HUBUS133 Alpha Group Capital HUDSON BAY CAPITAL Risk Mitigation Risk. Mitigation is Integrated Throughout the Investment Process and At All Levels of the Firm Position Level • Risk Management begins at the position level through the Deal Code System • Hedging at the position/Deal Code level enables the portfolio to benefit from the power of diversification • Deal Codes are generally sized to minimize portfolio exposure and risk • Position level risk guidelines are designed to build a portfolio of independent, diversified trades with limited risk Portfolio Level • Market Factor Monitoring • Portfolio Diversification Risk Monitoring • Strategy Allocation Framework • Leverage and Liquidity Management • Style Drift Monitoring • Weekly Portfolio Manager/Risk Meeting • Risk Committee Meetings Risk Management Operational Level Internal Operational Risk Working Group • Independent Administrator • Valuations are obtained by a third party administrator from independent pricing sources • Financing and clearing counterparties are carefully selected and monitored • Risk Management is anchored by an adherence to established policies and procedures Positions, Portfolio and Operational Risk are Monitored by the Chief Risk Officer CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0084907 SDNY_GM_00231091 EFTA01384591