SM Investors,

L.P.

Fund Investment Objectives

We are value investors, with approximately one-half of our capital dedicated to a traditional long/short strategy. When purchasing securities, our focus is on uncovering securities that are bargain-priced relative to underlying private market value where a catalyst exists that will act to surface value within a two-year time frame. We prefer to invest in value-able, high quality, domestic, franchise-like businesses with predictable revenue and cash flow growth characteristics that act to reduce investment risk, while paying us to wait for our catalyst to surface value. The remaining roughly 50% of the Partnership's capital is dedicated to the non-market correlated disciplines of investing in companies in liquidation, stub-equities, and selective merger/capital arbitrage opportunities. These activities tend to generate steady and occasionally outsized returns, which when combined with the deep value focus of our long/short activities results in a superior return and reduced volatility portfolio.