Glenrock May 2009 Update

GLENROCK GLOBAL PARTNERS, L.P. May 2009 Update Fund Information Glenrock Global Partners, L.P. is a long-short global equity fund. Its compound rate of return has been more than 12.5% net annually since 2000, with no down years, 10.6% volatility and a -0.4 beta. Glenrock practices disciplined and opportunistic bottom-up stock-picking, in feedback with evaluation of macro factors. The fund has historically maintained low net exposure and generated strong absolute contributions, as well as high alpha from both the short and long sides of its book. Performance MSCI

S&P 500

Glenrock QP 5.6% 4.0% 3.0% 3.6% -3.2% 12.5%

May 9.1% Year 2009 to date 7.0% Compound annual -4.0% return since 2000 Standard deviation 16.6% (annualized) Beta Current Glenrock AUM Current Firm AUM

16.5%

Glenrock AI 4.0% 3.6% 12.5%

10.6%

10.6%

-0.4% -0.4% $391m $436m

Chart 1: Performance 2000-2008

+212.2% $290 $265

Glenrock QP Annualized Returns: Glenrock QP: +12.5% MSCI World Index: -4.0% S&P 500: -3.2% Volatility/Standard Deviation: Glenrock QP: 10.6% MSCI World Index: 16.6% S&P 500: 16.5%

$240 $215 $190 $165 $140 $115

S&P 500

$90 -26.0% $65

MSCI

-31.7%

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Portfolio Notes In May, Glenrock Global Partners had a gain of 4.0%. In the aggregate, both longs and shorts were profitable. Major gains on the long side of the portfolio were complemented by a much smaller overall gain on the short side. Our “virtual M&A” or “stub” positions were modestly above breakeven.

This is an update intended exclusively for clients, their advisors, and accredited investors and may under no circumstances be construed in to be an offer to sell or a solicitation to buy a security. Past performance is not indicative of future results. Any offer must be made, if at all, only by the delivery of a Confidential Private Placement Memorandum, as well as various other disclosure materials including especially the Quarterly Letters to Investors.

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We were profitable in all geographies, with the biggest gains in North America, followed by Africa, Europe and Japan. The biggest gainers were led by long positions in gold miners (two in North America and one in South Africa), two US oil & gas exploration and production companies, a Japanese manufacturer of precision-instruments, and a US manufacturer of semiconductors; followed by a short position in a US manufacturer of medical devices. The biggest individual losers during the month included shorts in two major US banks and a US aviation-services provider; and longs in a US-based global advertising company and a US defense contractor. Glenrock’s portfolio is invested at 117% gross, and in a modest net long position of 3%. Outlook Our approximately dollar-neutral market stance reflects our agnosticism regarding the overall nearterm prospects. We see many individual long and short investment opportunities, albeit coupled with extremely ambiguous macro data. We continue to be skeptical of the sustainability of the global stock-market rally since early March which has taken markets up between 40% (S&P 500) and 95% (India). We continue to find interesting long ideas and take small positions when we can develop a reasonable level of comfort that the worst, or something close to it, might already be priced in. Amidst much wishful thinking and officially encouraged ra-ra optimism, but very little evidence of true stabilization, let alone improvement, we also continue to see many actionable short ideas in situations where not only is the worst not priced in, but where troubled stocks trade at pipedream valuations. In the US, the enthusiastic market action also needs to be put in the context of the declining dollar. The US currency’s credibility is clearly being questioned as it is being printed in a never-beforeseen (though examples abound in other parts of the world – Argentina, Weimar Germany and Zimbabwe come to mind) spurt of monetary profligacy. A recent article in the Financial Times had the fascinating chart below.

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This is an update intended exclusively for clients, their advisors, and accredited investors and may under no circumstances be construed in to be an offer to sell or a solicitation to buy a security. Past performance is not indicative of future results. Any offer must be made, if at all, only by the delivery of a Confidential Private Placement Memorandum, as well as various other disclosure materials including especially the Quarterly Letters to Investors.

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As John Authers at the Financial Times (May 24, 3009) puts it "…if the US stock market is measured in gold or in foreign currency, it has performed much worse during this decade than most people who frame it in dollars realized." In Glenrock Global Partners, L.P. we have since inception had a policy of hedging all currency exposure, not because we do not have opinions about currencies--we do, and we write about them occasionally; we simply want to have fewer moving parts in our investment process. Since the original base currency of the fund has been the US dollar, that's the currency we have been hedging to. As a result, in the past, if an investor in any of Glenrock’s funds had a negative opinion of the US currency, he needed to do his own hedging of his Glenrock investment as he was effectively long the US dollar. Euro-class of shares available in Glenrock Global Partners BVI, Inc. (offshore)

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There is now an alternative. At the request of European clients in our offshore fund, Glenrock Global Partners (BVI), Inc., we have created an additional new euro-denominated class of shares which has all currency exposure hedged to the euro. An investor in it is effectively long the euro. However, Glenrock Global Partners BVI, Inc. is an offshore fund only available to US tax-exempt investors and non-US offshore investors. If there were to be sufficient interest, we might consider introducing foreign-currency denominated classes of partnership interests in our US funds (Glenrock Global Partners (QP), LP and Glenrock Global Partners (AI), LP) too. For example, there could be a class hedged to the euro, the Japanese yen, the Swiss Franc, or even to gold. Please let us know if this might be of interest to you. Portfolio Structure Exposure by Region as % of Equity Long Short Net Long (Short) Cross-Border "Stub" Positions 6 (8) (1) South Africa 2 0 2 Asia Ex-Japan 1 0 1 Australia 0 0 0 Europe 4 (5) (2) Japan 19 (2) 17 Latin America 2 0 2 North America 28 (42) (14) Total 61 (57) 4

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Our exposure in Europe was approximately flat month over month, at about 9% gross, 2% net. (NB: In our previous letter covering the month of April, we had erroneously reported our non-stub European exposure at gross 17%, net 4% at the end of April; the correct exposure was gross 8%/net 4%) net of our cross-border stub positions After several years of absence, we also have positions in Latin America again. Exposure by Market Capitalization as % of Equity Long Short Net Long (Short) Small Cap (<$1 billion) 10 (2) 8 Mid Cap ($1-5 billion) 21 (21) (0) Large Cap (>$5 billion) 31 (34) (3) Total 61 (57) 4

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Our investment exposure has continued to migrate up the capitalization scale, partly as a result of rising valuations and market capitalizations, but also due to active additions. Our gross exposure to

This is an update intended exclusively for clients, their advisors, and accredited investors and may under no circumstances be construed in to be an offer to sell or a solicitation to buy a security. Past performance is not indicative of future results. Any offer must be made, if at all, only by the delivery of a Confidential Private Placement Memorandum, as well as various other disclosure materials including especially the Quarterly Letters to Investors.

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large caps has again increased to gross 65% (about half of our total gross exposure) and net -3%. Mid-cap exposure also grew to 42% gross/0% net. Small-cap exposure declined to 12% gross/8% net. Exposure by Industry as % of Equity Long Short Net Long (Short) Advertising 2 0 2 Aerospace and Defense 2 0 2 Automobiles/Motorcycles 5 (7) (2) Banks 0 (6) (6) Business Services 0 0 0 Chemicals 0 0 0 Conglomerates 1 0 1 Construction 2 (2) 0 Consumer Goods and Services 6 (7) (1) Distribution/Wholesale 0 (2) (2) Education 0 (1) (1) Energy 7 (2) 5 Food and Beverage 1 0 1 Healthcare 0 (6) (5) Housing 2 (3) (0) Index 0 0 0 Insurance 0 0 0 Lodging/Gaming 0 0 0 Manufacturing 3 (1) 2 Media 2 0 2 Non-Bank Financial Services 3 (2) 1 Pharmaceuticals 2 0 2 Precious Metals 8 0 8 Real Estate 2 (2) (0) Retail/Restaurants 1 (10) (9) Technology 11 (5) 6 Telecom 0 0 0 Transportation 1 (2) (0) Waste Disposal 0 0 0 Total 61 (57) 4

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Other There were no other significant new developments. For more information, please refer to our recent comprehensive Year-End Report of February 23, 2009, and our website www.glenrockfunds.com with the password A2624.

Contact Information · Administrator:

General Partners: Glenrock Asset Management Associates, L.P. 623 Fifth Avenue, Suite 3101 New York, New York 10022 Jamie Kessler, Client Relations Director 212-808-7373, [email protected]

Northern Trust Fund Admin. Services 801 S. Canal Chicago, IL 60607 Phone: (866) 255-1731; Fax: (312) 849-8440 Email: [email protected]

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Website: www.glenrockfunds.com

This is an update intended exclusively for clients, their advisors, and accredited investors and may under no circumstances be construed in to be an offer to sell or a solicitation to buy a security. Past performance is not indicative of future results. Any offer must be made, if at all, only by the delivery of a Confidential Private Placement Memorandum, as well as various other disclosure materials including especially the Quarterly Letters to Investors.

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