Ask for money and get advice; ask for advice, get money twice, - Pitbull Dear Limited

Partners, Youre welcome. In the year of 2013, Babydick Capital extracted 217% returns (unaudited) from the pockets of lesser market participants. In a market environment characterized by nonsense, shenanigans and tomfoolery, Babydick Capitals proven strategy of turbo leverage combined with targeted badassery has, once again, produced dong-stiffening returns for those lucky enough to call themselves LPs. Outperformance came primarily from everything and there were no areas of weakness.

The years activities have reinforced our core market philosophy: the generation of alpha is most often attributed to the intelligence of the money manager relative to the broader investing population. One anecdote that demonstrates this effect is the classic story of the Tortoise and the Bitch. For years, the Tortoise and the Bitch both ran long/short equity funds, both of which had been producing sub-par returns. Their losing streaks continued as their LPs redeemed all funds and invested them with Babydick Capital. Our top performing position for the year was Netflix (NLFX US). After performing careful diligence including repeat viewings of House of Cards, we concluded that the Kevin Spaceys outstanding performance as the ruthless, but admirable Frank Underwood would lead to significant multiple expansion in the near term. With a fair value of $500/sh in our base case, and infinity dollars in our upside case, we are optimistic about this position over the coming year. In our last quarterly letter, we wrote about the underperformance of our Tesla short. Tesla continued to be a thorn in our asshole throughout the year. However, in the fourth quarter, the markets rosy perception of Elons go-kart company was tainted by a series of car fires, which may or may not have been started by Babydick interns. Ultimately, through some well-timed options we ended the year positive on our Tesla position. In general fund news, the office has been moved to 56th St. due to a conflict related to improper use of a potato launcher. Our Balls Deep in Mother Nature green initiatives resulted in the planting of a tree. With a yearend AUM of $14,276 (+ $19 Arbys gift cards), we feel prepared to undertake our first activist campaign in the coming year. Redemptions are suspended until the conclusion of SEC investigations. Stay stuntin, Babydick Capital