3 L 2006
N o t e s to the f i n a n c i a l s t a t e m e n t s 1 - Organiz ation

Greenwich Sently Prutners. L.P. (the "P~lrtllendlip") i s orgrulized as a Delmvru'e limited a i d o p e n t e s as a private inve~tment pa·tllendlip. TIle Prutllership's investment objective seeks to obtain capital ~preciation o f its assets principally through the utilization o f a n o n t l ' a a t i o n a options t l ' a a n g strategy described as "~plit ~trike conversion". to which the Prutllership allocates the predominrult portion o f its assets.
p~.:tllership

TIle Prutnership was f o n n e d i n April 2006 ruld commenced operations on May L 2006. TIle general prutner is Fairfield Greenwich (Bermuda) Ltd.. a Bennud1 corporation. (the "General P r u t n e r ' ) On Mru'ch 2 i . 1006. F a i r f i e l d Greenwich (Bermuda) L t d filed to become a registered investlnent advisor with the Secmities a i d Exchrulge Commission. TIlis registl'ation becrune effective April 10. 2006. On April 30. 2006. Greenwich S e n h y . L.P .. a related Prutnendlip. was convelted to a 3 ( c ) ( i ) fund from a 3(c)( 1) fund under the Inve~tment Compruly Act o f 1940 in order to accommod1te additional inve~tors. TIle Pruhlership was created as a 3(c)(I) fund for existing investors in Greenwich Sentl·y. L.P. who were not qualified pmchasers. Inve~tors who were not qualified pmchasers i n Greenwich Sentl·y. L.P. had their prutner~lip intere~t trrulsfelTed to the Pa·tller~lip effective May L 2006.

2 - S u m m a r y of s i g n i f i c a n t a c c o u n t i n g l l o l i c i e s

TIle prepru'ation o f the finrulcial ~tatements in a c c o r d a l c e with accounting principles generally accepted in the United States o f America requires mruwgement to make e~timates ruld assumptions that affect the repOited runounts ruld disclosures in the finrulcial ~tatements. Actllal results could differ from such e~timates.

2.1

Investments

Investments inli~ted secmities ru'e valued at the last reported sales or bid price as detennined on the exchrulge on which such secmities a-e principally tl'aded
Inve~tment

t r a l s a c t i o n s are accounted for 011 a trade-date basis.

2.2
Ca~1

Cash a n d cash equivalents

ruld cash equivalents comprise balrulces with b a l k s ruld brokers with OI'iginai matl111ties o f three mOilths 01' less ruld ru'e shOit-tenn highly liquid investments that ru'e readily cOilvertible to known a1nOllllts o f ca~1 a i d which ru'e mbject to insignificrult c h a l g e s in value.

7

GREENWICH S E N I R Y P A R m E R S . L.P. N O T E S T O F l N A N C I A L STATE11ENTS F O R T I I E PERIOD M A Y L 1006 ( C O M M E N C E M E N T O F OPERATIONS) T I I R O U G H D E C E 1 . f f i E R 3 L 2006
2 - S u m m a r y of s i g n i f i c a n t a c c o u n t i n g l l o l i d e s ( c o n t i n u e d )

2.3

Options

An option is a contractual arrangement under w h i c h the seller (writer) g r a l t s the purchaser (holder) the r i g h t but n o t the obligation. to either b u y (a call option) or sell (a p u t option) at or by a set date or during a set p e r i o d a specific a u o u n t o f securities O f a financial in~trument at a predetermined price. TIle seller receives a p r e m i u m from the purchaser in consideration for the assumption o f filture securities price. TIle F u n d i s e:\."posed to credit risk 011 p m c h a s e d options only to the extent o f t h e i r c~U1ying m u o u n t which is their £"lir value.
2. 4

Im:ome taxes

No provision h a s been made for United States income taxes because incOlue ta'i:es m'e not levied agrunst the Pmtnendlip. Each pmtner m u s t include their shm'e o f t h e Pmtnendlip's ta'i:oole incOlue or loss 011 their income tax return.
2. 5

Income and expense recognition

Realized gruns a i d losses 011 investment trmlsactiOils :t'e determined on the ~pecific identification method. hltere~t income i s accrue d as emlled : t I d dividend income is recorded on the ex-dividend d1te. net o f alY applicable withholding taxes. Other expenses m'e recorded on the occmal basis as inClIned
2. 6

Determination o f Gains or w s s e s on &lIe o f Investments

Gruns mid losses from trading activity mid valuations o f s e c m i t i e s mid options :t'e cOluputed by mmking to the m a ' k e t the value o f all securities at the close o f business. Costs ofinve~tments m'e detenuined 011 a specific identificatiOiI basis.
2. 7

Allrxation o fprofits and losses

TIle finmlcial ~tatements only include the assets mid liabilities o f t h e Limited Pmtnendlip mid do not include other assets : t I d liabilities. including incOlue : t I d related taxes o f t h e pmtners. Income (loss) o f the P a t n e r s h i p is allocated to the Pmtners at the e n d o f each month III propOl·tion to their c~ital accOllllts (~11m o f cmdl contriblltiOils plus or minus incOlue or loss allocated through the end o f t h e immediately preceding month less redemptiOils : t I d di~triblltiOils thrOllgh the smue date) at the beginning o f t h e allocation month.

8

GREENWICH S E N I R Y P A R m E R S , L.P. N O T E S T O F l N A N C I A L STATE11ENTS F O R T I I E P E R I O D M A Y L 1006 ( C O M M E N C E M E N T O F OPERATIONS) T I I R O U G H DECE1.ffiER 31. 2006

2 - S u m m a r y of s i g n i f i c a n t a c c o u n t i n g l l o l i c i e s ( c o n t i n u e d )
2. 8

Withdrawals Payahle

TIle Pw:tuendlip c h a l g e d its method o f r e c o g n i z i ug withdrmvals i n 2005 i n coujuuction with its adoption o f FASB Statemeut No. 150, Accounting for Certain Financial Instruments with Characteristics o f Both Liabilities and Equity, as effected by FASB S t a f f P o s i t i o u No. FAS 1503. Withdrawals are recognized as liooilities, uet o f incentive allocation, when the wnouut requested in the withdrawal uotice becomes fixed. TIlis generally may OCCIll" either at the time o f the receipt o f the uotice, or on the last ({;-q o f a fiscal p e r i o d depellling on the uatme o f the request. As a r e m i t witllli:awals p a d after the e u d o f t h e year, but based upon yew'-eud capital b a l a l c e s w'e reflected as withdrawals payable at December 3 L 1006. Withdrawal uotices received for which the dollw' a n o u u t i s uot fixed remains in capital uutil the wnouut IS determined Withdrawals payoole may be treated as capital for pmposes o f allocations o f g a n s l l o s s e s pm~1lwlt to the P a t u e r s h i p ' s governing documents.

3 - N o t e s to the f i n a n c i a l s t a t e m e n t s

3.1

Related Parties

Pwties w'e considered to be related i f oue pw·ty has the ability to control the other pwty or exercise significalt influeuce over the other p w t y in making fiuwlcial. or operatioual decisious.

Management f e e TIle General P a t u e r i s the iuvestmeut m a l a g e r o f t h e P a t n e r s h i p . I h e fee is payoole mouthly b a s e d 011 the beginuiug mOilthly uet asset value, after the ~1lbscriptious wid redemptious, cOillputed at the rate o f 1.0% p e r aUlIUII.
TIle Geueral. P a t n e r may agree to a differeut mwwgemeut fee wTwlgemeut i u respect o f alY c~ital accouut o f a Limited P a t n e r , or waive or reduce the mwwgemeut fee iu re~pect o f alY c~ital. accOllllt o f a L i m i t e d P a t u e r , i u its discretiou. TIlis w i l l u o t eutitle the L i m i t e d P w t u e r that holds ~11Ch aCCOllllt. or auy other Limited P w t u e r , to m c h a l i f f e r e u t wTalgemeut. waiver or reductiou iu re~pect o f Wly other c~ital. accouut.

Exp::nse reimhursement F a i d i e l d Greeuwich Advisors LLC, WI affiliate o f t h e iuve~tment m a l a g e r , receives au expense reimbursement from the Patuer::d.lip. TIle eA"pensereimbursement i s payable quw:telly based on the beginuing q u a t e J i y uet asset value, after subscriptiOils aud redemptiOlls, computed at the rate o f 0.10% p e r wUlIlm.

9

GREENWICH S E N I R Y P A R m E R S , L.P. N O T E S T O F l N A N C I A L STATE11ENTS F O R T I I E PERIOD M A Y L 1006 ( C O M M E N C E M E N T O F OPERATIONS) T I I R O U G H D E C E 1 . f f i E R 3 L 2006

3 - N o t e s to the f i n a n c i a l s t a t e m e n t s ( c o n t i n u e d )

Administration f e e s TIle administrator o f t h e Prutnership wa;; GlobeOp F i n a l c i a l Services, LLC through A u g u s t 3 L 2006. C o m m e n c i n g S e p t e m b e r L 2 0 0 6 t h e a d m i n i s t r a t o r i s C i t c o F u n d S e r v i c e s ( E u r o p e ) B . V . TIle adnini~trator is re~ponsible for m a n t a i n i n g the finrulcial b o o k s ruld records, calcnlating the net asset value, h a l d l i n g shrl'eholder comnlllnicati ons ruld ~1lpervising the payment o f eA"})enses b y t h e Prutnendlip.
TIle Prutnership pays a monthly service fee, in OOvrllCe, ba;;ed 011 the beginning monthly net asset value, after subscriptiOils ruld redemptions, o f the Prutnership. TIle administrator i s also r e i m b u r s e d for c e l t a n out-of-pocket eA"})enses inculTed on b e h a l f o f t h e Prutnership.

Performance A l l o c a t i o n A t t h e e n d o f each qurute:r, 2 0 % o f the c a p i t a l l l l p r e c i a t i o n after eA"})enses allocated to a L i m i t e d P r u t n e r ' s capital a c c o u n t i s r e a l l o c a t e d t o the General Prltne:r. I f t h e r e is no clllital appreciatiOiI in a g i v e n (l.lruter, n o reallocation i s m a d e until there is net capital appreciation 011 a cunllllative ba;;is, ~trl·ting with the fir~t q u a t e r that n o r e a l l o c a t i o n wa;; made. TIle pelfol1nrulce allocation fOi' the p e r i o d w a s $92,639. AccrUEd expenses
MruHlgement f e e ProfessiOilai &. Other fees E x p e n s e reimrnlrsement A d m i n i s t r a t i o n fee $16,002 40300 3,919 l,i30 $ 6 ) 9~)

3.2

Risks

I t is the policy o f the Prltne:r~lip to trrulsact the majority o f its secmities ruld cOiltractuai cOllllnitment activity with broker-dealers, b a n k s and regillated exchrulges that the General Prutner cOilside:rs to be well established.

TIle Prltne:r~lip' s investment activities expose it to the vrl'ious t y p e s o f risks t a k e n b y the Prutnership ruld the mrlHlger o f t h e undeilying i n v e s t m e n t w h i c h is a;;sociated with the financial instnllnents ruld mrukets in which they inve~t. TIle following summruy i s not i n t e n d e d to b e cOln))fehensive o f all ri~s.

Interest rate r i s k TIle majority o f the P a t n e r s h i p ' s finrulcial assets ru'e ~lOlt tel1n in nature; as a re~11lt the Prutnership is not m b j e c t to significrult runOllllts o f ri~ d i e to fluctuatiOils in the prevailing l e v e l s o f m r u k e t i n t e r e s t rates.
10

GREENWICH S E N I R Y P A R m E R S , L.P. N O T E S T O F l N A N C I A L STATE11ENTS F O R T I I E PERIOD M A Y L 1006 ( C O M M E N C E M E N T O F OPERATIONS) T I I R O U G H D E C E 1 . f f i E R 3 L 2006

3 - N o t e s to the financial s t a t e m e n t s ( c o n t i n u e d )

Market p r i c e r i s k TIle Pw:tner::d.lip's investments a i d f i n a l c i a l in~trnments are snsceptible to m w k e t price risk wlsing from nncertainties about future prices o f the instnllnents. TIle Pwtner::d.lip's overall mwket positions w'e m o n i t o r e d wid r e v i e w e d monthly b y the General Pwtner. Credit r i s k Credit 11sk is the risk t i n t WI iS~1ler or c o u n t e r p w t y will b e Illmble or unwilling t o meet a conllnitment that it h a s entered into with the Pwtner::d.lip. Finwlcial assets, w h i c h potentially eA"}Jose the Pwtner::d.lip to credit r i s k consist p l l n c i p a l l y o f cash due from brokers wid receivables for inve~tments sold. TIle Pwtner::d.lip's ca::d.1 balwlces w'e p r i m w l l y with high credit quality, well e~tooli::d.led f i n w l c i a l in~titutions. I h e eA1ent o f the P a t n e r s h i p ' s eA"}JO~1ll"e to credit risk in respect o f these finwlcial assets approximates their cW"lying v a l u e as r e c o r d e d i n the P w t n e r s h i p ' s b a l a l c e sheet. liqUidity r i s k A lack oflicl.lidity m a y also result from l i m i t e d trading opportunities. TIle P w t n e r s h i p ' s listed secllllties w'e considered to be readily realizoole as they w'e li~ted for the m a j o r p w t on E u r o p e a n wid A m e l l c w i stock exchanges. \Vith some inve~tment pwtner::d.lips, inve~tors CWI sell their interests at c e l t a n d,lteS, w h i c h m a y occur monthly, Cl.lwterly or even wUlIlally. A l a c k o f liCl.lidity m a y also re~11lt from l i m i t e d trading opportunities i n alternative inve~tment products. Off-balam:e sheet risks A n o f f - b a l a l c e ::d.leet mW'ket 11::k exi~t w h e n the nnl..-.;;inlllln potential loss on a pwticnlw: investment is greater thwi the value o f such investment as r e f l e c t e d i n the C o m p a l Y ' s balance.

3.3

Suhsequent events" - p a r t n e r s ' Capital

I n J a l l l a ' y 2 0 0 i the l i m i t e d p w t n e r s m a d e c : v i t a l c o n t l l b u t i o n s o f $ 2 0 0 , 0 0 0 .

11

GREENWICH S E N I R Y P A R m E R S , L.P. N O T E S T O F l N A N C I A L STATE11ENTS F O R T I I E PERIOD M A Y L 1006 ( C O M M E N C E M E N T O F OPERATIONS) T I I R O U G H D E C E 1 . f f i E R 3 L 2006

4 - Financial Highlights Financial highlights for the period May L 1006 (commencement o f operations) through December 3 L 1006 m'e as follows: Total r e t u m Total r e t u m before reallocation to General Pmtner R e a l l o c a t i o n t o General P m t n e r Total r e t u m after reallocation to General Pmtner Ratio to average l i m i t e d pmtners' capital Expenses R e a l l o c a t i o n t o General P m t n e r E'i:penses a i d reallocation to General Pmtner N e t i n v e s t m e n t income

;.10 %
0.40) % 'i ; 0 %

1.20% 1.28 %
148 %

090 %

TIle total retlU"n is defined as the c h a l g e in the value o f theoretical investment made at the beginning o f the p e r i o d TIle retums m'e calculated as geometrically linked monthly r e t u m s for each month during the respective p e r i o d Monthly retums m'e calculated as net increase/(decrease) i n net assets resulting from operations for the month (after monthly proportion for the mmwgement fee payable by the Limited Pmtners' o f t h e Pmtnership at the e n d o f each month) divided by opening P a t n e r s ' capital (net assets) for the month. Opening P a t n e r s ' capital (net assets) represents the balmlce o f Limited P a t n e r s ' c~ital at the beginning o f each month, after taking into account contributions, allocations mid withdrawals. TIlis required methodology could differ significmltly from a l intemal rate ofretul"ll. TIle ratios o f operating expenses mid net investment income to average Limited P a t n e r s ' capital m'e computed by c h i d i n g n e t investment income mid operating e:\."penses by average net assets. Finmlcials highlights are calculated for the limited pmtner cla.ss taken as a whole. An individual limited p m t n e r ' s retUl"ll mid ratios may vruy based 011 different mmmgement fee mid incentive mTalgements a i d the timing o f capital trmlsactions. TIle net inve~tment incOlue 00"1"1) ratio does not reflect the effects o f t h e reallocation to the General Pmtner. TIle ratios, excluding nOlU"eculTing e:\."penses mid the reallocation to the General P a t n e r , have not been mUlIlalized.

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