Welch Entrepreneurial Fund

(QP), L.P.

Fund Investment Objectives

Welch Capital follows a consistent investment strategy driven by a rigorous bottom-up due diligence process. Welch Capital is a diversified long/short firm with special emphasis in the technology, life sciences, and energy sectors. The firm utilizes a thematic top-down sector review process coupled with a thorough analysis of company fundamentals and cash flow generation in order to derive specific company stock valuations. Sector analysts are responsible for building detailed income, cash flow and balance sheet models for the firm's investments and blending this analysis with the research gained from proprietary industry contacts in order to determine enterprise values for individual companies. From their analysis, Welch Capital establishes both long and short positions with the objective of producing alpha from all positions. In conjunction with the research process, Welch Capital employs top-down risk controls to reduce risk, preserve profits and reduce short-term volatility. The firm actively monitors position sizes, sub-sector weightings, exposure and liquidity on a real-time basis, in addition to utilizing various other tools and measures to analyze risk. The Fund focuses on Multi-Sectors (Tech, Healthcare & Energy) Note: Performance numbers are net of all fees including management fees and incentive fees. The net numbers from 1997 to 2000 are based on audited gross returns. Year 2001-2004 net numbers are unaudited and subject to change due to estimations of auditing/accounting/legal fees, etc. Past performance may not be indicative of future performance.