PENN

Distressed Fund, L.P.

Fund Investment Objectives

Our bottom-up approach to research allows us to identify names for inclusion that maintain spreads greater than 10% to the 10-year Treasury. By holding daily investment committee meetings, we defend our portfolio from risk factors by following the catalysts identified on original purchase of a security. We may become active in creditors committees, and become involved in bankruptcy proceedings to protect our investment and to take an active role in the reorganization process. Additionally, we are capping this strategy at $100 million to ensure liquidity in an otherwise illiquid market.