BILLYTEAM PORTFOLIO PERFORMANCE REPORT Kwan Chi Wan 2008086713

BILLYTEAM PORTFOLIO PERFORMANCE REPORT Kwan Chi Wan 2008086713 Yip Chun Lung 2008147268 Lee Kok Man 2006096099 Chan Kai Sang 2007176420 Wong Hin Lun 2007094971

Introduction We focus not only in Hong Kong, but seek opportunities in global market Mixed Equity + Futures Combined management Active + Passive

Investment Philosophy Passive – intrinsic value Active – market trend Fine Tuning Strategy

EQUITY 5 Main types of equity Company Finance / Banking CHINA LIFE, CITIC BANK, HSBC HOLDINGS P L C Transportation CHINA EAST AIR Energy / Natural Resources SINOPEC CORP, CNPC(HONG KONG), HARBIN POWER Technology GENERAL ELECTRIC CO, CHINA MOBILE, APPLE INC, MICROSOFT CORP, INTEL CORP, GOOGLE INC Others HKEX, ZIJIN MINING No. of U. S. stock 6 No. of Hong Kong stock 9

EQUITY Reason for choosing these 5 industries: • Finance / Banking - China’s economy is recovering demand on banking/finance ↑

EQUITY • Transportation -CHINA EAST AIR Purchase Shanghai Airlines Co ----> 50% market share - Join Sky. Team Alliance -Government support

EQUITY • Energy / Natural Resources -China have large amount of natural resources -Development needs large amount of Energy

EQUITY • Technology -Drop too much in financial tsunami predict the price will recover to level before in financial tsunami

Stock Quantity Price to buy Price to sell Return HARBIN POWER 10, 000 6. 45 6. 44 -0. 155% CHINA LIFE 10, 000 35. 2 37. 65 6. 96% SINOPEC CORP 30000 6. 04 6. 58 8. 94% CITIC BANK 20000 5. 47 5. 01 -8. 41% GENERAL ELECTRIC CO 5, 000 16. 34 15. 5 -5. 14% HKEX 5, 000 134. 3 130 -3. 2% CHINA MOBILE 9, 911 76 78. 9 3. 82% 496 215. 1 222. 92 3. 64% APPLE INC INTEL CORP 2500 MICROSOFT CORP 2500 28. 36 29. 4 3. 67% CHINA EAST AIR 70000 2. 67 3. 83 43. 45% CNPC(HONG KONG) 20, 000 8. 79 9. 97 13. 42% 150 535 550. 31 2. 86% 1, 600 51. 28 53. 61 4. 54% 102, 000 6. 33 6. 37 0. 63% GOOGLE INC HSBC HOLDINGS P L C ZIJIN MINING 19. 15 20. 44 6. 74%

Future Strategy: 1. Short term 2. Active management based on a. market issues b. momentum analysis c. macroeconomic analysis

Future US indices future 1. Dow Jones Industrial Average 2. NASDAQ 100 Composite 3. S&P 500 � Metals future 1. Gold � • Currencies future 1. Euro 2. Australian Dollar 3. Canadian Dollar

Future • 1. Why US indices future? Market issues US economy is in good pace of recovering Good economic factors enhance the recovery of US market.

Future • 1. 2. Why Euro Future? Market issue Value of Euro against US$ Decline greatly since Greece crisis Sensitive to positive market news ( Rescue Package )

Future Why Australian Canadian Dollar and Gold future? Market issue , momentum and macroeconomic analysis 1. US dollar and Euro are weak 2. Momentum of two currencies

Future � Result 1. Positive overall return 5% from all future positions

Conclusion