SC

Convertible Bonds

Fund Investment Objectives

SC Convertible Bonds seeks to make significant gains in either a major upswing or downturn in equity markets, and cash equivalent returns in trendless markets. It does so by seeking cheap convertibles and hedging out unwanted risk factors. The strategy takes positions in different instruments, including: Convertible Bonds, straight Bonds, Stocks (mostly short), Equity and Index Options and Futures, Interest Rate Futures, Foreign exchange, Credit Default Swaps (CDS), Asset Swaps. SC Convertible Bonds differentiates itself from other Convertible Bond funds through not trading volatility or credit. It seeks to capture the majority of an up or downtrend and make Libor + returns in trendless markets. The Fund's launch date is November 2, 2010. Strategy AUM is reported.