Black Diamond Relative Value

Ltd. (Carlson)

Fund Investment Objectives

Black Diamond Relative Value is a single-strategy fund dedicated to Carlson's Equity Relative Value strategy. Equity Relative Value is a non-directional strategy that identifies securities that are mispriced relative to related securities within the same industry sector. To isolate the discrepancy in value and to minimize market risk, a long position is hedged against a short position, in equivalent dollar amounts, establishing a dollar-neutral and sector-neutral pair position. Multiple investment teams, organized by industry sectors, independently construct diversified portfolios using bottom-up, fundamental analysis to develop investment theses. The fund maintains broad diversification, generally over 400 equity pair positions, using moderate leverage to enhance an attractive risk-reward and equity market neutral profile, and seeks to maintain a high degree of liquidity.**Please Note-From February 2010 forward, the numbers reflect the deduction of a 2.0% management fee. From January 2007 to January 2010, the numbers reflect the deduction of a 1.5% management fee. Prior to January 2007, the performance represents the deduction of a 1% management fee. The numbers reflect the deduction of a 20% performance fee. Investments in series of interests with lower fees will result in higher returns. Some series are no longer available for new investment. Please refer to the Offering Memorandum for fees and other terms applicable to the various series available to investors.