Fund Investment Objectives

Palace Capital Partners LP is a multi-strategy fund of hedge funds. Its objective is to preserve and grow capital in a manner consistent with low volatility and risk. The Fund will typically invest its capital among 10-15 hedge fund managers, both established and emerging, that specialize in an array of strategies including (but not limited to) long/short equity, event driven, global macro and distressed securities. The portfolio is designed to provide growth of capital through its exposure to equity securities, while containing risk and volatility through its exposure to defensive hedge fund strategies. Palace Capital seeks to achieve attractive absolute returns, over a 3- to 5-year time horizon with less volatility than that of the S&P 500 Index and with low correlation to the equity market. The fund manager is an SEC-registered investment advisor.