Private Advisors Hedged

Equity Fund QP, LP

Fund Investment Objectives

The investment objective for the long/short equity style funds of funds is to seek capital appreciation above historical equity returns over a full market cycle with a risk profile that is significantly lower than that of the equity market. Returns should generally demonstrate a low correlation to both the equity and fixed income markets. The Long/Short Equity Strategy is designed to invest with hedge funds that focus on long and short equity investing based on fundamental, bottom-up research. Private Advisors believes that the best portfolio is one that consists of a group of experienced managers exhibiting demonstrated skill in stock selection and the ability to control risk. Typically these managers are diversified in their approach to stock selection as well as in the types of stocks in which they invest. Private Advisors will seek a mix of value and growth managers (or growth at a reasonable price), as well as catalyst managers. Private Advisors will also seek to construct a portfolio with a diversified mix of stock capitalizations and sector exposures.