Arbat Global Mineral

Resources Fund

Fund Investment Objectives

Our Investment Strategy, derived from long experience on the financial markets, targets long-term value creation via fundamental analysis-based investing. Combined with short-term market hedging, it allows us to achieve higher return on significantly decreased portfolio volatility. We opportunistically allocate between various market segments (i.e. precious metals, base metals, bulk materials, energy, and agriculture) and regions, and as such we are not static. We actively monitor and rebalance our portfolio to ensure the best optimization of risk and return. Active and value-added hedging based on relative value and performance of different asset classes (hedging equity exposure by shorting stocks, outright commodities, FX and market indices) gives us an ability to smooth out volatility. A strong team of analysts and advisors ranging from high-profile stock market experts to seasoned engineers creates a unique set of knowledge in the resources sector with a particular focus on investment opportunities that can maximize return without taking on the exceptionally high risk of pure long-only investments in commodities. We do not use complex derivatives and will avoid "black box" structured notes. We focus mainly on simple vanilla securities that have liquidity. The priority is to ensure investors that they have the most liquid and predictable investment vehicle among dedicated resources hedge funds.