Cobalt Offshore Fund, Ltd.

Series 3

Fund Investment Objectives

Cobalt employs a research-driven, fundamentally-oriented value strategy. Through a combination of intensive research, financial analysis and the conducting of company & management visits, Cobalt attempts to uncover both undervalued and overvalued securities. Cobalt uses this strategy to seek above-average long term capital appreciation principally through the purchase of common stocks which are believed to be undervalued and/or unrecognized in the marketplace. Investments are made only after a thorough research and evaluation process Cobalt analyzes such factors as long term growth potential, the company's ability to generate cash, the quality and motivation of management, the overall investment climate and the valuations accorded other companies in similar businesses. AUM reflects aggregate assets for the offshore funds.