B.C.

MOON & COMPANY

INVESTOR PRESENTATION
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Disclaimers

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These presentation materials have been prepared solely as a means to determine investor interest in BCM Investors Accredited Fund, LP or the BCM Investors Offshore Limited (the Funds). These materials
are qualified in their entirety by the Funds Confidential Private Placement Memorandum (the Offering Memorandum) and the exhibits thereto. This is not an offer to invest in the Fund; any offers will be made
only by means of the Offering Memorandum. Any decision to invest in the Fund must be based solely upon the information set forth in the Offering Memorandum and the exhibits thereto, each of which should
be read carefully by prospective investors prior to investment. These presentation materials are confidential and may not be reproduced or distributed by the recipient, except that they may be provided to advisers
to the recipient in connection with an evaluation of a potential investment. Prospective investors should be aware that an investment in the Fund is speculative and involves a high degree of risk. There can be no
assurance that the Funds investment objectives will be achieved or that an investor will receive a return of or on its capital. In addition, there may be occasions when the Funds general partner, its affiliates
and/or its members or employees may encounter potential conflicts of interest in connection with the Fund. An investment in the Fund is subject to restrictions on transfer and withdrawal. The Offering
Memorandum discusses these and other important risk factors and considerations that should be carefully evaluated before making an investment in the Fund. Prospective investors should consult with their own
legal, tax and financial advisers as to the consequences of an investment in the Fund.
Sources of Information. Certain of the economic and market information contained herein has been obtained from published sources and/or prepared by third parties. While such sources are believed to be
reliable, none of the Fund, its general partner, the investment manager or their respective affiliates, employees and representatives assume any responsibility for the accuracy of such information.
Forward-looking Statements. These presentation materials may contain forward-looking statements within the meaning of the United States federal securities laws. Forward-looking statements are those that
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To ensure compliance with U.S. Internal Revenue Service Circular 230, you are hereby notified that: (a) any discussion of U.S. Federal tax issues contained or referred to herein is not intended or written to be
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B.C. Moon & Co. only transacts business in states where it is properly registered or notice filed, or excluded or exempted from registration requirements. Follow-up and individualized responses that involve
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Not an Offer to Purchase or Sell Securities. This document is for informational purposes only. The information contained herein is subject to change. However, we are under no obligation to amend or
supplement this document. This document does not constitute an offer to sell or the solicitation of an offer to buy any interest in the Fund. Interests in the Fund will only be available to parties who are
accredited investors (as defined in Rule 501 promulgated pursuant to the Securities Act of 1933, as amended) and who are interested in investing in the Fund on their own behalf. Any offering or solicitation
will be made only to qualified prospective investors pursuant to a confidential offering memorandum, and the subscription documents, all of which should be read in their entirety. An investment in BCM
Investors Accredited Fund, LP or BCM Investors Offshore Limited involves a substantial amount of risk. Investments should only be made by investors who fully understand these risks and can withstand a loss
of their entire investment. Past performance is no guarantee of future results. This document is being sent only to persons with whom we have a preexisting business relationship. If you have received this
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Table of Contents
Overview
Performance
Managing Partner
Portfolio Construction
Investment Process
Risk Management
Alignment of Interests
Summary of Terms
Contact Information

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An Uncommon Fund

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Modeled after the original Warren Buffett Partnerships

hedge fund of the 1950s
Survival Investing Ethos
Value
Special Situations
Value-Based
Special
Catalysts
Hedges
Situations
Activism
Concentrated
A rare framework in todays world
Opportunistic
Intelligent Leverage
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Outstanding Performance

2013 Q4 Performance

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Deep Value
Insight
+__%

S&P 500
(TR)
+10.5%

2013 Year-to-Date Performance

+__%

+32.4%

Total Return Since Inception*

+__%

+36.8%

Annualized Return Since Inception*

+__%

+5.2%

* Return from inception March 2012

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Overview
OBJECTIVE

Produce superior long-term absolute and relative returns versus

the S&P index in a scalable manner

STRATEGY

Identify Value-based and catalyst driven Special Situation

investments available at substantial discounts to intrinsic value

PORTFOLIO

Build a portfolio of 8 15 very attractive, non market

correlated investments which have high conviction through
fundamental research

FUNDS

BCM Accredited Fund, LP (2016)

BCM Investors Offshore Limited (2017)

PRINCIPAL

Christopher Moon

Investment Philosophy

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VALUE

Strict Value Discipline. Invest in opportunities in which market

value is offered at a steep discount to intrinsic value

FUNDEMENTALS

Owner Mindset. Approach investments as an owner of a

business, rather than chasing momentum or technicals

CONCENTRATION

Highly Selective. A handful of great, high-conviction ideas is

better than a hundred mediocre ones

LONG-TERM VIEW

Take Time. Patient long-term investing creates a distinct

advantage over short-term speculation

CATALYSTS

Unlock & Create Value. Generate market agnostic returns

INTELLIGENT
LEVERAGE

Dont Risk Ruin. Leverage cuts both ways

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Christopher Moon

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Christopher Moon is the Managing Partner and Chief Research

Officer of B.C. Moon & Co., LLC. As the principal behind Deep
Value Insight, a value investing newsletter, Mr. Moon has returned
___% *since. His average return over the last four years has
been.*. Mr. Moon has been analyzing investment opportunities
for over a decade. His specialties are deep value and risk arbitrage
spin-offs, mergers and bankruptcies. He also has experience in
analyzing special situations involving high yield bonds, warrants and
LEAPs, as well as analyzing and tracking activist investor campaigns.
*To be verified by an independent auditor.

Portfolio Construction
Generals
Longs
Undervalued stocks
Neglected
Long time horizon
Favorable risk/reward
Shorts
Fads, Frauds, Failures
Flawed business
Unrealistic expectations
Negative catalysts

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Workouts
Special Situations
Non-recurring; Catalyst
Internal/External
Spinoffs / Mergers
Tender Offers
Capital Structure Arbitrage
Reorganizations
Liquidations / Bankruptcies
Pro Forma
Activism

An exceptionally flexible search for opportunities

Portfolio Construction

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We invest opportunistically in a mix of Special Situations &

Long/Short, which produces outsized performance with low market
correlation.
Our special situations focus and experience generates market agnostic
returns and provides a source of additional capital for the Long/Short
book and new ideas.
When used intelligently, leverage can produce outsized returns.
Only seek opportunities with a high probability of an upside five times
greater than the downside.
Through most cycles our exposure will remain net long.
Cash remains the default in the absence of greater opportunities.
We remain flexible and opportunistic in the search for value.
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Concentration

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The portfolio will typically consist of 8 15 highest conviction ideas.

The portfolio will be built one solid idea at a time.
A few great, high-conviction ideas are better than a hundred mediocre
ideas (other typical funds).
Performance over time correlates to the outcome of these particular ideas
rather than to the performance of the market.
With only 8 stocks, for example, a portfolio achieves 80% diversification
(assuming industries are diversified and uncorrelated). With 100 stocks,
one achieves 88% diversification.
These ideas are scalable and can be any market capitalization
across industries.
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Investment Process Stage 1

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Idea Generation
Constant information gathering by reading hundreds of pages a day
Catalyst driven special situations, both endogenous and exogenous
Quantitative screening combing the universe of statistically cheap
companies on a fundamental basis
Paying attention to untold and misunderstood stories
Hidden assets that are overlooked and undervalued by the market
Trade shows, industry contacts, investor network, etc.
Sectors of continual review using cross industry knowledge
Top-down themes that are investable
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Investment Process Stage 2

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Significant Due Diligence

Management Who/what drives the revenue? Interests aligned with
shareholders?
Business Model Key metrics, margin analysis, competitive set,
sustainability/defensibility
Sum of the Parts/Valuation Balance sheet reconstruction, free cash flow
generation, strategic assets
Competitive Advantage Strategic alliances, brand equity, high switching
costs, high barriers to entry, recurring revenue
Customer Base Deep analysis of the value of the customer, customer
acquisition process and customer references
Free Optionality Joint ventures, real estate and intellectual property

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Investment Process Stage 3

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Portfolio Optimization
Dynamic Risk/Reward Sizing
Has the desired Ratio characteristic of highly skewed risk/reward
Dynamically re-size portfolio according to relative attractiveness
Monitoring/Exit
Dispassionate seller with defined targets
Understand non-fundamental stock dynamics
Sell when catalysts play out or valuations become fair
Material change in the thesis occurs
Disciplined Risk Management
Risk/reward evaluation at all points of the investment cycle
Review Process
Refine and analyze investment process over outcome

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Decision

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What Becomes a Core Position?

Conducive context/industry fundamentals
Seasoned management aligned with shareholders
Compelling valuation with margin of safety and significant upside
Has the desired Ratio characteristic
Strategic assets and free optionality
Defensible model with high visibility and inflection point for
acceleration of cash flow generation
Variant perception and multiple catalysts
Hiding in plain sight
Too complex and difficult to explain? Then simply pass.

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Shorts

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Existence of combination of the following characteristics:

Overextended valuation/unrealistic expectations with negative catalysts

Adverse changes in competitive landscape
Misunderstood business models lack of operating leverage
Secondary players priced as leaders
Deteriorating fundamentals pricing power, margins, find the flaw in
the model
Customer concentration risk
Promotional management/insider selling
Strong trading liquidity
Similar due diligence process with focus on identifying flaws in key
metrics

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Risk Management
Via Investment Process

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Via Portfolio Structure

Protection against declines arises from

Limited use of leverage
purchasing securities with a substantial
Constant evaluation of the portfolio
margin of safety only after achieving high
risk and of each position individually
conviction through thorough analysis
Hedging of individual positions
Deep fundamental research with a focus on
using available low cost alternatives
risk factors
Hedging of portfolio level and
Diversification across a variety of sectors
macro level concerns
Catalysts drive highly productive recycling
Employment of advanced options
of capital
strategies
Trading experience and discipline to cut
losses
We are inherently risk-averse and this is integrated
into our unique investment approach

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Alignment of Interests

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The Bottom Line

Simple rule A fund manager must eat his or her own cooking.
The Principal retains essentially all of his net worth in the fund.

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Funds
BCM Investors Accredited Fund, LP
U.S. Accredited Individuals
U.S. Qualified Individuals

U.S. Accredited Entities

U.S. Qualified Entities

BCM Investors Offshore Limited

Non-U.S. Accredited Individuals
Non-U.S. Qualified Individuals
IRAs

Non-U.S. Accredited Entities

Non-U.S. Qualified Entities
Tax-Exempts
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Offering
FUNDS

BCM Investors Accredited Fund, LP

BCM Investors Offshore Limited

MINIMUM

$1,000,000

FEES

Management: 1.5%
Performance: 25% above 6% hurdle

SPECIFICS

BROKER/CUSTODY

High water mark | Two year lock-up

Quarterly redemption; 45 day notice
Quarterly admission
TBD

ACCOUNTING

TBD

LEGAL

TBD

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Contact Information

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B.C. Moon & Co., LLC

BCM Investors Accredited Fund, LP
BCM Investors Offshore Limited

Christopher Moon
Managing Partner
917-246-7235 Mobile
christopher@bcmoon.com
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