Coast Value

Fund I Ltd.

Fund Investment Objectives

The Coast Value Fund I, Ltd. ("Value Fund") employs a market neutral strategy and seeks to identify pure relative value fixed income arbitrage opportunities by minimizing exposure to the direction of interest rates, the shape of the yield curve, credit risk and volatility. With an emphasis on risk management, the Value Fund seeks to achieve high risk-adjusted returns while maintaining liquidity and trade diversification. The Value Fund utilizes liquid securities, focusing primarily on U.S. Treasuries. When advantageous, the Value Fund also trades debentures of U.S. government agencies but seeks to avoid securities that possess credit risk or optionality. These include mortgage-backed securities, municipal and corporate bonds. Liquidity and market neutrality have allowed this strategy to outperform other investment strategies in a variety of market environments and achieve high risk-adjusted returns while maintaining low fund return volatility. The Value Fund is managed by a team of five investment professionals, all of whom have at least 23 years of experience in the fixed income markets. All trading activity of Value Fund is conducted through a master fund, The Coast Fund, L.P.