R. G. Niederhoffer Capital

Management (Diversified)

Fund Investment Objectives

Begun in October 1993, the DIVERSIFIED PROGRAM is intended to provide both attractive stand-alone returns and consistent protection during equity declines and difficult periods for hedge fund portfolios. Unlike other trading programs, the Diversified Program seeks to maintain a consistent low or negative correlation to traditional and alternative investments. The program utilizes a quantitative short-term trading strategy, and tends to do particularly well in high volatility environments. The existing version of the Diversified Program targets annualized volatility of 16%, and a lower volatility version of the program (8% target) is scheduled to launch in the second half of 2011. Data for the Diversified Program shows the performance of Roy G. Niederhoffer Diversified Fund (Offshore), Ltd. Class A.