Associates II, L.P.

Fund Investment Objectives

The Firm maintains a concentrated best ideas portfolio of small and mid-cap growth stocks that are purchased at extreme discounts which are held for long-term capital appreciation. The Firm employs an intensive in-house proprietary research process to focus its efforts of companies that have unique and defensible business models. The Firm's investment object is also keenly focused on preservation of investment capital and it will employ some hedging of market exposure to protect the portfolio from market draw downs.