D ORCHESTER C APITAL A DVISORS, LLC

1. DORCHESTER CAPITAL ADVISORS, LLC Presentation to NCPERS 2009 Public Safety Employees Pension & Benefits Conference

2. Table of Contents • The Hedge Fund Industry 3 • Fund Of Hedge Funds 15 • New Hedge Fund Era 20

3. The Hedge Fund Industry

4. History of Hedge Funds • Contrary to popular belief, hedge fund investing has been around for decades • Alfred Winslow has been credited by many with starting the first hedge fund in 1949, introducing the concepts of shorting, leverage, performance fees, and investing firm capital alongside partners • Other than a few small peaks and valleys, the industry inched along in relative obscurity until the 1990’s, when the popular press picked up on the uncorrelated returns achieved by hedge fund managers that had become household names • Between increased media awareness of the hedge fund industry and the explosion of derivative instruments previously unavailable, the hedge fund industry grew rapidly with hedge funds numbering in the thousands managing hundreds of billions of dollars • Contrary to media reports in Q4 2008, the hedge fund industry is still vibrant with an estimated $1.4 trillion in assets under management

5. Hedge Fund Industry Growth - AUM Source: HFR Global Hedge Fund Industry Report – Second Quarter 2009

6. Hedge Funds and Mutual Funds Source: HFR Global Hedge Fund Industry Report – Second Quarter 2009 and Investment Company Institute

7. Hedge Fund Industry Growth - # of Firms Source: HFR Global Hedge Fund Industry Report – Second Quarter 2009

8. A Consolidated Industry Distribution of Hedge Fund Industry Assets by Fund AUM Tier June 30th 2009 • About 300 hedge fund firms manage over $1 billion and collectively these firms represent approximately 75% of all hedge fund assets • About 90 hedge fund firms manage over $5 billion and collectively these firms represent roughly 60% of all hedge fund assets According to the “HFR Global Hedge Fund Industry Report – Q2 2009 and InvestHedge: Source: HFR Global Hedge Fund Industry Report – Q2 2009, InvestHedge

9. Characteristics Of Hedge Funds • Benefits • Flexible Mandate: less constrained regarding benchmarks, use of short selling, leverage, and permitted securities; therefore, can focus on absolute returns • Incentive Structure: fee structure attracts highly talented money managers who personally invest in their funds; therefore, interests are aligned with investors • Diversification: hedge funds are typically uncorrelated with traditional asset classes

10. Characteristics Of Hedge Funds • Drawbacks • Transparency: hedge funds can seem opaque to new or nervous investors because disclosure standards are not universal across strategies or managers • Manager Risk: so much of a fund’s performance may be the result of a few key people • Liquidity: hedge fund investing involves lock ups

11. Hedge Fund Strategies • While many of these strategies sound exotic, they play in the same sandbox as your traditional long-only managers • The only major difference is that they do so in a less-constrained fashion Same Some overlap Distinctly different

12. Attractiveness of Hedge Funds • Hedge funds (using the HFRI Fund of Hedge Fund Index as a proxy*) offer an attractive risk/return profile compared to traditional equity investments during the last 10 years *Over the last ten years, the HFRI Fund Composite Index earned a higher cumulative return versus the HFRI FOF Index because fees-on-fees reduce fund-of-fund returns. However, the HFRI Fund Composite Index suffers from “survivorship bias” because hedge fund liquidations and non-contributions are not included in the hedge fund index, but are included in the fund-of-fund index.

13. Hedge Funds in Down Markets

14. Hedge Funds’ Diverse Returns Source: HFR Global Hedge Fund Industry Report – Second Quarter 2009, YTD 2009 Returns through June 30th, 2009

15. Fund of Hedge Funds

16. Fund of Funds Strategy 3 Strategy 1 Strategy 2 HF HF HF HF HF HF HF HF HF What is a Fund of Fund?

17. Benefits of Fund of Funds • One-stop shop for hedge fund managers and strategy diversification • Less expensive than building a direct and diversified portfolio in-house which requires dedication of time and staff • Skilled and experienced staff dedicated to sourcing managers and performing comprehensive investment and operations due diligence, analysis and monitoring • Risk management overlay to monitor portfolio exposures by asset classes, geography, market cap and leverage and to perform stress tests and scenario analysis • “Liquidity pooling” allows for greater liquidity and flexibility for reallocation between strategies than direct investments • “Termination risk” is absorbed at the fund-of-fund level adding liquidity while limiting the likelihood for exposure imbalances when unwinding direct investments with staggered liquidity • Enhanced returns due to the inheritance of the high-water marks in their underlying managers in 2009

18. What Other Say About Fund-of-Funds • Barclays Capital Fund of Funds Overview, January 2009 • For institutions investing less than $500M in hedge funds, Fund of Hedge Funds provide a valuable service that is not easily replicated without substantial investments in people, infrastructure, and processes. • AIMA’s Roadmap to Hedge Funds, November 2008 • Manager selection has become more difficult as well as labor-intensive over time, this despite the whole industry becoming more transparent and more information being available. A couple of years ago, a fund of funds would have argued that his value proposition was based on generating “alpha.” • Today, the value-added of a fund of funds manager is probably better described as offering a laborious service at a lower cost than could otherwise be obtained by the investor directly.

19. Fund of Funds in 2008 • Funds of funds demonstrated the following during the 2008 bear market: • exposed asset-gathering firms who over-promised liquidity • managed through the crisis without the need for a government bail out • manager diversification worked • capital was preserved better:

20. New Hedge Fund Era

21. State of the Markets • The markets today: • Market volatility spiked in the last half of 2008. Many hedge fund managers mismanaged (or failed to manage) this volatility • Credit is no longer cheap. Hedge fund strategies that rely on leverage for returns stopped working for investors • We anticipate the following changes will be prominent in the New Hedge Fund Era: • Recognition that low volatility does not equate with alpha but, rather, entails liquidity and pricing risks • Migration to lower leverage strategies where the ROA of investments is sufficient to achieve the ROE for investors • Preference for managers that are large enough to survive as institutions, yet small enough to retain an entrepreneurial culture and commercial focus • Greater attention to managers adding value from alpha through security selection versus through sector market timing or leverage

22. The Future for Hedge Funds • We anticipate the following changes will be prominent in the New Hedge Fund Era (continued): • Greater regulation of opaque and illiquid markets that previously were dominated by hedge funds (derivatives, CDS, structured products and OTC trading) • May lead to more “legitimacy” of hedge funds in eyes of the public as hedge funds become more regulated • At the end of 2008 there was a shift in negotiating power from hedge funds to their clients and prime brokers • Expect hedge funds to more closely align their withdrawal terms with the underlying liquidity of the markets they trade • Hedge fund terms:

23. Disclosure / Disclaimer Dorchester Capital Advisors, LLC is the General Partner of Dorchester Capital Partners, LP (“DCP”), Dorchester Capital Partners Select Opportunities, LP (“DCPSO”), Dorchester Capital Partners III, LP (“DCP III”), Dorchester Capital Partners Global, LP (“DCPG”), Dorchester Capital Partners Low Volatility, LP (“DCPLV”), and Dorchester Capital International Retirement Plan, Ltd (“DCIRP”). Dorchester Capital Advisors, LLC (“DCA”) is the investment manager for Dorchester Capital International Retirement Plan, Ltd (“DCIRP”). Dorchester Capital Advisors International, LLC is the Investment Manager of Dorchester Capital International, Ltd (“DCI”), and Dorchester Capital International Select Opportunities, Ltd (“DCISO”). Dorchester Capital Advisors, LLC (“DCA”) and Dorchester Capital Advisors International, LLC (“DCAI”) are collectively referred to as “Dorchester”. This presentation is not intended to be a risk disclosure document and should be read in conjunction with offering and subscription documents (collectively, the “Documents”) for DCP, DCPSO, DCP III, DCPG, DCP LV, DCIRP, DCI, and/or DCISO, each referred to as the “Fund” or collectively referred to as the “Funds.” The indices included in this presentation are disclosed to allow for comparison of the Fund’s performance to that of well-known and widely recognized indices. The S&P 500 (dividends included) is an index of common stock prices and is generally considered representative of the U.S. stock markets. The Barclays Aggregate Bond Index is comprised of approximately 6,000 publicly traded bonds including U.S. Government, mortgage-backed, corporate, and Yankee bonds with an approximate average maturity of 10 years. The HFRI Monthly Indices (“HFRI”) are equally weighted performance indices and represent a database of over 1,000 funds. The HFRI are broken down into 37 different categories by strategy. Funds included in the HFRI must report monthly returns net of all fees and report assets in USD. There is no required asset-size minimum or required length of time a fund must be actively trading before inclusion in the HFRI. Trailing 4 months are left as estimates and are subject to change. Performance prior to that is locked and no longer subject to change. The HFRI are updated 3 times a month. We have selected the HFRI indices which include onshore funds only. Some information contained in this presentation is from third-party sources and believed to be reliable. However, Dorchester does not guarantee the accuracy or completeness of such information. This presentation is a summary and does not constitute an offer to sell or a solicitation of any offer to buy or sell any securities, units or interests in any Fund. In making decisions to invest in a Fund, prospective investors should rely solely upon their independent investigation, including a review of the Documents. Neither Dorchester nor any of its affiliates, employees or agents are authorized to make (or, through the information in this presentation, are making) any representations or warranties inconsistent with or in addition to those contained in the Documents. Prospective investors must review the actual Documents for complete information as to the rights and obligations of an investor. Certain historical numbers are included in this document; however, no representation is made that an investor will or is likely to achieve results similar to those shown herein, as such, results may vary. No assurance can be given that the objectives of Dorchester or any of its Funds will be achieved. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS. INHERENT IN ANY INVESTMENT IS THE RISK OF LOSS.

24. DORCHESTER CAPITAL ADVISORS, LLC11111 Santa Monica Boulevard, Suite 1250Los Angeles, California USA 90025Attn: Kelsey Quane+1.310.402.5090 investor@dorchestercapital.comwww.dorchestercapital.com