Investor Presentation

G A M E C R E E K C APITAL

GAME CREEK CAPITALSM

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Two International Place, Suite 2620, Boston, MA 02110

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July 2018 // INVESTOR PRESENTATION

Source: JP Morgan 2

July 2018 // INVESTOR PRESENTATION

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July 2018 // INVESTOR PRESENTATION

Source: Strategas Research Partners 4

July 2018 // INVESTOR PRESENTATION

Source: JP Morgan 5

July 2018 // INVESTOR PRESENTATION

Source: JP Morgan 6

July 2018 // INVESTOR PRESENTATION

Source: Evercore ISI 7

July 2018 // INVESTOR PRESENTATION

Source: Evercore ISI 8

July 2018 // INVESTOR PRESENTATION

Source: Strategas Research Partners 9

July 2018 // INVESTOR PRESENTATION

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July 2018 // INVESTOR PRESENTATION

Concerns About Investing Environment  Central banks shift away from QE (liquidity supply).  Increase in interest rates = less bond demand, more supply (rising government deficit); inflation uptick.  Profitability – possible pressure on profit margins.  Low expected returns when investing at 20X earnings (trailing 12 months).

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July 2018 // INVESTOR PRESENTATION

Source: Strategas Research Partners 12

July 2018 // INVESTOR PRESENTATION

Source: Strategas Research Partners 13

July 2018 // INVESTOR PRESENTATION

Source: Morgan Stanley 14

July 2018 // INVESTOR PRESENTATION

Source: Strategas Research Partners 15

July 2018 // INVESTOR PRESENTATION

Source: Wall Street Journal 16

July 2018 // INVESTOR PRESENTATION

Source: JP Morgan 17

July 2018 // INVESTOR PRESENTATION

S&P 500 Quarterly Buybacks

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July 2018 // INVESTOR PRESENTATION

Source: Evercore ISI 19

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Median stock YTD from its high (12%)

Source: Citi 20

July 2018 // INVESTOR PRESENTATION

Source: Goldman Sachs 21

July 2018 // INVESTOR PRESENTATION

Source: Empirical 22

July 2018 // INVESTOR PRESENTATION

Source: Empirical 23

July 2018 // INVESTOR PRESENTATION

Source: Empirical 24

July 2018 // INVESTOR PRESENTATION

Source: Morgan Stanley 25

July 2018 // INVESTOR PRESENTATION

Source: The Economist 26

July 2018 // INVESTOR PRESENTATION

Source: Goldman Sachs 27

July 2018 // INVESTOR PRESENTATION

When trading liquidity evaporates: One possible theory Adverse selection is the enemy of liquidity supply. When shocks of unknown origin cause sudden price declines, HFTs may have reason to assume that the shock is being driven by fundamental news (e.g., if the price decline follows a complex macro surprise or dramatic policy announcement). Under these circumstances, HFTs are at higher risk of being adversely selected by more fundamentally informed traders, so their optimal response is to withdraw liquidity by widening their quotes or by withdrawing them altogether. As selling continues, a feedback loop can arise where the resulting lack of liquidity causes bigger price declines, which then causes HFTs to supply even less liquidity, in some case even switching to strategies that aggressively demand liquidity rather than supplying it.

Source: Goldman Sachs 28

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July 2018 // INVESTOR PRESENTATION

Source: B.C. comic strip, 6/3/18 30

July 2018 // INVESTOR PRESENTATION

Source: Strategas Research Partners 31

July 2018 // INVESTOR PRESENTATION

Source: Strategas Research Partners 32

July 2018 // INVESTOR PRESENTATION

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