Doherty Advisors (Relative

Value Plus)

Fund Investment Objectives

RELATIVE VALUE PLUS (RVP) trading strategy is a combination of the flagship KBD Relative Value, Class C, which is a pure relative value / market neutral volatility arbitrage, and Grey Swan Equity Hedge Program. Essentially, KBD trades the shape of the volatility skew in the front two S&P 500 and US Treasury listed options, two of the most liquid markets in the world. Grey Swan is a long only S&P 500 put option hedging strategy, which removes the tail risk. The strategy is agnostic as to direction of both the underlying markets and volatility itself. One feature that separates it from other volatility strategies is that KBD Capital Partners is a small payer of premium each month, though it remains slightly net short options on a notional basis. Generally, the net delta and gamma exposures are between +10% to -10% over 90% of the time. There is no basis or calendar risk.