Theta Capital Partners

(Theta Funds LP)

Fund Investment Objectives

THETA CAPITAL PARTNERS: One of the unique inherent aspects of an option is to decrease in value over time; the closer an option is to its expiration date, the faster it will decrease in value. Additionally, equity investors have a generally long bias, and typically purchase options to hedge downside risk or capture upside exposure; there are no natural sellers of options. Theta Funds ("Theta" or "The Fund") capitalizes on both of these conceits by selling far out of the money put and call options on the Standard and Poor's 500 equity index and then either repurchasing them at a lower price or letting them expire. For each option that is sold another further out option is purchased to manage volatility, margin, and limit potential losses; there are no naked short positions. Additional information about Theta is available at ThetaFunds.com.