Fundamental

L.P.

Fund Investment Objectives

Investment Objective: To deliver superior risk-adjusted returns to its partners. Summary of Strategy: Fundamental LP believes that a fund of concentrated value oriented hedge funds can yield superior returns with modest volatility. The fund's sub-advisors rigorously apply the value method of stock selection to domestic and international equities and debt. The A.W. Jones' hedge fund model is employed in portfolio construction (approximately 75% long 40% short). Approximately one third of assets will be allocated to emerging value managers. A "value investor" utilizes rigorous fundamental analysis to determine the intrinsic value of a stock or security. Adhering to this discipline, the sub-advisors seek to buy securities trading below their intrinsic value and, conversely, look to sell short companies trading above their intrinsic value. The General Partner believes that capital markets are inefficient over the short-term but that over the long-term they will correctly reflect the intrinsic value of a company or security. Therefore, the goal of the value investor is to identify the inefficiencies or dislocations between market price and intrinsic value and to exploit those short-term inefficiencies by buying or selling short the mispriced security.