The Liquid Real Estate Mortgage Portfolio is a concentrated portfolio of four to six hedge fund managers trading mortgage securities. The managers selected for this Portfolio are seasoned veterans in their specific mortgage security expertise. The managers will focus on opportunistic residential and commercial non-agency mortgage backed securities, mortgage derivatives and relative value agency mortgage strategies. The securities being traded typically can be sold in a matter of hours or days. Tradex, the Investment Advisor, will be dynamic in the allocation to the three strategies in order to take advantage of different market conditions. A large percentage of the expected portfolio return is generated from principal and interest, and is not solely dependent on the resale of the bonds, trading or mark-to-market gains. The modeling of estimated cash flows from distressed non-agency mortgage bonds or interest-only securities, using worst case assumptions still provides for a positive return in most scenarios. The relative value mortgage strategy, which focuses on trading the basis between agency mortgages and treasuries, is a strategy that is not dependent on credit analysis; rather it identifies deviations from historical spread levels and capitalizes on that mispricing. The performance shown is representative of the Liquid Real Estate Portfolio exposure within Tradex Global Master Fund SPC, Ltd. Tradex Global is an SEC Registered Investment Advisor.