CQS Latin American Equity

Fund Ltd.

Fund Investment Objectives

The Fund seeks to take significant positions in undervalued companies, and identify catalysts to deliver attractive returns. The Fund will focus on investment opportunities in Latin America. However, we may take short positions in markets outside Latin America for hedging purposes. We seek to find attractive investment opportunities across countries in Latin America. However, given the size of the Brazilian and Mexican equities markets relative to that of other countries in the region, we anticipate that a significant part of the investments will be focused in Brazil and Mexico. We will typically invest in 8 to 10 themes on the long side. The concentration limit is 20% in one company, calculated at cost. The Fund is actively hedged in order to reduce market risk and volatility - hedging may be stock specific but often achieved through an overlay of index shorts using futures and options as well as commodity shorts and stock basket shorts as required as part of this process. As part of this process we may short companies outside Latin America. While the Fund will not be a market neutral fund, there may be occasions when the Fund will be fully hedged.We employ a value, event driven strategy primarily investing in equity and equity-linked securities. While we will invest in publicly listed securities, some of these positions may not be actively traded. We search for companies with strong cash flow generation and reasonable debt levels. We do not specialize in distressed situations. We seek to identify a catalyst or event that will unlock value. We will not be a market- neutral fund, but can reduce market risk through hedging mechanisms.