Cedar Street Offshore Fund

Ltd. (Class A- L/S)

Fund Investment Objectives

The Fund invests in companies that are inexpensive (expensive) where current business conditions have been incorrectly interpreted by consensus thought. Long or short positions will be established based on our analysis of companies through rigorous research and discussions with company managements, competitors, suppliers, customers and Wall Street analysts. The preponderance of holdings will be in equities; however long put and call option contracts will be used to protect capital from loss. We are one of the few investment firms using Flex Options for hedging purposes to reduce hedging cost. The preponderance of equities will be in small cap stocks; however, mid/large cap securities may be used opportunistically or for hedging purposes. Wall Street under-follows (poorly follows) smaller size companies, managements are more accessible and business lines are more focused allowing us to uncover misperceptions about a company's prospects. It is these inaccuracies in terms of financial assumptions and future growth opportunities that can lead to excellent long and short ideas.