Partners, L.P.

Fund Investment Objectives

The General Partner believes that a flexible and opportunistic approach to investing is key to the Partnership's success. Unlike a tightly defined investment strategy, the Partnership's flexible style relies more heavily upon the experienced good judgment, general analytic skills, and portfolio management skills of James M. Kostell. Currently, the Partnership invests both long and short in domestically traded equity securities, seeking to benefit from Mr. Kostell's extensive experience as an equity portfolio manager. The Partnership will adapt the investment strategy as required by market conditions. Investments are selected one at a time, on a company by company basis, driven by fundamental research of objective criteria and supplemented by the General Partner's experienced understanding of institutional investor behavior. In selecting securities, the General Partner seeks those situations where it believes there is a significant gap between the perceptions and valuation of the marketplace and economic reality, ideally coupled with a specific, identifiable catalyst event that should result in closure of this gap. The Partnership's portfolio seeks to include investment securities of between twenty to forty individual companies, either long or short, with no one equity position greater than fifteen percent of the Partnership's capital, calculated at the time of investment. The Partnership's portfolio may be either net short or net long; it may not be 100% invested at all times, and it may employ leverage in compliance with Regulation T of the Federal Reserve's margin rules (i.e., the loan value is 50% of the value of the equity securities).