The Unequitized Matched Pairs Market Neutral strategy (used by the Absolute Return Fund) was created to achieve consistently positive absolute rates of return, regardless of the direction of the stock market. The HCM approach to market neutral investing is to match up securities of similar risk characteristics pair by pair, long versus short, one pair at a time, in order to minimize stock market exposure and to achieve excess returns. Pairs are diversified across a broad spectrum of industries and economic sectors while remaining as close to industry and sector neutral as possible at the portfolio level. Ours is an intensive, research driven process based on fundamental research and face-to-face meetings with the top management of U.S. companies. The Absolute Return Fund is a conservative, risk averse investment product with low volatility (bond index level) and near zero equity market exposure (Beta and r-squared) and an emphasis on risk control and capital preservation. Portfolio holdings are the highly liquid securities of large cap U.S. companies.