Sandler Plus Offshore Fund,

Ltd.

Fund Investment Objectives

The fund aims to produce significant capital appreciation with muted volatility and downside protection characteristics. We utilize our insight into market dynamics and the comparative strengths and weaknesses of companies in multiple industries to identify both long and short investment opportunities. Our strategy generally focuses on finding secular growth businesses (long) as well as secularly challenged businesses (short). The funds typically have a net long bias, but net exposure is actively managed and dynamic and the funds may at times be run market neutral or slightly net short. From a top-down view, we rely on our assessment of the macroeconomic and credit environments and the identification of key themes and sector/industry trends, as well as positive and negative catalysts among sub-sector groups. Our investment professionals actively monitor the competitive landscape of numerous industries, continually evaluating developments in technology, regulatory shifts and trends in consumer behavior and corporate usage. We also utilize our separate in-house two person credit team and several advisory relationships to analyze the macroeconomic environment and market technical factors. From a bottom-up perspective, we stress individual company and security-level fundamental analysis with a focus on the identification of growth in revenues and return on invested capital (ROIC). From both a sector and company level, we place a strong emphasis on valuation and the use of valuation tools. We also pay close attention to market action and technical factors, particularly in the sizing and timing of positions. The fund is a 2x leveraged version of our flagship long/short equity strategy.