The TAG Diversified Strategies Fund, L.P. (the Fund) is a multi-manager fund-of-funds and was initially funded on June 1, 2005. The Fund invests in both relative value and long/short equity hedge fund strategies. The Fund attempts to achieve an absolute rate of return by capturing a portion of market performance during an upward trending environment while minimizing the risks of large drawdowns. Up to 50% of the Fund is invested between the TAG Relative Value Fund and the TAG Hedged Equity Fund. The TAG Relative Value Fund's target rate of return is projected on the average risk-free rate of return as determined by the 90-day Treasury Bill rate, plus 4-6%, over a full market cycle. The TAG Hedged Equity Fund's target rate of return is projected based on the average risk-free rate as determined by the 90-day Treasury Bill, plus 6-8%, over a full market cycle. The remaining assets of the Fund are invested opportunistically among single strategy hedge funds.