Old West Investment

Partners, L.P.

Fund Investment Objectives

The investment objective of the Fund is the long-term growth of capital. Through selective investments in publicly traded businesses, the Fund seeks attractive absolute rates of return on its capital with limited risk of principal loss. To accomplish the Fund's investment objective, the Fund intends to employ a highly selective, research-intensive long/short equity investment strategy. On the long side, the Fund will generally look for high quality, growing businesses run by proven owner-managers, which are available for purchase at discounts to demonstrable intrinsic value. On the short side, the Fund will selectively sell short companies with the goal of achieving an attractive absolute return on capital. Some of the qualities that the Fund will look for in short sale candidates are accounting abuses, declining business over the long-term and significant insider selling. The Fund will also selectively engage in arbitrage and special situations investing when attractive opportunities present themselves. The Fund intends to obtain its investment ideas through many channels, which include but are not limited to insider and corporate actions, industrial scuttlebutt and insights, contact with other investors, special situations such as stubs or restructurings, and opportunities presented by large price movements. Position size will be solely determined by the return characteristics of the underlying investment. In general, the Fund will seek to eliminate systemic risk by diversifying the Fund's investments across multiple businesses and industries. However, the General Partner firmly believes that its top-ranked idea is better than its 20th-ranked idea and that the Limited Partners will be better served if the Fund allocates a greater share of capital toward the former. Further, the amount of current and in-depth knowledge that the General Partner can maintain with respect to each business in which the Fund invests inherently declines as the number of its investments increases, and the General Partner believes that less knowledge can translate into greater risk. Therefore, the General Partner believes that the ideal long position will be 10% of the Fund's capital invested in a strong company purchased at an attractive price that the Fund can hold for 3-5 years. Because short sales have an inverted risk/return profile, the Fund's average short position will be approximately 3% of its capital and will have an expected duration of 1-3 years. As a result of this approach to investment sizing, the Fund will only invest its capital when the General Partner believes that the Limited Partners' principal is protected by a demonstrable margin of safety between price paid and intrinsic value received with respect to each investment. The Fund will only invest in businesses that are run by proven owner-managers who have a majority of their net worth invested in the business. As a result, there may be many potentially lucrative investments in which the Fund will not invest because of the stringency of its standards.