Capital Structure

Opportunities Fund, L.P.

Fund Investment Objectives

The Capital Structure Opportunities Fund, L.P. is unique from other strategies as it encompasses the best ideas from across the entire smaller company segment of the market. In addition, the Fund produces strong risk-adjusted returns through the active allocation of capital and short/hedging overlay. The Fund will adjust positions accordingly based on market conditions to create a diversified portfolio that has consistently produced strong up market returns and minimizes downside risk. The Fund seeks to generate alpha through its allocation to long and short equity as well as undervalued fixed income positions. The Fund's exposure to cash pay fixed income securities and short positions mitigate risk and limit volatility. In addition, the Fund has a natural opportunity set gestating from PENN's highly successful institutional oriented strategies. PENN's reputation originally stems from its long-term involvement managing top decile strategies for institutional investors. PENN applies this competitive advantage to the management of the Capital Structure Opportunities Fund, LP. The process was a natural evolution given PENN's long-term proven process of complete capital structure analysis. Unique to PENN, all 10 investment team members are responsible for analyzing the entire capital structure of their respective coverage. The entire team, led by Richard A. Hocker and Eric J. Green, are equally responsible for the management of the Fund and its investment ideas.