Zacks Market Neutral

Leveraged Strategy

Fund Investment Objectives

The Zacks Market Neutral Strategy is neutral on 8 different factors, including dollar, yield, beta, capitalization and sector. The strategy invests in a long portfolio of 70-100 securities and a short portfolio of 70-100 securities. Strict risk controls are applied including a 2.5% maximum position limit, 20% maximum sector limit, and a strict rule against investing in Concept Stocks. The investment process and philosophy is behavior oriented and produces low correlations to other managers and major market indices. The strategy uses no derivatives and has strict risk controls. The Strategy returns shown are for the Leveraged Market Neutral- 2:1 leverage. Investment in a non-leveraged product is also available. Please note that from April 1994 thru May 1998 the returns for the Limited Partnership are unleveraged and in June 1998 the strategy became leveraged 2:1.