RRCM Onshore

I, LP

Fund Investment Objectives

Focusing on the energy sector, the Fund aims to generate mid-teens returns with low volatility using a bottom-up value investment approach. The Fund also places emphasis on management quality. In addition to its own fundamental research, the Fund also uses third party consultants to gain insight into macroeconomic factors as well as technical and operational issues relevant to the energy sector. The portfolio managers frequently attend industry professional organization meetings as well as trade shows. The Fund has been and will continue have concentrations in certain sectors it deems appropriate, but intends to maintain diversity across the energy value-chain. The Fund invests in large-cap, mid-cap and small-cap companies, with a bias towards mid and small-cap. Sectors covered include: international and domestic oils, explorations and production companies, oilfield service companies, pipeline and infrastructure companies, coal companies and utilities. The Fund will be managed as a long/short hedge fund and while it is expected that, on-balance, the Fund will be net long, it will always maintain a short component. Long positions will typically be characterized as having excellent management teams, strong business models with superior returns versus peers, and excellent growth opportunities. Short positions will typically be characterized by poorly managed companies, weak business models, deteriorating fundamentals, aggressive expectations or competitive threats. The Fund's investment strategy is intended to have low volatility and turnover. The Fund is focused on generating alpha and risk-adjusted returns, aside from constantly being hedged as well as monitoring sector and sub-sector exposure. Risk is controlled by limiting position size and liquidity requirements. Fund exposure is limited to no more than 75% net long, nor more than 15% net short, although the Fund has never been net short. Position size is limited to 3.5% at cost and 7% at market, however, for up to five core long positions, the Fund may invest up to 5% at cost and 10% at market. Shorts are generally covered at a 20% movement against the Fund. Individual positions are usually less than 20% of an individual stock's average trading volume. Leverage can be up to 250%, but historically the Fund has averaged gross exposure of 105%