Investment Opportunity
Change is the only constant in investing. Today’s economy and financial markets are
experiencing change at an unprecedented and ever accelerating rate. Successful investors
and businesses seek to recognize and benefit from change and the opportunities it
presents. Our objective is to anticipate and capture the opportunities this change
provides.

Investment Policy
Underlying each aspect of the Fund’s investment policy will be the Investment
Manager’s clear perception that the most appropriate definition of risk in the portfolio is
the volatility of absolute returns, rather than the volatility of the returns relative to an
index benchmark. The Investment Manager will seek to limit risk by a preference for
holding significant proportions of the Fund’s portfolio in liquid investments,
diversification of stock selection and dynamic hedging of the portfolio and its
components. The portfolio will be hedged through the use of options and equity short
positions.
The Fund will not have a pre-ordained bias towards growth or value stocks, but will
combine and select valuation measures and investment theses as economic cycles affect
investment priorities. Depending on market circumstances, the Fund may hold a majority
position in any group, although we tend to hold predominantly large and mid-cap stocks
in the portfolio.
The presence of a long and short portfolio side by side has a netting effect depending on
their relative size. Residual market risk would be actively managed, but not necessarily
limited, by the use of short positions in index derivative securities. This might include
situations where the Fund has considerable exposure in one direction or another.
The Fund, will at all times, seek to limit its gross exposure in equities and equity
derivatives, through borrowing and leverage to one hundred and fifty percent of its total
net asset value. In practice, usage is likely to be lower.
The General Partner believes in the value of research in achieving the Fund’s objective,
in particular, research that is independent and directed by the Investment Manager for its
sole use. To this end, it will be the policy of the Investment Manager to build an in-house
research team as the fund grows. It is the belief of the Fund that this will create a
competitive edge for the Fund in its specialized market.