The Fund's principal objective is to provide a consistent and attractive rate of return while limiting the Fund's volatility in comparison to the broader U.S. market indices. The Fund seeks to achieve this objective by establishing long and short positions across three distinct categories that vary in the length of time the investment is held and in the rationale for the investment. New positions are categorized as long-term, intermediate term or short-term. The Fund's three tiered strategy is designed to maximize the Fund's returns while trying to limit a large decline in capital. Leverage shall not exceed 200% of aggregate member capital accounts. For the period 8/1/01-12/31/05 Net performance for this period has been adjusted pro forma to reflect the 20% incentive fee allocation currently in effect.