LJM Partners, Ltd.

(Preservation and Growth Fund, L.P.)

Fund Investment Objectives

The trading strategy for PRESERVATION AND GROWTH includes a variety of derivatives trading including (but not limited to) put spreads against the S&P500 futures index, as well as short call options. Pricing for all instruments purchased or sold to facilitate the hedging portion of the strategy will be modeled using commercially availability risk management tools such as ProOpticus(R) (ProOpticus(R) is a registered trademark of Prime Analytics, Inc.) along with the proprietary LJM STORMsm system. The Preservation and Growth strategy does not hedge short call exposure.