640 Fifth Avenue, 20th Floor New York, NY 10019 T 212 688-2550 F 212 753-2760

December9,2011 PerformanceSinceInception

S&P500 Index 20.94% 28.67% 10.87% 4.91% 15.78% 5.49% 36.99% 26.47% 15.08% 2.37% 3.43% 0.04% 2.96% 1.13% 1.67% 2.03% 5.43% 7.03% 10.93% 0.22% 1.06% 33.93% 3.02%

OwlCreekOverseas OwlCreekI,LP Gross Net 5.14% 4.12% 60.88% 48.70% 32.67% 26.14% 3.95% 3.16% 25.78% 20.63% 39.75% 31.80% 8.44% 7.53% 20.34% 16.94% 2.63% 2.18% 3.41% 2.73% 0.75% 0.60% 2.47% 1.99% 1.51% 1.21% 1.47% 1.18% 3.46% 2.79% 0.53% 0.42% 9.30% 9.16% 7.72% 7.72% 6.61% 6.61% 2.9% 2.9% 13.0% 12.9% 303.6% 208.2% 15.2% 12.1%
1

Year2002 Year2003 Year2004 Year2005 Year2006 Year2007 Year2008 Year2009 Year2010 Jan11 Feb11 Mar11 Apr11 May11 Jun11 Jul11 Aug11 Sep11 Oct11 MTDEst.thruNov11 YTDEst.thruNov11 ITDEst.thruNov11 AnnualizedITDEst. thruNov11

OwlCreekII,LP Gross Net 4.98% 3.98% 61.00% 48.80% 32.77% 26.22% 4.07% 3.25% 26.17% 20.94% 39.93% 31.94% 8.85% 7.93% 21.91% 18.28% 3.41% 2.80% 3.57% 2.86% 0.74% 0.60% 2.33% 1.88% 1.55% 1.25% 1.56% 1.25% 3.44% 2.78% 0.51% 0.41% 9.24% 9.01% 7.48% 7.48% 6.04% 6.04% 2.8% 2.8% 12.6% 12.6% 313.9% 214.9% 15.5% 12.4%

Fund,Ltd Gross Net 5.25% 4.20% 60.69% 47.67% 33.12% 26.50% 4.11% 3.35% 26.94% 21.35% 40.81% 32.42% 8.91% 10.32% 22.25% 21.75% 2.79% 2.35% 3.67% 2.95% 0.63% 0.51% 2.43% 1.97% 1.56% 1.26% 1.53% 1.24% 3.43% 2.81% 0.52% 0.52% 9.17% 9.17% 7.55% 7.55% 6.06% 6.06% 2.8% 2.8% 12.7% 13.0% 318.4% 214.2% 15.7% 12.3%

 arter ThirdQua Forourth hirdquarterle etter,wewan ntedtotryad differentform matthanwev veusedinthe epast.What followsisadeeperdiveintotheten npositionsthathurtusmo ostinthequa arter,aquarte ich erduringwhi wewered down16.5%n netversustheS&P500do own13.9%.By ywayofupdate,inQ4thr roughNovem mber th 30 ,OwlCreekwasup p3.0%estima atednetversu ustheS&P50 00up10.7%.
%A Attributionto $Declinein3Q Fla agshipFunds $ % (162,992,282) 2.65% 1.32% (83,029,129) 1.44% (82,739,122) 1.30% (79,676,372) 1.15% (71,393,603) 1.06% (64,789,729) 0.84% (56,320,433) 0.87% (53,013,260) 0.83% (50,664,938) 0.84% (47,136,355) $Decline/ /increase in4Qthru u11/30 $ ,136,906 31, ,254,876 20, (7, ,545,648) ,863,523 11, ,795,452) (15, ,761,697 80, ,403,995 15, ,617,072 13, ,584,321 12, ,869,714 19,

Issuer national NavistarIntern DanaHoldingC Corp WashingtonMu utual,Inc.(HoldingC Co) CignaCorp SeatPagine p ForestOilCorp WellpointInc eutical TevaPharmace HuiXianREIT andCasualty PICCPropertya

eonJune30th PositionSize $ % 9 5.9% 387,784,839 8 2.8% 181,257,098 387,262,981 1 5.9% 4 6.7% 439,287,404 8 2.5% 163,441,018 2 4.8% 312,709,102 2 3.6% 235,930,182 1 2.2% 144,217,951 4 3.3% 214,046,894

PositionSizeonSeptember30th $ % 95,858,542 3.8 8% 19 10,424,287 2.1 1% 11 04,523,859 5.9 9% 30 07,029,691 5.9 9% 30 9 99,577,512 1.9 9% 8 86,555,938 1.7 7% 99,492,612 3.8 8% 19 81,039,012 3.5 5% 18 8 85,447,340 1.6 6% 9 90,477,407 1.7 7%

International l NavistarI Navistarw wasalargepo ositionthatunderperformedthemarke etinthethird dquarter,trad dingfrom$56to $32.Navistar,alongwithmanyothe erindustriala andtrucking names,trade eddownmore ethanthema arket ssoldcyclicalnames.TheCompanyals oreportedth hirdquartere earningsof$0 0.79, asawholeasinvestors versusma arketexpecta ationsof$1.20.Themissw wasduetothe euncertainty yregardingth hetimingof militaryre evenuesandtherampoft theirenginep production.T Thecompanymaintainedg guidanceof$56 EPSforth hefullyear,bu utthisguidan nceisheavilyweightedto thefourthqu uartersincetheyhaveonly y done$1.9 97throughth hefirstthreeq quarters.Alth houghitsusu uallyfairtoca astaskepticaleyetowards s backend weightedgui idance,inthis scasethecom mpany'sguid dancemakess sensegivenN Navistarwill benefitfro omsignifican ntoperatingle everage,with hincreasedco ommercialtru uckvolumesa andengine productio ongoingfrom m800to1,200 0perweek.A Also,therewilllbesomead dditionalmilitaryrevenuei inthe fourthquarterhelpingNavistarhititsguidance. 2

Thecomp panyhas$950 0millionofne etdebtanda approximately y$1billionof funderfundedpension(ta ax adjusted).Thenetdeb btincludes$1billionofcas shandthede ebtislongdat tedwithnosignificantnea ar termmaturities.Withthestocktrad dingaround$ $37,up16%s sincetheend dofSeptembe er,webelieve eit tsasignificantopportunity yforthefund d.Themarket tisapplyingtoohighadisc counttothes stock, represent currentlytradingat8xthelowendofthisyear's EPSguidance e,andonly4 5xaconserv vativemidcyc cle earningsp power.Evenw withaflatordowneconomy,thefunda amentalsoft thetruckcyclesupportsal les nextyearatleastatFY Y11levels.Constrainedsup pplythrougho outthisyearhasalsopush hedsalesinto onext yearprovidingaddition nalsupport.N Needlesstosa ay,giventhe conservative ecapitalstruc cture,the valuation, ,andthestra ategicimporta anceofthiscompany,we thinkthestockistradingb belowtheflo oorof theappro opriatevaluat tionrange,an ndinourbase ecasewethin nkthestocks shouldmoret thandoubleo over theinterm mediateterm.Moreover,t thecompanynowhasthre ee~10%shar reholderswith hCarlIcahn recentlyfilinga13Dannouncinghi isnewlyform medposition,w whichincreas sesoptionalit tyonaneart term eventocc curring. Despiteanuncertaine economicoutlook,thefund damentalsof fthetruckcyc clesupport2012volumesat leastat20 011levelseve eninadownt turn.Withtheagingofthe efleet(bothi inyearsandm miles)andma any purchases sdeferredfor ryearsthereisareplacem mentcycletha athasjustbeg gunwhichwi illsupport demandf foryearstoco ome.Thebelo owgraphillustrateshowf farbelownor rmalizeddem mandtheindustry wasin200 09and2010.ACT's(anind dustrytradeg group)foreca astforFY12andFY13are2 293,000and 335,000respectively.A ACT'srecessio onscenariofo orFY12is250 0,000unitss stillhigherthanFY11.Owl l Creekism moreconserva ativeinitsass sumptionswith265,000a and275,000u unitsforthen nexttwoyear rs. Thatthes stockisstillve erycheapeve enonourmo oreconservat iveassumptio onsgivesusa amarginofsa afety andmake esuslikethep positionthatmuchmore.

dingCorp DanaHold

LikeNavis star,Danatra adeddowninthethirdqua arteralongsid demanyofth heothertruck kingandindustrial names.W Wabco,atruck ksupplierwas sdown45%inthequarter r.Paccar,atr ruckOEM,wa asdown34% despiteha avinganetca ashposition.Caterpillarwa asdown31% %.Somelevere edindustrials slikeManitow woc weredow wnover60%.Whileweund derstandthemarket'sper rspectiveofth heuncertaint tyregarding Navistar(eventhoughwedisagree) ),Danaisam muchcleaners story.Duringthethirdqua arterDana 3

reportedtheirsecondquarterearnings,whichbeatconsensus,andalsoincreasedtheirfullyear guidance.Danaalreadyunderwentabankruptcywhichcleaneduptheirbalancesheet.Thecompany hasminimaldebtandasignificantcashbalance,makingthedeclineinthestockpriceallthemore dramatic,sincewithoutleverageittranslatesintoahugereductioninTEV.Withvaluationsaround3.5x ourestimated2012EBITDAandwithminimalcapitalexpenditureneeds,wethinkthestockrepresentsa compellingopportunity. Dana'snewCEO,RogerWood,previouslyrantheturbochargerbusinessatBorgWarner,oneofthemost lucrativebusinesslinesintheauto/trucksector.Herealizestheimportanceofmovingupthevalue chainandisaggressivelymovingDanaawayfromcommoditybusinesses.TheCompanyhasbeen aggressivelyraisingpricesforitscoreproducts.Itsprimarybusinesses,axlesforlightandcommercial vehicles,arebothduopolies.ForcommercialvehiclesitisestimatedDanaandMeritorcontrol95%of themarketintheUnitedStates.Inaddition,Meritorhashadsignificantsupplyconstraints.Ratherthan manageforshare,RogerWoodhastakenanaggressivestancetodowhatanycompanyinacapacity constrainedduopolyshoulddoraiseprices.Whilethissoundslikeanobrainer,previousmanagement teamswereoftenunabletoachievebetterthansingledigitmarginsinthisbusiness.Moreover,Dana hashadanimpressivestretchofwinningnewcontracts.Withtheopportunityofincreasedprofitability fromcostcutting,priceincreases,increasedvolumeswiththetruckcycle,andnewproductofferings, wethinktherearemultiplewaysforDanatowork.WeaddedtoDanaonitswaydownandeventhough thestockisuparound14%sincetheendoflastquarter,westillbelieveithassubstantialupsidefrom here. WashingtonMutual,Inc.(HoldingCo) AsweadvisedyouinSeptember,thebankruptcyjudgeoverseeingtheWashingtonMutualcasedenied confirmationforasecondtimeandgrantedtheequitycommitteestandingtocommencealawsuiton behalfofWashingtonMutualagainstfourlargenoteholders(theSettlementNoteholders),including OwlCreek,forequitabledisallowance.Thejudge,however,stayedthelawsuitpendingamandatory mediationprocessintendedtohelpallpartiesreachasettledoutcomeofthevariouslegalissues.That mediationprocessispresentlyongoing.Thedelayinconfirmationhascausedsecuritypricestodrop becauseofthetimevalueofmoneyandbecausepostpetitioninterestcontinuestoaccrueonsenior andsubordinatedbondstothedetrimentofthejuniorsubordinatedbonds. CignaCorp Cignadeclinedby18.5%inthe3rdquarterasthemanagedcaresectorsoldofffollowingthedebtceiling debateandsubsequentratingagencydowngrade.WhenCongresspassedanextensionofthedebt ceiling,itcreatedaJointSuperCommittee(JSC)tofurtherreducethedeficitby$1.2T.IftheJSCdidnot reachitsgoal,thenanyshortfallwouldbefundedbyanacrosstheboardcuttodiscretionaryspending includinga2%maximumcuttotheMedicareprograminaprocesscalledsequestration.Asaresult, healthcarelostitsdefensivedistinctionandagainbecametargetedbythegovernment.Wethink thegovernmenttookitsproverbialpoundoffleshfromtheHMOswiththepassageofthePatient ProtectionandAffordableCareAct(PPACA)in2010,butacknowledgethemarketdislikesuncertainty morethananythingelse.TheJSCcametotheconclusionthatitwouldreachnodealonNovember23rd, andthatsequestrationwouldkickin.Duringthislastlegdownformanagedcare,whileCignahadvery limitedexposuretoMedicare,thestocksoldoffjustasmuchastherestofthegroup. 4

 At7.0x2012P/E,CignacontinuestobethecheapestoftheBig4insurers.Recently,Cignaannounced ahighlyaccretivetransactionforHealthSpring,alargeMedicareAdvantageplayer.Wethinkthisisa verygooddealforCigna.GiventheagingpopulationoftheUS,theseniormarketisgrowingfasterthan thecommercialmarketandBabyBoomersareincreasinglyelectingMedicareAdvantageplansover traditionalMedicare.HealthSpringhasauniquemodelinwhichthecompanyoftencontractswith patientsattraditionalMedicarerates,butincentsphysicianstomanagecareanddrivecostsdown. Cignapaidareasonable12.5xP/Eforthisbusinessandwethinktransactionslikethishighlightthe disconnectbetweenpublicandprivatemarketvaluesforhealthinsuranceassets.Postdealclose, HealthSpringwillrepresent25%ofCignasearningsandshouldbeaccretiveinthefirstyear.Proforma onetimedealcosts,webelieveCignacanearn$6.00in2012.Applyinga12xP/Emultiplealongwitha deductionof$2.50pershareforitsunderfundedpension,wethinkCignaisworth$69or60%upside fromtodayslevels. Historically,theHMOindustrytradedat1318xearningsduetotheirhighreturnsoncapitaland earningsgrowth.Premiumsgrewwithmedicalcosts(68%annually)and8085%ofthepremium revenuewaspaidoutinbenefits.Giventhehighlevelofunderwritingpredictability,largeemployers retainedunderwritingriskandpaidtheHMOsforaccesstotheirprovidernetworks.Withamodest amountofSG&Aleverage,earningsgrewat10%annually.Beingabletounderwriteprofitablyalso limitedinvestmentportfoliorisk. Givenregulatoryscrutiny,multiplecontractionmakessense,butwedontthinkitistoodemandingfor thegrouptoreratetoatleast12xearnings.Withlesshealthcarereformrisk,andexposuretohigher growthsegmentsliketheInternationalbusinessandHealthSpring,Cignawouldtradeatapremiumto thegroupifitcouldsolveforitsrunoffreinsurancesegment.Cignahastakenmeasurestoringfence potentiallossesfromthissegment.Fromhere,thestockmarketwouldneedtodeclineby40%before additionalcashflowcontributionswerenecessary.However,marketvolatilitydiminishesCignasability tocompletelyexitanditsstockexhibitsgreatersensitivitytoratesandstockmarketfluctuationsthanits peers.Withthepassageoftime,webelievethiscontingentliabilitywillshrinkandwethinkthe companycanstillexitthissegmentin2012. SeatPagine SeatisanItaliandirectory/onlinemarketingbusiness.Themarketpriceofourholdingsinthesenior securedbonds(SSB)andseniorunsecuredbonds(8%notes)decreasedfrom91to64and36to 15respectivelyintheQ3of2011.Thisweaknesscanbeexplainedinpartbytheoverallweaknessin Italianassets,aswesawtheItalianstockindexdeclineby26%andthewideningofItaly5yearCDS levelsfrom177to476duringthesameperiod.However,additionalpressureinthenamecamefrom theCompanyannouncinganaccountingchangewhichnowunderstatescashEBITDAandfroma10% guidancereductionfor20122015.Thereductioninguidancewaslargelyduetoanobservedcontinuing declineinprintsaleswhichwasexpectedtoeaseduring2011.Otherimportantmetricsincludingthe progressofsellingonlinepackageswereaheadofschedule. Itisimpossibletovalueacompanylikethis,whichhassomanymovingparts,withasimplecomps analysis,whichiswhatwebelieveothersaredoing.Wevaluethecompanybasedonitsabilityto 5

generateextremelystrongcashflows.WithEBITDAmarginsinthe40sandcapitalexpenditure requirementsthatarealmostimmaterial,webelievewehavebakedinaverylargemarginofsafetyon thisposition. Seathasinitiatednegotiationswiththeircreditorsaboutapotentialdebtforequityswapwhichwould seeamajorityofthe8%notesconvertedintoequity.Asoneofthelargestbondholders,wehavebeen involvedinthesenegotiations.Thedealhasnotyetbeencompleted,andgiventhesensitivity,weare unabletocommentfurtheratthistime. ForestOilCorp ForestOil($14/shareattheendofthe3rdquarter),anexploration&productioncompany,wasoneof ourworstperformingstocksduringthequarter,down46%in3Q.Fallingoilandnaturalgaspricesand themarket'sgeneralriskaversionbeginninginAugustdroveFSTaswellasmanyofitsenergypeers lower.Oilpricesfellfrom$97/barrelto$79/barrelduringthequarterlargelyonconcernsofslowing economicgrowth,thoughhavesincerebounded.Oilpricesarenowbackat$98/barrelasactual demandhasproventobeextremelyresilient.Neartermnaturalgaspriceshavealsofallenbutlonger termpricesremaininlinewithourassumptions.Whileweaddedsomeenergymarkethedgestoprotect ourdownsideduring3Q,webelievethatFSTisundervaluedevenatoilandnaturalgaspricesbelowthe currentlevelsandweaddedaggressivelytothispositionallthewaydownto$9.50pershare.We believethestockisworth$30pershare. BeforewebeganbuyingForest,shareshadalreadyfallen30%during2011,primarilyduetodeclining performanceoftheirkeyasset,theGraniteWash.OnJuly7th,Forestprovidedanoperationalupdate withfurtherdisappointingwellresultsintheGraniteWash,thecompanycutproductionguidancefor theyearandraisedspending.FSTstockdeclined14%onthatday.Webegantobuildourpositionafter thisnews,aswebelievedthatissuesbehindthereducedguidanceweretemporary,valuationwas attractiveandsentimenthadturnedextremelynegative.Inaddition,thecompanyhadalreadyIPO'd theirCanadiansubsidiary,LonePineResources.WebelievedtheseparationofLPRwouldsimplifyFST's portfolioandmakethecompanyeasiertobesoldifthestockdidnotreflectthecompany'sintrinsic value. However,throughAugustandSeptember,FSTcontinuedtotradelowerintheabsenceofspecific companynewsflowandasthemarketcontinuedtoquestionthequalityofForestsassetbase.We believeinvestorshadextrapolatedFST'sprolificinitialresultsintheGraniteWashoflastyearhadbegun toentirelydiscountthisplay. FSThadalsobuiltapotentiallyattractivepositionintheEagleFordshale,anarearepletewithindustry activity.InAugust,aresearchreportnegativelyportrayedtheeconomicsofFST'sacreagecitingwhatwe believetobeinaccurateandprematuredata.WhilewearenotpositiveexactlyhowmuchofFST's acreagewillultimatelybecomeeconomic,webelieveasignificantportionwillprovevaluableaswell resultsfromnearbycompetitorshavebeenpromisingandacreagedealshaverecentlygoneashighas $10,000/acre.Nonetheless,atthecurrentvaluation,webelievethemarketisgivinglittlecredittoeither FSTsGraniteWashorEagleFordplays.

Lastly,in3QFSTcompletedthespinoffofLonePineResources.Asmentioned,weviewthetransaction positivelyasitsimplifiestheFSTportfoliobyremovinganattractivebutnoncorepositionandshould allowFSTtorefocustheireffortsontheirkeydomesticplays. DespitetheselloffinFSTandenergystocksingeneral,threerecentindustrydealshighlightthe underlyingvalueintheNorthAmericanoilandnaturalgasresourcespace:Statoil'spurchaseofBrigham Exploration,KinderMorgan'stakeoutofElPasoandSinopec'sacquisitionofDaylightEnergy.Eachof thesedealsimpliedlongtermoilandnaturalgaspricesof$90$100/barreloiland$5.50/mcfnatural gas,whichimplyfairvalueforFSTof$30/share.WebelieveFST'sassetswouldmakesenseinthehands ofastrategicbuyer,andifmanagementisnotabletocloseFST'sdiscounttofairvalue,astrategicbuyer wouldlikelystepin. Sincetheendofthequarter,FSTshareshaverebounded13%andarenowaboveourcostbasis.FST reportedsolidQ3earningsbutmoreimportantlyannouncedseveralverypositivewellresultsinthetwo areasthathadbeeninquestion,boththeGraniteWashandEagleFord.ThewellsintheGraniteWash reversedthetrendofdecliningperformanceYTD.IntheEagleFord,FSTreportedaverygoodwellinthe shallowestportionofitsacreage,commonlyassumedtobetheleastproductiveportionofitsacreage, andassuchFST'sEagleFordresultsshouldonlyimprovefromhere.Theseannouncementssignificantly dispelledthemarket'sskepticismofFST'sassetsthoughwebelievethereismoretogo. WecontinuetobelieveupsideisextremelyattractivehereasFST'snetassetvalueinourupsidecaseis $30/shareandatleast$22/shareassumingamoreconservativepricedeckof$80/barreloiland $5.00/mcfgasprices.RecenttransactionswouldvalueFSTatourupsidecaseof$30.Ourdownsidecase ifrecentpositiveresultsintheGraniteWashandEagleFordprovetobefleeting,webelieveisnoless than$1214/shareNAV,thoughourexperiencelastquartershowedthatstockscantradewellbelow liquidationvalueforaperiodoftime.GiventhepositiveinflectioninFST'soperationsasillustratedby thecompanyssolidQ3resultswebelievethistobeaverylowprobabilityscenario. WellpointInc Wellpointsstockdeclined17%inthe3rdquarterasourmanagedcarepositionswereimpactedbythe outcomeofthedebtceiling.AsoutlinedintheCignasection,theJointSuperCommitteewasunableto agreetodeficitreductionmeasures,andsequestrationtriggeredanacrosstheboard2%cutto Medicarespendingbeginningin2013.WeestimateMedicarerepresents1015%ofWellpoints earnings,butifacutweretriggereditwouldonlyimpactQ42012earningsandby2013,webelievethe effectswouldlargelybepassedontoprovidersorrepricedthroughbenefitdesign. Wellpointtradesat9.0x2012P/Eandwillreturn14%ofitsmarketcaptoinvestorsthisyearthrough sharerepurchasesanddividends.Recently,thecompanyannouncedanincreasetoitssharerepurchase authorizationto$5B,whichisapproximately2yearsofcashflow.Barringbetterusesofcapital, managementisindicatingtheywillreturn21%ofthemarketcapoverthenext2years. Historically,theHMOindustrytradedat1318xearningsduetotheirhighreturnsoncapitaland earningsgrowth.Premiumsgrewwithmedicalcosts(68%annually)and8085%ofthepremium revenuewaspaidoutinbenefits.Giventhehighlevelofunderwritingpredictability,largeemployers retainedunderwritingriskandpaidtheHMOsforaccesstotheirprovidernetworks.Withamodest 7

amountofSG&Aleverage,earningsgrewat10%annually.Beingabletounderwriteprofitablyalso limitedinvestmentportfoliorisk. ThesegmentmostatriskofdisruptionfromhealthcarereformistheIndividualandSmallGroup segment.OftheBig4insurers,Wellpointgetsthelargestpercentageofitsearningsfromthe IndividualandSmallGroupspace.Whileweacknowledgethatmarginswilldeteriorateinthissegment, theplayerswiththegreatestregionalmarketsharewillstillbeabletonegotiatethebestrateswith doctorsandhospitals,providethemostcomprehensivenetwork,thusofferinginsurancemorecheaply thansmallerplayers.Netnet,thebiggestplayersshouldgainmarketshareattheexpenseofless efficientplayers.Wellpointshouldbealongrunwinnerfromthistrend. Whenwemodelouttheearningsimpactfromhealthcarereform,webelievethenetimpactisa10% proformadeclineinearningsversuswhatWellpointwouldhaveearnedwithouthealthcarereform. Oncerebased,wethinkearningscanresumetheirhistoricalgrowthpattern,sincehealthcarereform wasmuchmoreaboutexpansionofcoverageversusreductionofmedicalcosttrends.Inthemeantime, wewillbereceiving$2.5Binannualsharebuybacksandwearecreatingthestockat6.5x2014P/E.Even ifweneededtowait2yearsforthemarkettobecomfortableputtinga12xmultipleonWellpoints earnings,thiswouldrepresentagrossreturnof180%anda35%IRRfromtodaysshareprice. TevaPharmaceutical Tevastockdeclined23%inQ3(from$48.22to$37.22)despiteitsostensiblydefensivecharacteristics. Typically,whenastockdeclinesthatmuchinashortperiodoftime,therehasbeenamajorchangeto thecompanysearningspowerorlongtermoutlook.Wedontbelievethathasbeenthecase,asthe neartermearningsoutlookisfineandTevasCopaxonesituation(describedinpreviousletters)hasalso madefavorableprogress.Atcurrentlevels($40),thestockistradingatlessthan7x2012earnings,and wethinkthestockisworth$60pershare,representingaround50%upside. TevaQ211earningswereslightlyaboveexpectations.Thecompanyreported$1.10EPSversus consensusexpectationsof$1.07.Intermsofforwardlookingestimates,fullyear2012earnings expectationshaveonlyimprovedinthelastfewmonths.Seethechartbelow.Theredlinerepresents consensusestimatesfor2012EPS(righthandaxis),whereasthewhitelineisthestockprice(lefthand axis).ConsensusestimateshavegoneupsinceQ211andstandat$5.74.Meanwhilethestockcorrected sharplyduringtheJulyAugustperiod.

Oneconcernthathasimpactedthehealthcaresectoristhespecterofadditionalcutstoreimbursement rates.Specifically,giventhestructureofthedebtceilingresolution,whichwillresultinanautomatic2% reductioninMedicarepaymentsacrosstheboardstartingin2013unlesstherearechangesbyanew Congress.Fortunately,TevahasrelativelylittleexposuretoMedicareorMedicaid.Approximately15% oftheirUSbusinessisfromMedicareandMedicaid(6%and9%respectively).ButUSisonly50%oftotal sales,soevenifthecutendsupbeing4%,thatwouldonlyapplyto7.5%ofTevassalesandhasade minimusimpactonearnings. RegardingCopaxone,theMultipleSclerosisdrugthatrepresentsapproximately1/3ofTevasoperating profits,thepatentcasecontinuestomoveinTevasfavor.OnAug29th,thecourtissuedafavorable Markmandecisionwhichisthetechnicaltermforasetofpatentclaimconstructionrulings.Thisis importantbecausetheexactdefinitionofkeytermsinapatentcanbeopentointerpretation,andthus howthesetermsareunderstoodbythecourtcanbecriticalinaninfringementcase.Asthepatent holder,Tevaclearlywantedthedefinitionstoleadtothebroadestsetofpatentclaims.Fortunately,the courtadoptedallrelevantTevaclaimconstructioninterpretations.Therefore,inouropinion,this decisionimprovedTevaschanceofwinningitspatentinfringementsuitagainstmakersofaproposed Copaxonegeneric.Weexpectafinaldecisionbymidyear2012. OnesetbackthathasoccurredwasthatTevaspotentialsuccessordrugtoCopaxone,Laquinomod,had disappointingphaseIIIresults,whichweresharedwiththemarketonAug1st.Streetmodelshad incorporatedrelativelylittleforLaquinomodsalesgiventhedurabilityoftheCopaxonefranchiseand availableLaquinomodclinicaldata.Nonetheless,thestockdeclined6%onthatday,asthiscalloption onalleviatingtheCopaxoneoverhanghasallbutdisappeared. Atthecurrentprice($40),wethinkTevaoffersaveryattractiverisk/rewardgiventheclearsecular growthdriversingenericdrugs.WeexpectTevatoearn$5.78inEPSin2012,suchthatthestockis tradingat6.7xforwardyearearnings.WethinkTevacangrowEPSatahighsingledigitCAGRoverthe nextseveralyearsevenifagenericCopaxoneislaunchedinthattimeframe.Therefore,wedarguethat thestockshouldtradeat1011xEPSwhichwouldleadtoatargetof$58$63,or4558%upsidefrom recentprices. Wewouldalsonotethatmanagementhasgivenlongtermguidanceof$6.80$7.50ofEPSin2015. Giventhecurrentvaluation,themarketisimplyingextremepessimismthatthosetargetsare achievable,whereaswebelieve$7shouldbefeasible.Wethinkthestockshouldgetahighermultiple aftertheCopaxonepatentsexpire,asthecompanywillbeabletogrowearningsfasterwiththatpatent cliffheadwindbehindit.At12x$7earnings,thatwouldimplyafuturepriceof$84pershare.Wethink thatisareasonablepricetargetforlate2014,whichequatestoa30%IRRovera3yearholdingperiod. Intermsofdownside,wemustacknowledgethatperhapswearewrongandTevalosesthatpatentcase andtheFDAapprovesafullysubstitutablegenericCopaxoneinthenextyear.Thosearetwo independentevents,bothofwhichwefindunlikely.LetsalsoassumethatTevadoesntkeepany marketshareinCopaxonewhichisparticularlyconservativegiventhenatureofthedrug.Inthat scenario,wethinkTevacanearn$3.75EPSin2012,andistradingat10.5xearnings,whichwedont thinkisdemandinggiventhegrowthratefortherestofthebusiness. 9

HuiXianREIT DuringAugustandSeptember,themarketsinAsiadeclinedseverely,ledbyadeclineintheHsharesof 28%.OurnamesinAsiasufferedaswell,withourtwobiggestlosersbeingPICC,down36%and representingan84bpslossandHuiXianREIT,down36%andrepresentingan83bpslossforthe quarter.Generally,wehavenotseenanychangeinthefundamentalperformanceofthecompanieswe haveinvestedinandattributemostofthedeclinetomarketderisking. HuiXianREITisasinglesitecommercialcomplexlocatedintheheartofBeijingwith44%ofitsvalueina shoppingmall,27%inofficebuildings,19%intheGrandHyatthotel,and10%inserviceapartments.Hui XianREITwasthefirstoffshoreRMBdenominated(CNH)REITlistedinHongKongandhastradeddown considerablyfromitsIPOandfallenanadditional32.8%inAugustandSeptember.Throughoutthistime, though,therehasbeennochangetothefundamentalsofthecompanyotherthanthemacroconcerns ofaChinahardlanding. Theoccupancyrateoftheshoppingmallhasbeenconsistentlyinthehigh90sevenduringthefinancial crisis.Revenuegrowthisalsovisibleasexistingrentalcontractshave45%rentescalatorsbuiltinand realizedrentsare2030%belowcurrentspotrents,whichshouldleadtosignificantrentalreversionin thenext35years.Theofficesareoneoftheprimechoicesformultinationalcorporationstobasetheir ChinaheadquartersinBeijing.Between20052008,BeijingsawahugephaseofnewsupplyforGradeA officesandasaresultoccupancydroppedto6070%in2008andrentsweredepressed.Astheeconomy grewandnewsupplywasdigested,occupancyincreasedfromitstroughlevelin2008andisnow90 91%.SpotrentshavealsoincreasedtoaboutRMB200/sqm/monthversuscurrentrealizedrentof140. Toputthisinperspective,HongKongsGradeAofficerentsarearound1300/sqm/month.Theaverage leasetermisabout3years,andweexpectaverageofficerentachievedwouldcontinuetoreverttothe currentspotoverthenext34years. GivenHuiXiansrentalreversionprofileandsupply/demanddynamicsforitscoreassets,wecansee visibleearninggrowthof1315%forthenext3years.AttheendofSeptember,thestockwastradingat a13%grosscaprate,10%netcaprate,andanunleveraged8%dividendyield.Thecompanyisinanet cashpositionandintendstoleveruptobuyotherqualityrentalprojectsinChina.Giventhecurrent tightfinancingforcommercialdevelopersinChina,HuiXianstandstobenefitthroughacquisitionswhich canenhanceequityvalue.Sincetheendofthethirdquarter,thestockhasrebounded13%. PICCPropertyandCasualty PICCisthelargestP&CinsurerinChinawith40%marketshare.Wehavebeeninvolvedinthisname sinceearly2010,whichiswhentheindustryturnedfromnegativeunderwritingprofitabilitytopositive underwriting,leadingtoacombinedratio(costsdividedbyrevenue)improvementfrom107%to93%as ofJune30th2011.Currently,PICC,PingAn,andCPIC(65%ofthemarket)arerunningatcombined ratiosinthelow90sversusthesmaller,marginalinsurersinthehigh90sto100.GivenPICChasa7% expenseratioadvantageagainstPingAnandCPICand1015%versusthesmallerinsurersbecauseofits scaledifference,wethinkPICCscombinedratiocanbesustainedatlowtomid90sstructurally. Beyondthemarketsdecline,therewassomeconcernthatclaimcostsmightbehigherbecauseof inflationandthatacommissionwarhadstarted.Aftertalkingtoeightdifferentinsurancecompaniesin varyingregionsinChina,wefoundtheoppositetobetrueregardinghigherclaimcostsandthat 10

commissioncostshadincreased,butonlyfor15%oftheirbusinessandcausinganethittocombined ratioof30bps.Whileinflationprobablycontributed100200bpsnegativelytothecombinedratio,this ismorethanoffsetbyadecreaseinaccidentfrequency.TheChineseautomarketsawahugeboomover 20092011,wheremanyfirsttimedriversenteredthemarket.Asaresult,accidentfrequencyrateshave declinedfrom55%in2009to30%currently. Afterthestocksdecline,attheendofSeptemberPICCwastradingat67x11Eearningsand2x11EP/B ratiowitha40%ROE.WhilethestreetissayingPICCsprofitabilitypeakedin2011andunderwriting profitabilitywilldeclinenextyear,wecansee23yearsofvisible3035%ROEandadoublingofbook value.Sincetheendofthethirdquarter,thestockhasrebounded30%. Conclusion Wearedisappointedbyrecentperformance.Themarketshavebeenveryunfriendlytoinvestors,with extremevolatilityduetosignificantmacroeconomicheadwindsthathaveextremelybinaryoutcomes. WehavementionedthesovereigndebtissuesinEuropeandthepoliticalgridlockandhigh unemploymenthereintheUSnumeroustimesoverthepasttwoyears.Westillassertthattherearent anyeasyanswerstotheseproblems,eventhoughthemarketwouldliketothinksoasitcontinues hopingwithfingerscrossedthatkickingthecandowntheroadwillultimatelybeawinningproposition. TheseEuropeanissueswouldbedifficultenoughtosolvewithsimilarlysituatedpeoplewithlikeminds, soyoucanimaginehowmuchmoredifficulttheissuesbecomewhenyouhave17differentcountries withcompletelydifferentfiscalproblemsandacentralbankwithlimitedpowers.Couplethatwiththe largesteconomyintheworldstuckinneutralformanyreasons,includingpoliticalgridlockthathasno signsofabatinguntilthenextelectionsthatarealmostayearaway,andyoucanseewhythereare reasonstobecautious. Withthatsaid,itsourjobtoremainopportunisticallymindedandfindsignificantlyundervaluedor misunderstoodinvestmentsinthesevolatileenvironments.Wehopetheabovedescriptionsofourten largestlossmakingpositionsduringthepriorquarterhelpsyoutounderstandthat,whilewedontlike toeverlosemoney,sometimesmarketforceswillcausegoodinvestmentstobeseverelymispricedfor certainperiods.Webelieveweareinoneofthoseperiodsnow,and,whileweareconcernedaboutthe headwindsmentionedabove,wefeelthatinalloftheseinvestmentswewillbewellrewardedover time. Wewouldliketothankyouagainforyourcontinuedsupport.Ifyouhaveanyquestionsaboutthefunds, pleasedonthesitatetocontactKimSmith,ourDirectorofMarketingandInvestorRelations,oranyof us,at(212)6882550. Sincerely,

Jeff Altman

Dan Krueger

Jeff Lee
JeffreyF.Lee

Shai Tambor
ShaiS.Tambor

JeffreyA.Altman DanielE.Krueger andtherestoftheOwlCreekTeam.

11

EXHIBITS: FlagshipPortfolio$5.1billionAUMandthefivelargestnamesasofSeptember30,2011,were (alphabetically): AifulCorp AppleInc CignaCorp WashingtonMutual,Inc.(HoldingCo) WellpointInc

ThenameslistedaboveconsistofaminorityofissuersinOwlCreeksportfolioanditshouldnotbeassumedthattheseholdingswereorwillbeprofitable.

OwlCreek2010&2011GrossPerformanceAttribution3
2010 2011 Est4Q thru 11/30 0.9% 0.7% 0.2% 0.0% 0.4% 1.2% 0.0% 0.6% 0.2% 2.5% 2.3% 1.4% 0.1% 0.1% 3.0%

Equities4,5 Automobiles&Components Banks&OtherFinancialInstitutions CapitalGoods ElectricUtilitiesandPower Energy HMOs Insurance PharmaandOtherHealthStocks MarketPuts/Calls NonAsiaIndices OtherNonAsiaEquities HongKong/ChinaEquities JapanEquities OtherAsiaEquities TotalEquities Credit 6 Distressed&OtherCredit Liquidations CorporateCDS SovereignCDSandBonds AsiaDistressed EuropeDistressed TreasuryBonds TotalCredit Miscellaneous SidePockets FXHedges FXPositional OtherMisc TotalMiscellaneous GRANDTOTAL

1Q 0.0% 3.6% 0.0% 1.7% 0.3% 0.7% 2.2% 0.4% 0.5% 2.0% 1.8% 0.3% 1.1% 0.1% 6.3%

2Q 0.0% 2.1% 0.2% 0.1% 0.9% 2.0% 1.7% 1.5% 0.9% 1.9% 0.8% 0.6% 1.8% 0.1% 8.9%

3Q 0.0% 0.0% 0.6% 0.0% 0.0% 1.4% 0.0% 1.7% 0.7% 2.4% 0.1% 0.6% 0.1% 0.0% 0.3%

4Q 0.0% 0.7% 1.2% 0.5% 1.1% 0.2% 0.7% 1.7% 0.8% 4.0% 0.1% 0.8% 0.0% 0.5% 2.6%

YTD 0.0% 2.2% 0.4% 1.2% 0.4% 0.3% 1.1% 2.4% 1.1% 6.3% 0.9% 1.2% 0.7% 0.4% 0.4%

1Q 0.3% 0.3% 1.0% 0.1% 2.2% 2.8% 0.2% 0.8% 1.1% 4.1% 0.3% 0.2% 1.1% 1.4% 2.0%

2Q 0.2% 0.3% 1.1% 0.1% 1.1% 1.8% 0.2% 0.3% 0.1% 0.5% 0.1% 0.4% 0.5% 0.3% 0.2%

3Q 3.0% 0.9% 2.0% 0.2% 1.7% 2.9% 0.2% 1.1% 1.1% 4.0% 1.4% 3.9% 0.5% 0.6% 12.7%

YTD 2.3% 1.6% 2.3% 0.2% 0.2% 2.9% 0.3% 0.1% 0.3% 2.4% 1.1% 2.4% 1.2% 1.1% 8.2%

1.5% 2.5% 0.0% 0.0% 0.4% 1.1% 0.2% 5.3%

0.9% 0.5% 0.1% 0.5% 0.3% 0.1% 0.3% 0.7%

0.7% 0.2% 0.2% 0.1% 0.1% 0.5% 0.1% 1.4%

0.6% 0.3% 0.2% 0.5% 0.5% 0.3% 0.2% 0.2%

1.9% 2.0% 0.2% 1.2% 0.3% 1.4% 0.3% 6.1%

1.2% 0.5% 0.1% 0.4% 0.4% 0.6% 0.1% 1.1%

0.9% 0.3% 0.1% 0.1% 0.5% 0.4% 0.3% 1.8%

1.8% 2.0% 1.2% 0.6% 0.4% 1.7% 0.5% 3.8%

0.3% 0.2% 0.1% 0.2% 0.2% 0.2% 0.3% 0.9%

0.5% 2.1% 1.2% 0.4% 1.6% 0.5% 1.1% 0.1%

0.0% 0.6% 0.1% 0.6% 0.0% 11.5%

0.2% 0.4% 0.2% 0.1% 0.6% 10.2%

0.1% 0.6% 2.8% 3.3% 1.0% 0.6%

0.3% 0.5% 0.0% 0.5% 0.7% 2.0%

0.6% 0.9% 2.4% 4.4% 2.3% 2.8%

0.1% 0.7% 0.1% 0.6% 1.2% 1.8%

0.1% 1.0% 0.8% 0.6% 2.4% 0.4%

0.1% 0.9% 0.6% 0.9% 0.5% 16.5%

0.2% 0.1% 0.0% 0.4% 0.6% 3.0%

0.2% 0.9% 1.3% 2.4% 4.7% 12.7%

12

GrossPerformancebySecurityType7
2002 2003 GrossPerformancebySecurityType: CommonStock 1.2% 25.5% ShortStock 1.9% 5.3% ShortBonds 1.7% 10.8% BankDebt 2.1% 2.7% LongBonds 6.9% 49.7% LongCDS/CDX 0.0% 0.0% ShortCDS/CDX 0.0% 0.0% Expenses 1.6% 1.9% TotalPortfolio 5.2% 60.7% NetEquity NetDebt Expenses TotalPortfolio GrossLong GrossShort Expenses TotalPortfolio

2004 25.5% 5.0% 2.5% 4.3% 11.3% 0.0% 0.0% 1.6% 33.1% 19.8% 13.3% 1.6% 33.1% 44.9% 7.4% 1.6% 33.1%

2005 9.5% 6.2% 1.1% 0.1% 1.4% 0.0% 0.0% 1.6% 4.1% 3.3% 2.4% 1.6% 4.1%

2006 39.9% 13.1% 0.7% 0.8% 6.0% 0.0% 2.0% 1.5% 26.9%

2007

2008

2009

2010 5.2% 6.9% 0.1% 1.3% 4.6% 0.0% 0.2% 1.7% 2.8% 1.3% 6.1% 1.7% 2.8% 11.2% 6.9% 1.7% 2.8%

1stQtr 2ndQtr 3rdQtr 2011 2011 2011 7.2% 4.9% 0.2% 0.4% 0.6% 0.1% 0.7% 0.5% 1.8% 2.1% 0.2% 0.5% 1.8% 8.4% 5.8% 0.5% 1.8% 0.0% 1.1% 0.2% 0.2% 1.1% 0.0% 0.0% 0.4% 0.4% 1.0% 1.1% 0.4% 0.4% 1.2% 1.3% 0.4% 0.4% 20.2% 5.5% 0.3% 0.3% 2.6% 0.0% 2.1% 0.7% 16.5% 15.3% 0.5% 0.7% 16.5% 22.9% 8.0% 0.7% 16.5%

YTD 2011 14.5% 0.7% 0.1% 0.4% 0.9% 0.1% 1.3% 1.6% 15.3% 14.4% 0.8% 1.6% 15.3% 15.3% 0.4% 1.6% 15.3%

Since Inception 149.5% 33.5% 10.2% 9.0% 155.6% 0.7% 0.4% 15.1% 306.0% 91.5% 155.1% 15.1% 306.0% 564.9% 41.4% 15.1% 306.0%

47.8% 39.7% 30.6% 7.1% 37.9% 24.8% 0.2% 0.0% 0.2% 0.1% 0.2% 1.6% 0.4% 1.2% 26.7% 0.1% 2.3% 2.9% 1.8% 5.9% 6.4% 1.5% 1.7% 1.6% 40.8% 8.9% 22.2% 0.2% 24.4% 1.6% 22.2%

0.8% 6.6% 1.6% 5.2% 2.6% 3.7% 1.6% 5.2%

19.2% 37.9% 1.9% 60.7% 91.3% 15.6% 1.9% 60.7%

22.5% 39.9% 11.3% 5.3% 2.2% 4.6% 1.5% 1.5% 1.7% 26.9% 40.8% 8.9%

10.8% 49.0% 48.6% 40.8% 70.8% 5.2% 14.3% 6.0% 44.8% 30.0% 1.6% 1.5% 1.5% 1.7% 1.6% 4.1% 26.9% 40.8% 8.9% 22.2%

PortfoliobyIndustryType9,10,11
IndustryExposureasof9/30/11 HealthCareEquipment&Services Liquidation DiversifiedFinancials Media Banks TechnologyHardware&Equipment GovernmentBonds RealEstate Automobiles&Components Transportation Household&PersonalProducts Other TelecommunicationServices Software&Services Pharma.,Biotech.&LifeSciences Food&StapleRetailing Utilities ConsumerDurables&Apparel Semiconductors&SemiconductorEquipment Insurance Retailing Food,Beverage&Tobacco Materials ConsumerServices CapitalGoods Energy Total

Long Short Net Exposure Exposure Exposure 13.1% 1.3% 11.8% 12.0% 0.4% 11.6% 13.4% 1.9% 11.5% 7.3% 0.9% 6.4% 8.6% 3.4% 5.2% 7.0% 1.9% 5.1% 2.4% 2.0% 4.4% 4.6% 0.4% 4.2% 5.4% 2.3% 3.1% 3.7% 0.7% 3.0% 3.2% 0.9% 2.3% 2.2% 0.1% 2.1% 3.8% 1.7% 2.1% 4.5% 2.9% 1.6% 4.0% 2.9% 1.1% 0.8% 0.8% 0.0% 0.4% 1.5% 1.9% 0.1% 0.6% 0.5% 0.0% 0.7% 0.7% 1.8% 2.6% 0.8% 0.2% 1.0% 0.8% 0.7% 2.2% 1.5% 0.6% 3.0% 2.4% 2.3% 5.7% 3.4% 6.1% 9.6% 3.5% 4.0% 13.2% 9.2% 113.3% 61.0% 52.3%

13

GrossExposu 12,13 ure

4 PortfoliobyAssetClass14
2002 %ofAverageCapbySecType: CommonStock 22% ShortStock 10% ShortBonds 6% BankDebt 5% LongBonds 51% LongCDS/CDX 0% ShortCDS/CDX 0% NetExposure 62% NetEquity NetDebt NetExposure TotalLong TotalShort NetExposure GrossEquity GrossDebt GrossExposure 12% 50% 62% 78% 16% 62% 32% 62% 94%
15

1stQtr 2011 135% 52% 2% 4% 27% 0% 0% 112% 83% 29% 112% 166% 54% 112% 187% 33% 220% 2ndQtr 3rdQtr 2011 2011 119% 27% 8% 4% 30% 0% 0% 119% 93% 26% 119% 154% 35% 119% 146% 42% 189% 89% 44% 2% 5% 35% 0% 1% 85% 45% 40% 85% 129% 44% 85% 134% 43% 177% YTD 2011 115% 41% 4% 5% 31% 0% 0% 105% 74% 32% 105% 150% 45% 105% 156% 39% 195% Since Inception 93% 53% 11% 4% 32% 0% 0% 66% 40% 26% 66% 129% 63% 66% 145% 49% 194%

2003 36% 14% 32% 6% 77% 0% 0% 73% 22% 51% 73% 119% 46% 73% 50% 115% 165%

2004 60% 38% 25% 10% 50% 0% 0% 57% 22% 35% 57% 120% 63% 57% 98% 85% 183%

2005 112% 57% 21% 4% 29% 0% 0% 67% 55% 12% 67% 145% 78% 67% 169% 54% 223%

2006 154% 73% 12% 3% 19% 0% 0% 91% 81% 10% 91% 176% 85% 91% 227% 34% 261%

2007 165% 112% 2% 1% 6% 0% 0% 58% 53% 5% 58% 172% 114% 58% 277% 9% 286%

2008 110% 90% 0% 1% 3% 1% 3% 26% 20% 6% 26% 113% 87% 26% 200% 8% 208%

2009 63% 42% 2% 3% 33% 2% 2% 55% 21% 34% 55% 97% 42% 55% 105% 42% 147%

2010 91% 42% 3% 6% 26% 0% 0% 78% 49% 29% 78% 123% 45% 78% 133% 35% 168%

14

Thisletterisintendedonlyforthepersontowhomithasbeendelivered.Thisletterisnotanofferorsolicitationwithrespecttothepurchaseorsaleofanysecurity.Any investmentdecisioninconnectionwithOwlCreekI,L.P.,OwlCreekII,L.P.,OwlCreekOverseasFund,Ltd.,OwlCreekSociallyResponsibleInvestmentFund,Ltd.,Owl CreekAsiaI,L.P.,OwlCreekAsiaII,L.P.,andOwlCreekAsiaFund,Ltd.shouldbemadebasedontheinformationcontainedintheConfidentialMemorandumforthe applicableFundwhichwillbemadeavailableuponrequest.Thisletterisstrictlyconfidentialandmaynotbereproducedorredistributedinwholeorinpartnormayits contentsbedisclosedtoanyotherpersonunderanycircumstances.Thisletterisnotintendedtoconstitutelegal,tax,oraccountingadviceorinvestment recommendations. 1.PerformanceDisclosures:InceptionDatewasFebruary1,2002. NetPerformance:Netofallfeesincludingmanagementfeeandincentiveallocation/fee.Foronshorefundsassumesthatunrealizedgains(ifapplicable)onspecial investmentswouldfirstbeoffsetbyanylossrecoveryaccount(LRA)andfortheoffshorefundassumesthatunrealizedgains(ifapplicable)onspecialinvestments wouldnotbeoffsetbyanyLRApriortoaccruingforincentive. GrossPerformance:Netofmanagementfee,doesnotincludeincentiveallocationfee. PerformanceisbasedontheassumptionthataninvestorwasinvestedintheFundssinceinceptionwithnosubsequentsubscriptionsorredemptionsandwas eligibletoinvestinnewissues.Thisincludestheappreciation/depreciationofthefairvalueofanyspecialinvestmentandincome/lossfromnewissues.Investors whoinvestwiththeFundsinthemiddleofaparticularyear(aftertheestablishmentofaspecialinvestment)orwhodonotparticipateinnewissueswillhave differentmonthlyandyearlyperformancenumbersandthedifferencemaybesubstantial.Additionalperformanceinformationisavailableuponrequest.Past performanceshouldnotbeviewedasindicativeoffutureresults.InformationforYTD2011issubjecttorevisionpendingcompletionofDecember31,2011audits. AnnualandInceptiontoDateperformancenumbersarecalculatedbygeometricallylinkingmonthlyperformancefortherelevantperiod. TheS&P500Index(the"S&P500")isawidelyrecognizedindexof500publiclytradedstocksthatincludesthereinvestmentofdividends.TheS&P500is unmanagedandthereforedoesnothaveanytransactioncosts,advisoryfeesorsimilarexpensesthatareassociatedwithitsperformance.Onecannotinvestin theS&P500.TheinvestmentprogramofthefundsmanagedbyOwlCreekisnotrestrictedtothesecuritiescomprisingtheS&P500.Theinvestmentsprogramof thefundsincludetradingandinvestmentsindebtsecurities,aswellasothersecuritiesandinstrumentsoftroubledcompanies.Inaddition,thefundsportfolio maycontainoptionsandotherderivativesecurities,shortsalesandleverage,maynotbeasdiversifiedastheindicesandmayexperiencedifferingdegreesof volatility.Fortheforegoingandotherreasons,theperformanceofthefundsmanagedbyOwlCreekandtheS&P500maynotbecomparable. 2.InformationisfortheOwlCreekOverseasFund,Ltd.InceptionwasFebruary1,2002andthechartisbasedoffofquarterlydatapoints. 3.InformationisfortheOwlCreekOverseasFund,Ltd.Performancenumbersarecalculatedbygeometricallylinkingmonthlyperformanceforeachsecuritytypefor therelevantperiod.PleaserefertothePerformanceDisclosuresabove. 4.Equitiesincludecommonsharesandsomepreferredsharesanddebtthatactsubstantiallylikeequityinvestments. 5.AllAsianpositionsaregroupedintoAsianspecificclassificationswhereasallnonAsianpositionsarebrokendownintotheirspecificindustryclassifications. 6.Creditincludesbonds,bankdebt,creditdefaultswapsandsomecommonsharesandsomepreferredsharesthatactsubstantiallylikecreditinvestments. 7.InformationisforOwlCreekOverseasFund,Ltd.Performancenumbersarecalculatedbygeometricallylinkingmonthlyperformanceforeachsecuritytypeforthe relevantperiod.PleaserefertothePerformanceDisclosuresabove. 8.InceptionwasonFebruary1,2002. 9.InformationisfortheOwlCreekOverseasMasterFund,Ltd. 10.Exposureincludesthenotionalexposureoftotalreturnswapsandfuturescontracts.Forpurposesoftheindustrybreakdown,indiceshavebeenbrokenoutinto thecorrespondingexposuresoftheunderlyingholdingsofeachindex. 11.StartingonApril30,2011,OwlCreekwillgenerallybreakdownindustrybasedonGICSindustrygroups;OwlCreekhasmadeadjustmentstotheseclassifications when,initsownjudgment,ithasdeterminedthatGICSclassificationiseithernotreflectiveoftheunderlyingexposureorifGICSdoesnotprovideaclassification. ThefollowingnonGICSbucketsareincludedintheindustryexposure: #1LiquidationEquitiesandcreditsofacompanythatisanticipatedtobeinliquidationproceedingsinthenearfutureoriscurrentlyinliquidationproceedings. #2GovernmentBondsincludesSovereignCDSandTreasuries. #3Otherincludesforwardforeigncurrencyexchangecontracts,escrowpositions,theinvestmentintheOwlCreekAsiaMasterFund,Ltd.aswellasanyGIC industrygroupwherethelongandshortexposureislessthan0.5%ofNAV. 12.InceptionwasonFebruary1,2002. 13.Chartisbasedonquarterlydata.Quarterlydataiscalculatedbytakingtheaverageexposureofthemonthendexposures:frominceptionthrough6/30/2010Owl CreekOverseasFund,Ltd.monthendexposuresareused;from7/1/2010onwardsOwlCreekOverseasMasterFund,Ltd.monthendexposuresareused.Exposure includesthenotionalexposureoftotalreturnswapsandfuturecontracts. 14.Portfolioexposuresarecalculatedbytakingtheaverageexposureofthemonthendexposures:frominceptionthrough6/30/2010OwlCreekOverseasFund,Ltd. monthendexposuresareused;from7/1/2010onwardsOwlCreekOverseasMasterFund,Ltd.monthendexposuresareused.Exposureincludesthenotional exposureoftotalreturnswapsandfuturecontracts. 15.InceptionwasonFebruary1,2002.

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