Please click here for a chart with the performance of Theta funds against other asset classes.

Although we will report on the performance of our funds later this month, we thought you might nonetheless be interested to learn how they have weathered the volatile market conditions witnessed at the end of February.

For your reference, we have attached a chart which shows the estimated performance of the Theta funds (net of all fees and expenses) versus other assets classes and the hedge fund benchmark, during the challenging last week of February. A clear observation is that, in contrast to global equity markets and hedge funds as a group, the Theta funds have managed to preserve capital in a very volatile week, resulting in a strong performance for February as a whole. We believe this result stems from the rather conservative portfolio approach that we have taken in recent months. As we wrote in our recent Theta Capital - Outlook 2007 & Recap 2006:

‘While this position has cost us some upside in the second half of 2006 when these markets continued to rally on liquidity rather than fundamentals, we are happy to ‘pay this premium’ to protect our investors from the adverse and unexpected. We just hope to be on the right bus and not miss the transfer if one is necessary.’