Iron Bay

Fund, LP

Fund Investment Objectives

The Partnership is designed to provide an investment option that utilizes a long/short investment strategy focused on the financial services sector, with a special emphasis on banking companies, managed by the Investment Manager. The investment strategy is event-driven and aims to have positive long-term returns with reduced volatility relative to major financial services indices. While the Partnership is not benchmarked to a particular index the Partnership will likely hold securities contained in major financial services indices such as the NASDAQ Bank Index and the Russell 3000 Financial index. The Partnership invests in domestic equities, preferred securities, ETFs and options believed by the Investment Manager to be undervalued or have other identified positive attributes. Short sales will have characteristics deemed by the Investment Manager to be overvalued and/or with deteriorating or other identified poor fundamental characteristics. The Investment Manager believes positive absolute returns can be earned in the financial services sector as a result of the expected wave of bank consolidation, a return to the traditional banking model (including buybacks and dividends) and the direct participation in capital raises via IPOs and secondary offerings. The ongoing consolidation wave may take several forms including: FDIC assisted transactions, whole bank deals and partial branch and asset acquisitions. The Investment Manager feels stronger franchises will benefit from the ability to do accretive deals and expand their footprint through strategic purchases. Many banks currently trade at historically large valuation discounts, some of which the Investment Manager believes are unwarranted. The Partnership also uses option strategies to hedge its positions as well as to enhance profit opportunities. Investments are anticipated to be primarily in the equity securities of domestic financial services companies, including banks, thrifts, real estate investment trusts (REITs), insurance companies, financial technology companies and various other commercial and consumer finance companies. Although some of the Partnership's investments may produce dividends, interest and other income, current income is not a primary objective of the Partnership. Leverage may be used in an attempt to increase the overall return on the Partnership's capital, but leverage may increase the volatility of the Partnership's returns and the risk of loss.