Dendrich Fund

L.P.

Fund Investment Objectives

The Fund's objective is to provide consistent positive absolute returns. The Fund focuses on reducing market correlation through long and short hedging activities. Generally the General Partner will use traditional fundamental research, designating at least two primary categories of investment for the Fund's assets, the first of which focuses on the generation of capital gains and the second of which concentrates on the generation of fixed income (the respective proportions of emphasis will vary based on the manager's view of United States and international economic and market trends and other relevant considerations). In executing this strategy, the manager generally employs a combination of the following techniques: a) making investments in securities, bonds, commodities and derivatives which the manager believes are undervalued, especially those with improving fundamentals; b) short selling of securities, bonds, commodities and derivatives which the manager believes are overvalued, especially those with deteriorating fundamentals, or other factors which merit a determination of overvaluation by the manager; c) managing the relative weightings of long and short positions to reduce overall portfolio exposure to market volatility; and d) fixed income investments are a necessary component of a portfolio that is diversified across different asset classes. Historically, bonds have exhibited less volatility than stocks and commodities. In addition, the return on bonds has often offset the negative return on stocks during periods of market downturn. As a result, adding fixed income investments to the portfolio generally lowers the risk of overall portfolio.