Acorn Credit Strategies,


Fund Investment Objectives

The Partnership'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 Partnership 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 Partnership may acquire long or short investments in equity securities, both as a hedge against underlying credit trends or as unhedged positions. The Partnership and the Portfolio Managers may use futures, swap contracts, other derivative instruments and over-the-counter options techniques. The Partnership will not be limited to the foregoing instruments. The Partnership will adjust exposure to take advantage of market opportunities and will avoid fund level leverage. The Partnership's assets are primarily allocated among a select group of Portfolio Managers. The Partnership 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. Such investments may be made through an affiliate of the Partnership. The Partnership may also purchase securities directly. Throughout the year, the Partnership's portfolio mix may be adjusted, with allocations among investment strategies and Portfolio Managers within each strategy being changed.