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Ramius Releases White Paper: Allocating to Managed Futures: Performance Considerations within the Risk Parity Framework

Ramius LLC (“Ramius”), the global alternative investment management
business of Cowen Group, Inc. (“Cowen”) (NASDAQ: COWN), today provided a
review of recent managed futures performance, the nature of certain
market phenomena impacting trend following strategies, and the role
these strategies have within the asset allocation framework. The review
was co-authored by Ramius Trading Strategies (RTS) Chief Executive
Officer, William (“Bill”) Marr and Director of Investment Research, Alexander Rudin, PhD.

Bill Marr said, “One of the biggest challenges the investment management
community faces today is how to allocate capital without having to
explicitly predict which assets will outperform others over a given time
period. This Ramius white paper illustrates a way to address this issue
using the approach known as Risk Parity Based Asset Allocation. Risk
parity funds seek to allocate capital primarily focusing on estimated
risks of available investment opportunities rather than expected
returns. At Ramius, we believe this philosophy allows investors to
broaden their investment options, while at the same time maintaining a
structurally sound, diversified portfolio.”

The paper revolves around two essential questions:

I. What percentage of the investment portfolio
should a given investor allocate to Managed Futures, if any?

II. Do Managed Futures still present a
differentiated and valid investment opportunity despite back to back
years of disappointing performance?

With regard to the first question, the paper explores a disciplined
portfolio construction methodology using a risk parity framework.

Emphasizing non-correlation, risk reduction, and monthly rebalancing,
the authors examine the efficiency of various portfolios using
stocks-bonds-managed futures over the past 15 years.

The paper also discusses the recent performance of managed futures and
highlights three main factors negatively impacting the strategy over the
recent market cycle. Examined from a historical and macro perspective,
the authors argue that these factors are likely temporary and that a
consistent allocation to managed futures will likely enhance investor
portfolios going forward.

The white paper is available on Ramius’ website at:

RTS was founded in September 2009 and is an affiliate of Cowen Group,
and Ramius Alternative Solutions. RTS offers multi-manager products
investing in outstanding independent managers in the managed futures and
global macro space. All RTS products utilize RTS’s managed account
platform supported by RTS’s proprietary risk and research systems as
well as the operational infrastructure of Ramius.

About Cowen Group, Inc.
Cowen Group, Inc. is a diversified
financial services firm and, together with its consolidated
subsidiaries, provides alternative investment management, investment
banking, research, and sales and trading services through its two
business segments: Ramius and its affiliates makes up the Company’s
alternative investment management segment, while Cowen and Company is
its broker-dealer segment. Its alternative investment management
products, solutions and services include hedge funds, replication
products, managed futures funds, fund of funds, real estate, health care
royalty funds and cash management services. Cowen and Company offers
industry focused investment banking for growth-oriented companies,
domain knowledge-driven research and a sales and trading platform for
institutional investors. Founded in 1918, the firm is headquartered in
New York and has offices located in major financial centers around the

About Ramius LLC
Ramius, the global alternative investment
management business of Cowen Group, Inc., offers a broad range of
investment solutions to institutions and private clients worldwide.
Founded in 1994, Ramius and affiliates manage $10.4 billion (as of
October 1, 2012) across multiple asset classes and investing styles. A
significant portion of Cowen’s proprietary capital is managed by Ramius
in strategies alongside our clients.

Source: Cowen Group, Inc.

Sard Verbinnen & Co
Dan Gagnier/Carissa Ramirez, 212-687-8080