The New Kremlin Fund

Ltd.Class B

Fund Investment Objectives

Research driven investment process with focus on liquidity in the underlying portfolio. The fund applies a bottom-up investment approach focusing primarily on large and liquid mid-caps across Russia, having opportunity to invest in other EM markets such as FSU, Turkey and Brazil for hedging purposes. Significant part of the portfolio could be invested in corporate event-based special situations. The objective of the fund is to achieve strong risk-adjusted performance aiming to outperform the broader market with reduced volatility. This objective is reached through active rotation between sectors, single stock shorts, relative value trades as well as periodically increasing the cash position of the fund. Hedging and leveraging are exercised mainly through the active use of single stocks, index and ETFs shorts. Ability to analyse political risks, strong execution capacity and market timing skills have become the basis for the successful implementation of this strategy. The fund's inception date is November 4, 2011.