Gargoyle Hedged Value (QP)

Fund L.P. (USD)

Fund Investment Objectives

The Partnership's core portfolio is managed by combining time-proven investment strategies-value investing and option buy-writing. For ease of discussion only, the Core Portfolio's two constituent parts- an investments account that holds the Partnership's value stocks and an options account that holds the options that hedge the Investment Account are discussed separately. The General Partner believes that the Partnership's methods for managing the Core Portfolio should be viewed as one integrated approach in furtherance of the General Partner's objective of achieving, over the long-term, consistent superior risk-adjusted rates of return. Managing the Investment Account: The Partnership maintains in the Investment Account a core holding of large capitalization value stocks approximately equal to the net asset value of the Partnership. The goal is for the Partnership to hold these stocks for at least one year in an effort to achieve tax-advantaged long-term capital gains, although positions may be (and with GHV's Investment Account historically have been) liquidated sooner, particularly positions in hold stocks that have not appreciated or positions in sell stocks.