Weiss Multi-Strategy Partners II (Cayman) Ltd ("WMSP II (Offshore)") is a diversified hedge fund portfolio composed of 13 underlying strategies that attempts to achieve returns comparable to equity markets with moderate volatility and low correlation to those markets. Each individual strategy is managed by a specialized team, and focuses on a specific sector, geography and/or investment methodology. Capital allocation is a dynamic process combining strategic and tactical components; the former is a centralized function and the latter a judgment of the individual portfolio managers. The fund design attempts to have a low net posture whereby the main source of returns should derive from stock-specific judgments or relative value relationships, not the direction of the market. A variable degree of leverage is applied at the portfolio level to magnify what is intended to be an attractive risk/return profile.