Falcon Point Long/Short

Qualified Fund

Fund Investment Objectives

The Partnership invests in publicly traded equities of U.S. emerging growth companies. Long portfolio holdings consist of 20-30 high quality, profitable, well-positioned, emerging growth companies with sustainable earnings growth of greater than 20%. Short sales are made in companies that the General Partners believe are fundamentally overvalued and likely to report earnings results below Wall Street expectations. Earnings acceleration or deceleration, relative to expectations, is the primary investment criterion for the portfolio's long and short positions. Valuation is a critical part of investment decisions. The current market value of proposed long (or short) investments must be less (or more) than the General Partners appraisal of the business; intrinsic value. Holdings are established with a 12 to 18 month investment time horizon. The Falcon Point Long/Short Qualified Fund may use leverage for short-term trading purposes in order to enhance portfolio returns.