HEDGEYE 2

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LEGAL

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4/11/2014 THE MACRO SHOW

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HEDGEYE ASSET ALLOCATION

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0%

10%

20%

30%

40%

50%

60%

70%

80%

CASH U.S.EQUITIES

INT'LEQUITIES

COMMODITIES FOREIGNEXCHANGE

FIXED INCOME

64%

0% 0%

18% 18%

73%

HEDGEYE ASSET ALLOCATION

The maximum preferred exposure for cash is 100%. The maximum preferred exposure for each of the other asset classes is 33%.

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HEDGEYE MACRO PROCESS: RATE OF CHANGE

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S&P 500 REVENUES & EARNINGS COMPS

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HEDGEYE SECTOR PERFORMANCE

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HEDGEYE SECTOR RELATIVE PERFORMANCE

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HEDGEYE STYLE FACTOR PERFORMANCE

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HEDGEYE RATES & SPREADS

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CFTC NON-COMMERCIAL NET LONG POSITIONING

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MARKET SHARE VOLUME & TOTAL VALUE TRADED

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U.S. DOLLAR INDEX

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LIGHT CRUDE OIL SPOT PRICE

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TOKYO NIKKEI AVERAGE INDEX

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SELL THE HAWK

1 2 3

USD

RUSSELL 2000

HEALTHCARE

USD Not surprisingly, the USD is up (this week) into the “relatively hawkish” #LateCycle Employment Fed statement – but how much USD (and rates) upside is there? Not much, for now as both the Japanese and European #BeliefSystem of FX devaluation continues to break-down, pressuring USD inasmuch as slowing housing and consumption data does.

RUSSELL 2000 Right there with the Financials (XLF -6.0% year-to-date) as Best Ideas Shorts in 2016 year-to-date is the Russell 2000 (down -1.6% yesterday to -6.1% year-to-date) as both a are much purer play on the short side of the U.S. economy slowing than the global one. We know that doesn’t fit the perma bull narrative. But it does fit yesterday’s U.S. Retail Sales and Housing (NAHB) data! #slowing.

HEALTHCARE Another Sector Style that continues to underperform in 2016 (XLV down -1.7% yesterday to -6.7% year-to-date, with Biotech, IBB, -3.8% on the day). We know. We know. It was Valeant( VRX). But remember what the macro message is there – don’t be long storytelling, leverage, and “pricing” when the macro risk = #Deflation.