The Fund's primary objectives are to provide high levels of absolute return and to preserve capital. The Fund seeks to achieve this objective by employing an investment mandate that allows the Fund to exploit opportunities across asset classes, within capital structures and between similar securities, but focused on companies participating in the financial services industry, such as banks, thrifts, broker-dealers, exchanges, asset managers, specialty finance companies, insurance companies, REITs, industrial companies with significant financial services operations, companies whose core business is related to financial., services, companies classified by the Managing Member as alternative asset managers and their underlying investment vehicles, companies classified as closedend investment companies, and companies classified as special purpose acquisition companies (collectively, Financials). The Fund expects to have at least 75% of its gross exposure in Financials.
The Fund will look to achieve capital appreciation through the employment of long investments in global publicly-traded securities that the Managing Member believes to be undervalued and short investments in global publicly-traded securities that the Managing Member believes to be overvalued, and generally intends to maintain a concentrated portfolio of approximately 30-50 long positions and 30-50 short positions.
The Fund does not expect to invest more than 25% of its assets in any one issuer.
The Fund generally intends to maintain a net exposure position of +/- 25% of equity in the Fund exclusive of fixed income and preferred stock positions.
The Fund does not currently intend to use leverage to fund investments, but may do so in the future. The Fund may also borrow for liquidity purposes.
The Fund does not expect its investment strategies to be reliant on a positive U.S. equity market environment to generate absolute returns.