The Quantitative Tactical Fund is a dollar market-neutral equity hedge fund that utilizes a machine learning method developed by Jaffray Woodriff, chairman and CEO of QIM. QIM seeks to maximize the Sharpe Ratio of the Tactical Fund by optimally deploying our considerable edge by predicting financial markets in conjunction with the excellent diversification available in investing in the wide universe of liquid equities. Over time, the fund is expected to exhibit near-zero correlation to both the S&P 500 Index and hedge fund benchmark indices. The fund is currently focused on approximately 800 stocks from a universe of 3,000 U.S.-denominated issues (including ADRs and ETFs). The fund expects to have 200-500 active positions at any point in time and expects to make 50-200 trades per day. The median holding period for a trade is seven days. The fund utilizes SPDRs to achieve dollar neutrality on a daily basis. The Quantitative Tactical Fund clears at Morgan Stanley. The Quantitative Tactical 3X Fund, which targets 36% annualized volatility, is a separate entity clearing at Credit Suisse. Capacity for the entire fund is expected to be over $2 billion in trading level. Ongoing research and the further development of stock markets worldwide will most likely lead to capacity increases over the long-term.