Needham Contrarian (QP)

Fund, L.P.

Fund Investment Objectives

On July 1, 2004, Needham Contrarian Fund, L.P. split into two funds to form an accredited fund, Needham Contrarian Fund, L.P. and a Qualified Fund, Needham Contrarian (QP) Fund, L.P. Needham Contrarian (QP) Fund, L.P. is a long/short style investment limited partnership that invests primarily in the equities of public emerging growth companies. The objective of the Fund is to maximize long-term capital appreciation by investing in the equities of growth companies. We use minimal leverage. We view investing in a public company as similar to investing in a private company - we are investing in a business, not trading a stock. Our strategy focuses on companies positioned to benefit from multi-year technological or demographic changes. We look for companies with great products and customers. We also look for businesses where management has a successful track record and likely a significant ownership stake. We also invest in turnarounds where we have a unique vision for a company's success. The Fund engages in short sales of stocks that we believe are overvalued with flawed business models. Some shorts are tactical and short-term, while others may take time to play out. Many of our areas of investment benefit from the power of information technology.