State of The Hill
February 2007

Cedar Hill begins its twenty-third year with $800 million of client funds in a wide variety of investments encompassing equities, fixed income, and six proprietary asset allocation vehicles for qualified clients. Our focus on alternative investment sectors includes distressed debt, bank loans, equity long/short, structured finance, asset based lending, real estate finance, emerging markets and direct real estate opportunities.

We are in an environment of enormous global liquidity chasing investments, which requires that we take a contrary view to what the rest of the world may be doing (or how they are doing it), and work even harder to discover opportunities producing good returns.

Many of our clients represent “family” portfolios with cross currents of wealth preservation and wealth accumulation. Our ability to understand divergent family goals is essential in managing wealth for the next generation. Cedar Hill’s alternative strategies complement our traditional equity and fixed income management, allowing customization of portfolios to fit client long-term goals.

We applaud our team of committed professionals whose contribution to our growth and continued success is invaluable. They have developed a communications process that produces substantial goodwill and results in unprecedented referrals from clients and legal and accounting professionals. In addition, we are consummate nitpickers. Continual technology upgrades and enhancements, together with our annual review of compliance procedures, ensure our ability to efficiently and accurately serve our clients.

It is our pledge to continue to provide services that exceed your expectations. Please let us know how we can better serve you and your family.

• We learn from listening.
• Our sole focus is to provide exceptional value, in the form of counsel and service, to our clients.
• We want to know if we are “getting it right” and commit to doing so, if we are not.

Joel H. Jastromb	Alan Cole	Christopher Engelman
Chairman/CIO	President	Managing Director