Quantum

Strategic Value Fund

Fund Investment Objectives

The Quantum Strategic Value Fund, L.P Investment Objective is to compound capital at a rate higher than the S&P 500 over the long term. The firm will employ a long/short strategy and invest primarily in domestic equity securities across all capitalization levels. The partnership will maintain a concentrated long portfolio. Typically, eight to ten securities holdings will represent 70% of the portfolio. As opportunities, which the General Partner reasonably believes are value opportunities, arise and in the opinion of the General Partner, should the firm believes it has competency in the additional investment area, the partnership may also invest in other asset classes including but not limited to foreign equities, real estate investment trusts, fixed income securities, currencies, commodities, limited partnership interests, options and other derivative instruments. The Partnership will purchase assets when the General Partner reasonably believes that prices materially fall below fair value and intends to sell assets when the General Partner reasonably believes that the asset price has risen to fair value. With regard to long positions in equity securities, the partnership will determine the level of value by a review of the business, its competitive position, its management and its expected cash flows. These expected cash flows may manifest themselves by way of dividends, increases in intrinsic value (effectively deployed retained earnings), realization of undervalued assets and real options. There can be no assurance that the Partnership's strategy will be successful. The General Partner may engage in short selling certain securities that it believes are overpriced relative to fair value. The Partnership will typically engage in less than forty such transactions. Short candidates will typically be selected based on deteriorating balance sheet metrics, an unfavorable price/value equation and/or industry dynamics. The General partner will also endeavor to identify market mispricing of securities, hard assets and derivative instruments and will invest with the intention of benefiting from a convergence to fair value.