Tsai Capital

Fund LLC

Fund Investment Objectives

Tsai Capital Fund LLC is a long/short global equity hedge fund that primarily invests in high-quality, growth companies and shorts individual equities and the S&P 500 Index. The fund invests in high-quality, growth companies when the adviser believes there is a margin of safety. Investments tend to be in prominent domestic and international growth companies that have an extended history of rising dividends and earnings. The long book is constructed without regard to any particular benchmark and typically consists of approximately 20 positions. Tsai Capital Fund also shorts individual equities and the S&P 500 Index. Individual equity shorts are intended to generate incremental alpha while a short position on the S&P 500 Index is intended to reduce downside risk and control volatility. The fund's long exposure is limited to 100% and gross exposure is capped at 150%. Gross exposure is typically 80-130% and net exposure 70-100%. Positions average 5% and are limited to 10% at the time of purchase, excluding the S&P 500 Index.