The investment objective of the Fund is to achieve long-term capital growth, primarily through investment in equities actively traded in markets of the Russian Federation. The investment management philosophy is research intensive, focusing on Russia and the Russian market in general, followed by extensive research on specific investment opportunities. The Manager will draw on the proprietary study and investigation of its own professionals and affiliates, as well as on material prepared by major broker-dealers in the market. The Manager intends to manage risk by monitoring the liquidity of Fund assets. The Manager generally intends to invest at least 75% of the total assets of the Fund in equities but may vary the equity investment level when appropriate to hold a greater proportion of the Fund's assets in cash. The Manager will also manage risk through hedging strategies and the short selling of securities as described below. The Fund will concentrate mainly on long positions in Russian equity securities during periods of normal market activity. If the manager believes market or economic conditions are unfavorable for investors, the manager may invest assets in a defensive manner by holding all or a substantial portion of its assets in cash (cash equivalents) or opening short positions. In such markets, the Manager will look to reduce its exposure by selling existing long stock positions in the portfolio and raising cash. However, long positions occasionally cannot be efficiently closed out. Where the Manager is unable to efficiently sell long positions, the Manager may sell other equities short to reduce the overall exposure of the portfolio. Short-selling of stocks entails additional risks and costs for the portfolio. The Manager may, for example, deem that excessive levels of market volatility require existing long-term or core positions be hedged with short positions in other stocks.