Act II

Partners, L.P.

Fund Investment Objectives

Act II is a long/short equity hedge fund founded in 2002 by Dennis H. Leibowitz. Act II invests primarily in U.S. equities of media, entertainment, and communications companies. Act II has both an onshore and offshore fund. While the number one goal is to reach an absolute return, the long-term objective is to achieve appreciation of 10-15% per year, while using hedging strategies to reduce downside risk. The Fund's success is attributable to its disciplined investment style, top investment team and focus on investment areas we know best. TOP DOWN SECTOR ANALYSIS - We start by developing a view of sub sectors in our universe which includes sub sector macro trend, growth analysis, and long/short bias. Next we choose our top long and short prospects BOTTOMS UP FUNDAMENTAL ANALYSIS - Includes company meetings, earnings models, personal visits, research reports, valuation analysis, insider buying and selling, share and debt repurchases, ownership analysis, and assessment of possible catalysts. Then we determine the suitability of proposed investment. RISK ANALYSIS - Includes sub sector gross and net exposure review, portfolio fit, short-interest ratio, beta, volatility, and liquidity analysis. TECHNICAL ANALYSIS - Includes moving averages, relative strength, bollinger bands, volume trends, stochastics, and other oscillators. These indicators are utilized to assist with investment timing. Number of Long & Short Positions: 30-40 long positions, 25-35 short positions, including options. Capitalization Mix - Invested portfolio is segmented into three categories with the following mix 1) Large-cap (over $10 billion market cap) = 30-40%, 2) Mid-cap ($1billion - $10 billion market cap) = 30-40%, 3) Small-cap (under $1 billion market) = 20-30%. Leverage Average 150 -200% Gross