8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8–K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15 (d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): July 30, 2004

Max Re Capital Ltd.

(Exact Name of Registrant as Specified in Charter)

Bermuda	000-33047	Not Applicable
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

Max Re House, 2 Front Street, Hamilton HM 11, Bermuda
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code (441) 296-8800

ITEM 5. Other Events and Required FD Disclosure

On July 30, 2004, the Registrant issued three news releases filed herewith as Exhibits 99.1, 99.2 and 99.3, which are incorporated by reference herein.

ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits.

(a) Financial Statements of Business Acquired

None.

(b) Pro Forma Financial Information

None.

(c) Exhibits

99.1	News Release of Max Re Capital Ltd., dated July 30, 2004
99.2	News Release of Max Re Capital Ltd., dated July 30, 2004
99.3	News Release of Max Re Capital Ltd., dated July 30, 2004
99.4	News Release of Max Re Capital Ltd., dated August 2, 2004

ITEM 12. Results of Operations and Financial Condition.

On August 2, 2004, the Registrant issued a news release announcing financial results for the three and six months ended June 30, 2004. A copy of the news release is attached hereto as Exhibit 99.4 and is incorporated by reference herein.

In accordance with general instruction B.6 to Form 8-K, the information set forth in this Item 12 (including Exhibit 99.4) shall be deemed “furnished” and not “filed” with the Securities and Exchange Commission for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

	Max Re Capital Ltd.
	(Registrant)
Date: August 3, 2004		/s/ Robert J. Cooney
	Name:	Robert J. Cooney
	Title:	President and Chief Executive Officer

EX-99.1

Exhibit 99.1

MAX RE CAPITAL LTD. ANNOUNCES QUARTERLY DIVIDEND

Hamilton, Bermuda, July 30, 2004, Max Re Capital Ltd. (NASDAQ: MXRE; BSX: MXRE BH). The Board of Directors of Max Re Capital Ltd. declared a quarterly dividend of $0.03 per common share at a meeting of the Board held today.

The dividend is payable on August 27, 2004 to shareholders of record on August 13, 2004.

Max Re Capital Ltd. through its principal operating subsidiaries, Max Re Ltd., Max Insurance Europe Limited and Max Re Europe Limited, offers customized risk financing solutions to property and casualty insurers, life and health insurers and large corporations.

The above remarks about future expectations, plans and prospects for the Company are forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those suggested by such statements. For further information regarding cautionary statements and factors affecting future results, please refer to the Company’s most recent Annual Report on Form 10-K and other documents filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.

Contact Information:

Keith S. Hynes	N. James Tees
Executive Vice President & CFO	Senior Vice President & Treasurer
441-296-8800	441-296-8800
keithh@maxre.bm	jimt@maxre.bm

EX-99.2

Exhibit 99.2

Max Re Capital Ltd. Announces New Director

Hamilton, Bermuda, July 30, 2004, Max Re Capital Ltd. (NASDAQ: MXRE) (BSX: MXRE BH) today announced the appointment of Mr. Peter A. Minton to its Board of Directors.

Mr. Minton serves as Executive Vice President and Chief Risk Officer of the Company’s principal operating subsidiary, Max Re Ltd. From 1999 to 2000, Peter served as Managing Director and Head of Fixed Income Research for Scudder Kemper Investments. From 1996 to 1999, he served as a Senior Vice President of Investments at General Reinsurance Company. From 1991 to 1996, Peter held the position of Principal and Head of Fixed Income Strategy at Morgan, Stanley & Company. From 1984 to 1991, he served as Vice President and Portfolio Manager at CMB Investment Counselors. Prior to joining CMB Investment Counselors, Peter served as a tax planner in the Tax Department of Ernst & Whinney between 1981 and 1984.

Max Re Capital Ltd., through its principal operating subsidiaries, Max Re Ltd., Max Insurance Europe Limited and Max Europe Limited, offers customized risk financing solutions to property and casualty insurers, life insurers, life and health insurers and large corporations.

The above remarks about future expectations, plans and prospects for the Company are forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigations Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those suggested by such statements. For future information regarding cautionary statements and factors affecting future results, please refer to the Company’s most recent Annual Report on Form 10-K and other documents filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.

Contact Information:

Keith S. Hynes	N. James Tees
Executive Vice President & CFO	Senior Vice President & Treasurer
441-296-8800	441-296-8800
keithh@maxre.bm	jimt@maxre.bm

EX-99.3

Exhibit 99.3

Max Re Ltd. Announces CEO Employment Contract

HAMILTON, Bermuda, July 30, 2004, Max Re Capital Ltd. (NASDAQ: MXRE) (BSX: MXRE BH) announced today that the Company renewed the employment contract of Robert J. Cooney to serve as its Chairman, President and CEO for a term of five years.

Mr. Cooney stated, “Having established Max Re as a world-class reinsurer and insurer in its first five years, I look forward to continuing to build the organization during the next five years.”

Max Re Capital Ltd., through its principal operating subsidiaries, Max Re Ltd., Max Insurance Europe Limited and Max Europe Limited, offers customized risk financing solutions to property and casualty insurers, life insurers, life and health insurers and large corporations.

The above remarks about future expectations, plans and prospects for the Company are forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigations Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those suggested by such statements. For future information regarding cautionary statements and factors affecting future results, please refer to the Company’s most recent Annual Report on Form 10-K and other documents filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.

Contact Information:

Keith S. Hynes	N. James Tees
Executive Vice President & CFO	Senior Vice President & Treasurer
441-296-8800	441-296-8800
keithh@maxre.bm	jimt@maxre.bm

EX-99.4

Exhibit 99.4

MAX RE CAPITAL LTD. REPORTS SECOND QUARTER NET INCOME OF $0.26 PER DILUTED SHARE:

Hamilton, Bermuda, August 2, 2004 - Max Re Capital Ltd. (NASDAQ: MXRE) today reported net income for the three months ended June 30, 2004 of $12.6 million, or net income of $0.26 per diluted share, compared to net income of $30.8 million, or net income of $0.81 per diluted share, for the three months ended June 30, 2003. Net operating income before minority interest, which represents net income before minority interest reduced / increased by net realized gains / (losses) on sale of fixed maturities, for the three months ended June 30, 2004 was $15.2 million, or net operating income of $0.32 per diluted share, compared with net operating income before minority interest of $36.0 million, or net operating income of $0.79 per diluted share, for the three months ended June 30, 2003. For the six months ended June 30, 2004, the Company had net income of $55.6 million, or net income of $1.13 per diluted share, compared to $45.4 million, or $1.19 per diluted share, for the six months ended June 30, 2003. For the six months ended June 30, 2004, the Company had net operating income before minority interest of $52.4 million, or net operating income of $1.07 per diluted share, compared to $50.7 million, or $1.12 per diluted share, for the six months ended June 30, 2003.

Robert J. Cooney, Chairman, President and Chief Executive Officer, commented, “For the second quarter Max Re showed continued improvement in its combined ratio, strong premium growth in our traditional insurance business and modest premium growth overall. This allowed us to produce reasonable earnings, despite a difficult investment quarter where our alternative investment portfolio posted an unusually small return.”

Gross premiums written for the three months ended June 30, 2004 were $183.7 million, coming principally from property and casualty underwriting, with only $2.2 million of life and annuity premiums, compared to $165.8 million, all from property and casualty underwriting, for the three months ended June 30, 2003. Net premiums earned for the three months ended June 30, 2004 increased 20% to $171.8 million compared to $143.3 million for the same period of 2003. Gross premiums written for the six months ended June 30, 2004 were $623.2 million compared to $596.3 million for the first six months of 2003. Net premiums earned for the first six months of 2004 increased 29% to $370.7 million compared to $287.0 million for the same period in 2003. Alternative risk transfer, traditional reinsurance and traditional insurance products accounted for 42%, 39% and 18%, respectively, of gross premiums written for the first six months of 2004.

Net investment income for the three months ended June 30, 2004, increased to $19.7 million, from $15.1 million for the same period in 2003 and is principally attributable to increased holdings of cash and fixed maturities during the three months ended June 30, 2004 compared to the three months ended June 30, 2003. Net investment income for the six months ended June 30, 2003 increased $8.9 million, to $38.5 million, compared to $29.6 million for the same period in 2003. Net gains on alternative investments for the three months ended June 30, 2004 were $1.0 million, or a 0.10% rate of return, compared to net gains on alternative investments of $45.2 million, or a 5.84% rate of return, for the same period of 2003. For the six months ended June 30, 2004, alternative investments have returned 4.17%, compared to 9.12% for the same period in 2003. Invested assets were $2.9 billion as of June 30, 2004, with an allocation of approximately 65.5% to cash and fixed maturities and 34.5% to alternative investments.

Losses, benefits and experience refunds were $135.3 million for the three months ended June 30, 2004 compared to $114.4 million for the same period in 2003. The increase in losses, benefits and experience refunds for the three months ended June 30, 2004 is principally attributable to the increase in premiums earned. There were no significant adjustments to loss, benefit and experience refund reserves during the three months ended June 30, 2004. Losses, benefits and experience refunds for the six months ended June 30, 2004 were $301.7 million compared to $228.8 million for the same period in 2003. The increase for the six months ended June 30, 2004 was also principally attributable to the increase in premiums earned.

Acquisition costs for the three months ended June 30, 2004 decreased by 18% to $29.2 million compared to $35.7 million for the three months ended June 30, 2003. The reduction is attributable to the change in product mix, with traditional reinsurance and traditional insurance products having lower acquisition costs compared to alternative risk transfer products.

Interest expense for the three months ended June 30, 2004 decreased 99% from the same period in 2003. The decrease is principally attributable to a lower average interest crediting rate on the funds withheld balances with reinsurers during the three months ended June 30, 2004.

General and administrative expenses for the three months ended June 30, 2004 were $13.9 million compared to $10.8 million for the same period in 2003. General and administrative expenses for the six months ended June 30, 2004 were $24.1 million, or 6.5% of net premiums earned, compared to $19.0 million, or 6.6% of net premiums earned for the six months ended June 30, 2003.

Shareholders’ equity was $826.1 million at June 30, 2004. Book value per share at June 30, 2004 was $18.06 per share, compared to $17.82 at December 31, 2003 impacted by the decline in value of fixed maturities during the first six months of 2004. Return on average shareholders’ equity for the trailing 12 month period was 14.2%.

Max Re Capital Ltd., through its principal operating subsidiaries, Max Re Ltd., Max Insurance Europe Limited and Max Re Europe Limited, offers customized insurance and reinsurance solutions to property and casualty insurers, life and health insurers and large corporations.

The above remarks about future expectations, plans and prospects for the Company are forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those suggested by such statements. For further information regarding cautionary statements and factors affecting future operating results, please refer to the Company’s most recent Annual Report on Form 10-K and other documents filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.

Contact Information:

Keith S. Hynes	N. James Tees
Executive Vice President & CFO	Senior Vice President & Treasurer
441-296-8800	441-296-8800
keithh@maxre.bm	jimt@maxre.bm

MAX RE CAPITAL LTD.

CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of United States Dollars, except per share and share amounts)

	June 30, 2004			December 31, 2003
	(Unaudited)
ASSETS
Cash and cash equivalents	$	243,294		$	201,515
Fixed maturities, available for sale at fair value		1,682,150			1,604,430
Alternative investments, at fair value		1,016,221			831,359
Accrued interest income		16,569			14,608
Premiums receivable		388,951			389,393
Losses recoverable from reinsurers		330,214			273,711
Funds withheld		18,070			56
Deferred acquisition costs		111,134			87,116
Deferred charges		8,827			5,259
Prepaid reinsurance premiums		87,899			67,343
Other assets		27,715			20,769
Total assets	$	3,931,044		$	3,495,559
LIABILITIES
Property and casualty losses and experience refunds	$	1,260,923		$	991,687
Life and annuity benefits and experience refunds		464,486			480,099
Deposit liabilities		242,505			267,350
Funds withheld from reinsurers		258,740			213,483
Unearned property and casualty premiums		654,150			471,625
Reinsurance balances payable		50,471			74,693
Accounts payable and accrued expenses		23,648			41,392
Bank loan		150,000			150,000
Total liabilities		3,104,923			2,690,329
SHAREHOLDERS’ EQUITY
Preferred shares (par value $1.00) 20,000,000 shares authorized; no shares issued or outstanding		—			—
Common shares (par value $1.00) 200,000,000 shares authorized; 45,737,611 (2003 - 45,184,611) shares issued and outstanding		45,738			45,185
Additional paid-in capital		650,715			637,772
Loans receivable from common share sales		(10,965	)		(11,965	)
Unearned stock grant compensation		(14,000	)		(4,032	)
Accumulated other comprehensive income (loss)		(10,737	)		25,790
Retained earnings		165,370			112,480
Total shareholders’ equity		826,121			805,230
Total liabilities and shareholders’ equity	$	3,931,044		$	3,495,559
Book Value Per Share	$	18.06		$	17.82

MAX RE CAPITAL LTD.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)

(Expressed in thousands of United States Dollars, except shares and per share amounts)

	Three Months Ended June 30						Six Months Ended June 30
	2004			2003			2004			2003
REVENUES
Gross premiums written	$	183,654		$	165,767		$	623,185		$	596,313
Reinsurance premiums ceded		(47,567	)		(39,186	)		(90,353	)		(71,039	)
Net premiums written	$	136,087		$	126,581		$	532,832		$	525,274
Earned premiums	$	206,557		$	161,377		$	439,847		$	319,441
Earned premiums ceded		(34,739	)		(18,072	)		(69,130	)		(32,408	)
Net premiums earned		171,818			143,305			370,717			287,033
Net investment income		19,696			15,061			38,542			29,568
Net gains on alternative investments		1,038			45,212			39,514			67,014
Net realized gains (losses) on sale of fixed maturities		(2,575	)		509			3,205			2,999
Other income		1,211			2,212			2,379			4,215
Total revenues		191,188			206,299			454,357			390,829
LOSSES AND EXPENSES
Losses, benefits and experience refunds		135,305			114,371			301,690			228,834
Acquisition costs		29,199			35,690			60,982			74,427
Interest expense		95			8,953			11,937			14,934
General and administrative expenses		13,945			10,785			24,115			18,981
Total losses and expenses		178,544			169,799			398,724			337,176
INCOME (LOSS) BEFORE MINORITY INTEREST		12,644			36,500			55,633			53,653
Minority interest		—			(5,651	)		—			(8,241	)
NET INCOME (LOSS)		12,644			30,849			55,633			45,412
Change in net unrealized appreciation of fixed maturities		(55,689	)		13,360			(36,960	)		12,632
Foreign currency translation adjustment		572			—			433			—
COMPREHENSIVE INCOME (LOSS)	$	(42,473	)	$	44,209		$	19,106		$	58,044
Basic earnings per share	$	0.28		$	0.81		$	1.22		$	1.19
Diluted earnings per share	$	0.26		$	0.81		$	1.13		$	1.19
Diluted net operating earnings per share	$	0.32		$	0.79		$	1.07		$	1.12
Weighted average shares outstanding - basic		45,725,811			38,129,213			45,636,602			38,118,783
Weighted average shares outstanding - diluted		48,852,992			45,302,798			49,092,498			45,252,263

MAX RE CAPITAL LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(Expressed in thousands of United States Dollars)

	Six months ended June 30,
	2004			2003
Preferred shares
Balance, beginning of period	$	—		$	—
Balance, end of period		—			—
Common shares
Balance, beginning of period		45,185			37,999
Issue of shares		553			363
Repurchase of shares		—			(275	)
Balance, end of period		45,738			38,087
Additional paid-in capital
Balance, beginning of period		637,772			526,582
Issue of common shares		12,671			4,004
Stock option expense		272			127
Repurchase of shares		—			(3,146	)
Balance, end of period		650,715			527,567
Loans receivable from common share sales
Balance, beginning of period		(11,965	)		(12,575	)
Loans granted		—			—
Loans repaid		1,000			610
Balance, end of period		(10,965	)		(11,965	)
Unearned stock grant compensation
Balance, beginning of period		(4,032	)		(2,656	)
Stock grants awarded		(12,994	)		(3,740	)
Amortization		3,026			1,142
Balance, end of period		(14,000	)		(5,254	)
Accumulated other comprehensive income (loss)
Balance, beginning of period		25,790			49,108
Holding gains (losses) on fixed maturities arising in period		(33,755	)		17,971
Net realized gains included in net income		(3,205	)		(2,999	)
Currency translation adjustments		433			—
Allocation to minority interest		—			(2,340	)
Balance, end of period		(10,737	)		61,740
Retained earnings (deficit)
Balance, beginning of period		112,480			(4,299	)
Net income		55,633			45,412
Dividends paid		(2,743	)		(1,529	)
Balance, end of period		165,370			39,584
Total shareholders’ equity	$	826,121		$	649,759

MAX RE CAPITAL LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(Expressed in thousands of United States Dollars)

	Six Months Ended June 30
	2004			2003
OPERATING ACTIVITIES
Net income	$	55,633		$	45,412
Adjustments to reconcile net income to net cash from operating activities:
Minority interest share of income		—			8,241
Amortization of unearned stock based compensation		3,298			1,269
Amortization of discount on fixed maturities		4,293			2,490
Net realized gains on sale of fixed maturities		(3,205	)		(67,014	)
Net gains on alternative investments		(39,514	)		(2,999	)
Accrued interest income		(1,961	)		(444	)
Premiums receivable		442			(198,565	)
Losses recoverable from reinsurers		(56,503	)		(27,578	)
Funds withheld		(18,014	)		(8,894	)
Deferred acquisition costs		(24,018	)		(50,461	)
Deferred charges		(3,568	)		2,345
Prepaid reinsurance premiums		(20,556	)		(38,165	)
Other assets		(6,946	)		(6,365	)
Property and casualty losses and experience refunds		269,236			189,877
Life and annuity benefits and experience refunds		(15,613	)		(13,317	)
Funds withheld from reinsurers		45,257			20,253
Unearned property and casualty premiums		182,525			276,892
Reinsurance balances payable		(24,222	)		38,508
Accounts payable and accrued expenses		(17,744	)		6,398
Cash from operating activities		328,820			177,883
INVESTING ACTIVITIES
Purchase of fixed maturities		(615,145	)		(268,630	)
Sales (purchases) of alternative investments		(145,579	)		(98,018	)
Sales of fixed maturities		479,119			147,879
Redemptions of fixed maturities		20,489			26,500
Cash used in investing activities		(261,116	)		(192,269	)
FINANCING ACTIVITIES
Net proceeds from issuance of common shares		230			627
Repurchases of common shares		—			(3,421	)
Proceeds from bank loan		—			50,000
Dividends		(2,743	)		(1,529	)
Distributions to minority shareholders		—			(285	)
Deposit liabilities		(24,845	)		(16,868	)
Notes and loans repaid		1,000			610
Cash from (used in) financing activities		(26,358	)		29,134
Effect of exchange rate on cash		433			—
Net increase in cash and cash equivalents		41,779			14,748
Cash and cash equivalents, beginning of period		201,515			92,103
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	243,294		$	106,851

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Interest paid totaled $1,992 and $1,560 for the six months ended June 30, 2004 and 2003, respectively.

MAX RE CAPITAL LTD.

SCHEDULE OF SUPPLEMENTAL DATA - JUNE 30, 2004

Year to Date Segment Information: (in 000’s US$)	Property & Casualty												Life & Annuity			Corporate		Consolidated
	Traditional Reinsurance			Alternative Risk			Traditional Insurance			Total
Gross premiums written	$	245,706		$	263,435		$	111,805		$	620,946		$	2,239		$	—	$	623,185
Reinsurance premiums ceded		(12,514	)		(25,810	)		(51,581	)		(89,905	)		(448	)		—		(90,353	)
Net premiums written	$	233,192		$	237,625		$	60,224		$	531,041		$	1,791		$	—	$	532,832
Earned premiums	$	152,132		$	185,377		$	100,099		$	437,608		$	2,239		$	—	$	439,847
Earned premiums ceded		(9,385	)		(19,750	)		(39,547	)		(68,682	)		(448	)		—		(69,130	)
Net premiums earned		142,747			165,627			60,552			368,926			1,791			—		370,717
Net investment income		—			—			—			—			—			38,542		38,542
Net gains on alternative investments		—			—			—			—			—			39,514		39,514
Net realized gains on sales of fixed maturities		—			—			—			—			—			3,205		3,205
Other income		—			—			—			—			—			2,379		2,379
Total revenues		142,747			165,627			60,552			368,926			1,791			83,640		454,357
Losses, benefits and experience refunds		98,881			141,039			44,929			284,849			16,841			—		301,690
Acquisition costs		25,820			31,627			2,012			59,459			1,523			—		60,982
Interest expense		—			—			—			—			—			11,937		11,937
General and administrative expenses		2,429			3,493			3,040			8,962			2,204			12,949		24,115
Total losses and expenses		127,130			176,159			49,981			353,270			20,568			24,886		398,724
Net income (loss) before minority interest	$	15,617		$	(10,532	)	$	10,571		$	15,656		$	(18,777	)	$	58,754	$	55,633
Loss Ratio		69.3	%		85.2	%		74.2	%		77.2	%
Combined Ratio		89.1	%		106.4	%		82.5	%		95.8	%

					Periodic Rate of Return
Selected Investment Return Data:	Fair Value*		Investment %’s		Last 3 Months		Year to Date		Last 12 Months		Last 36 months**
Cash and Fixed Maturities	$	1,925,444	65.5	%	-2.22	%	0.29	%	0.07	%	5.61	%
Global Macro	$	127,970	4.4	%	-0.22	%	3.08	%	8.17	%	11.76	%
Long / Short Equity		97,490	3.3	%	2.33	%	9.00	%	19.55	%	6.00	%
Convertible Arbitrage		87,658	3.0	%	-3.22	%	-0.03	%	3.37	%	8.41	%
Diversified Arbitrage		151,577	5.2	%	-0.88	%	2.71	%	7.03	%	8.35	%
Distressed Securities		132,861	4.5	%	1.97	%	7.84	%	27.69	%	18.05	%
Opportunistic		21,478	0.7	%	0.98	%	7.11	%	17.01	%	5.74	%
Emerging Markets		67,131	2.3	%	1.73	%	7.02	%	17.97	%	14.94	%
Fixed Income Arbitrage		58,017	2.0	%	4.37	%	7.44	%	15.91	%	12.80	%
Event-Driven Arbitrage		59,579	2.0	%	0.97	%	7.71	%	20.64	%	10.83	%
Commodity Trading Advisers		66,132	2.2	%	-7.06	%	-1.44	%	-1.20	%	4.98	%
Credit Long / Short		66,403	2.3	%	-0.34	%	3.41	%	3.41	%	3.41	%
MDS		936,296	31.8	%	-0.15	%	4.12	%	11.31	%	8.79	%
Insurance Underwriting		79,925	2.7	%	3.20	%	5.07	%	11.44	%	11.08	%
Alternative Investments	$	1,016,221	34.5	%	0.10	%	4.17	%	11.29	%	9.12	%
Total Investments	$	2,941,665	100.0	%	-1.43	%	1.68	%	3.91	%	6.73	%
Comparative returns
Merrill Lynch Master Bond Index					-2.46	%	0.13	%	0.30	%	6.44	%
Standard & Poors 500 Stock Index					1.72	%	3.44	%	19.10	%	-0.69	%
80% Merrill Lynch Master Index and 20% S&P Index					-1.63	%	0.80	%	3.85	%	5.25	%

* Expressed in thousands of United States Dollars

** Annualized