NEWS - 28

Salus Alpha Special Situation Fund delivers strong returns

Salus Alpha RN Special Situation fund had delivered a good start to 2014 in terms of performance, according to the EXANE Report titled “Absolute Return UCITS Fund Performances – February 2014”, produced by Exane Derivatives Europe’s leading convertible research provider.

The Salus Alpha RN Special Situations fund delivered positive returns during the month of January, (Ranked 2nd out of 19 listed in the Exane Report under Event Driven UCITS) it was up by +1.90% and outperformed major peers by a positive margin of 1.35% on average during the month. The fund also enjoyed positive performance in 2013 contrary to most UCITS. Our fund was able to successfully withstand the major corrections in the equity markets taking advantage of volatility resulted from weak fundamentals across the globe. Market sentiment weakened further towards the end of the month, as the Federal Reserve announced another round of tapering which raised concerns regarding the health of the global recovery.

Mr. Prock, CEO and CIO of Salus Alpha Capital said:

“Our fund seem to repeat the January stint in February and in the coming months because our approach is unique and able to generate positive returns in all environments, since it combines an opportunistic core portfolio of selected, fundamentally attractively valued top companies with positions in short / medium - termed special situations and also the fund targets to achieve an absolute return independent of the development of the overall equity market. Therefore we are not dependant on trend as a sole source of alpha”.

About Salus Alpha

Salus Alpha Capital is a sophisticated Investment Manager and has established itself as a top expert in Alpha and Smart Beta Asset Management over the past decade. Our extensive Know-How in the space is characteristic of our company and our employees. The client base of Salus Alpha consists of institutional clients in Europe, Asia and in the USA. Salus Alpha operates from a network of global offices including Switzerland, Liechtenstein, Austria, the Netherlands, Singapore, India, and Hong Kong. We offer tailored solutions for clients and their financial needs, such as white label funds, managed accounts and structured products. For more information on Salus Alpha Capital, please visit http://sac.salusalpha.com/

For inquiries please contact

Andrea Moritz

Public.relations@salusalpha.com

+43 1 9572587 43

Appendix –

Rank	Event Driven UCITS	YTD Performance
1	MLIS - York Event Driven Ucits Fund	4.00%
2	Salus Alpha RN Special Situations	1.90%
3	MS PSAM Global Event UCITS Fund	1.80%
4	Dexia Risk Arbitrage	1.10%
5	Syquant Helium Performance	1.10%
6	Syquant Helium Opportunites	0.70%
7	CS Tremont Hedge Fund Risk Arbitrage	0.50%
8	Laffitte Risk Arbitrage	0.50%
9	Cigogne UCITS M&A Arbitrage	0.40%
10	Dexia Money + Risk Arbitrage	0.40%
11	ADI Risk Arbitrage Absolute Return	0.30%
12	CS Tremont Hedge Fund Event Driven	0.30%
13	Lutetia Patrimoine fund	0.30%
14	ADI Risk Arbitrages	0.10%
15	JP Morgan Global Merger Arbitrage Fund	0.10%
16	Pinebridge Merger Arbitrage Fund	0.00%
17	Westchester Merger Arbitrage	-0.30%
18	The Castlerigg Merger Arbitrage UCITS Fund	-0.50%
19	York Lion Merger Arbitrage Liquidity Fund UI	-0.90%

Table 1 – Performance comparison (Exane Derivatives - Absolute Return UCITS Fund Performances – February 2014)

Link - 1LinK - 2

INTERVIEW - 1

Roland Neuwirth: "The crisis will dissolve into thin air"

Fund Manager of the Salus Alpha Special Situations Fund reveals his favorite stocks.

21.2.2012, Interview: Carolina Burger

#   The Greeks get money again. The second rescue package is passed. Is the crisis now finally over?

Neuwirth: The crisis dissolves into thin air. Greece or not. The markets have taken the attitude that the worst is over and now includes the actual economic data, which are not just bad. But the stock market rise since the beginning. 

# What did it start signal?

Neuwirth:  That was the end of 2011, the € 500 billion injection by the ECB.

# Do you have the equity exposure in their funds already screwed up?

Neuwirth:   No. The equity allocation in the Salus Alpha Special Situations is still at 40 percent. I still do not act as if the crisis would actually pass. No one is currently fully invested. Everyone is for sale in the stock market rally. I've thrown ten percent of my shares on the market. That was the learning process last year was regarded as the motto, and while the prices a bit, you need to control, because it then goes back down.

# Now the tide has turned, however?

Neuwirth:   Yes. Now the stock market go up in a bar and all the questions: Why is it goes up, it's all so negative? But the stock market is: extremely fast and extremely proactive.

# How long will the rally continue?

Neuwirth:  I expect a short-term consolidation. The ATX could fall in the next few weeks by about 150 points. The DAX I'm not sure if he comes back again to 6500 points. If I am right with what I say, you have to actually use the low prices to buy.

# At which shares would strike you?

Neuwirth:   Add to my favorites include: Polytec, RHI, Mayr-Melnhof and the large real estate stocks like Conwert, CA real estate and real estate finance.