Kingdon

Associates

Fund Investment Objectives

Kingdon seeks to deliver strong absolute returns with an efficient level of risk. The Fund is a highly diversified, opportunistic global long/short equity manager, with varying macro elements. The investment approach combines bottom-up and top-down elements with technical and quantitative analysis. Risk management at both the security and portfolio level is emphasized throughout the process. Kingdon conducts intensive proprietary research in addition to using Wall Street and specialist consulting resources. Research is organized into industry sectors, geographic sectors, and quantitative analysis. The Firm first generates an idea and develops a thesis, then identifies long and short investments to express the thesis. For each investment, expected risk-adjusted return is specified. Fundamental analysis evaluates financial and operating performance and prospects, balance sheet strength, competitive dynamics, customer and supplier relationships, and management team attributes. Valuation analysis incorporates appropriate metrics for the relevant industry. Technical analysis studies patterns of earnings and price momentum, insider transactions, volume of buys vs. sells and volatility trends. Top-down analysis is also incorporated into the decision making process. Factors evaluated include macroeconomic statistics, central bank policies, geopolitical concerns, market valuations within and across asset classes and geographies, market liquidity and momentum. Alongside core holdings, the Fund may engage in short-term trading opportunities. The Fund employs a strict sell discipline requiring that a position be sold once it reaches its target price or stop-loss level, or if there is significant deterioration in fundamental or technical factors. Historically, the Fund has used little or no leverage. Individual positions rarely exceed 2% of capital. Maximum portfolio exposure to illiquid securities is 10%. Min. Investment: $5 Million