We begin with the philosophy that the manager and the strategy are inseparable. Continued success in managing a portfolio is an integration of people and plans that are eminently right for each other. Such a matchup is essential to achieving what's best for investors. Convertible arbitrage is a low-risk, moderate-reward pursuit of absolute returns that truly hedges against downside loss. The hybrid complexity of convertible securities offers opportunity for excellent performance at the cost of daily intensive effort by a highly skilled manager. Very early in our careers, we recognized the validity of trading in convertible securities and dedicated ourselves to developing the full range of skills required to continually excel in the strategy. Two attributes of our skills and strategy were emphasized at the inception of Mohican funds and account for our record of ongoing exceptional results: versatility and focus. We are equally comfortable in executing in-the-money/cash flow trades, at/near-the-money gamma trades, and credit-sensitive/yield-oriented trades. We have worked since 1989 in market conditions that have driven convertible securities from equity-sensitive to credit-sensitive and back. Versatility means we can handle all trades and conditions. Our experience also tells us that issuance and hedging of convertible securities are especially well suited for small and mid-cap companies and smaller hedge funds. The market is less efficient in this part of the space, smaller managers can afford to research the greater uncertainties that exist there, and allocations of the bonds lack sufficient size to attract large funds. We remain focused on small and mid-cap companies. To make our strategy produce outstanding results, we've created a stable organization and environment in which research, the core of our strengths, is conducted on a totally independent and rigorous basis. We screen the small and mid-cap universe, monitor companies through media and services, and model/test securities for theoretical cheapness. Through in-depth research on a company (credit research, business understanding, phone calls and visits), we fine-tune our model of the security and examine its fit in the portfolio before making an investment decision.