Fund Investment Objectives

The investment objective of the Partnership, through its investment in the Master Fund, is to achieve attractive returns by investing and trading primarily in high-yield debt instruments which are rated in the lower rating categories (below investment grade) or which are unrated, including senior and subordinated debt, bank loans, trade claims and other fixed-income obligations, including securities of distressed companies. The Partnership may also acquire equity securities related to its debt positions, as part of hedging strategies or otherwise in furtherance of its investment objective. The Partnership may engage in various types of capital structure arbitrage trades, as well as in interest rate or options strategies. Although the majority of the Partnership's investments will be in securities of companies based in the U.S. or in securities traded on U.S. exchanges, the Master Fund Investment Manager may view certain foreign high-yield markets as offering favorable opportunities and, thus, the Partnership may invest in non-U.S. securities, denominated primarily in U.S. dollars, on a selective basis.