LBR Asset Management (Granat

Fund - Class B)

Fund Investment Objectives

Established in 2004, the Granat Fund aims to generate industry leading profitability and non-correlation through trading more than 20 exchange-based futures markets on a discretionary basis. The program is based upon the swing trading methodology pioneered by "Market Wizard" Linda Raschke and continuously refined by her and a team of portfolio managers and researchers. By focusing on a richly diversified set of markets and trade duration of 1 to 10 days, the fund looks to remain differentiated and nimble relative to sector or trend-following programs. The trading program aims to achieve performance and non-correlation through four components. 1. Short-term (<1 day) trades which serve to smooth the equity curve and provide returns in low volatility environments; 2. "Swing trades" which last from 1-2 days and aim to capture a significant portion of a price swing; 3. 3-day to 2-week trades targeted at markets that have potential to make a significant move - commonly from periods of long consolidation and; 4. Special situations - ETF, stock and/or option trades to capture a perspective on a theme (e.g., country or volatility condition). The vast majority of trades are taken in components 1 and 2. Technical analysis is used to identify all trades and discretion applied to leverage the experience of the trader. Each member of the trading team has over 10 years experience in the futures markets led by Linda Bradford Raschke with more than 30 years experience. The program and its components are focused on more than 20 exchange-based commodity and futures markets including equities, interest rates, currencies, metals, energies, grains, softs and meats. Extensive research is conducted on an ongoing basis to refine the program's patterns and evaluate new trading ideas. The fund is managed from its offices in Chicago, Illinois. From Oct 2010 forward, assets reported are total assets traded in the strategy