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JL Squared Harmony Partners, LP February 2014 Fact Sheet

For the month of February 2014, JL Squared Harmony Partners, LP was down -2.0% net and down
-4.0% net year-to-date. These results have been prepared by our administrator and are
unaudited. Through March 14th the fund return estimate was up +2.7% net for the month, bringing
our estimated YTD return to -1.4%.
Obviously, I'm not happy with the results. I've spent the better part of several weeks doubling our
research efforts on the names in our portfolio. Some positions we have chosen to add to, while
others we found prudent to reduce. Since inception, our fund's correlation to S&P is roughly zero.
This month, for instance, we made money the day Russia invaded Crimea (the market was down a
bunch) and the day the market rebounded. The point is, our positions our very idiosyncratic, are not
often widely followed, and don't always correlate to market movements. Sometimes, that good,
sometimes that's bad. We much rather know exactly why our stocks change in price rather than just
having that happen due to general market direction. We continue to own significant downside
protection in the form of puts on the portfolio as a whole. While there is a cost to doing so, it has
typically been less that outright shorting the market.
The table below gives you some ideas as to the laggards in the portfolio. Blucora (BCOR) is the
main culprit for our under performance. We've attached a research report on why we still like the
position, explains our worst case valuation scenarios, and the issues the stock experienced in the
past two months. Also, we've attached our short thesis on iRobot (IRBT), a vacuum maker
company disguised as a robotics company. The company is facing large new competitors in the
market like Dyson, LG, and Samsung and we think this will likely drive down average selling prices,
unit volumes, and earnings. You can access these reports by clicking the links below.
Please click below to view our February fact sheet and research reports:
February 2014 Fact Sheet
iRobot Short Thesis
Blucora Long Thesis
JL Squared Harmony Partners, LP was launched on July 1, 2013. Our mission is to grow capital by
investing primarily in the Technology, Media, and Telecom Sectors. We evaluate both the cyclical
and secular themes in the TMT sector as they relate to our investment universe. We use ETF and
Options to hedge and manage exposure when we feel doing so has positive risk/reward
characteristics. The fund is managed by Jonathan Liggett, who previously managed emerging
market portfolios at Pharo Management LLC and worked in investment banking at Bear Stearns.
If you have any questions or would like to learn more about the firm, please reach out to me. We are
happy to discuss our views and positions. We seek to be as transparent as possible with our
investors regarding our investment approach. We truly appreciate our investors continued support.
Jonathan Liggett
JL Squared Group, LLC
Important Disclosure:
FOR INFORMATION PURPOSES ONLY. This is neither an offer to sell nor a solicitation of an offer to buy securities in any
investment fund managed by JL Squared Group, LLC, the General Partner. The returns depicted above consist of JL
Squared Harmony Partners LP ("Fund")returns, which are net of management fees, performance fees, and fund
expenses.This content is unaudited and may be based upon estimates currently available to the Fund and subject to change
without notice. Some numbers may differ slightly from the actual due to rounding.
Performance numbers are calculated based on information provided by Crederian Fund Services, the Administrator. An
individual investor's return may vary from these returns based on differences in fees charged and incentive allocation
applicable to each investor, the timing of capital contribution and withdrawals.
The S&P 500 Total Return, Nasdaq Total Return and HFRI Equity Hedge (Total) Index are market indices which are merely
included to show the general trend in the markets in the periods indicated and are not intended to imply that the Fund was
comparable to the indices either in composition or level of risk.
Past performance is no guarantee of future results. There can be no assurance that any fund managed by JL Squared
Group, LLC will achieve comparable results in the future. An investor could lose all or substantial portion of its investment.
Please refer to the applicable offering documents for a fund for a description of the relevant risk factors pertaining to an
investment in such fund.