Horizon Credit Opportunities

Offshore Fund, Ltd.

Fund Investment Objectives

HCOF is a low volatility fixed income fund that primarily seeks to exploit mispricings along the corporate yield curve. The Fund invests primarily in short-duration, high yield and investment grade corporate bonds, mostly in the US. Bonds held by the Fund generally are senior secured or senior unsecured and have durations of 0-3 years and credit ratings between BBB+ and B-. The Fund does not invest in distressed debt. HCOF's objective is to achieve consistent, attractive risk-adjusted rates of return, with a focus on preserving capital and controlling volatility. The Fund utilizes a proprietary credit spread/relative value model to select positions and a portfolio construction and investment process that relies on value identification, downside protection through intensive credit analysis and diversification. The Fund has a net long bias and net exposure target of 300% and will opportunistically hedge through options, derivatives and outright shorts. Leverage: less than 200%. AUM combines both onshore and offshore classes and is reported in USD.