P & A

Balanced Fund, L.P.

Fund Investment Objectives

The mission of the Fund is to seek above-average consistent returns with moderate risk through the use of a diversified portfolio of hedge fund managers. The Fund's assets will be primarily invested with Portfolio Managers that pursue a "long/short" investment strategy, focusing primarily on U.S. equities. The "long/short" strategies are diverse, including value, growth and opportunistic approaches as well as some focused on specific industry sectors. This strategy will be complemented by allocating between 30% and 40% of the Fund's assets among several targeted non-correlated investment trading strategies, including, but not limited to, convertible arbitrage, merger arbitrage, distressed securities, event driven investing and pairs trading.