Horizon Multi Disciplinary

Offshore Fund Ltd. - Class A

Fund Investment Objectives

The Fund's investment objective is to achieve attractive risk-adjusted rates of return through a two-part investment strategy: First, the Fund is short equity put options, representing approximately a notional 100% exposure of the Fund's NAV. Second, the Fund invests an additional approximately 100% of the Fund's NAV in a fixed income portfolio. The Fund's short equity put option portfolio focuses on companies that Horizon believes have unique long-term fundamental business characteristics. Typically, the put options written by the Fund are both near term in duration and at-the-money. Companies targeted for put writing undergo fundamental analysis by Horizon's in-house research team. Our put option portfolio is used to enhance the return of the fund beyond that achievable by a stand alone bond strategy. Within the put option portfolio, we generally have no more than 1% exposure to any single company. The Fund's fixed income portfolio focuses on mostly domestic, short-duration, high yield, and investment grade corporate bonds. The Fund seeks to exploit mispricings along the corporate yield curve. In general, bonds held by the Fund are senior secured or senior unsecured and have durations of 0-5 years and credit ratings of B- or above. The Fund utilizes a proprietary credit spread/relative value model to select positions and a portfolio construction and investment process that relies on (i) value identification, (ii) downside protection through intensive credit analysis and (iii) diversification.