Tantallon (Non-US Feeder)

Fund

Fund Investment Objectives

The Fund is an Asian long/short equity hedge fund. The geographic universe is Asia but the Fund can also invest in companies in any geographic location where strong Asian influences exist. We believe that the development of Russia's resource-rich Asian provinces makes Russia an integral part of the Asian story. The Fund has a net long & value bias. Differentiating Factors/Investment Process: 1) Disciplined Investment Process- We attach equal weight to top-down as well as bottom-up drivers. We are contrarian in our approach, and pay particular attention to liquidity and to consensus. 2) Concentrated Portfolio - We run a concentrated portfolio of no more than 50 stocks, long and short. This ensures that we are constantly looking for the best absolute returns and that we are disciplined in culling the portfolio of tired or underperforming ideas. We believe in meeting company management as much as possible and will conduct a large number of company visits each month. We find a theme we like from the macro level and then mine down to find the best way to invest in it. 3) Net Exposure - The Fund does not have a target net exposure. If we believe the markets are in a bullish phase, we can be 100% long, or as low as 20% in a bearish environment. 4) Hedging/Risk/Liquidity - The Fund uses index futures and options to hedge risk. All long positions are reviewed after 10% absolute loss or 10% underperformance to their local index. We limit position sizes to the average of a day's volume over the past 6 months and 10% of the Fund. 5) Shorting is used only to generate positive alpha, not to hedge or minimize risk. Shorts have a hard stop loss of 20%. Max position size is 5%. We do not get involved in pairs trades, arbitrage, CB's, relative value trades. We are stock pickers.