Strategic Balance Partners,


Fund Investment Objectives

The Strategic Balance Partners, LP fund is a long-short equity fund. The General Partner expects to invest the Fund's capital primarily in publicly traded equities and will seek to identify securities and sectors that have attractive valuations and a favorable risk/return profile. The General Partner bases its valuation decisions on numerous valuation parameters which have withstood the test of time such as price to real cash earnings and enterprise valuation analysis. The General Partner also attempts to control risk through the use of short positions as a hedge in an effort to make the returns of the portfolio less correlated with those of the overall equity market. When the risk/return analysis warrants, the General Partner may also seek to invest opportunistically in income-oriented or fixed income asset classes. In pursuit of its investment objective, the Fund may invest in, hold, sell, sell short, trade (on margin or otherwise), and otherwise deal in U.S. equities, foreign equities, and other financial instruments. Financial instruments in which the Fund may invest include: equity-related securities, bonds (convertible and nonconvertible), other fixed-income investments, and derivative instruments. These financial instruments will generally be traded publicly but the Fund may invest in private transactions and may hold some relatively illiquid positions. The Fund may use short selling to hedge its positions and as a source of profit and it may buy securities on margin or use other leverage techniques. The Fund may buy, sell, write, and trade options and other derivative instruments (both publicly traded and over-the-counter instruments; both covered and uncovered) on individual securities and securities indices, both to hedge its positions and as an independent source of profits.