Palisade Strategic Master

Fund (Cayman) Limited

Fund Investment Objectives

The principal objective of the Palisade Convertible Arbitrage strategy is to achieve capital appreciation by employing convertible arbitrage strategies that profit by extracting inefficiencies in the valuation of a convertible security. Pricing inefficiencies will be captured through appropriate delta-neutral hedging strategies in order to remain profitable regardless of stock market or interest rate fluctuations. Individual bullish/bearish strategy biases will be employed, although the portfolio has a mandate to ensure overall market neutrality. Palisade's relative value strategy encompasses both credit and fundamental research which leverage the firm's successful outright Convertible and Equity research teams.