Advantage Advisers Xanthus

Fund, LLC

Fund Investment Objectives

The Company's objective is to achieve maximum capital appreciation. It pursues this objective by investing in a portfolio consisting primarily of equity securities of technology companies and of companies which derive a major portion of their revenue directly or indirectly from business lines which benefit from technological events and advances (collectively, Technology Sector Issuers). Technology Sector Issuers include those companies whose processes, products or services, in the judgment of the Adviser, are or may be expected to be significantly benefited by scientific developments in the application of technical advances in manufacturing and commerce. Examples of the types of industries in which the Company may invest are: aerospace; electronics; information sciences (including computer hardware and software, the Internet and electronic commerce); life sciences (including pharmacology and biotechnology); networking; semiconductors; and telecommunications (including equipment makers and service providers). The Company focuses on Technology Sector Issuers that the Adviser believes will be instrumental in, or will benefit from, accelerating demand for their products. The Company's portfolio of securities in the technology area is expected to include long and short positions primarily in equity securities of U.S. and foreign companies. Equity securities include common and preferred stock and other securities having equity characteristics including convertible debt securities, stock options, warrants and rights. The Company may also invest in debt securities, swaps, swaptions, and other derivative instruments such as forward contracts and options on stock indices and structured equity related products. If the Adviser perceives profit opportunities in securities other than common stock (e.g., convertible preferred, fixed income securities), the Company may, over time, more heavily weight its portfolio in favor of such securities. Depending upon market conditions and the availability of suitable investment opportunities, the Company expects to utilize leverage by purchasing securities on margin as part of its investment program. The Company may, but is not required to, use all or any of these investment techniques and instruments to pursue its investment objective or for hedging purposes. The use of these investment techniques and instruments involve certain risks. The Company complies with applicable regulatory requirements, including the asset coverage requirements under the 1940 Act, in connection with its use of these techniques and strategies.