Jordan

Capital Partners, LP

Fund Investment Objectives

The Fund seeks to invest in a portfolio of public equity and fixed-income securities as well as cash and listed options. Our equity book is expected to consist of both long and short positions in order to reduce overall portfolio risk and volatility, as well as to benefit from expected price declines. We seek to minimize our long-term drawdowns by actively managing the Fund's net market exposure in times of extreme volatility. The target exposure is determined by utilizing a proprietary combination of "market stress" indicators developed by utilizing data from daily treasury statements, discounts of closed-end funds, the Federal Reserve's H.8 report combined with several other metrics. Under "normal" liquidity conditions the Fund targets 50 to 60% net market exposure with no leverage. Our individual security selection process could be best described as active value investing. Securities are selected utilizing internally developed databases for high yield fixed-income names and fundamentally oriented screeners for common equity names. The manager seeks opportunities to buy securities that he believes trade at a considerable discount to their intrinsic value and to sell short securities that he believes trade at a significant premium to their intrinsic value.