Acorn Credit Strategies

Fund, Ltd.

Fund Investment Objectives

The Fund's investment objective is to achieve superior risk adjusted returns over the long term with volatility lower than the broad equity markets through investment opportunities in the fixed income markets. The Fund will make such investments primarily through the selection of portfolio managers who specialize in a diversified portfolio of fixed income strategies. These strategies may include, among others, corporate debt, mortgages, municipal bonds, bank loans, sovereign debt, asset backed securities, convertible securities, closed end funds, internally managed credit portfolios and other debt and equity securities. The Fund may acquire long or short investments in equity securities, both as a hedge against underlying credit trends or as unhedged positions. The Fund and the Portfolio Managers may use futures, swap contracts, other derivative instruments and over-the-counter options techniques. The Fund's assets are primarily allocated among a select group of Portfolio Managers. The Fund will invest its assets directly in investment funds that are managed by Portfolio Managers or pursuant to investment advisory agreements granting Portfolio Managers discretionary investment authority on a managed account basis.