Saddle Peak

Fund Investment Objectives

Saddle Peak Investments, LP is a long/short equity fund. Its principal investments are U.S. common stocks, options and options on broad-based securities indices. The investment process is a concentrated multi-cap value strategy and biased toward long positions. However, it may have a short bias at times depending on the assessment of the overall market. The strategy seeks to acquire positions in undervalued companies where, in the Adviser's opinion, the value of the company's assets and/or earning power are not accurately reflected by the company's current market price. The Fund may engage in short selling and purchase put options on individual stocks, market indices and industries to offset long equity positions. The Fund's assets are invested in an actively managed portfolio of domestic stocks, options, and certain futures interest. Short positions generally will be used for hedging purposes, rather than to capture a price swing or trend to the downside. In addition to short sales, put option on individual companies, market indices or industries may be used to offset the portfolio's long positions. Although the use of leverage is not contemplated, some leverage may be used on occasion to increase the capacity for investments. Saddle Peak seeks good absolute returns through a focused portfolio of value-oriented, multi-capitalization investments. Saddle Peak will generally not be invested in more than 25 to 30 companies at any one time. Control of risk is constantly measured and positions will generally be closed when the price approaches its target price intrinsic value.