The investment objective of BLUE DIAMOND ASSET MANAGEMENT NON-DIRECTIONAL FUND to provide attractive risk-adjusted returns in excess of LIBOR. The Fund seeks to achieve its objective through the use of a systematic investment strategy that attempts to identify and exploit market inefficiencies arising from the price level and term structure of liquid volatility-related instruments. The Fund implements its investment decisions primarily with publicly traded volatility, equity index, and bond futures and options, not single stocks or bonds or options on single stocks. The non-directional process is built on the insight that volatility represents a new and relatively inefficient market that has interesting attributes relative to traditional asset classes. The non-directional process typically establishes spread positions to capture these inefficiencies.