Dalton Asia

Fund

Fund Investment Objectives

The Dalton Asia Fund is a long/short equity fund that opportunistically invests in companies benefiting from the dramatic growth and structural changes taking place in Asia. The regional geographic mandate permits the Fund manager to take advantage of depressed market conditions in a particular location, while staying clear of frothy markets. The Fund focuses on shares listed in Japan, Hong Kong, Taiwan, and mainland China. The Fund will invest in Dalton's best ideas in Asia using macro-economic trends to allocate stocks between countries and sectors, and bottom up fundamental analysis to build a portfolio of long positions in great businesses trading below their intrinsic value and short positions in overvalued companies with catalysts for decline. The Fund will utilize concentration to maximize returns and add value through active collaboration with management when appropriate. Portfolio risk will be managed by employing position limits, adhering to stop-loss guidelines, and managing gross and net exposures.