Larch Lane Absolute Return I

L.P.

Fund Investment Objectives

Larch Lane Absolute Return Fund I seeks to generate equity-like returns with bond-like volatility using a mix of established and early stage hedge funds. The risk objective is 3-5% annualized standard deviation and return objective is LIBOR + 4-6%. One of our principal beliefs is that, in most environments, early stage hedge funds outperform established hedge funds. We believe that including a significant allocation to early stage managers within all of our portfolios leads to better performance, greater transparency and access to future capacity. When building and managing portfolios for clients, we focus on return, volatility, and liquidity. We expect to achieve our return targets through investment in quality hedge funds managers, both established and emerging. Volatility can be controlled through diversification among managers as well as a focus on capital preservation throughout the manager selection and portfolio construction process. Finally, we believe it is critical to examine liquidity of vehicles and instruments traded to verify a match between our investors' liquidity and the liquidity of the investments the fund makes.