0001327228
dei:BusinessContactMember
2025-12-31
2025-12-31
0001327228
2025-12-31
2025-12-31
0001327228
stanley:bench20230606270Member
2025-12-31
2025-12-31
0001327228
stanley:bench20230606271Member
2025-12-31
2025-12-31
0001327228
stanley:bench20230606285Member
2025-12-31
2025-12-31
0001327228
stanley:bench20240424440Member
2025-12-31
2025-12-31
0001327228
stanley:bench20240424439Member
2025-12-31
2025-12-31
0001327228
stanley:bench20230606275Member
2025-12-31
0001327228
stanley:bench20230606275Member
2023-12-31
0001327228
stanley:bench20230606275Member
2022-12-31
0001327228
stanley:bench20230606275Member
2021-12-31
0001327228
stanley:bench20230606275Member
2020-12-31
0001327228
stanley:bench20230606275Member
2019-12-31
0001327228
stanley:bench20230606275Member
2018-12-31
0001327228
stanley:bench20230606276Member
2017-12-31
0001327228
stanley:bench20230606276Member
2016-12-31
0001327228
stanley:bench20230606275Member
2024-12-31
0001327228
stanley:bench20230606287Member
2025-12-31
2025-12-31
0001327228
stanley:bench20230606282Member
2025-12-31
2025-12-31
0001327228
stanley:bench20240123406Member
2025-12-31
2025-12-31
0001327228
stanley:bench20230606284Member
2025-12-31
2025-12-31
0001327228
stanley:bench20230606286Member
2025-12-31
2025-12-31
0001327228
stanley:bench20221105151Member
2025-12-31
2025-12-31
0001327228
stanley:bench20221105152Member
2025-12-31
2025-12-31
0001327228
stanley:bench20230606281Member
2025-12-31
2025-12-31
0001327228
stanley:bench20230606280Member
2025-12-31
2025-12-31
iso4217:USD
pure
iso4217:USD
shares
false
0001327228
N-2
N-2
No
false
333-286811
811-21767
N-2
true
true
1
true
true
44
Alternative Investment Partners Absolute Return Fund
100 Front Street
Suite 400
West Conshohocken
PA
19428-2881
610
260-7600
Kara Fricke, Esq
1633 Broadway
New York
NY
10019
As soon as practicable after the effective date of this Registration Statement.
false
true
false
false
false
false
true
false
false
false
false
false
false
false
true
false
false
false
false
false
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The following table illustrates the fees and expenses that the Fund expects to incur and that Shareholders can expect to bear </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">directly or indirectly. The table is based on the capital structure of the Fund as of December 31, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">2025</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:10.824pt;;"><b>Transaction Fees</b></span></div><div>
<table cellspacing="0" style="width:100%;cellspacing:0;border-top:1.5pt solid #000000;margin-left:0;border-bottom:1.5pt solid #000000;margin-top:10px;">
<tr style="height:1px;">
<td style="height:1px;width:90.89064130812942%"></td>
<td style="height:1px;width:9.109358691870579%"></td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Maximum Sales Load (</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">percentage of purchase amount</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">)</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:6pt;;"><sup>1</sup></span>
</div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:right;text-align:right;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">3.00%</span></div>
</td>
</tr>
<tr>
<td colspan="1" style="vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Maximum Redemption Fee</span></div>
</td>
<td colspan="1" style="vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:right;text-align:right;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">None</span></div>
</td>
</tr>
</table></div>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">percentage of purchase amount</span>
0.03
0
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:10.824pt;;"><b>Annual Fund Expenses</b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:10.824pt;;"> </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:10.824pt;;"><b>(as a percentage of the Fund’s net assets attributable to common shares)</b></span></div><div>
<table cellspacing="0" style="width:100%;cellspacing:0;border-top:1.5pt solid #000000;margin-left:0;border-bottom:1.5pt solid #000000;margin-top:10px;">
<tr style="height:1px;">
<td style="height:1px;width:90.89064130812942%"></td>
<td style="height:1px;width:9.109358691870579%"></td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Management Fee</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:right;text-align:right;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">1.00%</span></div>
</td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Acquired Fund Fees and Expenses</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:6pt;;"><sup>2</sup></span>
</div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:right;text-align:right;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">30.97%</span></div>
</td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Interest Payments on Borrowed Funds</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:right;text-align:right;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">1.28%</span></div>
</td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Other Expenses</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:6pt;;"><sup>3</sup></span>
</div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:right;text-align:right;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">1.05%</span></div>
</td>
</tr>
<tr>
<td colspan="1" style="vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Total Annual Fund Expenses</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:6pt;;"><sup>4</sup></span>
</div>
</td>
<td colspan="1" style="vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:right;text-align:right;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">34.30%</span></div>
</td>
</tr>
</table></div>
0.01
0.3097
0.0128
0.0105
0.343
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:10.824pt;;"><b>Example</b></span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">You would pay the following fees and expenses </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">(including the sales load)</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> on a $1,000 investment, assuming a 5% annual return </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and that the Fund’s operating expenses remain the same:†</span></div><div>
<table cellspacing="0" style="width:100%;cellspacing:0;margin-left:0;border-bottom:1.5pt solid #000000;margin-top:10px;">
<tr style="height:1px;">
<td style="height:1px;width:25.066682129189378%"></td>
<td style="height:1px;width:24.933317870810622%"></td>
<td style="height:1px;width:24.933317870810622%"></td>
<td style="height:1px;width:25.066682129189378%"></td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>1 Year</b></span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>3 Years</b></span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>5 Years</b></span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>10 Years</b></span></div>
</td>
</tr>
<tr>
<td colspan="1" style="vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$435</span></div>
</td>
<td colspan="1" style="vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$1,190</span></div>
</td>
<td colspan="1" style="vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$1,879</span></div>
</td>
<td colspan="1" style="vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$3,349</span></div>
</td>
</tr>
</table></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"><b>Actual expenses may be greater or lesser than those shown.</b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Moreover, the rate of return of the Fund may be greater or less than </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the hypothetical 5% return used in the Example.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">† On an investment of $50,000 the Example would be as follows:</span></div>
435
1190
1879
3349
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:10.824pt;;"><b>Example</b></span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">You would pay the following fees and expenses </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">(including the sales load)</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> on a $50,000 investment, assuming a 5% annual </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">return and that the Fund’s operating expenses remain the same:</span></div><div>
<table cellspacing="0" style="width:100%;cellspacing:0;margin-left:0;border-bottom:1.5pt solid #000000;margin-top:10px;">
<tr style="height:1px;">
<td style="height:1px;width:25.066682129189378%"></td>
<td style="height:1px;width:24.933317870810622%"></td>
<td style="height:1px;width:24.933317870810622%"></td>
<td style="height:1px;width:25.066682129189378%"></td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>1 Year</b></span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>3 Years</b></span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>5 Years</b></span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>10 Years</b></span></div>
</td>
</tr>
<tr>
<td colspan="1" style="vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$21,734</span></div>
</td>
<td colspan="1" style="vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$59,513</span></div>
</td>
<td colspan="1" style="vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$93,969</span></div>
</td>
<td colspan="1" style="vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$167,428</span></div>
</td>
</tr>
</table></div>
21734
59513
93969
167428
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:6pt;;"><sup>(2)</sup></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> The Acquired Fund Fees and Expenses include the operating expenses, trading expenses and performance-based incentive fees of the Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Funds in which the Fund invested for the fiscal year ended December 31, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">2025</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">. The operating expenses consist of management fees, administration </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">fees, professional fees (i.e., audit and legal fees), and other operating expenses. Trading expenses are primarily interest and dividend expenses and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">are the byproduct of leveraging or hedging activities employed by the Investment Managers in order to enhance the Investment Funds’ returns. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">information used to determine the Acquired Fund Fees and Expenses is generally based on the most recent shareholder reports received from the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">respective Investment Funds or, when not available, from the most recent communication from the Investment Funds. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The agreements related to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investments in Investment Funds provide for compensation to the Investment Funds’ managers/general partners in the form of management fees </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">generally ranging from 1.0% to 3.0% annually of net assets</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">performance incentive allocations generally ranging from </span><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">10%</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> to </span><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">30%</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> of net profits </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">earned.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Some Investment Funds employ a pass-through expense arrangement with no stated management fee. Fees and expenses of Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Funds are based on historic fees and expenses. Future Investment Funds’ fees and expenses may be substantially higher or lower because certain </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">fees are based on the performance of the Investment Funds, which may fluctuate over time. See below for the breakdown of the Acquired Fund Fees </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">and Expenses:</span><div>
<table cellspacing="0" style="width:100%;cellspacing:0;border-top:1.5pt solid #000000;margin-left:0;border-bottom:1.5pt solid #000000;margin-top:10px;">
<tr style="height:1px;">
<td style="height:1px;width:90.89064130812942%"></td>
<td style="height:1px;width:9.109358691870579%"></td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Operating Expenses</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:right;text-align:right;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">2.45%</span></div>
</td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:10pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Trading Expenses</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:10pt;padding-bottom:0;align:right;text-align:right;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">23.57%</span></div>
</td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Incentive Fees</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:right;text-align:right;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">4.95%</span></div>
</td>
</tr>
<tr>
<td colspan="1" style="vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Total Acquired Fund Fees and Expenses</span></div>
</td>
<td colspan="1" style="vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:right;text-align:right;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">30.97%</span></div>
</td>
</tr>
</table></div>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The agreements related to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investments in Investment Funds provide for compensation to the Investment Funds’ managers/general partners in the form of management fees </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">generally ranging from 1.0% to 3.0% annually of net assets</span>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">performance incentive allocations generally ranging from </span><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">10%</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> to </span><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">30%</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> of net profits </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">earned.</span>
0.10
0.30
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:6pt;;"><sup>(3)</sup></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Other expenses are based on estimated amounts for the current fiscal year. “Other Expenses” include the Distribution and Shareholder Servicing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Fee of 0.75% paid by the Fund to the Distributor, and in turn paid by the Distributor to each Service Agent (which may include financial institutions and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">other industry professionals in addition to broker-dealers) that enters into a Distribution and Shareholder Servicing Agreement with the Distributor. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">See “Distribution and Shareholder Servicing Fee.”</span>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:6pt;;"><sup>(4)</sup></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> The total annual Fund expenses include the Fund’s portion of the management fees, performance allocations and other expenses paid by the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Investment Funds as set forth in the row titled “Acquired Fund Fees and Expenses.” This total differs from the amount of such expenses set forth </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">under “Financial Highlights,” which does not include the Acquired Fund Fees and Expenses.</span>
<div>
<table cellspacing="0" style="width:100%;cellspacing:0;padding-bottom:2pt;padding-top:0pt;margin-left:0pt;">
<tr style="height:1px;">
<td style="height:1px;width:28.578607599829915%"></td>
<td style="height:1px;width:11.967992577989099%"></td>
<td style="height:1px;width:16.695658896749006%"></td>
<td style="height:1px;width:14.700993467084155%"></td>
<td style="height:1px;width:12.706328037419304%"></td>
<td style="height:1px;width:15.352352236267349%"></td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:6.5pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:1pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Year</b></span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:6.5pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:1pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Type</b></span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:6.5pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:1pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Total Amount</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Outstanding</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Exclusive of</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Treasury Securities</b></span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:6.5pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:1pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Asset Coverage</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Per $1,000 of </b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Indebtedness</b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:6pt;;"><sup><b>1</b></sup></span>
</div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:6.5pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:1pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Involuntary </b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Liquidating </b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Preference</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Per Unit</b></span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:6.5pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:1pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Average Market </b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Value Per Unit </b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>(Exclude Bank </b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Loans)</b></span></div>
</td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Year Ended December 31, 2025</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Line of Credit</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$84,771,267.00</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$4,421.90</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Year Ended December 31, 2024</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Line of Credit</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$63,771,267</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$5,548.73</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Year Ended December 31, 2023</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Line of Credit</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$55,521,267.00</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$6,254.63</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Year Ended December 31, 2022</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Line of Credit</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$66,721,267.00</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$5,408.97</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Year Ended December 31, 2021</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Line of Credit</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$68,896,267.00</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$5,268.27</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Year Ended December 31, 2020</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Line of Credit</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$74,996,267.00</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$5,300.22</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Year Ended December 31, 2019</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Line of Credit</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$77,246,267.00</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$5,512.34</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Year Ended December 31, 2018</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Line of Credit</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$97,646,267.00</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$5,061.18</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Year Ended December 31, 2017</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Note Payable</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$90,144,999.00</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$6,065.91</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
</tr>
<tr>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Year Ended December 31, 2016</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Note Payable</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$109,245,769.00</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$5,589.30</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
<td colspan="1" style="border-bottom:0.9pt solid #000000;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:0pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">N/A</span></div>
</td>
</tr>
</table></div>
84771267
4421.9
63771267
5548.73
55521267
6254.63
66721267
5408.97
68896267
5268.27
74996267
5300.22
77246267
5512.34
97646267
5061.18
90144999
6065.91
109245769
5589.3
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:12.024pt;;"><b>Investment Objective</b></span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Fund seeks capital appreciation by investing substantially all of its assets in Investment Funds managed by unaffiliated </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">third-party Investment Managers who primarily employ a variety of “absolute return” investment strategies in pursuit of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">attractive risk-adjusted returns (i.e., returns adjusted to take into account the volatility of those returns, as measured in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">manner described below) consistent with the preservation of capital. “Absolute return” refers to a broad class of investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">strategies that are managed without reference to the performance of equity, debt and other markets. “Absolute return” </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment strategies allow Investment Managers the flexibility to use leveraged or short-sale positions to take advantage of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">perceived inefficiencies across the global capital markets. These strategies are in contrast to the investment programs of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">“traditional” registered investment companies, such as mutual funds. “Traditional” investment companies are generally </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">characterized by long-only investments and limits on the use of leverage. Absolute return strategies can be contrasted with </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">“relative return strategies” which generally seek to outperform a corresponding benchmark equity or fixed income index. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Because Investment Funds following absolute return investment strategies (whether hedged or not) are often described as </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">“hedge funds,” the Fund’s investment program can be broadly referred to as a fund of hedge funds. The Fund measures the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">volatility of its returns by “standard deviation,” which is a measure of risk that represents the degree to which an investment’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">performance has varied from its average performance over a particular period. The obligations of the 1940 Act (and thus the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">protections thereunder), including limits on leverage, do not apply to Investment Funds.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Through the selection and ongoing monitoring of Investment Funds, the Fund seeks to achieve capital appreciation that may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">exhibit moderate correlation with certain global equity indices and aims not to be disproportionately influenced by the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">performance of any single Investment Fund. In addition, by investing in a number of Investment Funds that employ a variety of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">absolute return strategies, the Fund seeks to achieve the desired capital appreciation with lower volatility than likely would be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">achieved by investing with most individual Investment Funds. Investing in a number of Investment Funds involves additional </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">costs.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:12.024pt;;"><b>Investment Philosophy</b></span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Traditional registered investment companies, such as mutual funds, generally are subject to significant regulatory restrictions </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">in designing their own investment strategies relating to the use of leverage and the ability to sell securities short. As a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">registered investment company, the Fund is subject to such restrictions. By contrast, private, unregistered investment funds, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">such as the Investment Funds in which the Fund invests, are not subject to many of these limitations. The Adviser believes that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Fund’s strategy of investing substantially all of its assets in these types of Investment Funds creates opportunities to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">participate in alternative methods of investing that may earn attractive risk-adjusted returns.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Adviser intends to invest primarily in Investment Funds that employ the following strategies (among others), which are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">discussed in more detail below: inefficiencies in the relative pricing of securities (“relative value strategies”), Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Manager skill and expertise with respect to creating and combining long and short securities selection programs (“security </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">selection strategies”), inefficiencies in commercial financing markets (“specialist credit strategies”), long-term economic </span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trends (“global macro and CTA strategies”) and, on a more limited basis, Investment Manager predictions on the direction of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market prices (“directional strategies”). The Adviser believes that a portfolio of alternative investment strategies may produce </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">capital appreciation more consistently and with less volatility than would most individual traditional or alternative investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">strategies. The Adviser also believes that the success of an investment program developed around these principles, such as </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">that of the Fund, depends on the Adviser’s ability to successfully perform three key tasks: (1) discovering and developing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">access to attractive Investment Funds, (2) constructing a portfolio consisting of a number of such Investment Funds, and (3) </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">managing and monitoring the risks of the Fund’s investments in such Investment Funds.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Because alternative investment strategies may be risky, the Adviser believes it is prudent for the Fund to generally invest in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">these strategies through Investment Funds organized as limited partnerships or other vehicles providing limited liability to their </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investors. This structure limits the effect that losses incurred by any one Investment Fund will have on the assets of the Fund by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">limiting the Fund’s amount at risk to the amount invested in that Investment Fund. In certain circumstances, however, the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Adviser believes that it may be appropriate to gain investment exposure to certain Investment Funds by entering into </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">derivatives transactions, such as total return swaps, options and forwards. For example, to achieve investment returns </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">equivalent to those achieved by an Investment Manager in whose Investment Fund the Fund could not invest directly, perhaps </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">because of its high investment minimum or its unavailability for direct investment, the Fund may enter into one or more swap </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">agreements under which the Fund may agree, on a net basis, to pay a return based on a floating interest rate, and to receive </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the total return of the reference Investment Fund over a stated time period. See “Types of Investments and Related </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Risks—Special Investment Instruments and Techniques—Swap Agreements.” The Fund does not expect to gain more than 25% </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of its total investment exposure via such derivatives. The Fund’s investments in derivatives may involve significant economic </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">leverage and thus may, in some circumstances, involve significant risks of loss and increase the volatility of the Fund’s returns. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">These risks may increase dramatically during times where general access to credit is severely impaired (i.e., a “credit crunch”) </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and/or during general market turmoil, such as that experienced during late 2008 and during the crisis relating to COVID-19. See </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">“Types of Investments and Related Risks—Investment Related Risks—Leverage Utilized by the Fund.”</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:12.024pt;;"><b>Investment Strategies</b></span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Adviser intends to invest the assets of the Fund in Investment Funds that employ a variety of alternative investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">strategies. As noted above, the Investment Managers to these Investment Funds generally conduct their investment programs </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">through Investment Funds that have investors other than the Fund.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Some examples of the primary investment strategies that the Adviser considers with respect to the Fund are described below:</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Relative Value Strategies</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">—Relative value strategies focus on identifying and exploiting spread relationships between pricing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">components of financial assets or commodities, either with respect to single assets or commodities or groups of assets or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">commodities whose prices are deemed to move in relation to each other. These strategies seek to avoid assuming any outright </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market risk, although the risk of loss may be significant if the Investment Manager has incorrectly evaluated the nature or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">extent of the expected spread relationships or if unexpected intervening events affect these relationships. Examples of relative </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">value strategies include the following:</span></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Convertible Arbitrage Strategies</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">—Convertible arbitrage strategies seek to exploit anomalies in price relationships </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">between convertible securities and the securities into which they convert.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Merger Arbitrage Strategies</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">—Merger arbitrage strategies seek to exploit merger activity to capture the spread between </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">current market values of securities and their values after successful completion of a merger, restructuring, or similar </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">corporate transaction.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Mortgage Arbitrage Strategies</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> — Mortgage arbitrage strategies seek to generate both current income and capital </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">appreciation through a variety of long and short mortgage-related investment strategies.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Statistical Arbitrage Strategies</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">—Statistical arbitrage strategies seek to use systematic models to build long and short </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">portfolios of securities whose current prices are predicted to increase or decrease based on established statistical </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">relationships.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Other Arbitrage Strategies</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">—Other arbitrage strategies seek to exploit anomalies in price spreads between related or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">similar instruments. These strategies will typically include fixed income, capital structure, volatility, and mortgage-backed </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities arbitrage.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Security Selection Strategies</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">—Security selection strategies combine long positions and short sales with the aim of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">benefiting from the Investment Manager’s ability to select investments while offsetting some systematic market risks. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Market exposure can vary substantially, leading to a wide range of risk and return profiles. There is, in addition, no </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">guarantee that an Investment Manager will be able to minimize systematic or other risks effectively. Security selection </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">strategies are primarily, though not exclusively, equity-based, but they may also involve sovereign and corporate debt </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities. There are three primary categories of security selection strategies:</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Opportunistic Equity Strategies</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">—Opportunistic equity strategies seek to maintain varying degrees of directional exposure </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">(i.e., exposure to changes in securities’ values) to equity markets, based on the Investment Managers’ assessment of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market conditions and underlying company fundamentals. Core long holdings of some Investment Funds may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">concentrated, depending on the investment approach of the Investment Manager. Higher degrees of position </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">concentration and directional exposure have the potential for higher volatility of returns than less directional strategies. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">While some opportunistic equity strategies are diversified across industries, others are focused exclusively on certain </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">geographic regions or industries. Investments in specific geographic regions or industries may, at times, be subject to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">volatility greater than that of market indices. As a result, the returns of the Fund have the potential to experience volatility </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">higher than that of global equity indices.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>High Hedge Equity Strategies</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">—High hedge equity strategies seek to have limited or low net exposure to equity markets. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds may maintain short equity positions that attempt to mitigate a portion of the market exposure resulting </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">from the Investment Funds’ long equity positions. Although the net market exposure of the Investment Funds pursuing this </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">strategy may be lower than opportunistic equity strategies, the Investment Funds may be subject to significant exposures </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">at the security or industry level.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Activist Equity Strategies</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">—Activist equity strategies seek to accumulate concentrated positions in order to exert influence </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">on underlying company management with the objective of increasing shareholder value. The Investment Manager may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">work with the management team of the target company to design an alternate strategic plan and assist them in its </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">execution and may secure appointment of persons to the target company’s management team or board of directors. If </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">necessary, the Investment Manager may initiate shareholder actions (including those that may be opposed by the target </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">company’s management) seeking to maximize value, including corporate restructurings, share repurchases, management </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">changes, asset sales and/or divestitures. Investment Funds pursuing activist strategies will generally have significant </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market exposures at the security or industry level, taking minimal short positions, if any.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Specialist Credit Strategies</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">—Specialist credit strategies seek to lend to credit-sensitive issuers (generally below </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment grade, typically referred to as “junk” issuers). Their potential investment edge is derived from the Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Manager’s expected ability to perform a high level of due diligence and to take advantage of what the Investment Manager </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">discerns to be relatively inexpensive securities. The securities may be inexpensive due to regulatory anomalies or other </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">constraints on traditional lenders (e.g., disclosure rules and speed of decision-making processes). Risk of loss may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">significant if the Investment Manager’s credit judgments are incorrect. There are three distinct specialist credit strategies:</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Credit Trading Strategies</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">—Credit trading strategies seek exposure to credit-sensitive securities (whether long, short, or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">both) based on credit analysis of issuers and securities and on credit market views.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Distressed Securities Strategies</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">—Distressed securities strategies seek to invest in companies suffering financial distress. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">They seek capital appreciation and do not focus on the high-yield nature of the assets.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Private Placement Strategies</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">—Private placement strategies seek to make short-term private placements in companies, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">usually pursuant to Regulation D under the 1933 Act. Regulation D allows small firms to raise capital very quickly and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">relatively cheaply. Investment Managers seek to benefit from underpriced equity options often embedded in the financing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">transaction.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Directional Strategies</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">—Directional trading strategies are based on speculating on the direction of market prices of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">currencies, equities, bonds, and commodities in the futures and cash markets. Investment horizons vary considerably, but </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">a key characteristic of the strategies is that Investment Managers can normally reverse their market view as they see a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">situation unfold. Some Investment Managers may employ model-based systems to generate buy and sell signals. Others </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">use a more subjective approach, ultimately using their own discretionary judgment in implementing trades. Risk of loss </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may be significant if the Investment Manager’s judgment is incorrect as to the direction, timing, or extent of expected </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market moves. Strategies include without limitation macro trading, tactical asset allocations, and commodity trading </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">activities.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Global Macro and CTA Strategies</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">—Global macro and CTA strategies can be characterized as following long-term </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">economic trends. Global macro hedge funds can be classified as utilizing either a “systematic” approach, using </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">quantitative methods such as computer models and simulations in their trading strategies, or a “discretionary” approach, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">relying on manager discretion in their trading strategies. Global macro managers use price and volume information in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">conjunction with valuation information as inputs in their trading decisions. CTA strategies typically focus on managed </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">futures, either on their own or in combination with other derivatives, and can be classified as either long-term trend </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">followers or short-term managed future program styles. CTA managers primarily use price and volume information as </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">inputs in their trading decisions.</span></div>
</td>
</tr>
</table></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:12.024pt;;"><b>Investment Selection</b></span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Adviser is responsible for the allocation of assets to various Investment Funds, subject to policies adopted by the Board of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Trustees.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Adviser selects opportunistically from a wide range of Investment Funds in order to create a broad-based portfolio of such </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">funds while seeking to invest in compelling investment strategies and with promising Investment Managers at optimal times.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Adviser and its personnel use a wide range of resources to identify attractive Investment Funds and promising investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">strategies for consideration in connection with investments by the Fund. These resources include, but are not limited to, the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">experience of the Adviser’s personnel and their contacts with Investment Managers, academics and prime-broker groups; </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Morgan Stanley’s global network (subject to third-party confidentiality obligations, information barriers established by Morgan </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Stanley in order to manage potential conflicts of interest, and applicable allocation policies); conferences and seminars; </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">contacts with selected family offices and investors in other funds managed by the Adviser or its affiliates; academic journals </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and database research; and ideas generated from within the Adviser.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">To narrow the set of Investment Funds and investment strategies initially identified for consideration, the Adviser conducts </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">ongoing analysis of Investment Managers and investment strategies. The Adviser’s criteria include both quantitative measures </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">such as past performance and systematic risk exposures, to the extent that data is available; qualitative factors such as the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">reputation, experience and training of the Investment Manager; and the ability of the Investment Manager to articulate a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">coherent investment philosophy and risk control process.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Adviser expects that only a few Investment Funds will be deemed sufficiently interesting to warrant further review after </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the initial analysis. Following this analysis, the Adviser conducts extensive due diligence on the Investment Funds that it </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">considers likely to generate superior, risk-adjusted returns consistent with the Adviser’s views at that time as to both the most </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">attractive strategy types and the needs of the Fund’s existing portfolio. The due diligence process typically includes meetings </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">with the Investment Manager to seek to understand the Investment Manager’s investment strategy, investment philosophy and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">portfolio construction procedures. The due diligence process seeks to identify the types of securities and other instruments </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">held or techniques utilized and to confirm the presence of and adherence to an investment and risk control process. The due </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">diligence process also typically includes quantitative analysis of the investment strategy, including an analysis of past </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">performance history and risk factors.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">If the Adviser’s assessment of the abilities of the Investment Manager and the attractiveness of the investment strategy </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">employed by the Investment Manager are sufficiently positive, then further due diligence typically will be performed. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">additional diligence generally involves an analysis of the operational and legal structure of the Investment Fund and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">background investigations of the Investment Manager. The Investment Manager’s fee structure, the depth and quality of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Manager’s organization, the legal terms and conditions of the Investment Fund’s governing documents, the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">potential for developing and maintaining a long-term relationship with the Investment Manager and the likely alignment of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interests between the Investment Fund, its Investment Manager and the Fund are examples of factors that the Adviser typically </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investigates.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Adviser’s personnel have extensive experience and expertise with alternative investment strategies and Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Managers and have evaluated numerous Investment Funds representing many categories of alternative investments and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">utilizing various investment strategies. They also have extensive experience in directly managing alternative investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">strategies. The Adviser believes that this combination of evaluation expertise and direct investment experience enables it to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">understand the opportunities and risks associated with investing in the Investment Funds. For a more complete description of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the experience of the personnel of the Adviser who are principally responsible for the management of the Fund, see “The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Adviser.”</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:12.024pt;;"><b>Portfolio Construction</b></span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Adviser allocates Fund assets among the Investment Funds that, in its view, represent attractive investment opportunities. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Allocation depends on the Adviser’s assessment of the likely risks and returns of various investment strategies that the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds utilize and the likely correlation among the Investment Funds under consideration. The Adviser generally </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">seeks to invest substantially all of the Fund’s assets in Investment Funds whose expected risk-adjusted returns are deemed </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">attractive and likely to have limited correlations among each other or with fixed income or equity indices. The Adviser </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">periodically reallocates the Fund’s investments among Investment Funds in order to increase the Fund’s expected risk-adjusted </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">return.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">While the Fund is a “non-diversified” fund under the 1940 Act, the Adviser believes it is important to maintain a broad-based </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">portfolio in order to reduce the effect on the Fund of losses or poor returns by any one Investment Fund. There is no guarantee, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">however, that the Fund will be able to avoid substantial losses due to poor returns by an Investment Fund or that the Adviser’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">expectations regarding Investment Funds’ limited correlations among each other or with fixed income or equity indices will </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prove correct. The Adviser typically endeavors to limit the exposure to any one type of investment strategy to less than 35% of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Fund’s gross assets (measured over time and subject to underlying Investment Funds’ liquidity constraints) and to limit </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investments in any one Investment Fund to no more than 15% of the Fund’s gross assets (measured at the time of purchase). </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Adviser limits Fund investments in any one Investment Fund to less than 5% of such Investment Fund’s outstanding voting </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities. See “Types of Investments and Related Risks—Risks of Fund of Hedge Funds Structure—Investments in Non-Voting </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Stock; Inability to Vote.”</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds in which the Fund invests are not subject to the Fund’s investment restrictions and are generally not subject </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to any investment limitations under the 1940 Act or the Code (as hereinafter defined). Therefore, the Fund is not entitled to the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">protections of the 1940 Act with respect to the Investment Funds.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">For example, the Investment Funds are not required to, and may not, hold custody of their assets in accordance with the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">requirements of the 1940 Act. As a result, bankruptcy or fraud at institutions, such as brokerage firms, banks, or administrators, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">into whose custody those Investment Funds have placed their assets could impair the operational capabilities or the capital </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">position of the Investment Funds and may, in turn, have an adverse impact on the Fund.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">In response to adverse market, economic or political conditions, the Fund may invest temporarily in high quality fixed income </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities, money market instruments and affiliated or unaffiliated money market funds or may hold cash or cash equivalents </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">for temporary defensive purposes. In addition, the Fund may also make these types of investments pending the investment of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">assets in Investment Funds or to maintain the liquidity necessary to effect repurchases of Shares.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:12.024pt;;"><b>Leverage</b></span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Fund may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">use leverage to seek to achieve its investment objective. The Fund may incur leverage to the extent permitted </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">by the 1940 Act</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">. Specifically, the Fund may borrow money through a credit facility to fund investments in Investment Funds up </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to the limits of the Asset Coverage Requirement. The Fund may also borrow money through a credit facility to manage timing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">issues in connection with the acquisition of its investments (i.e., to provide the Fund with temporary liquidity to acquire </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investments in Investment Funds in advance of the Fund’s receipt of redemption proceeds from another Investment Fund).</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The 1940 Act requires a registered investment company to satisfy an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">asset coverage requirement of 300% of its indebtedness, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">including amounts borrowed, measured at the time the investment company incurs the indebtedness (the “</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Asset Coverage </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Requirement</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">”)</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">. This requirement means that the value of the investment company’s total indebtedness may not exceed </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">33 1/</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">3%</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> the value of its total assets (including the indebtedness). The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund’s borrowings will at all times be subject to the Asset </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Coverage Requirement. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">If at any time the Fund’s asset coverage for all borrowings falls below the minimum level required by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the 1940 Act, the Fund will decrease its borrowings to the extent required. To make such payments</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">, the Fund may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">be forced to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">sell portfolio securities when it is not otherwise advantageous to do so. The use of leverage by borrowing creates the potential </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">for greater gains to shareholders of the Fund during favorable market conditions and the risk of magnified losses during </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">adverse market conditions</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Fund may choose to increase or decrease, or eliminate entirely, its use of leverage over time and from time to time. In </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">addition, the Fund may borrow for temporary, emergency or other purposes as permitted by the 1940 Act. The Fund will </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">comply with the limitations on leverage imposed by the 1940 Act.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Leverage is a speculative technique that exposes the Fund to greater risk and increased costs than if it were not implemented. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Increases and decreases in the value of the Fund’s portfolio will be magnified when the Fund uses leverage. The use of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">leverage is subject to risks and would cause the Fund’s NAV to be more volatile than if leverage were not used. For example, a </span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">rise in short-term interest rates could lead to higher interest costs which could detract from the Fund’s return if the Fund were </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">using leverage versus if the Fund were not using leverage. A reduction in the Fund’s NAV may cause a reduction in the market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">price of its Shares. The use of leverage also may cause greater volatility in the level of the Fund’s market price and distributions </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">on the Shares.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">In addition to borrowing money, the Fund may also incur economic leverage via the use of derivatives. These instruments may, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">in some cases, involve significant risks of loss.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds may also utilize leverage</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">, including economic leverage,</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> in their investment activities. Borrowings by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds are not subject to the Asset Coverage Requirement. Accordingly, the Fund’s portfolio may be exposed to the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">risk of highly leveraged investment programs of certain Investment Funds and the volatility of the value of Shares may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">great, especially during times of a “credit crunch” and/or general market turmoil, such as that experienced during late 2008 </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and during the crisis relating to COVID-19. In general, the use of leverage by Investment Funds or the Fund may increase the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">volatility of the Investment Funds or the Fund. See “Types of Investments and Related Risks</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">-</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Related Risks</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">-</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Leverage Utilized by the Fund” and “Types of Investments and Related Risks</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">-</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Related Risks</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">-</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Leverage Utilized by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds.”</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:12.024pt;;"><b>Risk Management and Monitoring of Investments</b></span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">As noted above, unregistered investment funds typically have greater flexibility than traditional registered investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">companies as to the types of securities the unregistered funds hold, the types of trading strategies used, and, in some cases, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the extent to which leverage is used. The Investment Managers selected by the Fund have full discretion, without the Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">input, to purchase and sell securities and other investments for their respective Investment Funds consistent with the relevant </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment advisory agreements or governing documents of the Investment Funds. The Investment Funds are generally not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">limited in the markets in which they invest, either by location or type, such as U.S. or non-U.S., large capitalization or small </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">capitalization, or the investment discipline that they may employ, such as value or growth or bottom-up or top-down analysis. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">These Investment Funds may invest and trade in a wide range of securities and other financial instruments and may pursue </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">various investment strategies and techniques for both hedging and non-hedging purposes. Although the Investment Funds will </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">primarily invest and trade in equity and debt securities, they may also invest and trade in equity-related instruments, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">currencies, financial futures, debt-related instruments, and any other instruments that are deemed appropriate by the relevant </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Manager and permitted under the relevant Investment Fund’s governing documents. The Investment Funds may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">also sell securities short, purchase and sell option and futures contracts and engage in other derivatives transactions, subject to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">certain limitations described elsewhere in this Prospectus. The use of one or more of these techniques may be an integral part </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of the investment program of an Investment Fund and involves certain risks. The Investment Funds may use leverage, which </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">also entails risk. See “Types of Investments and Related Risks—Investment Related Risks—Leverage Utilized by Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Funds.”</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Adviser monitors the risks of individual Investment Funds and of the portfolio in the aggregate. The primary goal of this </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">process with respect to individual Investment Funds is to determine the degree to which the Investment Funds are performing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">as expected and to gain early insight into factors that might call for an increase or decrease in the allocation of the Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">assets among those Investment Funds. With respect to aggregate portfolio monitoring, the Adviser endeavors to monitor, to the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">best of its ability, the Fund’s aggregate exposures to various alternative investment strategies and to various aggregate risks. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Adviser may use futures, options, swaps or other instruments to balance the overall mix and/or manage risk, subject to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">certain limitations contained in the 1940 Act. Such derivatives may be based on various underlying instruments, including </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds, individual securities, securities indices or interest rates. Such derivatives entail certain risks. See “Types of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investments and Related Risks—Special Investment Instruments and Techniques.”</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Adviser monitors the operation and performance of an Investment Fund as frequently as the Adviser believes is </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">appropriate in light of the strategy followed by the Investment Manager and prevailing market conditions. The Adviser solicits </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">such information from the Investment Manager and other sources, such as prime brokers, that the Adviser deems necessary to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">properly assess the relative success or failure of an Investment Fund. Prime brokers typically are large full-service brokerages </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">that provide clients with research-related goods and services and support infrastructure to engage in various trading </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">strategies. Morgan Stanley, as prime broker, may be privy to non-public information about the performance of an Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund, which it generally would not disclose to the Adviser, the Fund or Shareholders without express permission to do so. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Accordingly, Shareholders may not know important information that could result in a deterioration in the Fund’s performance </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">notwithstanding that certain affiliates or entities within Morgan Stanley will have such information. The Adviser conducts </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">reviews with Investment Managers and the Adviser’s network and analyses of data. Changes in leverage, personnel, market </span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">behavior, expenses, litigation, capital resources, economic conditions and other factors may be monitored, as appropriate and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to the extent the information is available to the Adviser.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Based on the Adviser’s assessment of factors such as (i) the degree to which the Investment Manager is pursuing an investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">strategy consistent with its stated policy; (ii) whether and to what degree the focus, incentives and investment strategy of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Manager have changed; and (iii) whether the investment strategy employed remains consistent with the objectives </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of the Fund, the Adviser may periodically adjust the Fund’s allocations among Investment Funds.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Fund’s investment program entails substantial risks. There can be no assurances that the investment objectives of the Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">(including its risk monitoring goals) will be achieved, and results may vary substantially over time. The Fund may consider it </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">appropriate, subject to applicable laws and regulations, to utilize forward and futures contracts, options, swaps, other </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">derivative instruments, short sales, margin, or leverage in the Fund’s investment program. Such investment techniques can </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">substantially increase the adverse impact to which the Fund’s investment portfolio may be subject. See “Types of Investments </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and Related Risks—Special Investment Instruments and Techniques.”</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:19.247999999999998pt;;">Types of Investments and Related Risks</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:12.024pt;;"><b>General</b></span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The value of the Fund’s total net assets may be expected to fluctuate in response to fluctuations in the value of the Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Funds in which the Fund invests. Discussed below are the investments generally made by Investment Funds and, where </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">applicable, the Fund directly, and the principal risks that the Adviser and the Fund believe are associated with those </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investments. These risks will, in turn, have an effect on the Fund. The Fund invests substantially all its assets in Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Funds. The Fund’s direct investments generally are limited to derivative investments to gain exposure to certain Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Funds, such as total return swaps, options and futures. Additionally, in response to adverse market, economic or political </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">conditions, the Fund may invest temporarily in high quality fixed income securities, money market instruments and affiliated or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">unaffiliated money market funds or may hold cash or cash equivalents for temporary defensive purposes. In addition, the Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may also make these types of investments pending the investment of assets in Investment Funds or to maintain the liquidity </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">necessary to effect repurchases of Shares. When the Fund takes a defensive position or otherwise makes these types of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investments, it may not achieve its investment objective.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:12.024pt;;"><b>Investment Related Risks</b></span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>General Economic and Market Conditions.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The success of the Fund’s activities may be affected by general economic and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market conditions, such as interest rates, availability of credit, inflation rates, economic uncertainty, changes in laws, and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">national and international political circumstances. These factors may affect the level and volatility of security prices and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">liquidity of the Fund’s investments. Unexpected volatility or lack of liquidity, such as the general market conditions that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prevailed during the 2008 financial crisis and during the crisis relating to COVID-19, could impair the Fund’s profitability or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">result in its suffering losses.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Market and Geopolitical Risk.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The value of your investment in the Fund is based on the values of the Fund’s investments, which </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">change due to economic and other events that affect the U.S. and global markets generally, as well as those that affect or are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">perceived or expected to affect particular regions, countries, industries, companies, issuers, sectors, asset classes or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">governments. Price movements, sometimes called volatility, may be greater or less depending on the types of securities the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund, and the underlying Investment Funds in which the Fund invests, own and the markets in which the securities trade. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Volatility and disruption in financial markets and economies may be sudden and unexpected, expose the Fund to greater risk, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">including risks associated with reduced market liquidity and fair valuation, and adversely affect the Fund’s operations. For </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">example, the Adviser potentially will be prevented from executing investment decisions at an advantageous time or price as a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">result of any domestic or global market disruptions and reduced market liquidity may impact the Fund’s ability to sell securities </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to meet redemptions (i.e., increase the risk that the Fund will not be able to pay redemption proceeds within the allowable time </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">period). In addition, no active trading market may exist for certain investments held by the Fund, which may impair the ability of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Fund to sell or to realize the current valuation of such investments in the event of the need </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or decision </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to liquidate such </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">assets.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The increasing interconnectivity between global economies and markets increases the likelihood that events or conditions in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">one region or market may adversely impact other companies and issuers in a different country, region, sector, industry, market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or with respect to one company may adversely impact other companies and issuers, including those in a different country, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">region, sector, industry, or market. Securities in the Fund’s portfolio may underperform or otherwise be adversely affected due </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to inflation (or expectations for inflation), deflation (or expectations for deflation), interest rates (or changes in interest rates), </span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">global demand for particular products or resources, market or financial system instability or uncertainty, embargoes, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the threat </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and/or actual imposition of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">tariffs, sanctions and other trade barriers, natural disasters and extreme weather events, health </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">emergencies (such as epidemics and pandemics), terrorism, regulatory events and governmental or quasi-governmental </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">actions. The occurrence of global events similar to those in recent years, such as terrorist attacks, natural disasters, social and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">political (including geopolitical) discord and tensions or debt crises and downgrades, among others, may result in increased </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market volatility and may have long term effects on both the U.S. and global financial markets. Inflation rates may change </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">frequently and significantly because of various factors, including unexpected shifts in the domestic or global economy and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">changes in monetary or economic policies (or expectations that these policies may change). Changes in inflation rates or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">expected inflation rates may adversely affect market and economic conditions, an issuer’s financial condition, the Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investments and an investment in the Fund. The market price of debt securities generally falls as inflation increases because </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the purchasing power of the future income and repaid principal is expected to be worth less when received by the Fund. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">risk of inflation is greater for debt instruments with longer maturities and especially those that pay a fixed rather than variable </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest rate. Other financial, economic and other global market and social developments or disruptions may result in similar </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">adverse circumstances, and it is difficult to predict when similar events affecting the U.S. or global financial markets or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">economies may occur, the effects that such events may have and the duration of those effects (which may last for extended </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">periods). In general, the securities or other instruments that the Adviser believes represent an attractive investment opportunity </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or in which the Fund seeks to invest maybe unavailable entirely or in the specific quantities sought by the Fund. As a result, the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund may need to obtain the desired exposure through a less advantageous investment, forgo the investment at the time or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">seek to replicate the desired exposure through a derivative transaction or investment in another investment vehicle. Any such </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">event(s) could have a significant adverse impact on the value, liquidity and risk profile of the Fund’s portfolio, as well as its </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">ability to sell securities to meet redemptions. There is a risk that you may lose money by investing in the Fund.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and pandemics), terrorism, conflicts, social unrest, recessions, inflation, interest rate changes and supply chain disruptions, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">As global systems, economies and financial markets are increasingly interconnected, events that once had only local impact </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">are now more likely to have regional or even global effects. Events that occur in one country, region or financial market will, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">more frequently, adversely impact issuers in other countries, regions or markets. These impacts can be exacerbated by failures </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of governments and societies to adequately respond to an emerging event or threat. These types of events quickly and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">significantly impact markets in the U.S. and across the globe leading to extreme market volatility and disruption. The value of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Fund’s investment may decrease as a result of such events, particularly if these events adversely impact the operations </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and effectiveness of the Adviser or key service providers or if these events disrupt systems and processes necessary or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">beneficial to the investment advisory or other activities on behalf the Fund.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Highly Volatile Markets.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Financial markets may be highly volatile from time to time. The prices of commodities contracts and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">all derivative instruments, including futures and options, can be highly volatile. Price movements of forwards, futures and other </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">derivative contracts are influenced by, among other things, interest rates; changing supply and demand relationships; trade, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">fiscal, monetary and exchange control programs and policies of governments; and national and international political and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">economic events and policies. In addition, governments from time to time intervene, directly and by regulation, in certain </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">markets, particularly those in currencies, financial instruments, futures and options. Intervention often is intended directly to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">influence prices and may, together with other factors, cause all such markets to move rapidly in the same direction because of, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">among other things, interest rate fluctuations. An Investment Fund also is subject to the risk of the failure of any exchanges on </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which its positions trade, of their clearinghouses, of any counterparty to an Investment Fund’s transactions or of any service </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">provider to an Investment Fund (such as an Investment Fund’s “prime broker”). In times of general market turmoil, even large, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">well-established financial institutions may fail rapidly with little warning.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds are subject to the risk that trading activity in securities in which the Investment Funds invest may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">dramatically reduced or cease at any time, whether due to general market turmoil, problems experienced by a single issuer or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">a market sector or other factors. If trading in particular securities or classes of securities is impaired, it may be difficult for an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund to properly value any of its assets represented by such securities. For valuation risks to which Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Funds may be subject, see “Types of Investments and Related Risks—Risks of Fund of Hedge Funds Structure—Valuation.”</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Concerns</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> about political instability, questions about the strength and sustainability of the U.S. economic recovery, concerns </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">about the growing federal debt and slowing growth in China, are factors which continue to concern the financial markets and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">create volatility. The Fund may invest in Investment Funds that have substantial exposure to the securities of financial services </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">companies. Issuers that have exposure to the real estate, mortgage and credit markets may be particularly affected by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">subsequent adverse events affecting these sectors and general market turmoil. Moreover, legal or regulatory changes </span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">applicable to financial services companies may adversely affect such companies’ ability to generate returns and/or continue </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">certain lines of business. See “Other Risks—Regulatory Change.”</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Hedge funds may be forced to “deleverage” by selling large portions of their investments in a fairly short period of time in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">event of market turmoil (which may cause many financial services companies to reduce or terminate the credit they extend to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">hedge funds) or other adverse events (such as the conditions that occurred during the financial crisis). If an Investment Fund is </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">required to deleverage in such fashion, its returns will likely be substantially reduced, and it may be forced to liquidate entirely </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">if it cannot cover its outstanding indebtedness. See “Types of Investment and Related Risks—Investment Related </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Risks—Leverage Utilized by the Fund” and “Types of Investment and Related Risks—Investment Related Risks—Leverage </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Utilized by Investment Funds.” The Fund may take a position in Investment Funds that invest in the publicly traded and privately </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">placed equity or other securities of companies in the information technology and Internet sectors. These investments are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">subject to inherent market risks and fluctuations as a result of company earnings, economic conditions and other factors </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">beyond the control of the Adviser. The public equity markets have in the past experienced significant price volatility.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>General Risks of Securities Activities.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> All securities investing and trading activities risk the loss of capital. Although the Adviser </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">will attempt to moderate these risks, no assurance can be given that the Fund’s investment activities will be successful or that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Shareholders will not suffer losses. To the extent that the portfolio of an Investment Fund is concentrated in securities of a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">single issuer or issuers in a single industry, the risk of any investment decision made by the Investment Manager of such </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund is increased. Following below are some of the more significant specific risks that the Adviser and the Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">believe are associated with the Investment Funds’ styles of investing.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Equity Securities</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"><b>.</b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may hold long and short positions in common stocks, preferred stocks and convertible </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities of U.S. and non-U.S. issuers. Investment Funds also may invest in depositary receipts or shares relating to non-U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities. See “Types of Investment and Related Risks – Investment Related Risks – Non-U.S. Securities.” In general, prices of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">equity securities are more volatile than those of fixed income securities. U.S. and foreign stock markets, and equity securities of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">individual issuers, have experienced periods of substantial price volatility in the past and it is possible that they will do so again </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">in the future. The prices of equity securities fluctuate, sometimes rapidly or widely, in response to activities specific to the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">issuer of the security as well as factors unrelated to the fundamental condition of the issuer, including general market, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">economic, political and public health conditions. Investment Funds may purchase securities in all available securities trading </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">markets and may invest in equity securities without restriction as to market capitalization, such as those issued by smaller </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">capitalization companies, including micro cap companies. During periods when equity securities experience heightened </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">volatility, such as during periods of market, economic or financial uncertainty or distress, an Investment Fund’s investments in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">equity securities are subject to heightened risks during periods of market, economic or financial uncertainty or distress. See </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">“Smaller Capitalization Issuers.”</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The value of equity securities and related instruments decline in response to perceived or actual adverse changes in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">economy, economic outlook or financial markets; deterioration in investor sentiment; inflation, interest rate, currency, and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">commodity price fluctuations; adverse geopolitical, social or environmental developments; issuer- and sector-specific </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">considerations; unexpected trading activity among retail investors; and other factors. Market conditions affect certain types of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">equity securities to a greater extent than other types of equity securities. If the stock market declines, the value of an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund’s equity securities will also likely decline, which will result in a decrease in the value of your investment in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund. Although prices can rebound, there is no assurance that prices of an Investment Fund’s equity securities will </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">return to previous levels.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Bonds and Other Fixed Income Securities.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may invest in bonds and other fixed income securities, both U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and non-U.S., and may take short positions in these securities. Investment Funds will invest in these securities when they offer </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">opportunities for capital appreciation (or capital depreciation in the case of short positions) and may also invest in these </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities for temporary defensive purposes and to maintain liquidity. Fixed income securities include, among other securities: </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">bonds, notes and debentures issued by U.S. and non-U.S. corporations; debt securities issued or guaranteed by the U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Government or one of its agencies or instrumentalities (“U.S. government securities”) or by a non-U.S. government; municipal </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities; and mortgage-backed and asset-backed securities. These securities may pay fixed, variable or floating rates of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest, and may include zero coupon obligations. Fixed income securities are subject to the risk of the issuer’s inability to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">meet principal and interest payments on its obligations (i.e., credit risk) and are subject to price volatility resulting from, among </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">other things, interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity (i.e., </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market risk). The Investment Funds may face a heightened level of interest rate risk in times of monetary policy change and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">uncertainty, such as when the Federal Reserve Board adjusts a quantitative easing program and/or changes rates. The duration </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of a fixed income security is an attempt to quantify and estimate how much the security’s price can be expected to change in </span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">response to changing interest rates. For example, when the level of interest rates increases by 1%, a fixed income security </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">having a positive duration of four years generally will decrease in value by 4%; when the level of interest rates decreases by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">1%, the value of that same security generally will increase by 4%. Accordingly, securities with longer durations are likely to be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">more sensitive to changes in interest rates, generally making them more volatile than securities with shorter durations.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds may invest in fixed income securities rated investment grade or non-investment grade (commonly referred </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to as “high yield/high risk securities” or “junk bonds”) and may invest in unrated fixed income securities. Non-investment grade </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities are fixed income securities rated below Baa3 by one or more agencies, including Moody’s Investors Service, Inc. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">(“Moody’s”), below BBB by Standard & Poor’s Rating Group, a division of The McGraw-Hill Companies, Inc. (“S&P”), or the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">equivalent by another nationally recognized rating organization, or if unrated considered by an Investment Manager to be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">equivalent quality. Non-investment grade debt securities in the lowest rating categories or unrated debt securities determined </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to be of comparable quality may involve a substantial risk of default or may be in default. An Investment Fund’s investments in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">non-investment grade securities expose it to a substantial degree of credit risk. Non-investment grade securities are subject to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">greater risk of loss of income and principal than higher rated securities and may be considered speculative. Non-investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">grade securities may be issued by companies that are restructuring, are smaller and less creditworthy or are more highly </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">indebted than other companies, and therefore they may have more difficulty making scheduled payments of principal and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest. Non-investment grade securities may experience reduced liquidity, and sudden and substantial decreases in price. An </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">economic downturn affecting an issuer of non-investment grade debt securities may result in an increased incidence of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">default. In the event of a default, an Investment Fund may incur additional expenses to seek recovery. In addition, the market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">for lower grade debt securities may be thinner and less active than for higher grade debt securities. Fixed income securities are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">also susceptible to liquidity risk (i.e., the risk that certain investments may become difficult to purchase or sell).</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fixed income securities may experience reduced liquidity due to the lack of an active market and the reduced number and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">capacity of traditional market participants to make a market in fixed income securities, which may occur to the extent </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">traditional dealer counterparties that engage in fixed income trading do not maintain inventories of corporate bonds (which </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">provide an important indication of their ability to “make markets”) that keep pace with the growth of the bond markets over </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">time. Liquidity risk also may be magnified in times of monetary policy change and/or uncertainty, such as when the Federal </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Reserve Board adjusts quantitative easing program and/or changes rates, or other circumstances where investor redemptions </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">from fixed income mutual funds, exchange-traded funds or hedge funds may be higher than normal, causing increased supply </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">in the market due to selling activity.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Mortgage-Backed Securities.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may invest in mortgage-backed securities. The investment characteristics of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">mortgage-backed securities differ from those of traditional debt securities. Among the major differences are that interest and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">principal payments on mortgage-backed securities are made more frequently, usually monthly, and that principal may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prepaid at any time because the underlying mortgage loans generally may be prepaid at any time. Investments in mortgage-</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">backed securities are subject to the risk that if interest rates decline, borrowers may pay off their mortgages sooner than </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">expected, which may adversely affect an Investment Fund’s performance by forcing the Investment Fund to reinvest at a lower </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest rate. Prepayment rates can shorten or extended the average life of an Investment Fund’s mortgage securities. Rates of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prepayment which are faster or slower than anticipated by an Investment Manager may reduce yields, increase volatility and/</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or cause an Investment Fund to lose NAV. Mortgage-backed securities are also subject to extension risk, which is the risk that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">rising interest rates could cause mortgages or other obligations underlying the securities to be prepaid more slowly than </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">expected, thereby lengthening the duration of such securities, increasing their sensitivity to interest rate changes and causing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">their prices to decline. Further, particular investments may underperform relative to hedges that the Investment Funds may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">have entered into for these investments, resulting in a loss to the Investment Fund. In particular, prepayments (at par) may limit </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the potential upside of many mortgage-backed securities to their principal or par amounts, whereas their corresponding </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">hedges often have the potential for large losses.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Investment Funds may also invest in structured notes, variable rate mortgage-backed securities, including adjustable-rate </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">mortgage securities (“ARMs”), which are backed by mortgages with variable rates, and certain classes of collateralized </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">mortgage obligation (“CMO”) derivatives, the rate of interest payable under which varies with a designated rate or index. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">value of these investments is closely tied to the absolute levels of such rates or indices, or the market’s perception of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">anticipated changes in those rates or indices. This introduces additional risk factors related to the movements in specific </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">indices or interest rates that may be difficult or impossible to hedge, and which also interact in a complex fashion with </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prepayment risks.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Mortgage-backed securities are also subject to the risk of delinquencies on mortgage loans underlying such securities. An </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">unexpectedly high rate of defaults on the mortgages held by a mortgage pool may adversely affect the value of a mortgage-</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">backed security and could result in losses to an Investment Fund. So-called “subprime” mortgages (mortgage loans made to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">borrowers with weakened credit histories or with a lower capacity to make timely payments on their mortgages) have </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">experienced higher rates of delinquency in recent years. Increased mortgage delinquencies may adversely impact the market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">for mortgage-backed securities generally (including derivatives or other instruments linked to the value of such securities) and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">lead to turmoil in the credit markets generally, as happened in the period beginning in 2007. In particular, holders of mortgage-</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">backed securities may experience great difficulty in valuing such securities if there is a reduced market for mortgage-backed </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities (as happened during the same period). The risks associated with mortgage-backed securities typically become </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">elevated during periods of distressed economic, market, health and labor conditions. In particular, increased levels of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">unemployment, delays and delinquencies in payments of mortgage and rent obligations, and uncertainty regarding the effects </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and extent of government intervention with respect to mortgage payments and other economic matters may adversely affect </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Investment Funds’ investments in mortgage-backed securities. See “Types of Investments and Related Risks—Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Related Risks—Highly Volatile Markets” and “Types of Investments and Related Risks—Risks of Fund of Hedge Funds </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Structure—Valuation.”</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Non-U.S. Securities.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may invest in securities of non-U.S. issuers and in depositary receipts or shares (of both </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">a sponsored and non-sponsored nature), such as American Depositary Receipts, American Depositary Shares, Global </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Depositary Receipts or Global Depositary Shares (referred to collectively as “ADRs”), which represent indirect interests in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities of non-U.S. issuers. Sponsored depositary receipts are typically created jointly by a foreign private issuer and a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">depositary. Non-sponsored depositary receipts are created without the active participation of the foreign private issuer of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">deposited securities. As a result non-sponsored depositary receipts may be viewed as riskier than depositary receipts of a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">sponsored nature. Non-U.S. securities in which Investment Funds may invest may be listed on non-U.S. securities exchanges or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">traded in non-U.S. over-the-counter markets (“OTC”). Investments in non-U.S. securities are subject to risks generally viewed </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">as not present in the United States. These risks include: varying custody, brokerage and settlement practices; difficulty in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">pricing of securities; less public information about issuers of non-U.S. securities; less governmental regulation and supervision </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">over the issuance and trading of securities than in the United States; the lack of availability of financial information regarding a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">non-U.S. issuer or the difficulty of interpreting financial information prepared under non-U.S. accounting standards; less </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">liquidity and more volatility in non-U.S. securities markets; the possibility of expropriation or nationalization; the imposition of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">withholding and other taxes; adverse political, social or diplomatic developments; limitations on the movement of funds or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">other assets between different countries; difficulties in invoking legal process abroad and enforcing contractual obligations; </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and the difficulty of assessing economic trends in non-U.S. countries. In addition, investments in certain foreign markets, which </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">have historically been considered stable, may become more volatile and subject to increased risk due to ongoing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">developments and changing conditions in such markets. Moreover, the growing interconnectivity of global economies and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">financial markets has increased the probability that adverse developments and conditions in one country or region will affect </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the stability of economies and financial markets in other countries or regions. Governmental issuers of non-U.S. securities may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">also be unable or unwilling to repay principal and interest due, and may require that the conditions for payment be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">renegotiated. Investment in non-U.S. countries typically also involves higher brokerage and custodial expenses than does </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment in U.S. securities.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The risks associated with investing in non-U.S. securities may be greater with respect to those issued by companies located in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">emerging market or less developed countries, which are countries that major international financial institutions generally </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">consider to be less economically mature than developed nations, such as the United States or most nations in Western Europe. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Emerging market or developing countries may be more likely to experience political turmoil or rapid changes in economic </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">conditions than more developed countries, and the financial condition of issuers in emerging market or developing countries </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may be more precarious than in other countries. In addition, emerging market securities generally are less liquid and subject to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">wider price and currency fluctuations than securities issued in more developed countries. These characteristics result in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">greater risk of price volatility in emerging market or developing countries, which may be heightened by currency fluctuations </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">relative to the U.S. dollar. Additionally, companies in emerging market countries may be subject to less stringent requirements </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">regarding accounting, auditing, financial reporting and recordkeeping compared to those in more developed countries and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">therefore, material information related to an investment may not be available or reliable.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Certain foreign markets may rely heavily on particular industries or foreign capital and are more vulnerable to diplomatic </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">developments, the imposition of economic sanctions against a particular country or countries, organizations, companies, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">entities and/or individuals, changes in international trading patterns, trade barriers and other protectionist or retaliatory </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">measures. Economic sanctions could, among other things, effectively restrict or eliminate an Investment Fund’s ability to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">purchase or sell securities or groups of securities for a substantial period of time, and may make the Investment Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investments in such securities harder to value. International trade barriers or economic sanctions against foreign countries, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">organizations, companies, entities and/or individuals may adversely affect an Investment Fund’s foreign holdings or exposures. </span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investments in foreign markets may also be adversely affected by governmental actions such as the imposition of capital </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">controls, nationalization of companies or industries, expropriation of assets or the imposition of punitive taxes. Governmental </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">actions can have a significant effect on the economic conditions in foreign countries, which also may adversely affect the value </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and liquidity of an Investment Fund’s investments. For example, the governments of certain countries may prohibit or impose </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">substantial restrictions on foreign investing in their capital markets or in certain sectors or industries. In addition, a foreign </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">government may limit or cause delay in the convertibility or repatriation of its currency which would adversely affect the U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">dollar value and/or liquidity of investments denominated in that currency. Any of these actions could severely affect security </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prices, impair the Fund’s ability to purchase or sell foreign securities or transfer an Investment Fund’s assets back into the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">United States, or otherwise adversely affect the Investment Fund’s operations. Certain foreign investments may become less </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">liquid in response to market developments or adverse investor perceptions, or become illiquid after purchase by an Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund, particularly during periods of market turmoil. Certain foreign investments may become illiquid when, for instance, there </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">are few, if any, interested buyers and sellers or when dealers are unwilling to make a market for certain securities. When an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund holds illiquid investments, its portfolio may be harder to value or sell.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Short Sales.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> An Investment Fund may attempt to limit its exposure to a possible market decline in the value of its portfolio </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities through short sales of securities that its Investment Manager believes possess volatility characteristics similar to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">those being hedged. An Investment Fund may also use short sales for non-hedging purposes to pursue its investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">objectives if, in the Investment Manager’s view, the security is over-valued in relation to the issuer’s prospects for earnings </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">growth. Short selling is speculative in nature and, in certain circumstances, can substantially increase the effect of adverse </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">price movements on an Investment Fund’s portfolio. A short sale of a security involves the risk of an unlimited increase in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market price of the security that can in turn result in an inability to cover the short position and a theoretically unlimited loss. No </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">assurance can be given that securities necessary to cover an Investment Fund’s short position will be available for purchase.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">An Investment Fund may make “short sales against-the-box,” in which it will sell short securities it owns or has the right to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">obtain without payment of additional consideration. If an Investment Fund makes a short sale against-the-box, it will be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">required to set aside securities equivalent in kind and amount to the securities sold short (or securities convertible or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">exchangeable into those securities) and will be required to hold those securities while the short sale is outstanding. An </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund will incur transaction costs, including interest expenses, in connection with initiating, maintaining and closing-</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">out short sales against-the-box.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Other risks of investing in non-U.S. securities include the following:</span></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Non-U.S. Exchanges.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> An Investment Fund may trade, directly or indirectly, futures and securities on exchanges located </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">outside of the United States. Some non-U.S. exchanges, in contrast to U.S. exchanges, are “principal’s markets” in which </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">performance is solely the individual member’s responsibility with whom the Investment Fund has entered into a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">commodity contract and not that of an exchange or clearinghouse, if any. In the case of trading on non-U.S. exchanges, an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund will be subject to the risk of the inability of, or refusal by, the counterparty to perform with respect to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">contracts. Moreover, since there is generally less government supervision and regulation of non-U.S. exchanges, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">clearinghouses and clearing firms than in the United States, an Investment Fund is also subject to the risk of the failure of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the exchanges on which its positions trade or of their clearinghouses or clearing firms, and there may be a high risk of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">financial irregularities and/or lack of appropriate risk monitoring and controls.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Non-U.S. Government Securities.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> An Investment Fund’s non-U.S. investments may include debt securities issued or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">guaranteed by non-U.S. governments, their agencies or instrumentalities and supranational entities. An Investment Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may invest in debt securities issued by certain “supranational” entities, which include entities designated or supported by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">governments to promote economic reconstruction or development, international banking organizations and related </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">government agencies. An example of a supranational entity is the International Bank for Reconstruction and Development </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">(commonly referred to as the “World Bank”).</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:4pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment in sovereign debt of non-U.S. governments can involve a high degree of risk, including additional risks not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">present in debt obligations of corporate issues and the U.S. Government. Certain emerging market countries are among the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">largest debtors to commercial banks and foreign governments. The issuer or the governmental authority that controls the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">repayment of sovereign debt may be unable or unwilling to repay the principal and/or interest when due in accordance </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">with the terms of such obligations. Uncertainty surrounding the level and sustainability of sovereign debt of certain </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">countries that are part of the European Union, including Greece, Spain, Portugal, Ireland and Italy, has increased volatility in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the financial markets. In addition, a number of Latin American countries are among the largest debtors of developing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">countries and have a long history of reliance on foreign debt. Additional factors that may influence the ability or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">willingness to service debt include, but are not limited to, a country’s cash flow situation, the availability of sufficient </span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:1pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">foreign exchange on the date a payment is due, the relative size of the debt service burden to the economy as a whole, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the sovereign debtor’s or governmental entity’s policy toward international lenders, such as the International Monetary </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund, the World Bank and other multilateral agencies, the political constraints to which a governmental entity may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">subject, and changes in governments and political systems. A country whose exports are concentrated in a few </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">commodities or whose economy depends on certain strategic imports could be vulnerable to fluctuations in international </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prices of these commodities or imports. If a foreign sovereign obligor cannot generate sufficient earnings from foreign </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trade to service its external debt, it may need to depend on continuing loans and aid from foreign governments, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">commercial banks and multilateral organizations, and inflows of foreign investment. The commitment on the part of these </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">foreign governments, multilateral organizations and others to make such disbursements may be conditioned on the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">government’s implementation of economic reforms and/or economic performance and the timely service of its obligations. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Failure to implement such reforms, achieve such levels of economic performance or repay principal or interest when due </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may result in the cancellation of such third parties’ commitments to lend funds, which may further impair the foreign </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">sovereign obligor’s ability or willingness to timely service its debts.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:4pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">At certain times, certain countries (particularly emerging market countries) have declared moratoria on the payment of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">principal and interest on external debt. Governmental entities may also depend on expected disbursements from non-U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">governments, multilateral agencies and others to reduce principal and interest arrearages on their debt. The commitment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">on the part of these governments, agencies and others to make such disbursements may be conditioned on a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">governmental entity’s implementation of economic reforms and/or economic performance and the timely service of such </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">debtor’s obligations. Failure to implement such reforms, achieve such levels of economic performance or repay principal </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or interest when due may result in the cancellation of such third parties’ commitments to lend funds to the governmental </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">entity, which may further impair such debtor’s ability or willingness to service its debts in a timely manner. Consequently, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">governmental entities may default on their sovereign debt. Holders of sovereign debt (including the Fund) may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">requested to participate in the rescheduling of such debt and to extend further loans to governmental entities. There is not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">a formal legal process for collecting on a sovereign debt that a government does not pay or bankruptcy proceeding by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which all or a part of the sovereign debt that a governmental entity has not repaid may be collected. Periods of economic </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">uncertainty may result in the volatility of market prices of sovereign debt to a greater extent than the volatility inherent in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">debt obligations of other types of issues.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Currencies.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> One or more Investment Funds may invest a portion of its assets in non-U.S. currencies, or in instruments </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">denominated in non-U.S. currencies, the prices of which are determined with reference to currencies other than the U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">dollar. To the extent unhedged, the value of such Investment Fund’s assets will fluctuate with U.S. dollar exchange rates, as </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">well as the price changes of its investments in the various local markets and currencies. Thus, an increase in the value of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the U.S. dollar compared to the other currencies in which the Investment Fund makes its investments will reduce the effect </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of increases, and magnify the effect of decreases, in the prices of securities denominated in currencies other than the U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">dollar and held by the Investment Fund in such securities’ respective local markets. Conversely, a decrease in the value of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the U.S. dollar will have the opposite effect on the non-U.S. dollar securities of the Fund or such Investment Fund. In </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">addition, some governments from time to time impose restrictions intended to prevent capital flight, which may for </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">example involve punitive taxation (including high withholding taxes) on certain securities transfers or the imposition of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">exchange controls making it difficult or impossible to exchange or repatriate the local currency. Currency exchange rates </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">overall economic health of the issuer. Devaluation of a currency by a country’s government or banking authority will also </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">have a significant impact on the value of any investments denominated in that currency.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:4pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">An Investment Fund may also incur costs in connection with conversion between various currencies. In addition, certain </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds may be denominated in non-U.S. currencies. Subscription amounts contributed by the Fund for </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment in such an Investment Fund will be converted immediately by the relevant Investment Manager from U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Dollars into the applicable foreign currency at the then applicable exchange rate determined by and available to the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Manager. In certain cases, depending on the applicable circumstances, the exchange rate obtained by the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Manager may be less advantageous to the Fund than other rates available to the Fund directly.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:4pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">An Investment Fund may enter into foreign currency forward exchange contracts for hedging and non-hedging purposes </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">in pursuing its investment objective. Foreign currency forward exchange contracts are transactions involving an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund’s obligation to purchase or sell a specific currency at a future date at a specified price. Foreign currency </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">forward exchange contracts may be used by an Investment Fund for hedging purposes to protect against uncertainty in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the level of future non-U.S. currency exchange rates, such as when an Investment Fund anticipates purchasing or selling a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">non-U.S. security. This technique would allow the Investment Fund to “lock in” the U.S. dollar price of the security. Foreign </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">currency forward exchange contracts may also be used to attempt to protect the value of an Investment Fund’s existing </span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:1pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">holdings of non-U.S. securities. Imperfect correlation may exist, however, between an Investment Fund’s non-U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities holdings and the foreign currency forward exchange contracts entered into with respect to those holdings. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">precise matching of foreign currency forward exchange contract amounts and the value of the securities involved will not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">generally be possible because the future value of such securities in foreign currencies will change as a consequence of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market movements in the value of those securities between the date on which the contract is entered into and the date it </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">matures. There is additional risk that such transactions may reduce or preclude the opportunity for gain if the value of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">currency should move in the direction opposite to the position taken and that foreign currency forward exchange contracts </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">create exposure to currencies in which an Investment Fund’s securities are not denominated. Foreign currency forward </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">exchange contracts may be used for non-hedging purposes in seeking to meet an Investment Fund’s investment objective, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">such as when the Investment Manager to an Investment Fund anticipates that particular non-U.S. currencies will appreciate </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or depreciate in value, even though securities denominated in those currencies are not then held in the Investment Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment portfolio. The use of foreign currency forward exchange contracts involves the risk of loss from the insolvency </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or bankruptcy of the counterparty to the contract or the failure of the counterparty to make payments or otherwise comply </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">with the terms of the contract.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:4pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Generally, Investment Funds are subject to no requirement that they hedge all or any portion of their exposure to non-U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">currency risks, and there can be no assurance that hedging techniques will be successful if used.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>European Economic Risk.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> European financial markets have experienced volatility in recent years and have been adversely </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">affected by concerns about rising government debt levels, credit rating downgrades, and possible default on or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">restructuring of government debt. These events have affected the value and exchange rate of the euro. An Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund’s investments in euro-denominated (or other European currency-denominated) securities also entail the risk of being </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">exposed to a currency that may not fully reflect the strengths and weaknesses of the disparate European economies. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">governments of several member countries of the European Union (“EU”) have experienced large public budget deficits, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which have adversely affected the sovereign debt issued by those countries and may ultimately lead to declines in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">value of the euro. In addition, if one or more countries leave the EU or the EU dissolves, the world’s securities markets likely </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">will be significantly disrupted.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:4pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">It is possible that EU member countries that have already adopted the euro could abandon the euro and return to a national </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">currency and/or that the euro will cease to exist as a single currency in its current form. The effects of such an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">abandonment or a country’s forced expulsion from the euro on that country, the rest of the EU, and global markets are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">impossible to predict, but are likely to be negative. The exit of any country out of the euro would likely have an extremely </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">destabilizing effect on all Eurozone countries and their economies and negatively affect the global economy as a whole, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which may have substantial and adverse effects on one or more Investment Funds and thus the Fund. In addition, under </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">these circumstances, it may be difficult for an Investment Fund to value investments denominated in euros or in a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">replacement currency.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Leverage Utilized by the Fund.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Fund may incur leverage to the extent permitted by the 1940 Act. Specifically, the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund may borrow money through a credit facility to fund investments in Investment Funds up to the limits of the Asset </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Coverage Requirement. The Fund may also borrow money through a credit facility to manage timing issues in connection </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">with the acquisition of its investments (i.e., to provide the Fund with temporary liquidity to acquire investments in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds in advance of the Fund’s receipt of redemption proceeds from another Investment Fund). See </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">“Investment Program-Leverage.”</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:4pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The 1940 Act requires a registered investment company to satisfy an asset coverage requirement of 300% of its </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">indebtedness, including amounts borrowed, measured at the time the investment company incurs the indebtedness (the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">“Asset Coverage Requirement”). This requirement means that the value of the investment company’s total indebtedness </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may not exceed 33 1/3% the value of its total assets (including the indebtedness). The Fund’s borrowings will at all times </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">be subject to the Asset Coverage Requirement. If at any time the Fund’s asset coverage for all borrowings falls below the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">minimum level required by the 1940 Act, the Fund will decrease its borrowings to the extent required. To make such </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">payments, the Fund may be forced to sell portfolio securities when it is not otherwise advantageous to do so. The use of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">leverage by borrowing creates the potential for greater gains to shareholders of the Fund during favorable market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">conditions and the risk of magnified losses during adverse market conditions.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:4pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Fund may choose to increase or decrease, or eliminate entirely, its use of leverage over time and from time to time. In </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">addition, the Fund may borrow for temporary, emergency or other purposes as permitted by the 1940 Act. The Fund will </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">comply with the limitations on leverage imposed by the 1940 Act.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:4pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Leverage is a speculative technique that exposes the Fund to greater risk and increased costs than if it were not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">implemented. Increases and decreases in the value of the Fund’s portfolio will be magnified when the Fund uses leverage. </span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:1pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The use of leverage is subject to risks and would cause the Fund’s NAV to be more volatile than if leverage were not used. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">For example, a rise in short-term interest rates could lead to higher interest costs which could detract from the Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">return if the Fund were using leverage versus if the Fund were not using leverage. A reduction in the Fund’s NAV may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">cause a reduction in the market price of its Shares. The use of leverage also may cause greater volatility in the level of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund’s market price and distributions on the Shares.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:4pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">In addition to borrowing money, the Fund may also incur economic leverage via the use of derivatives. These instruments </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may, in some cases, involve significant risks of loss.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Leverage Utilized by Investment Funds.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Investment Funds may also utilize leverage in their investment activities. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Specifically, some or all of the Investment Funds may make margin purchases of securities and, in connection with these </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">purchases, borrow money from brokers and banks for investment purposes. Investment Funds that utilize leverage are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">subject to the same risks as the Fund with respect to its use of leverage as set forth above, and may also be subject to the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">following additional risks: Trading equity securities on margin involves an initial cash requirement representing at least a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">percentage of the underlying security’s value. Borrowings to purchase equity securities typically will be secured by the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">pledge of those securities. The financing of securities purchases may also be effected through reverse repurchase </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">agreements with banks, brokers and other financial institutions. In the event that an Investment Fund’s equity or debt </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">instruments decline in value, the Investment Fund could be subject to a “margin call” or “collateral call,” under which the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund must either deposit additional collateral with the lender or suffer mandatory liquidation of the pledged </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities to compensate for the decline in value. In the event of a sudden, precipitous drop in value of an Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund’s assets, the Investment Fund might not be able to liquidate assets quickly enough to pay off its borrowing. During the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">financial crisis of late 2008 and during the crisis relating to COVID-19, numerous hedge funds faced margin calls and were </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">required to sell large portions of their investments in rapid fashion so as to meet these calls. In addition, hedge funds may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">be forced to deleverage in a fairly short period of time in the event of market turmoil (which may cause many financial </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">services companies to reduce or terminate the credit they extend to hedge funds) or other adverse events (such as those </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">that occurred during the financial crisis). A substantial number of hedge funds could be forced to liquidate as a result. If an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund is required to deleverage in such fashion, its returns will likely be substantially reduced, and it may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">forced to liquidate entirely if it cannot meet its margin calls or otherwise cover its outstanding indebtedness. In addition, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">legal and regulatory changes applicable to hedge funds and/or financial services companies generally may either force </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds to deleverage or otherwise limit their ability to utilize leverage. See “Other Risks—Regulatory Change.”</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:4pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Asset Coverage Requirement does not apply to Investment Funds. Accordingly, the Fund’s portfolio may be exposed </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to the risk of highly leveraged investment programs of certain Investment Funds and the volatility of the value of Shares </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may be great.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:4pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">In seeking “leveraged” market exposure in certain investments and in attempting to increase overall returns, an Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund may purchase options and other synthetic instruments that may involve significant economic leverage and may, in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">some cases, involve significant risks of loss, especially in highly volatile market conditions such as those currently being </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">experienced.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Smaller Capitalization Issuers.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may invest in smaller capitalization companies, including micro cap </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">companies. Investments in smaller capitalization companies often involve significantly greater risks than the securities of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">larger, better-known companies because they may lack the management expertise, financial resources, product </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">diversification and competitive strengths of larger companies. The prices of the securities of smaller companies may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">subject to more abrupt or erratic market movements than those of larger, more established companies, as these securities </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">typically are less liquid, traded in lower volume and the issuers typically are more subject to changes in earnings and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prospects. In addition, when selling large positions in small capitalization securities, the seller may have to sell holdings at </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">discounts from quoted prices or may have to make a series of small sales over a period of time.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Distressed Securities.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Certain of the companies in whose securities the Investment Funds may invest may be in transition, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">out of favor, financially leveraged or troubled, or potentially troubled, and may be or have recently been involved in major </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">strategic actions, restructurings, bankruptcy, reorganization or liquidation. These characteristics of these companies can </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">cause their securities to be particularly risky, although they also may offer the potential for high returns. These companies’ </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities may be considered speculative, and the ability of the companies to pay their debts on schedule could be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">affected by adverse interest rate movements, changes in the general economic climate, economic factors affecting a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">particular industry or specific developments within the companies. These securities may also present a substantial risk of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">default. An Investment Fund’s investment in any instrument is subject to no minimum credit standard and a significant </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">portion of the obligations and preferred stock in which an Investment Fund may invest may be less than investment grade </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">(commonly referred to as junk bonds), which may result in the Investment Fund experiencing greater risks than it would if </span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:1pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investing in higher rated instruments.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Non-Diversified Status.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Fund is a “non-diversified” investment company for purposes of the 1940 Act, which means </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">that it is not subject to percentage limitations under the 1940 Act on the percentage of its assets that may be invested in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the securities of any one issuer. The Fund’s NAV may therefore be subject to greater volatility than that of an investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">company that is subject to such a limitation on diversification. The Fund will, however, endeavor to limit investments in any </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">one Investment Fund to no more than 15% of the Fund’s gross assets (measured at the time of purchase). An Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Manager may focus on a particular industry or industries, which may subject the Investment Fund, and thus the Fund, to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">greater risk and volatility than if investments had been made in issuers in a broader range of industries.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Reverse Repurchase Agreements.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Reverse repurchase agreements involve a sale of a security by an Investment Fund to a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">bank or securities dealer and the Investment Fund’s simultaneous agreement to repurchase the security for a fixed price </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">(reflecting a market rate of interest) on a specific date. These transactions involve a risk that the other party to a reverse </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">repurchase agreement will be unable or unwilling to complete the transaction as scheduled, which may result in losses to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Investment Fund. Reverse repurchase transactions are a form of leverage that may also increase the volatility of an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund’s investment portfolio.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Purchasing Initial Public Offerings.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Investment Funds may purchase securities of companies in initial public offerings </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or shortly after those offerings are complete. Special risks associated with these securities may include a limited number </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of shares available for trading, lack of a trading history, lack of investor knowledge of the issuer, and limited operating </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">history. These factors may contribute to substantial price volatility for the shares of these companies, and share prices for </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">newly-public companies have fluctuated substantially over short periods of time. Such volatility can affect the value of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund’s investment in Investment Funds that invest in these shares. The limited number of shares available for trading in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">some initial public offerings may make it more difficult for an Investment Fund to buy or sell significant amounts of shares </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">without an unfavorable effect on prevailing market prices. In addition, some companies in initial public offerings are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">involved in relatively new industries or lines of business, which may not be widely understood by investors. Some of these </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">companies may be undercapitalized or regarded as developmental stage companies, without revenues or operating </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">income, or the near-term prospects of achieving revenues or operating income. Initial public offerings may also produce </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">high, double digit returns. Such returns are highly unusual and may not be sustainable. In addition, an investment in an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">initial public offering may have a disproportionate impact on the performance of an Investment Fund that does not yet </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">have a substantial amount of assets. This impact on an Investment Fund’s performance may decrease as an Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund’s assets increase. Further, some companies that have recently undergone initial public offerings (particularly in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">technology sector) may be led by a single founder or a small number of founders. These founder-led companies may have </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">capital structures that give founders control over all or a substantial majority of the company’s voting stock even after the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">company’s initial public offering and as a result, give such founders the ability to control matters submitted to stockholders </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">for approval, including the election, removal, and replacement of directors and any merger, consolidation, or sale of all or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">substantially all of the company’s assets. As a corollary of those limited voting rights, investors in these founder-led </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">companies may therefore have less ability to influence the business decisions of such companies than with other publicly </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">traded companies. Founder-led companies also may be subject to heightened succession risk.</span>
</div>
</td>
</tr>
</table></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:12.024pt;;"><b>Special Investment Instruments and Techniques</b></span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds may utilize a variety of special investment instruments and techniques described below to hedge the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">portfolios of the Investment Funds against various risks, such as changes in interest rates or other factors that affect security </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">values, or for non-hedging purposes in seeking to achieve an Investment Fund’s investment objective. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Adviser, on behalf of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Fund, may also use these special investment instruments and techniques for either hedging or non-hedging purposes.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">These strategies may be executed through derivatives transactions. Instruments used and the particular manner in which they </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may be used may change over time as new instruments and techniques are developed or regulatory changes occur. Certain of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">these special investment instruments and techniques are speculative and involve a high degree of risk, particularly in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">context of non-hedging transactions.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Derivatives.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Fund, and some or all of the Investment Funds, may invest in, or enter into, derivatives or derivatives </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">transactions. Derivatives are financial instruments whose value is based, at least in part, on the value of an underlying asset, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest rate, index or financial instrument. Prevailing interest rates and volatility, among other things, also affect the value of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">derivatives. Derivatives entered into by an Investment Fund or the Fund can be volatile and involve various types and degrees </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of risk, depending upon the characteristics of a particular derivative and the portfolio of the Investment Fund or the Fund as a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">whole. Derivatives often have risks similar to their underlying assets and may have additional risks, including imperfect </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain </span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest rates to which they relate, risks that the transactions may not be liquid and risks arising from leverage in derivatives, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">initial and variation margin and settlement payment requirements, mispricing or valuation complexity, and operational and legal </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">issues. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">portfolio investments. Derivatives may permit an Investment Manager or the Adviser to increase or decrease the level of risk of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">an investment portfolio, or change the character of the risk, to which an investment portfolio is exposed in much the same way </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">as the manager can increase or decrease the level of risk, or change the character of the risk, of an investment portfolio by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">making direct investments in specific securities or other instruments. Derivatives may entail investment exposures that are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">greater than their cost would suggest, meaning that a small investment in derivatives could have a large potential effect on the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">performance of an Investment Fund or the Fund. The Adviser’s use of derivatives may include total return swaps, options and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">futures designed to replicate the performance of a particular Investment Fund or an Investment Fund’s underlying investments </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">(for example, where an Investment Fund is concentrated in a given sector). The Adviser may enter into these types of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">derivatives for a wide array of purposes, including where, for example, an Investment Fund in which the Fund would like to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">invest does not have sufficient capacity for a direct investment on the part of the Fund. The Adviser may also enter into </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">derivatives to increase or otherwise adjust market or risk exposure generally. The Fund does not expect to gain more than 25% </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of its total market exposure via such derivatives.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">If an Investment Fund or the Fund invests in derivatives at inopportune times or incorrectly judges market conditions, the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investments may lower the return of the Investment Fund or the Fund or result in a loss. A decision as to whether, when and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">how to use derivatives involves the exercise of skill and judgment and even well-conceived derivatives transactions may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">unsuccessful because of market behavior or unexpected events. An Investment Fund or the Fund also could experience losses </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">if derivatives are poorly correlated with its other investments, or if the Investment Fund or the Fund is unable to liquidate a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">derivatives position because of an illiquid secondary market. The market for many derivatives is, or suddenly can become, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">illiquid. Changes in liquidity may result in significant, rapid and unpredictable changes in the prices for derivatives.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Options and Futures.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Fund and the Investment Funds may utilize options and futures contracts and so-called “synthetic” </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">options (a combination of instruments that in the aggregate create the payoff exposure of a desired option) or other derivatives </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">sold (or “written”) by swap dealers, broker-dealers or other permissible financial intermediaries. Options transactions may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">effected on securities exchanges, futures clearing houses or in the OTC market. When options are purchased OTC, the Fund or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Investment Fund’s portfolio bears the risk that the counterparty that wrote the option will be unable or unwilling to perform </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">its obligations under the option contract. Options may also be illiquid and, in such cases, the Fund or an Investment Fund may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">have difficulty closing out its position. OTC options also may include options on baskets of specific securities, indices or other </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">financial assets or instruments.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Fund and the Investment Funds may purchase call and put options on specific securities, indices or other financial assets or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">instruments, and may write and sell covered or uncovered call and put options for hedging and non-hedging purposes in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">pursuing the investment objectives of the Fund or the Investment Funds. A put option gives the purchaser of the option the right </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to sell, and obligates the writer to buy, the underlying security or other asset at a stated exercise price, typically at any time </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prior to the expiration of the option. A call option gives the purchaser of the option the right to buy, and obligates the writer to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">sell, the underlying security or other asset at a stated exercise price, typically at any time prior to the expiration of the option. A </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">covered call option on a security is a written call option with respect to which the seller of the option owns the underlying </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">security or places cash or liquid securities in a segregated account on the books of or with a custodian in an amount equal to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the notional value of the underlying security less the amount of the premium received to fulfill the obligation undertaken. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">sale of such an option exposes the seller during the term of the option to possible loss of opportunity to realize appreciation in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the market price of the underlying security above the exercise price plus the amount of the premium received or to possible </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">continued holding of a security that might otherwise have been sold at a profit or to protect against depreciation in the market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">price of the security. A covered put option is a written put option with respect to which the Fund has sold short the underlying </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">security or to which cash or liquid securities have been placed in a segregated account on the books of or with a custodian in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">an amount equal to the exercise price less the amount of the premium received to fulfill the obligation undertaken (the latter, a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">“cash-covered put”). The sale of such an option exposes the seller during the term of the option to a decline in price of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">underlying security below the exercise price less the amount of the premium received while depriving the seller of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">opportunity to invest the segregated assets.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Fund and the Investment Funds may close out a position when buying or writing options by selling or purchasing an option </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">on the same security with the same exercise price and expiration date as the option that it has previously purchased or written </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">on the security. In such a case, the Fund or the Investment Fund will realize a profit or loss if the amount paid to purchase (or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">received to sell) an option is less (or more) than the amount received from the corresponding sale (or purchase) of the option.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds may enter into futures contracts in U.S. markets or on exchanges located outside the United States. Non-U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">markets may offer advantages such as trading opportunities or arbitrage possibilities not available in the United States. Non-</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">U.S. markets, however, may have greater risk potential than U.S. markets. In addition, any profits realized could be eliminated </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">by adverse changes in the relevant currency exchange rate, or the Fund or an Investment Fund could incur losses as a result of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">those changes. Transactions on non-U.S. exchanges may include both futures contracts that are traded on U.S. exchanges and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">those that are not. Unlike trading on U.S. futures exchanges, trading on non-U.S. exchanges is not regulated by the U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Commodity Futures Trading Commission (“CFTC”).</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Engaging in transactions in futures contracts involves risk of loss to the Fund or the Investment Fund that could adversely affect </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the value of the Fund’s net assets. No assurance can be given that a liquid market will exist for any particular futures contract at </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">any particular time. There is also the risk of loss by the Fund of margin deposits in the event of bankruptcy of a broker (known </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">as a “futures commission merchant” or “FCMs”) with which the Fund or an Investment Fund has open positions in one or more </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">futures contracts. Many futures exchanges and boards of trade limit the amount of fluctuation permitted in futures contract </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prices during a single trading day. Once the daily limit has been reached in a particular contract, no trades may be made that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">day at a price beyond that limit or trading may be suspended for specified periods during the trading day. Futures contract </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prices could move to the limit for several consecutive trading days with little or no trading, preventing prompt liquidation of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">futures positions and potentially subjecting the Fund or the Investment Funds to substantial losses. Successful use of futures </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">also is subject to the Adviser’s or an Investment Manager’s ability to predict correctly movements in the direction of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">relevant market, and, to the extent the transaction is entered into for hedging purposes, to determine the appropriate </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">correlation between the transaction being hedged and the price movements of the futures contract.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Commodity Futures Contracts and Options.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may invest in commodity futures contracts and options thereon. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Trading in commodity interests may involve substantial risks. The low margin or premiums normally required in such trading </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may provide a large amount of leverage, and a relatively small change in the price of a security or contract can produce a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">disproportionately larger profit or loss. There is no assurance that a liquid secondary market will exist for commodity futures </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">contracts or options purchased or sold, and an Investment Fund may be required to maintain a position until exercise or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">expiration, which could result in losses. Futures positions may be illiquid because, for example, most U.S. commodity </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">exchanges limit fluctuations in certain futures contract prices during a single day by regulations referred to as “daily price </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">fluctuation limits” or “daily limits.” Once the price of a contract for a particular futures contract has increased or decreased by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">an amount equal to the daily limit, positions in the futures contract can neither be taken nor liquidated unless traders are willing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to effect trades at or within the limit. Futures contract prices on various commodities or financial instruments occasionally have </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">reached the daily limit for several consecutive days with little or no trading. Similar occurrences could prevent an Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund from promptly liquidating unfavorable positions and could subject such Investment Fund and, therefore, the Fund to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">substantial losses. In addition, Investment Funds may not be able to execute futures contract trades at favorable prices if </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trading volume in such contracts is low. It is also possible that an exchange or the CFTC may suspend trading in a particular </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">contract, order immediate liquidation and settlement of a particular contract, or order that trading in a particular contract be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">conducted for liquidation only.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Trading in commodity futures contracts and options is a highly specialized activity which may entail greater than ordinary </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment or trading risks. The price of stock index futures contracts may not correlate perfectly with the movement in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">underlying stock index because of certain market distortions. First, all participants in the futures market are subject to initial </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">margin and variation margin requirements. Rather than meeting additional margin requirements, investors may close out </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">futures contracts through offsetting transactions which would distort the normal relationship between the index and futures </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">markets. Second, from the point of view of speculators, the margin requirements in the futures market are typically less </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">onerous than margin requirements in the securities market. Therefore, increased participation by speculators in the futures </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market also may cause temporary price distortions. Successful use of stock index futures contracts by an Investment Fund also </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">is subject to its Investment Manager’s ability to predict correctly movements in the direction of the market. Regulatory </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">developments affecting the exchange-traded and OTC derivatives markets may impair an Investment Fund’s, ability to manage </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or hedge its investment through the use of derivatives.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Under CFTC regulations, FCMs are required to maintain a client’s assets in a segregated account. If a FCM used by an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund fails to properly segregate, the Investment Fund may be subject to a risk of loss of the margin on deposit with </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the FCM in the event of the FCM’s bankruptcy. In addition, under certain circumstances, such as the inability of another client of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the FCM or the FCM itself to satisfy substantial deficiencies in such other client’s account, the Investment Fund may be subject </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to a risk of loss of its margin on deposit with its FCM, even if such margin funds are properly segregated. In the case of any </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">such bankruptcy or other client loss, the Investment Fund might recover, even in respect of property specifically traceable to </span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Investment Fund, only a pro rata share of all property available for distribution to all of the FCM’s clients, and the Fund may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">suffer a loss as a result.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Non-U.S. Futures Transactions.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may invest in non-U.S. futures contracts and in options thereon. Non-U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">futures transactions involve executing and clearing trades on a non-U.S. exchange. This is the case even if the non-U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">exchange is formally “linked” to a U.S. exchange, whereby a trade executed on one exchange liquidates or establishes a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">position on the other exchange. No U.S. organization regulates the activities of a non-U.S. exchange, including the execution, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">delivery, and clearing of transactions on such an exchange, and no U.S. regulator has the power to compel enforcement of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">rules of the non-U.S. exchange or the laws of non-U.S. countries. Moreover, such laws or regulations will vary depending on the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">country in which the transaction occurs. For these reasons, Investment Funds which trade on non-U.S. exchanges may not be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">afforded certain of the protections which apply to U.S. commodity futures transactions, including the right to use U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">alternative dispute resolution procedures. In particular, funds received from Investment Funds to margin non-U.S. futures </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">transactions may not be provided the same protections as funds received to margin futures transactions on U.S. exchanges. In </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">addition, the price of any non-U.S. futures or option contract, and therefore, the potential profit and loss resulting therefrom, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may be affected by any fluctuation in the foreign exchange rate between the time the order is placed and the non-U.S. futures </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">contract is liquidated or the non-U.S. option contract is liquidated or exercised.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Possible Effects of Speculative Position Limits.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The CFTC and the U.S. commodities exchanges have established limits </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">referred to as “speculative position limits” on the maximum net long or short speculative futures positions that any person may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">hold or control in certain derivatives traded on U.S. commodities exchanges. All accounts owned or managed by a commodity </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trading advisor, its principals and their affiliates generally will be combined for position limit purposes. Because futures position </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">limits allow a commodity trading advisor, its principals and their affiliates to control only a limited number of contracts in any </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">one commodity, the Adviser and each Investment Manager and their principals and affiliates are potentially subject to a conflict </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">among the interests of all accounts the Investment Manager and its principals and their affiliates control which are competing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">for shares of that limited number of contracts. Although each Investment Manager may be able to achieve the same or similar </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">performance results with OTC substitutes for futures contracts (except as described below), the OTC market may be subject to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">differing prices, lesser liquidity and greater counterparty credit risks than the U.S. exchange-traded market. Each Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Manager may be required to reduce the size or number of positions that would otherwise be held for an Investment Fund or not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trade in certain markets on behalf of the Investment Fund in order to avoid exceeding such limits. Modification of trades that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">would otherwise be made by an Investment Fund, if required, could adversely affect the Investment Fund’s operations and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">profitability. A violation of speculative position limits by the Adviser or an Investment Manager could lead to regulatory action </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">materially adverse to an Investment Fund’s prospects for profitability.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Periodically, the CFTC and exchanges change the position limits to which futures, options on futures and some swaps are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">subject. To the extent these contracts are traded, the Fund may be constrained by how many contracts it may trade. The CFTC </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">has also modified the bona fide hedging exemption for which certain swap dealers were previously eligible, which could limit </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the amount of speculative OTC transaction capacity each such swap dealer would have available for an applicable Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The speculative position limits of the CFTC and U.S. commodities exchanges are subject to change. Any new or additional </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">position limits imposed on an Investment Manager, its principals and affiliates may impact the Investment Fund’s ability to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">invest in a manner that most efficiently meets its investment objective.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Forward Trading.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Forward contracts and options thereon, unlike futures contracts, are not traded on exchanges and are not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">standardized; rather, banks and other swap dealers act as principals in these markets, negotiating each transaction on an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">individual basis. Forward trading is less regulated than futures trading: There is no limitation on daily price movements, and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">speculative position limits are currently not applicable. The principals who deal in the forward markets are not required to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">continue to make markets in the currencies or commodities they trade, and these markets can experience periods of illiquidity, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">sometimes of significant duration. There have been periods during which certain participants in these markets have refused to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">quote prices for certain currencies or commodities or have quoted prices with an unusually wide spread between the price at </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which they were prepared to buy and that at which they were prepared to sell. Disruptions can occur in any market traded by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Managers because of unusually high trading volume, political intervention, or other factors. The imposition of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">controls by governmental authorities might also limit such forward trading to less than that which the Investment Managers </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">would otherwise recommend, to the possible detriment of the Fund. Market illiquidity or disruption could result in major losses </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to the Fund. In addition, Investment Funds in which the Fund has an interest may be exposed to credit risks with regard to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">counterparties with whom the Investment Managers trade, as well as risks relating to settlement default. Such risks could result </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">in substantial losses to the Fund. To the extent possible, the Adviser will endeavor to select Investment Funds having </span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Managers which it believes will deal only with counterparties which are creditworthy and reputable institutions, but </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">such counterparties may not be rated investment grade.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Call and Put Options on Securities Indices.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Fund or Investment Funds may purchase and sell call and put options on stock </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">indices listed on national securities exchanges or traded in the OTC market for hedging purposes and non-hedging purposes in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">seeking to achieve the investment objectives of the Fund or the Investment Funds. A stock index fluctuates with changes in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market values of the stocks in the index. Successful use of options on stock indexes will be subject to the Adviser’s or an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Manager’s ability to predict correctly movements in the direction of the stock market generally or of a particular </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">industry or market segment, which requires different skills and techniques from those involved in predicting changes in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">price of individual stocks.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Warrants and Rights.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may invest in warrants and rights. Warrants are instruments that permit, but do not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">obligate, their holder to subscribe for other securities or commodities. Rights are similar to warrants, but normally have a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">shorter duration and are offered or distributed to shareholders of a company. Warrants and rights do not carry with them the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">right to dividends or voting rights with respect to the securities that they entitle the holder to purchase, and they do not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">represent any interest in the assets of the issuer. As a result, warrants and rights may be considered more speculative than </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">certain other types of equity-like securities. In addition, the values of warrants and rights do not necessarily change with the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">values of the underlying securities or commodities and these instruments cease to have value if they are not exercised prior to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">their expiration dates.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Swap Agreements.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Fund or an Investment Fund may enter into OTC swap contracts or cleared swap transactions, which </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">include equity, interest rate, and index and currency rate swap agreements. These transactions will be undertaken in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">attempting to obtain a particular return when it is considered desirable to do so, possibly at a lower cost than if the Fund or an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund had invested directly in the asset that yielded the desired return. An OTC swap contract is an agreement </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">between two parties pursuant to which the parties exchange payments at specified dates on the basis of a specified notional </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">amount, with the payments calculated by reference to specified securities, indices, reference rates, currencies or other assets </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or instruments. In a standard OTC swap transaction, two parties agree to exchange the returns (or differentials in rates of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">return) earned or realized on particular predetermined reference investments or instruments, which may be adjusted for an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest factor. The amounts to be exchanged or “swapped” between the parties are generally calculated with respect to a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">“notional amount,” that is, the return on or increase in value of a particular dollar amount invested at, for example, a particular </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest rate, in a particular non-U.S. currency, or in a “basket” of reference securities representing a particular index. Most </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">swap agreements entered into by the Fund or an Investment Fund require the calculation of the obligations of the parties to the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">agreements on a “net basis.” Consequently, current obligations (or rights) under a swap agreement generally will be equal only </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to the net amount to be paid or received under the agreement based on the relative values of the positions held by each party </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to the agreement (the “net amount”). If the other party to a swap defaults, the Fund’s or the Investment Fund’s risk of loss </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">consists of the net amount of payments that the Fund or the Investment Fund contractually is entitled to receive. Although the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">terms of a swap may provide for termination rights, there can be no assurance that an Investment Fund will be able to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">terminate the swap. To achieve investment returns equivalent to those achieved by an Investment Manager in whose </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund the Fund could not invest directly, perhaps because of its investment minimum or its unavailability for direct </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment, the Fund may enter into one or more swap agreements under which the Fund may agree, on a net basis, to pay a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">return based on a floating interest rate, and to receive the total return of the reference Investment Fund over a stated time </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">period. The Fund may seek to achieve the same investment result through the use of other derivatives in similar circumstances. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The U.S. federal income tax treatment of swap agreements and other derivatives as described above is unclear. Swap </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">agreements and other derivatives used in this manner may be treated as a “constructive ownership of the reference property,” </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which may result in all or a portion of any long-term capital gain being treated as ordinary income. Cleared swap transactions </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">held may help reduce counterparty credit risk. In a cleared swap, the Fund’s or an Investment Fund’s ultimate counterparty is a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">clearinghouse rather than a swap dealer, bank or other financial institution. OTC swap agreements are generally not entered </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">into or traded on exchanges and often there is no central clearing or guaranty function for swaps. These OTC swaps are often </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">subject to credit risk or the risk of default or nonperformance by the counterparty. Certain swaps have begun trading on </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">exchanges called swap execution facilities. Exchange trading is expected to increase liquidity of swaps trading. Both OTC and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">cleared swaps could result in losses if interest rates, foreign currency exchange rates or other factors are not correctly </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">anticipated by the Fund or Investment Fund or if the reference index, security or investments do not perform as expected. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and related regulatory developments </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">require the clearing and exchange-trading of certain standardized swap transactions. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Swaps subject to mandatory central </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">clearing must be traded on an exchange or swap execution facility unless no exchange or swap execution facility “makes the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">swap available to trade.”</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Fund or an Investment Fund may pay fees or incur costs each time it enters into, amends or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">terminates a swap agreement.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Lending Portfolio Securities.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may lend their securities to brokers, dealers and other financial institutions </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">needing to borrow securities to complete certain transactions. The lending Investment Fund continues to be entitled to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">payments in amounts equal to the interest, dividends or other distributions payable in respect of the loaned securities, which </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">affords the Investment Fund an opportunity to earn interest on the amount of the loan and on the loaned securities’ collateral. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">In connection with any such transaction, the Investment Fund will receive collateral consisting of cash, U.S. government </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities or irrevocable letters of credit that will be maintained at all times in an amount equal to at least 100% of the current </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market value of the loaned securities. An Investment Fund might experience loss if the institution with which the Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund has engaged in a portfolio loan transaction breaches its agreement with the Investment Fund.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>When-Issued and Forward Commitment Securities.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may purchase securities on a “when-issued” basis and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may purchase or sell securities on a “forward commitment” basis in order to hedge against anticipated changes in interest </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">rates and prices. These transactions involve a commitment by an Investment Fund to purchase or sell securities at a future date </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">(ordinarily one or two months later). The price of the underlying securities, which is generally expressed in terms of yield, is </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">fixed at the time the commitment is made, but delivery and payment for the securities takes place at a later date. No income </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">accrues on securities that have been purchased pursuant to a forward commitment or on a when-issued basis prior to delivery </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to the Investment Fund. When-issued securities and forward commitments may be sold prior to the settlement date. If an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund disposes of the right to acquire a when-issued security prior to its acquisition or disposes of its right to deliver </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or receive against a forward commitment, it may incur a gain or loss. The risk exists that securities purchased on a when-issued </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">basis may not be delivered and that the purchaser of securities sold by an Investment Fund on a forward basis will not honor its </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">purchase obligation. In such cases, an Investment Fund may incur a loss.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Restricted and Illiquid Investments.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Although the Adviser anticipates that most Investment Funds will invest primarily in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">publicly traded securities, they may invest a portion of the value of their total assets in restricted securities and other </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investments that are illiquid. Restricted securities are securities that may not be sold to the public without an effective </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">registration statement under the 1933 Act or that may be sold only in a privately negotiated transaction or pursuant to an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">exemption from registration.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">When registration is required to sell a security, an Investment Fund may be obligated to pay all or part of the registration </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">expenses, and a considerable period may elapse between the decision to sell and the time the Investment Fund may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">permitted to sell a security under an effective registration statement. If adverse market conditions developed during this </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">period, an Investment Fund might obtain a less favorable price than the price that prevailed when the Investment Fund decided </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to sell. Investment Funds may be unable to sell restricted and other illiquid securities at the most opportune times or at prices </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">approximating the value at which they purchased the securities. The Fund’s interests in Investment Funds are themselves </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">illiquid and subject to substantial restrictions on transfer.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Fund’s ability to liquidate an interest in an Investment Fund will likely be limited. The Fund is subject to certain Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Funds’ initial lock-up periods beginning at the time of the Fund’s initial investment in an Investment Fund, during which the Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may not withdraw its investment. In addition, certain Investment Funds may at times elect to suspend completely or limit </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">withdrawal rights for an indefinite period of time in response to market turmoil or other adverse conditions (such as those </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">experienced by many hedge funds for a period of time commencing in late 2008 and during the crisis relating to COVID-19). </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds may also assess fees for redemptions or other withdrawals. The limited liquidity of these Investment Funds’ </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interests may adversely affect the Fund were it to have to sell or redeem such interests at an inopportune time. The Fund may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">need to suspend or postpone repurchase offers if it is not able to dispose of its interests in Investment Funds in a timely </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">manner.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Private companies, especially private technology companies, in the early phases of their life cycle may rely on projected rapid </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">growth of their revenues and/or user base for a substantial portion of their current valuation. Such projections may assume that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">current levels of rapid growth rate will continue for an extended period. If this projected growth rate were to slow substantially, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the value of such companies’ shares may be adversely affected.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Private companies have no obligation to become public or otherwise pursue an exit strategy that would allow existing investors </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to readily dispose of their interests or exit the investment. Even if such a company intends to pursue an exit strategy, the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">planned exit strategy may be impaired or delayed indefinitely depending on market circumstances or other factors beyond </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">their control.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Some of the Investment Funds may hold a portion of their assets in “side pockets,” which are sub-accounts within the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds in which certain assets (which generally are illiquid and/or hard to value) are held and segregated from the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund’s other assets until some type of realization event occurs. Side pockets thus have restricted liquidity, </span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">potentially extending over a much longer period than the typical liquidity an investment in the Investment Funds may provide. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Should the Fund seek to liquidate its investment in an Investment Fund that maintains these side pockets, the Fund might not be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">able to fully liquidate its investment without delay, which could be considerable. In such cases, until the Fund is permitted to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">fully liquidate its interest in the Investment Fund, the value of its investment in such Investment Fund could fluctuate based on </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">adjustments to the fair value of the side pocket as determined by the Investment Manager. In addition, if an Investment Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">establishes a side pocket prior to the Fund’s investing in the Investment Fund, the Fund may not be exposed to the performance </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of the Investment Fund’s assets held in the side pocket.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Counterparty Credit Risk.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Many of the markets in which the Fund and the Investment Funds effect their transactions are OTC or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">“interdealer” markets. With the exception of certain counterparties such as OTC swap dealers, the participants in these </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">markets are typically not subject to credit evaluation and regulatory oversight as are members of “exchange-based” markets. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">To the extent the Fund or an Investment Fund invests in swaps, other derivatives or synthetic instruments, or other OTC </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">transactions in these markets, the Fund or Investment Fund may take credit risk with regard to parties with which it trades and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">also may bear the risk of payment or settlement default. These risks may differ materially from those involved in exchange-</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">traded transactions, which generally are characterized by clearing organization guarantees, daily marking-to-market and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">settlement, and segregation and minimum capital requirements applicable to intermediaries. Transactions entered into directly </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">between two counterparties generally do not benefit from these protections and require separately negotiated documentation, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which in turn may subject the Fund to the risk that a counterparty will not margin or settle a transaction in accordance with its </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">terms and conditions because of a dispute over the terms of the contract or because of a credit or liquidity problem. Such </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">“counterparty risk” is increased for contracts with longer maturities when events may intervene to prevent settlement. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">ability of the Fund and the Investment Funds to transact business with any one or any number of counterparties, the lack of any </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">independent evaluation of the counterparties or their financial capabilities, and the absence of a regulated market to facilitate </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">settlement, may increase the potential for losses by the Fund. In addition, the Fund and the Investment Funds are subject to the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">risk that a counterparty may be unable to settle a transaction due to such counterparty’s insolvency, inability to access </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">sufficient credit, or other business factors.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Fixed Income and Convertible Bond Arbitrage.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Fixed income arbitrage is an investment strategy which involves taking </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">opposite positions in the market with respect to a bond in an effort to profit from small price discrepancies while limiting </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest rate risk. Convertible bond arbitrage involves a similar concept with respect to convertible securities, in which an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investor purchases convertible securities while simultaneously selling short the issuer’s common stock in an effort to profit </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">from a potential inefficiency in the value of a convertible security relative to the issuer’s common stock. The success of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment activities of an Investment Fund involved in fixed income and convertible bond arbitrage will depend on the ability </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of the Investment Fund to identify and exploit price discrepancies in the market. Identification and exploitation of market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">opportunities involve uncertainty. No assurance can be given that the Investment Fund will be able to locate investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">opportunities or to exploit price discrepancies correctly. A reduction in the pricing inefficiency of the markets in which the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund will seek to invest will reduce the scope for the investment strategies of the Investment Fund. In the event that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the perceived mispricings underlying the positions of the Investment Fund were to fail to materialize as expected by the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund, the Investment Fund could incur a loss. Fixed income and convertible bond arbitrage strategies often involve </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">substantial amounts of leverage in an effort to reap large returns from small inefficiencies. If an Investment Fund utilizes </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">substantial leverage in implementing such strategies, the impact on the volatility of, as well as the potential loss to, the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund and thus the Fund, could accordingly be substantial.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Other Instruments and Future Developments.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> An Investment Fund may take advantage of opportunities in the area of swaps, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">options on various underlying instruments, and certain other customized “synthetic” or derivative instruments, which will be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">subject to varying degrees of risk. In addition, an Investment Fund may take advantage of opportunities with respect to certain </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">other “synthetic” or derivative instruments which are not presently contemplated, or which are not presently available, but </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which may be developed and which may be subject to significant degrees of risk.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:12.024pt;;"><b>Risks of Fund of Hedge Funds Structure</b></span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Investment Funds are not registered as investment companies under the 1940 Act. The Fund, as an investor in these </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds, does not have the benefit of the protections afforded by the 1940 Act to investors in registered investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">companies. Although the Adviser periodically receives information from each Investment Fund regarding its investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">performance and investment strategy, the Adviser may have little or no means of independently verifying this information. An </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund may use proprietary investment strategies that are not fully disclosed to the Adviser, which may involve risks </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">under some market conditions that are not anticipated by the Adviser. Investment Managers may change their investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">strategies (i.e., may experience style drift) at any time. In addition, the Fund and the Adviser have no control over the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds’ investment management, brokerage, custodial arrangements or operations and must rely on the experience </span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and competency of each Investment Manager in these areas. The performance of the Fund depends on the success of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Adviser in selecting Investment Funds for investment by the Fund and the allocation and reallocation of Fund assets among </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">those Investment Funds.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Investment Funds typically do not maintain their securities and other assets in the custody of a bank or a member of a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities exchange, as generally required of registered investment companies. It is anticipated that the Investment Funds in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which the Fund invests generally will maintain custody of their assets with brokerage firms which do not separately segregate </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">such customer assets as required in the case of registered investment companies. Under the provisions of the Securities </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investor Protection Act of 1970, as amended, the bankruptcy of any such brokerage firm could have a greater adverse effect </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">on the Fund than would be the case if custody of assets were maintained in accordance with the requirements applicable to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">registered investment companies. There is also a risk that an Investment Manager could convert assets committed to it by the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund for its own use or that a custodian could convert assets committed to it by an Investment Manager to its own use.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">For the Fund to complete its tax reporting requirements and provide an audited annual report to Shareholders, it must receive </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">timely information from the Investment Funds. Investment Managers typically experience delays in providing the necessary tax </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">information, thereby causing a delay in the Adviser’s preparation of tax information for investors. This delay will require </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Shareholders to seek extensions on the time to file their tax returns.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> An investor in the Fund meeting the eligibility conditions </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">imposed by the Investment Funds, including minimum initial investment requirements that may be substantially higher than </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">those imposed by the Fund, could invest directly in the Investment Funds. By investing in the Investment Funds via the Fund, an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investor in the Fund bears a portion of the Adviser’s Management Fee and other expenses of the Fund, and also indirectly bears </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">a portion of the asset-based fees, incentive fees and other expenses borne by the Fund as an investor in the Investment Funds. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Each Investment Manager receives any incentive-based fees to which it is entitled irrespective of the performance of the other </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds and the Fund generally. As a result, an Investment Manager with positive performance may receive </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">compensation from the Fund, in the form of the asset-based fees, incentive-based fees and other expenses payable by the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund as an investor in the relevant Investment Fund, even if the Fund’s overall returns are negative. Investment decisions of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds are made by the Investment Managers independently of each other so that, at any particular time, one </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund may be purchasing shares in an issuer that at the same time are being sold by another Investment Fund. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Transactions of this sort could result in the Fund directly or indirectly incurring certain transaction costs without accomplishing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">any net investment result, which may result in the pursuit of opposing investment strategies or result in performance that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">correlates more closely with broader market performances. Because the Fund may make additional investments in or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">redemptions from Investment Funds only at certain times according to limitations set out in the governing documents of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds, the Fund from time to time may have to invest some of its assets temporarily in money market securities or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">money market funds, among other similar types of investments.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds may permit or require that redemptions of interests be made in kind. Upon its redemption of all or a portion </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of its interest in an Investment Fund, the Fund may receive securities that are illiquid or difficult to value. In such a case, the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Adviser would seek to cause the Fund to dispose of these securities in a manner that is in the best interest of the Fund. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund may not be able to withdraw from an Investment Fund except at certain designated times, limiting the ability of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Adviser to redeem assets from an Investment Fund that may have poor performance or for other reasons.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Other risks that the Adviser believes are associated with the Fund’s fund of hedge funds investment approach include:</span></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Development and Implementation of Global Macro Trading Systems.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Managers may implement global macro </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment strategies via quantitative trading. In that connection, Investment Managers may employ quantitatively-based </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">financial/analytical trading systems to aid in the selection of investments for an Investment Fund, to allocate investments </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">across various asset classes and types and to determine the risk profile of the Investment Fund. The use of these trading </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">systems in an Investment Fund’s investment and trading activities involves special risks, both in the development of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trading systems and in their implementation. The accuracy of the trading signals (i.e., indicators of when a trade may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">desirable) produced by the trading systems is dependent on a number of factors, including without limitation the analytical </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and mathematical foundation of the trading systems, the accurate incorporation of such principles in a complex technical </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and coding environment, the quality of the data introduced into the trading systems and the successful deployment of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trading systems’ output into the investment process. Software development and implementation errors and other types of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trading system or human errors are an inherent risk of employing complex quantitatively-based trading systems in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment and trading processes. Trading systems may operate or be operated erroneously. Such errors may result in, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">among other things, the execution of unanticipated trades, the failure to execute anticipated trades, the failure to properly </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">gather and organize available data, and/or the failure to take certain hedging or risk reducing actions. These errors, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">including errors that appear in software codes from time to time, may be very hard to detect, may go undetected for long </span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:1pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">periods of time, or may never be detected. The degradation or impact caused by errors may be compounded over time. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Such errors could, at any time, have a material adverse effect on the performance of an Investment Fund.</span>
</div>
</td>
</tr>
</table></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Other risks of such trading systems include:</span></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Trading Systems with Discretion.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Although an Investment Fund’s global macro trading strategies may be reliant on </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">technology, discretionary decisions may be used on occasion within trading systems. There may be some trading systems </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">where discretionary decisions are a large component of the trading system. Trade opportunities within such a trading </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">system may be subject to qualitative scrutiny and modification or approval by Investment Managers before execution. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Such discretionary trading decisions or modifications require the exercise of judgment by the Investment Managers. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Managers may, at times, decide to modify or not to make certain trades recommended by a trading system. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Additionally, in an attempt to improve results and/or achieve other specified objectives, certain Investment Managers have </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the ability, under certain circumstances, to delay trading or to execute trades on behalf of an Investment Fund that are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">either not derived from any one of the trading systems or are based on instructions from the Investment Manager. There </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">can be no assurance that the Investment Managers have or will correctly evaluate the nature and magnitude of the various </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">factors that could affect the value of and return on the Investment Fund’s investments. Prices of the Investment Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investments may be volatile and a variety of factors that are inherently difficult to predict may significantly affect the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">results of the Investment Fund’s, and thus the Fund’s, activities and the value of its investments.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Effectiveness of Trading Systems.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The success of an Investment Fund’s investment and trading activities will depend, to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">some degree, on the effectiveness of the Investment Manager’s trading systems. There can be no assurance that the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trading systems are currently effective or, if currently effective, that they will remain effective during the existence of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund. Trading systems are generally back-tested, to the extent practicable, prior to implementation on the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">basis of historical data. For example, event driven strategies may not be capable of being back-tested. Even if all of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">assumptions underlying the trading systems were met exactly, the trading systems can only make a prediction, not afford </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">certainty. Changes in underlying market conditions can adversely affect the performance of trading systems. There is no </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">guarantee that such trading systems will continue to be effective in changing market conditions, and past performance is </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">no indication of future performance or returns. Further, most statistical procedures cannot fully match the complexity of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the financial markets and, as such, results of their application are uncertain. Because the financial markets are constantly </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">evolving, most trading systems eventually require replacement or enhancement. There is no guarantee that such </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">replacement or enhancement will be implemented on a timely basis or that it will be successful. The use of a trading </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">system that is not effective or not completely effective could, at any time, have a material adverse effect on the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">performance of an Investment Fund and thus the Fund.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Technological Failures.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The successful deployment of an Investment Fund’s trading systems, the implementation and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">operation of these trading systems and any future trading systems, and various other critical activities of the Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Managers could be severely compromised by unforeseeable software or hardware malfunction and other technological </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">failures, power loss, software bugs and errors, malicious code such as “worms,” viruses, or “system crashes,” fire or water </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">damage, or various other events or circumstances either within or beyond the Investment Manager’s control. Software </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">bugs and errors, in particular, and their ensuing risks are an inherent part of technology-based analytics, systems and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">models. Any event that interrupts an Investment Manager’s computer and/or telecommunications operations could result </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">in, among other things, the inability to establish, modify, liquidate, or monitor the Investment Fund’s investments and, for </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">those and other reasons, could have a material adverse effect on the operating results, financial condition, activities and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prospects of the Investment Fund and thus the Fund.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Valuation.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Certain securities and other financial instruments in which the Investment Funds invest may not have a readily </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">ascertainable market price and will be fair valued by the Investment Managers. Such a valuation generally will be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">conclusive with respect to the Fund, even though an Investment Manager may face a conflict of interest in valuing the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities, as their value will affect the Investment Manager’s compensation. In most cases, the Adviser will have no ability </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to assess the accuracy of the valuations received from an Investment Fund. In addition, the NAVs or other valuation </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">information received by the Adviser from the Investment Funds will typically be estimates only, subject to revision through </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the end of each Investment Fund’s annual audit. Revisions to the gain and loss calculations will be an ongoing process, and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">no net capital appreciation or depreciation figure can be considered final until the annual audit of each Investment Fund is </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">completed.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Securities Believed to Be Undervalued or Incorrectly Valued.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> An Investment Manager may invest in securities that an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Manager believes are fundamentally undervalued or incorrectly valued, but such securities may not ultimately </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">be valued in the capital markets at prices and/or within the timeframe the Investment Manager anticipates. As a result, the </span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:1pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund may lose all or substantially all of its investment in an Investment Fund in any particular instance.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Investment Funds’ Turnover Rates.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Investment Funds may invest on the basis of short-term market considerations. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The turnover rate within the Investment Funds may be significant, potentially involving substantial brokerage commissions </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and fees. The Fund has no control over this turnover. As a result, it is anticipated that a significant portion of the Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">income and gains, if any, may be derived from ordinary income and short-term capital gains. In addition, the redemption </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">by the Fund of its interest in an Investment Fund could involve expenses to the Fund under the terms of the Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment with that Investment Fund.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Investment Managers May Have Limited Capacity to Manage Additional Fund Investments.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Certain Investment Managers’ </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trading approaches presently can accommodate only a certain amount of capital. Each Investment Manager will normally </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">endeavor not to undertake to manage more capital than such Investment Manager’s approach can accommodate without </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">risking a potential deterioration in returns. As a result, an Investment Manager may refuse to manage some or all of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund’s assets that the Adviser seeks to allocate to such Investment Manager. Further, in the case of Investment Managers </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">that limit the amount of additional capital that they will accept from the Fund, continued sales of Shares would dilute the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">indirect participation of existing Shareholders with such Investment Manager.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Dilution.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> If an Investment Manager limits the amount of capital that may be contributed to an Investment Fund from the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund, or if the Fund declines to purchase additional interests in an Investment Fund, continued sales of interests in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund to others may dilute the returns for the Fund from the Investment Fund.</span>
</div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:9pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;align:left;valign:top;"> </td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:0pt;width:98%;padding-left:0pt;text-align:left;align:left;vertical-align:top;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Investments in Non-Voting Stock; Inability to Vote.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may, consistent with applicable law, not disclose the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">contents of their portfolios. This lack of transparency may make it difficult for the Adviser to monitor whether holdings of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Investment Funds cause the Fund to be above specified levels of ownership in certain asset classes. To avoid adverse </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">regulatory consequences in such a case, the Fund may need to hold its interest in an Investment Fund in non-voting form. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Additionally, in order to avoid becoming subject to certain 1940 Act prohibitions with respect to affiliated transactions, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which are designed to protect registered investment companies, such as the Fund, from transactions which involve </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">overreaching by affiliates, the Fund intends to own less than 5% of the voting securities of each Investment Fund. This </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">limitation on owning voting securities is intended to ensure that an Investment Fund is not deemed an “affiliated person” of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Fund for purposes of the 1940 Act, which may, among other things, potentially impose limits on transactions with the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds, both by the Fund and other clients of the Adviser. To limit its voting interest in certain Investment Funds, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Fund may enter into contractual arrangements under which the Fund irrevocably waives its rights (if any) to vote its </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest in an Investment Fund. The Fund will not receive any consideration in return for entering into a voting waiver </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">arrangement. Other investment funds or accounts managed by the Adviser may also waive their voting rights in a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">particular Investment Fund. Subject to the oversight of the Fund’s Board of Trustees, the Adviser will decide whether to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">waive such voting rights and, in making these decisions, will consider the amounts (if any) invested by the Adviser in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">particular Investment Fund. These voting waiver arrangements may increase the ability of the Fund to invest in certain </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds. However, to the extent the Fund contractually forgoes the right to vote the securities of an Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund, the Fund will not be able to vote on matters that require the approval of the interest holders of the Investment Fund, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">including matters adverse to the Fund’s interests. This restriction could diminish the influence of the Fund in an Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund, as compared to other investors in the Investment Fund (which could include other investment funds or accounts </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">managed by the Adviser, if they do not waive their voting rights in the Investment Fund), and adversely affect the Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment in the Investment Fund, which could result in unpredictable and potentially adverse effects on Shareholders. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">There are, however, other statutory tests of affiliation (such as on the basis of control), and, therefore, the prohibitions of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the 1940 Act with respect to affiliated transactions could apply in some situations where the Fund owns less than 5% of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">voting securities of an Investment Fund. In these circumstances, transactions between the Fund and an Investment Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may, among other things, potentially be subject to the prohibitions of Section 17 of the 1940 Act notwithstanding that the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund has entered into a voting waiver arrangement.</span>
</div>
</td>
</tr>
</table></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:12.024pt;;"><b>Repurchase Risks</b></span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">With respect to any future repurchase offer, Shareholders tendering any Shares for repurchase must do so by a date specified </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">in the notice describing the terms of the repurchase offer (the “Notice Date”). The Notice Date generally will be 95 days prior to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the date as of which the Shares to be repurchased are valued by the Fund (the “Valuation Date”). Tenders will be revocable </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">upon written notice to the Fund up to 85 days prior to the Valuation Date. Shareholders that elect to tender any Shares for </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">repurchase will not know the price at which such Shares will be repurchased until the Fund’s NAV as of the Valuation Date is </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">able to be determined, which determination is expected to be able to be made only late in the month following that of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Valuation Date. It is possible that during the time period between the Expiration Date and the Valuation Date, general economic </span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and market conditions, or specific events affecting one or more underlying Investment Funds, could cause a decline in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">value of Shares in the Fund. Moreover, because the Notice Date will be substantially in advance of the Valuation Date, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Shareholders who tender Shares of the Fund for repurchase will receive their repurchase proceeds well after the Notice Date. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">In addition, the Fund is subject to certain Investment Funds’ initial lock-up periods beginning at the time of the Fund’s initial </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment in an Investment Fund, during which the Fund may not withdraw its investment. In addition, certain Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Funds may at times elect to suspend completely or limit withdrawal rights for an indefinite period of time in response to market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">turmoil or other adverse conditions (such as those experienced by many hedge funds for a period of time commencing in late </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">2008 and during the crisis relating to COVID-19). During such periods, the Fund thus may not be able to liquidate its holdings in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">such Investment Funds in order to meet repurchase requests. In addition, should the Fund seek to liquidate its investment in an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund that maintains a side pocket, the Fund might not be able to fully liquidate its investment without delay, which </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">could be considerable. The Fund may need to suspend or postpone repurchase offers if it is not able to dispose of its interests </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">in Investment Funds in a timely manner. See “Repurchases and Transfers of Shares.”</span></div>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>General Economic and Market Conditions.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The success of the Fund’s activities may be affected by general economic and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market conditions, such as interest rates, availability of credit, inflation rates, economic uncertainty, changes in laws, and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">national and international political circumstances. These factors may affect the level and volatility of security prices and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">liquidity of the Fund’s investments. Unexpected volatility or lack of liquidity, such as the general market conditions that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prevailed during the 2008 financial crisis and during the crisis relating to COVID-19, could impair the Fund’s profitability or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">result in its suffering losses.</span>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Market and Geopolitical Risk.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The value of your investment in the Fund is based on the values of the Fund’s investments, which </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">change due to economic and other events that affect the U.S. and global markets generally, as well as those that affect or are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">perceived or expected to affect particular regions, countries, industries, companies, issuers, sectors, asset classes or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">governments. Price movements, sometimes called volatility, may be greater or less depending on the types of securities the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund, and the underlying Investment Funds in which the Fund invests, own and the markets in which the securities trade. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Volatility and disruption in financial markets and economies may be sudden and unexpected, expose the Fund to greater risk, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">including risks associated with reduced market liquidity and fair valuation, and adversely affect the Fund’s operations. For </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">example, the Adviser potentially will be prevented from executing investment decisions at an advantageous time or price as a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">result of any domestic or global market disruptions and reduced market liquidity may impact the Fund’s ability to sell securities </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to meet redemptions (i.e., increase the risk that the Fund will not be able to pay redemption proceeds within the allowable time </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">period). In addition, no active trading market may exist for certain investments held by the Fund, which may impair the ability of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Fund to sell or to realize the current valuation of such investments in the event of the need </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or decision </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to liquidate such </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">assets.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The increasing interconnectivity between global economies and markets increases the likelihood that events or conditions in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">one region or market may adversely impact other companies and issuers in a different country, region, sector, industry, market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or with respect to one company may adversely impact other companies and issuers, including those in a different country, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">region, sector, industry, or market. Securities in the Fund’s portfolio may underperform or otherwise be adversely affected due </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to inflation (or expectations for inflation), deflation (or expectations for deflation), interest rates (or changes in interest rates), </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">global demand for particular products or resources, market or financial system instability or uncertainty, embargoes, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the threat </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and/or actual imposition of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">tariffs, sanctions and other trade barriers, natural disasters and extreme weather events, health </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">emergencies (such as epidemics and pandemics), terrorism, regulatory events and governmental or quasi-governmental </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">actions. The occurrence of global events similar to those in recent years, such as terrorist attacks, natural disasters, social and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">political (including geopolitical) discord and tensions or debt crises and downgrades, among others, may result in increased </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market volatility and may have long term effects on both the U.S. and global financial markets. Inflation rates may change </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">frequently and significantly because of various factors, including unexpected shifts in the domestic or global economy and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">changes in monetary or economic policies (or expectations that these policies may change). Changes in inflation rates or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">expected inflation rates may adversely affect market and economic conditions, an issuer’s financial condition, the Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investments and an investment in the Fund. The market price of debt securities generally falls as inflation increases because </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the purchasing power of the future income and repaid principal is expected to be worth less when received by the Fund. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">risk of inflation is greater for debt instruments with longer maturities and especially those that pay a fixed rather than variable </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest rate. Other financial, economic and other global market and social developments or disruptions may result in similar </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">adverse circumstances, and it is difficult to predict when similar events affecting the U.S. or global financial markets or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">economies may occur, the effects that such events may have and the duration of those effects (which may last for extended </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">periods). In general, the securities or other instruments that the Adviser believes represent an attractive investment opportunity </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or in which the Fund seeks to invest maybe unavailable entirely or in the specific quantities sought by the Fund. As a result, the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund may need to obtain the desired exposure through a less advantageous investment, forgo the investment at the time or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">seek to replicate the desired exposure through a derivative transaction or investment in another investment vehicle. Any such </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">event(s) could have a significant adverse impact on the value, liquidity and risk profile of the Fund’s portfolio, as well as its </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">ability to sell securities to meet redemptions. There is a risk that you may lose money by investing in the Fund.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and pandemics), terrorism, conflicts, social unrest, recessions, inflation, interest rate changes and supply chain disruptions, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">As global systems, economies and financial markets are increasingly interconnected, events that once had only local impact </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">are now more likely to have regional or even global effects. Events that occur in one country, region or financial market will, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">more frequently, adversely impact issuers in other countries, regions or markets. These impacts can be exacerbated by failures </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of governments and societies to adequately respond to an emerging event or threat. These types of events quickly and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">significantly impact markets in the U.S. and across the globe leading to extreme market volatility and disruption. The value of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Fund’s investment may decrease as a result of such events, particularly if these events adversely impact the operations </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and effectiveness of the Adviser or key service providers or if these events disrupt systems and processes necessary or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">beneficial to the investment advisory or other activities on behalf the Fund.</span>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Highly Volatile Markets.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Financial markets may be highly volatile from time to time. The prices of commodities contracts and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">all derivative instruments, including futures and options, can be highly volatile. Price movements of forwards, futures and other </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">derivative contracts are influenced by, among other things, interest rates; changing supply and demand relationships; trade, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">fiscal, monetary and exchange control programs and policies of governments; and national and international political and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">economic events and policies. In addition, governments from time to time intervene, directly and by regulation, in certain </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">markets, particularly those in currencies, financial instruments, futures and options. Intervention often is intended directly to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">influence prices and may, together with other factors, cause all such markets to move rapidly in the same direction because of, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">among other things, interest rate fluctuations. An Investment Fund also is subject to the risk of the failure of any exchanges on </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which its positions trade, of their clearinghouses, of any counterparty to an Investment Fund’s transactions or of any service </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">provider to an Investment Fund (such as an Investment Fund’s “prime broker”). In times of general market turmoil, even large, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">well-established financial institutions may fail rapidly with little warning.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds are subject to the risk that trading activity in securities in which the Investment Funds invest may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">dramatically reduced or cease at any time, whether due to general market turmoil, problems experienced by a single issuer or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">a market sector or other factors. If trading in particular securities or classes of securities is impaired, it may be difficult for an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund to properly value any of its assets represented by such securities. For valuation risks to which Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Funds may be subject, see “Types of Investments and Related Risks—Risks of Fund of Hedge Funds Structure—Valuation.”</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Concerns</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> about political instability, questions about the strength and sustainability of the U.S. economic recovery, concerns </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">about the growing federal debt and slowing growth in China, are factors which continue to concern the financial markets and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">create volatility. The Fund may invest in Investment Funds that have substantial exposure to the securities of financial services </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">companies. Issuers that have exposure to the real estate, mortgage and credit markets may be particularly affected by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">subsequent adverse events affecting these sectors and general market turmoil. Moreover, legal or regulatory changes </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">applicable to financial services companies may adversely affect such companies’ ability to generate returns and/or continue </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">certain lines of business. See “Other Risks—Regulatory Change.”</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Hedge funds may be forced to “deleverage” by selling large portions of their investments in a fairly short period of time in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">event of market turmoil (which may cause many financial services companies to reduce or terminate the credit they extend to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">hedge funds) or other adverse events (such as the conditions that occurred during the financial crisis). If an Investment Fund is </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">required to deleverage in such fashion, its returns will likely be substantially reduced, and it may be forced to liquidate entirely </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">if it cannot cover its outstanding indebtedness. See “Types of Investment and Related Risks—Investment Related </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Risks—Leverage Utilized by the Fund” and “Types of Investment and Related Risks—Investment Related Risks—Leverage </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Utilized by Investment Funds.” The Fund may take a position in Investment Funds that invest in the publicly traded and privately </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">placed equity or other securities of companies in the information technology and Internet sectors. These investments are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">subject to inherent market risks and fluctuations as a result of company earnings, economic conditions and other factors </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">beyond the control of the Adviser. The public equity markets have in the past experienced significant price volatility.</span>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>General Risks of Securities Activities.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> All securities investing and trading activities risk the loss of capital. Although the Adviser </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">will attempt to moderate these risks, no assurance can be given that the Fund’s investment activities will be successful or that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Shareholders will not suffer losses. To the extent that the portfolio of an Investment Fund is concentrated in securities of a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">single issuer or issuers in a single industry, the risk of any investment decision made by the Investment Manager of such </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund is increased. Following below are some of the more significant specific risks that the Adviser and the Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">believe are associated with the Investment Funds’ styles of investing.</span>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Equity Securities</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"><b>.</b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may hold long and short positions in common stocks, preferred stocks and convertible </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities of U.S. and non-U.S. issuers. Investment Funds also may invest in depositary receipts or shares relating to non-U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities. See “Types of Investment and Related Risks – Investment Related Risks – Non-U.S. Securities.” In general, prices of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">equity securities are more volatile than those of fixed income securities. U.S. and foreign stock markets, and equity securities of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">individual issuers, have experienced periods of substantial price volatility in the past and it is possible that they will do so again </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">in the future. The prices of equity securities fluctuate, sometimes rapidly or widely, in response to activities specific to the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">issuer of the security as well as factors unrelated to the fundamental condition of the issuer, including general market, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">economic, political and public health conditions. Investment Funds may purchase securities in all available securities trading </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">markets and may invest in equity securities without restriction as to market capitalization, such as those issued by smaller </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">capitalization companies, including micro cap companies. During periods when equity securities experience heightened </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">volatility, such as during periods of market, economic or financial uncertainty or distress, an Investment Fund’s investments in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">equity securities are subject to heightened risks during periods of market, economic or financial uncertainty or distress. See </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">“Smaller Capitalization Issuers.”</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The value of equity securities and related instruments decline in response to perceived or actual adverse changes in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">economy, economic outlook or financial markets; deterioration in investor sentiment; inflation, interest rate, currency, and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">commodity price fluctuations; adverse geopolitical, social or environmental developments; issuer- and sector-specific </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">considerations; unexpected trading activity among retail investors; and other factors. Market conditions affect certain types of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">equity securities to a greater extent than other types of equity securities. If the stock market declines, the value of an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund’s equity securities will also likely decline, which will result in a decrease in the value of your investment in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund. Although prices can rebound, there is no assurance that prices of an Investment Fund’s equity securities will </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">return to previous levels.</span>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Bonds and Other Fixed Income Securities.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may invest in bonds and other fixed income securities, both U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and non-U.S., and may take short positions in these securities. Investment Funds will invest in these securities when they offer </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">opportunities for capital appreciation (or capital depreciation in the case of short positions) and may also invest in these </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities for temporary defensive purposes and to maintain liquidity. Fixed income securities include, among other securities: </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">bonds, notes and debentures issued by U.S. and non-U.S. corporations; debt securities issued or guaranteed by the U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Government or one of its agencies or instrumentalities (“U.S. government securities”) or by a non-U.S. government; municipal </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities; and mortgage-backed and asset-backed securities. These securities may pay fixed, variable or floating rates of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest, and may include zero coupon obligations. Fixed income securities are subject to the risk of the issuer’s inability to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">meet principal and interest payments on its obligations (i.e., credit risk) and are subject to price volatility resulting from, among </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">other things, interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity (i.e., </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market risk). The Investment Funds may face a heightened level of interest rate risk in times of monetary policy change and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">uncertainty, such as when the Federal Reserve Board adjusts a quantitative easing program and/or changes rates. The duration </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of a fixed income security is an attempt to quantify and estimate how much the security’s price can be expected to change in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">response to changing interest rates. For example, when the level of interest rates increases by 1%, a fixed income security </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">having a positive duration of four years generally will decrease in value by 4%; when the level of interest rates decreases by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">1%, the value of that same security generally will increase by 4%. Accordingly, securities with longer durations are likely to be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">more sensitive to changes in interest rates, generally making them more volatile than securities with shorter durations.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds may invest in fixed income securities rated investment grade or non-investment grade (commonly referred </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to as “high yield/high risk securities” or “junk bonds”) and may invest in unrated fixed income securities. Non-investment grade </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities are fixed income securities rated below Baa3 by one or more agencies, including Moody’s Investors Service, Inc. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">(“Moody’s”), below BBB by Standard & Poor’s Rating Group, a division of The McGraw-Hill Companies, Inc. (“S&P”), or the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">equivalent by another nationally recognized rating organization, or if unrated considered by an Investment Manager to be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">equivalent quality. Non-investment grade debt securities in the lowest rating categories or unrated debt securities determined </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to be of comparable quality may involve a substantial risk of default or may be in default. An Investment Fund’s investments in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">non-investment grade securities expose it to a substantial degree of credit risk. Non-investment grade securities are subject to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">greater risk of loss of income and principal than higher rated securities and may be considered speculative. Non-investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">grade securities may be issued by companies that are restructuring, are smaller and less creditworthy or are more highly </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">indebted than other companies, and therefore they may have more difficulty making scheduled payments of principal and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest. Non-investment grade securities may experience reduced liquidity, and sudden and substantial decreases in price. An </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">economic downturn affecting an issuer of non-investment grade debt securities may result in an increased incidence of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">default. In the event of a default, an Investment Fund may incur additional expenses to seek recovery. In addition, the market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">for lower grade debt securities may be thinner and less active than for higher grade debt securities. Fixed income securities are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">also susceptible to liquidity risk (i.e., the risk that certain investments may become difficult to purchase or sell).</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fixed income securities may experience reduced liquidity due to the lack of an active market and the reduced number and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">capacity of traditional market participants to make a market in fixed income securities, which may occur to the extent </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">traditional dealer counterparties that engage in fixed income trading do not maintain inventories of corporate bonds (which </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">provide an important indication of their ability to “make markets”) that keep pace with the growth of the bond markets over </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">time. Liquidity risk also may be magnified in times of monetary policy change and/or uncertainty, such as when the Federal </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Reserve Board adjusts quantitative easing program and/or changes rates, or other circumstances where investor redemptions </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">from fixed income mutual funds, exchange-traded funds or hedge funds may be higher than normal, causing increased supply </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">in the market due to selling activity.</span>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Mortgage-Backed Securities.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may invest in mortgage-backed securities. The investment characteristics of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">mortgage-backed securities differ from those of traditional debt securities. Among the major differences are that interest and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">principal payments on mortgage-backed securities are made more frequently, usually monthly, and that principal may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prepaid at any time because the underlying mortgage loans generally may be prepaid at any time. Investments in mortgage-</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">backed securities are subject to the risk that if interest rates decline, borrowers may pay off their mortgages sooner than </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">expected, which may adversely affect an Investment Fund’s performance by forcing the Investment Fund to reinvest at a lower </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest rate. Prepayment rates can shorten or extended the average life of an Investment Fund’s mortgage securities. Rates of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prepayment which are faster or slower than anticipated by an Investment Manager may reduce yields, increase volatility and/</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or cause an Investment Fund to lose NAV. Mortgage-backed securities are also subject to extension risk, which is the risk that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">rising interest rates could cause mortgages or other obligations underlying the securities to be prepaid more slowly than </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">expected, thereby lengthening the duration of such securities, increasing their sensitivity to interest rate changes and causing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">their prices to decline. Further, particular investments may underperform relative to hedges that the Investment Funds may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">have entered into for these investments, resulting in a loss to the Investment Fund. In particular, prepayments (at par) may limit </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the potential upside of many mortgage-backed securities to their principal or par amounts, whereas their corresponding </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">hedges often have the potential for large losses.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Investment Funds may also invest in structured notes, variable rate mortgage-backed securities, including adjustable-rate </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">mortgage securities (“ARMs”), which are backed by mortgages with variable rates, and certain classes of collateralized </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">mortgage obligation (“CMO”) derivatives, the rate of interest payable under which varies with a designated rate or index. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">value of these investments is closely tied to the absolute levels of such rates or indices, or the market’s perception of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">anticipated changes in those rates or indices. This introduces additional risk factors related to the movements in specific </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">indices or interest rates that may be difficult or impossible to hedge, and which also interact in a complex fashion with </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prepayment risks.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Mortgage-backed securities are also subject to the risk of delinquencies on mortgage loans underlying such securities. An </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">unexpectedly high rate of defaults on the mortgages held by a mortgage pool may adversely affect the value of a mortgage-</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">backed security and could result in losses to an Investment Fund. So-called “subprime” mortgages (mortgage loans made to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">borrowers with weakened credit histories or with a lower capacity to make timely payments on their mortgages) have </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">experienced higher rates of delinquency in recent years. Increased mortgage delinquencies may adversely impact the market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">for mortgage-backed securities generally (including derivatives or other instruments linked to the value of such securities) and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">lead to turmoil in the credit markets generally, as happened in the period beginning in 2007. In particular, holders of mortgage-</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">backed securities may experience great difficulty in valuing such securities if there is a reduced market for mortgage-backed </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities (as happened during the same period). The risks associated with mortgage-backed securities typically become </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">elevated during periods of distressed economic, market, health and labor conditions. In particular, increased levels of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">unemployment, delays and delinquencies in payments of mortgage and rent obligations, and uncertainty regarding the effects </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and extent of government intervention with respect to mortgage payments and other economic matters may adversely affect </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Investment Funds’ investments in mortgage-backed securities. See “Types of Investments and Related Risks—Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Related Risks—Highly Volatile Markets” and “Types of Investments and Related Risks—Risks of Fund of Hedge Funds </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Structure—Valuation.”</span>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Non-U.S. Securities.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may invest in securities of non-U.S. issuers and in depositary receipts or shares (of both </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">a sponsored and non-sponsored nature), such as American Depositary Receipts, American Depositary Shares, Global </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Depositary Receipts or Global Depositary Shares (referred to collectively as “ADRs”), which represent indirect interests in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities of non-U.S. issuers. Sponsored depositary receipts are typically created jointly by a foreign private issuer and a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">depositary. Non-sponsored depositary receipts are created without the active participation of the foreign private issuer of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">deposited securities. As a result non-sponsored depositary receipts may be viewed as riskier than depositary receipts of a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">sponsored nature. Non-U.S. securities in which Investment Funds may invest may be listed on non-U.S. securities exchanges or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">traded in non-U.S. over-the-counter markets (“OTC”). Investments in non-U.S. securities are subject to risks generally viewed </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">as not present in the United States. These risks include: varying custody, brokerage and settlement practices; difficulty in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">pricing of securities; less public information about issuers of non-U.S. securities; less governmental regulation and supervision </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">over the issuance and trading of securities than in the United States; the lack of availability of financial information regarding a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">non-U.S. issuer or the difficulty of interpreting financial information prepared under non-U.S. accounting standards; less </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">liquidity and more volatility in non-U.S. securities markets; the possibility of expropriation or nationalization; the imposition of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">withholding and other taxes; adverse political, social or diplomatic developments; limitations on the movement of funds or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">other assets between different countries; difficulties in invoking legal process abroad and enforcing contractual obligations; </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and the difficulty of assessing economic trends in non-U.S. countries. In addition, investments in certain foreign markets, which </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">have historically been considered stable, may become more volatile and subject to increased risk due to ongoing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">developments and changing conditions in such markets. Moreover, the growing interconnectivity of global economies and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">financial markets has increased the probability that adverse developments and conditions in one country or region will affect </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the stability of economies and financial markets in other countries or regions. Governmental issuers of non-U.S. securities may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">also be unable or unwilling to repay principal and interest due, and may require that the conditions for payment be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">renegotiated. Investment in non-U.S. countries typically also involves higher brokerage and custodial expenses than does </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment in U.S. securities.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The risks associated with investing in non-U.S. securities may be greater with respect to those issued by companies located in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">emerging market or less developed countries, which are countries that major international financial institutions generally </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">consider to be less economically mature than developed nations, such as the United States or most nations in Western Europe. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Emerging market or developing countries may be more likely to experience political turmoil or rapid changes in economic </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">conditions than more developed countries, and the financial condition of issuers in emerging market or developing countries </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may be more precarious than in other countries. In addition, emerging market securities generally are less liquid and subject to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">wider price and currency fluctuations than securities issued in more developed countries. These characteristics result in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">greater risk of price volatility in emerging market or developing countries, which may be heightened by currency fluctuations </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">relative to the U.S. dollar. Additionally, companies in emerging market countries may be subject to less stringent requirements </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">regarding accounting, auditing, financial reporting and recordkeeping compared to those in more developed countries and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">therefore, material information related to an investment may not be available or reliable.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Certain foreign markets may rely heavily on particular industries or foreign capital and are more vulnerable to diplomatic </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">developments, the imposition of economic sanctions against a particular country or countries, organizations, companies, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">entities and/or individuals, changes in international trading patterns, trade barriers and other protectionist or retaliatory </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">measures. Economic sanctions could, among other things, effectively restrict or eliminate an Investment Fund’s ability to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">purchase or sell securities or groups of securities for a substantial period of time, and may make the Investment Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investments in such securities harder to value. International trade barriers or economic sanctions against foreign countries, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">organizations, companies, entities and/or individuals may adversely affect an Investment Fund’s foreign holdings or exposures. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investments in foreign markets may also be adversely affected by governmental actions such as the imposition of capital </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">controls, nationalization of companies or industries, expropriation of assets or the imposition of punitive taxes. Governmental </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">actions can have a significant effect on the economic conditions in foreign countries, which also may adversely affect the value </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and liquidity of an Investment Fund’s investments. For example, the governments of certain countries may prohibit or impose </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">substantial restrictions on foreign investing in their capital markets or in certain sectors or industries. In addition, a foreign </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">government may limit or cause delay in the convertibility or repatriation of its currency which would adversely affect the U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">dollar value and/or liquidity of investments denominated in that currency. Any of these actions could severely affect security </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prices, impair the Fund’s ability to purchase or sell foreign securities or transfer an Investment Fund’s assets back into the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">United States, or otherwise adversely affect the Investment Fund’s operations. Certain foreign investments may become less </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">liquid in response to market developments or adverse investor perceptions, or become illiquid after purchase by an Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund, particularly during periods of market turmoil. Certain foreign investments may become illiquid when, for instance, there </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">are few, if any, interested buyers and sellers or when dealers are unwilling to make a market for certain securities. When an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund holds illiquid investments, its portfolio may be harder to value or sell.</span>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Short Sales.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> An Investment Fund may attempt to limit its exposure to a possible market decline in the value of its portfolio </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities through short sales of securities that its Investment Manager believes possess volatility characteristics similar to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">those being hedged. An Investment Fund may also use short sales for non-hedging purposes to pursue its investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">objectives if, in the Investment Manager’s view, the security is over-valued in relation to the issuer’s prospects for earnings </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">growth. Short selling is speculative in nature and, in certain circumstances, can substantially increase the effect of adverse </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">price movements on an Investment Fund’s portfolio. A short sale of a security involves the risk of an unlimited increase in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market price of the security that can in turn result in an inability to cover the short position and a theoretically unlimited loss. No </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">assurance can be given that securities necessary to cover an Investment Fund’s short position will be available for purchase.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">An Investment Fund may make “short sales against-the-box,” in which it will sell short securities it owns or has the right to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">obtain without payment of additional consideration. If an Investment Fund makes a short sale against-the-box, it will be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">required to set aside securities equivalent in kind and amount to the securities sold short (or securities convertible or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">exchangeable into those securities) and will be required to hold those securities while the short sale is outstanding. An </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund will incur transaction costs, including interest expenses, in connection with initiating, maintaining and closing-</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">out short sales against-the-box.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Other risks of investing in non-U.S. securities include the following:</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Non-U.S. Exchanges.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> An Investment Fund may trade, directly or indirectly, futures and securities on exchanges located </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">outside of the United States. Some non-U.S. exchanges, in contrast to U.S. exchanges, are “principal’s markets” in which </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">performance is solely the individual member’s responsibility with whom the Investment Fund has entered into a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">commodity contract and not that of an exchange or clearinghouse, if any. In the case of trading on non-U.S. exchanges, an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund will be subject to the risk of the inability of, or refusal by, the counterparty to perform with respect to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">contracts. Moreover, since there is generally less government supervision and regulation of non-U.S. exchanges, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">clearinghouses and clearing firms than in the United States, an Investment Fund is also subject to the risk of the failure of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the exchanges on which its positions trade or of their clearinghouses or clearing firms, and there may be a high risk of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">financial irregularities and/or lack of appropriate risk monitoring and controls.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Non-U.S. Government Securities.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> An Investment Fund’s non-U.S. investments may include debt securities issued or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">guaranteed by non-U.S. governments, their agencies or instrumentalities and supranational entities. An Investment Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may invest in debt securities issued by certain “supranational” entities, which include entities designated or supported by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">governments to promote economic reconstruction or development, international banking organizations and related </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">government agencies. An example of a supranational entity is the International Bank for Reconstruction and Development </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">(commonly referred to as the “World Bank”).</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment in sovereign debt of non-U.S. governments can involve a high degree of risk, including additional risks not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">present in debt obligations of corporate issues and the U.S. Government. Certain emerging market countries are among the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">largest debtors to commercial banks and foreign governments. The issuer or the governmental authority that controls the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">repayment of sovereign debt may be unable or unwilling to repay the principal and/or interest when due in accordance </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">with the terms of such obligations. Uncertainty surrounding the level and sustainability of sovereign debt of certain </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">countries that are part of the European Union, including Greece, Spain, Portugal, Ireland and Italy, has increased volatility in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the financial markets. In addition, a number of Latin American countries are among the largest debtors of developing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">countries and have a long history of reliance on foreign debt. Additional factors that may influence the ability or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">willingness to service debt include, but are not limited to, a country’s cash flow situation, the availability of sufficient </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">foreign exchange on the date a payment is due, the relative size of the debt service burden to the economy as a whole, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the sovereign debtor’s or governmental entity’s policy toward international lenders, such as the International Monetary </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund, the World Bank and other multilateral agencies, the political constraints to which a governmental entity may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">subject, and changes in governments and political systems. A country whose exports are concentrated in a few </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">commodities or whose economy depends on certain strategic imports could be vulnerable to fluctuations in international </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prices of these commodities or imports. If a foreign sovereign obligor cannot generate sufficient earnings from foreign </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trade to service its external debt, it may need to depend on continuing loans and aid from foreign governments, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">commercial banks and multilateral organizations, and inflows of foreign investment. The commitment on the part of these </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">foreign governments, multilateral organizations and others to make such disbursements may be conditioned on the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">government’s implementation of economic reforms and/or economic performance and the timely service of its obligations. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Failure to implement such reforms, achieve such levels of economic performance or repay principal or interest when due </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may result in the cancellation of such third parties’ commitments to lend funds, which may further impair the foreign </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">sovereign obligor’s ability or willingness to timely service its debts.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">At certain times, certain countries (particularly emerging market countries) have declared moratoria on the payment of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">principal and interest on external debt. Governmental entities may also depend on expected disbursements from non-U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">governments, multilateral agencies and others to reduce principal and interest arrearages on their debt. The commitment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">on the part of these governments, agencies and others to make such disbursements may be conditioned on a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">governmental entity’s implementation of economic reforms and/or economic performance and the timely service of such </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">debtor’s obligations. Failure to implement such reforms, achieve such levels of economic performance or repay principal </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or interest when due may result in the cancellation of such third parties’ commitments to lend funds to the governmental </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">entity, which may further impair such debtor’s ability or willingness to service its debts in a timely manner. Consequently, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">governmental entities may default on their sovereign debt. Holders of sovereign debt (including the Fund) may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">requested to participate in the rescheduling of such debt and to extend further loans to governmental entities. There is not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">a formal legal process for collecting on a sovereign debt that a government does not pay or bankruptcy proceeding by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which all or a part of the sovereign debt that a governmental entity has not repaid may be collected. Periods of economic </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">uncertainty may result in the volatility of market prices of sovereign debt to a greater extent than the volatility inherent in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">debt obligations of other types of issues.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Currencies.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> One or more Investment Funds may invest a portion of its assets in non-U.S. currencies, or in instruments </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">denominated in non-U.S. currencies, the prices of which are determined with reference to currencies other than the U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">dollar. To the extent unhedged, the value of such Investment Fund’s assets will fluctuate with U.S. dollar exchange rates, as </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">well as the price changes of its investments in the various local markets and currencies. Thus, an increase in the value of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the U.S. dollar compared to the other currencies in which the Investment Fund makes its investments will reduce the effect </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of increases, and magnify the effect of decreases, in the prices of securities denominated in currencies other than the U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">dollar and held by the Investment Fund in such securities’ respective local markets. Conversely, a decrease in the value of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the U.S. dollar will have the opposite effect on the non-U.S. dollar securities of the Fund or such Investment Fund. In </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">addition, some governments from time to time impose restrictions intended to prevent capital flight, which may for </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">example involve punitive taxation (including high withholding taxes) on certain securities transfers or the imposition of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">exchange controls making it difficult or impossible to exchange or repatriate the local currency. Currency exchange rates </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">overall economic health of the issuer. Devaluation of a currency by a country’s government or banking authority will also </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">have a significant impact on the value of any investments denominated in that currency.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">An Investment Fund may also incur costs in connection with conversion between various currencies. In addition, certain </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds may be denominated in non-U.S. currencies. Subscription amounts contributed by the Fund for </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment in such an Investment Fund will be converted immediately by the relevant Investment Manager from U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Dollars into the applicable foreign currency at the then applicable exchange rate determined by and available to the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Manager. In certain cases, depending on the applicable circumstances, the exchange rate obtained by the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Manager may be less advantageous to the Fund than other rates available to the Fund directly.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">An Investment Fund may enter into foreign currency forward exchange contracts for hedging and non-hedging purposes </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">in pursuing its investment objective. Foreign currency forward exchange contracts are transactions involving an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund’s obligation to purchase or sell a specific currency at a future date at a specified price. Foreign currency </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">forward exchange contracts may be used by an Investment Fund for hedging purposes to protect against uncertainty in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the level of future non-U.S. currency exchange rates, such as when an Investment Fund anticipates purchasing or selling a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">non-U.S. security. This technique would allow the Investment Fund to “lock in” the U.S. dollar price of the security. Foreign </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">currency forward exchange contracts may also be used to attempt to protect the value of an Investment Fund’s existing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">holdings of non-U.S. securities. Imperfect correlation may exist, however, between an Investment Fund’s non-U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities holdings and the foreign currency forward exchange contracts entered into with respect to those holdings. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">precise matching of foreign currency forward exchange contract amounts and the value of the securities involved will not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">generally be possible because the future value of such securities in foreign currencies will change as a consequence of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market movements in the value of those securities between the date on which the contract is entered into and the date it </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">matures. There is additional risk that such transactions may reduce or preclude the opportunity for gain if the value of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">currency should move in the direction opposite to the position taken and that foreign currency forward exchange contracts </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">create exposure to currencies in which an Investment Fund’s securities are not denominated. Foreign currency forward </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">exchange contracts may be used for non-hedging purposes in seeking to meet an Investment Fund’s investment objective, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">such as when the Investment Manager to an Investment Fund anticipates that particular non-U.S. currencies will appreciate </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or depreciate in value, even though securities denominated in those currencies are not then held in the Investment Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment portfolio. The use of foreign currency forward exchange contracts involves the risk of loss from the insolvency </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or bankruptcy of the counterparty to the contract or the failure of the counterparty to make payments or otherwise comply </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">with the terms of the contract.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Generally, Investment Funds are subject to no requirement that they hedge all or any portion of their exposure to non-U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">currency risks, and there can be no assurance that hedging techniques will be successful if used.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>European Economic Risk.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> European financial markets have experienced volatility in recent years and have been adversely </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">affected by concerns about rising government debt levels, credit rating downgrades, and possible default on or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">restructuring of government debt. These events have affected the value and exchange rate of the euro. An Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund’s investments in euro-denominated (or other European currency-denominated) securities also entail the risk of being </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">exposed to a currency that may not fully reflect the strengths and weaknesses of the disparate European economies. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">governments of several member countries of the European Union (“EU”) have experienced large public budget deficits, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which have adversely affected the sovereign debt issued by those countries and may ultimately lead to declines in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">value of the euro. In addition, if one or more countries leave the EU or the EU dissolves, the world’s securities markets likely </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">will be significantly disrupted.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">It is possible that EU member countries that have already adopted the euro could abandon the euro and return to a national </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">currency and/or that the euro will cease to exist as a single currency in its current form. The effects of such an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">abandonment or a country’s forced expulsion from the euro on that country, the rest of the EU, and global markets are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">impossible to predict, but are likely to be negative. The exit of any country out of the euro would likely have an extremely </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">destabilizing effect on all Eurozone countries and their economies and negatively affect the global economy as a whole, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which may have substantial and adverse effects on one or more Investment Funds and thus the Fund. In addition, under </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">these circumstances, it may be difficult for an Investment Fund to value investments denominated in euros or in a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">replacement currency.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Leverage Utilized by Investment Funds.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Investment Funds may also utilize leverage in their investment activities. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Specifically, some or all of the Investment Funds may make margin purchases of securities and, in connection with these </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">purchases, borrow money from brokers and banks for investment purposes. Investment Funds that utilize leverage are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">subject to the same risks as the Fund with respect to its use of leverage as set forth above, and may also be subject to the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">following additional risks: Trading equity securities on margin involves an initial cash requirement representing at least a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">percentage of the underlying security’s value. Borrowings to purchase equity securities typically will be secured by the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">pledge of those securities. The financing of securities purchases may also be effected through reverse repurchase </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">agreements with banks, brokers and other financial institutions. In the event that an Investment Fund’s equity or debt </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">instruments decline in value, the Investment Fund could be subject to a “margin call” or “collateral call,” under which the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund must either deposit additional collateral with the lender or suffer mandatory liquidation of the pledged </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities to compensate for the decline in value. In the event of a sudden, precipitous drop in value of an Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund’s assets, the Investment Fund might not be able to liquidate assets quickly enough to pay off its borrowing. During the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">financial crisis of late 2008 and during the crisis relating to COVID-19, numerous hedge funds faced margin calls and were </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">required to sell large portions of their investments in rapid fashion so as to meet these calls. In addition, hedge funds may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">be forced to deleverage in a fairly short period of time in the event of market turmoil (which may cause many financial </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">services companies to reduce or terminate the credit they extend to hedge funds) or other adverse events (such as those </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">that occurred during the financial crisis). A substantial number of hedge funds could be forced to liquidate as a result. If an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund is required to deleverage in such fashion, its returns will likely be substantially reduced, and it may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">forced to liquidate entirely if it cannot meet its margin calls or otherwise cover its outstanding indebtedness. In addition, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">legal and regulatory changes applicable to hedge funds and/or financial services companies generally may either force </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds to deleverage or otherwise limit their ability to utilize leverage. See “Other Risks—Regulatory Change.”</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Asset Coverage Requirement does not apply to Investment Funds. Accordingly, the Fund’s portfolio may be exposed </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to the risk of highly leveraged investment programs of certain Investment Funds and the volatility of the value of Shares </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may be great.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">In seeking “leveraged” market exposure in certain investments and in attempting to increase overall returns, an Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund may purchase options and other synthetic instruments that may involve significant economic leverage and may, in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">some cases, involve significant risks of loss, especially in highly volatile market conditions such as those currently being </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">experienced.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Smaller Capitalization Issuers.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may invest in smaller capitalization companies, including micro cap </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">companies. Investments in smaller capitalization companies often involve significantly greater risks than the securities of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">larger, better-known companies because they may lack the management expertise, financial resources, product </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">diversification and competitive strengths of larger companies. The prices of the securities of smaller companies may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">subject to more abrupt or erratic market movements than those of larger, more established companies, as these securities </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">typically are less liquid, traded in lower volume and the issuers typically are more subject to changes in earnings and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prospects. In addition, when selling large positions in small capitalization securities, the seller may have to sell holdings at </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">discounts from quoted prices or may have to make a series of small sales over a period of time.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Distressed Securities.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Certain of the companies in whose securities the Investment Funds may invest may be in transition, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">out of favor, financially leveraged or troubled, or potentially troubled, and may be or have recently been involved in major </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">strategic actions, restructurings, bankruptcy, reorganization or liquidation. These characteristics of these companies can </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">cause their securities to be particularly risky, although they also may offer the potential for high returns. These companies’ </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities may be considered speculative, and the ability of the companies to pay their debts on schedule could be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">affected by adverse interest rate movements, changes in the general economic climate, economic factors affecting a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">particular industry or specific developments within the companies. These securities may also present a substantial risk of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">default. An Investment Fund’s investment in any instrument is subject to no minimum credit standard and a significant </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">portion of the obligations and preferred stock in which an Investment Fund may invest may be less than investment grade </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">(commonly referred to as junk bonds), which may result in the Investment Fund experiencing greater risks than it would if </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investing in higher rated instruments.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Non-Diversified Status.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Fund is a “non-diversified” investment company for purposes of the 1940 Act, which means </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">that it is not subject to percentage limitations under the 1940 Act on the percentage of its assets that may be invested in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the securities of any one issuer. The Fund’s NAV may therefore be subject to greater volatility than that of an investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">company that is subject to such a limitation on diversification. The Fund will, however, endeavor to limit investments in any </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">one Investment Fund to no more than 15% of the Fund’s gross assets (measured at the time of purchase). An Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Manager may focus on a particular industry or industries, which may subject the Investment Fund, and thus the Fund, to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">greater risk and volatility than if investments had been made in issuers in a broader range of industries.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Reverse Repurchase Agreements.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Reverse repurchase agreements involve a sale of a security by an Investment Fund to a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">bank or securities dealer and the Investment Fund’s simultaneous agreement to repurchase the security for a fixed price </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">(reflecting a market rate of interest) on a specific date. These transactions involve a risk that the other party to a reverse </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">repurchase agreement will be unable or unwilling to complete the transaction as scheduled, which may result in losses to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Investment Fund. Reverse repurchase transactions are a form of leverage that may also increase the volatility of an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund’s investment portfolio.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Purchasing Initial Public Offerings.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Investment Funds may purchase securities of companies in initial public offerings </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or shortly after those offerings are complete. Special risks associated with these securities may include a limited number </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of shares available for trading, lack of a trading history, lack of investor knowledge of the issuer, and limited operating </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">history. These factors may contribute to substantial price volatility for the shares of these companies, and share prices for </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">newly-public companies have fluctuated substantially over short periods of time. Such volatility can affect the value of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund’s investment in Investment Funds that invest in these shares. The limited number of shares available for trading in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">some initial public offerings may make it more difficult for an Investment Fund to buy or sell significant amounts of shares </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">without an unfavorable effect on prevailing market prices. In addition, some companies in initial public offerings are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">involved in relatively new industries or lines of business, which may not be widely understood by investors. Some of these </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">companies may be undercapitalized or regarded as developmental stage companies, without revenues or operating </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">income, or the near-term prospects of achieving revenues or operating income. Initial public offerings may also produce </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">high, double digit returns. Such returns are highly unusual and may not be sustainable. In addition, an investment in an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">initial public offering may have a disproportionate impact on the performance of an Investment Fund that does not yet </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">have a substantial amount of assets. This impact on an Investment Fund’s performance may decrease as an Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund’s assets increase. Further, some companies that have recently undergone initial public offerings (particularly in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">technology sector) may be led by a single founder or a small number of founders. These founder-led companies may have </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">capital structures that give founders control over all or a substantial majority of the company’s voting stock even after the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">company’s initial public offering and as a result, give such founders the ability to control matters submitted to stockholders </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">for approval, including the election, removal, and replacement of directors and any merger, consolidation, or sale of all or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">substantially all of the company’s assets. As a corollary of those limited voting rights, investors in these founder-led </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">companies may therefore have less ability to influence the business decisions of such companies than with other publicly </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">traded companies. Founder-led companies also may be subject to heightened succession risk.</span>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:12.024pt;;"><b>Special Investment Instruments and Techniques</b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds may utilize a variety of special investment instruments and techniques described below to hedge the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">portfolios of the Investment Funds against various risks, such as changes in interest rates or other factors that affect security </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">values, or for non-hedging purposes in seeking to achieve an Investment Fund’s investment objective. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Adviser, on behalf of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Fund, may also use these special investment instruments and techniques for either hedging or non-hedging purposes.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">These strategies may be executed through derivatives transactions. Instruments used and the particular manner in which they </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may be used may change over time as new instruments and techniques are developed or regulatory changes occur. Certain of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">these special investment instruments and techniques are speculative and involve a high degree of risk, particularly in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">context of non-hedging transactions.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Derivatives.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Fund, and some or all of the Investment Funds, may invest in, or enter into, derivatives or derivatives </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">transactions. Derivatives are financial instruments whose value is based, at least in part, on the value of an underlying asset, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest rate, index or financial instrument. Prevailing interest rates and volatility, among other things, also affect the value of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">derivatives. Derivatives entered into by an Investment Fund or the Fund can be volatile and involve various types and degrees </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of risk, depending upon the characteristics of a particular derivative and the portfolio of the Investment Fund or the Fund as a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">whole. Derivatives often have risks similar to their underlying assets and may have additional risks, including imperfect </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest rates to which they relate, risks that the transactions may not be liquid and risks arising from leverage in derivatives, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">initial and variation margin and settlement payment requirements, mispricing or valuation complexity, and operational and legal </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">issues. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">portfolio investments. Derivatives may permit an Investment Manager or the Adviser to increase or decrease the level of risk of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">an investment portfolio, or change the character of the risk, to which an investment portfolio is exposed in much the same way </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">as the manager can increase or decrease the level of risk, or change the character of the risk, of an investment portfolio by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">making direct investments in specific securities or other instruments. Derivatives may entail investment exposures that are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">greater than their cost would suggest, meaning that a small investment in derivatives could have a large potential effect on the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">performance of an Investment Fund or the Fund. The Adviser’s use of derivatives may include total return swaps, options and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">futures designed to replicate the performance of a particular Investment Fund or an Investment Fund’s underlying investments </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">(for example, where an Investment Fund is concentrated in a given sector). The Adviser may enter into these types of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">derivatives for a wide array of purposes, including where, for example, an Investment Fund in which the Fund would like to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">invest does not have sufficient capacity for a direct investment on the part of the Fund. The Adviser may also enter into </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">derivatives to increase or otherwise adjust market or risk exposure generally. The Fund does not expect to gain more than 25% </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of its total market exposure via such derivatives.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">If an Investment Fund or the Fund invests in derivatives at inopportune times or incorrectly judges market conditions, the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investments may lower the return of the Investment Fund or the Fund or result in a loss. A decision as to whether, when and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">how to use derivatives involves the exercise of skill and judgment and even well-conceived derivatives transactions may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">unsuccessful because of market behavior or unexpected events. An Investment Fund or the Fund also could experience losses </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">if derivatives are poorly correlated with its other investments, or if the Investment Fund or the Fund is unable to liquidate a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">derivatives position because of an illiquid secondary market. The market for many derivatives is, or suddenly can become, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">illiquid. Changes in liquidity may result in significant, rapid and unpredictable changes in the prices for derivatives.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Options and Futures.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Fund and the Investment Funds may utilize options and futures contracts and so-called “synthetic” </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">options (a combination of instruments that in the aggregate create the payoff exposure of a desired option) or other derivatives </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">sold (or “written”) by swap dealers, broker-dealers or other permissible financial intermediaries. Options transactions may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">effected on securities exchanges, futures clearing houses or in the OTC market. When options are purchased OTC, the Fund or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Investment Fund’s portfolio bears the risk that the counterparty that wrote the option will be unable or unwilling to perform </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">its obligations under the option contract. Options may also be illiquid and, in such cases, the Fund or an Investment Fund may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">have difficulty closing out its position. OTC options also may include options on baskets of specific securities, indices or other </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">financial assets or instruments.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Fund and the Investment Funds may purchase call and put options on specific securities, indices or other financial assets or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">instruments, and may write and sell covered or uncovered call and put options for hedging and non-hedging purposes in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">pursuing the investment objectives of the Fund or the Investment Funds. A put option gives the purchaser of the option the right </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to sell, and obligates the writer to buy, the underlying security or other asset at a stated exercise price, typically at any time </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prior to the expiration of the option. A call option gives the purchaser of the option the right to buy, and obligates the writer to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">sell, the underlying security or other asset at a stated exercise price, typically at any time prior to the expiration of the option. A </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">covered call option on a security is a written call option with respect to which the seller of the option owns the underlying </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">security or places cash or liquid securities in a segregated account on the books of or with a custodian in an amount equal to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the notional value of the underlying security less the amount of the premium received to fulfill the obligation undertaken. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">sale of such an option exposes the seller during the term of the option to possible loss of opportunity to realize appreciation in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the market price of the underlying security above the exercise price plus the amount of the premium received or to possible </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">continued holding of a security that might otherwise have been sold at a profit or to protect against depreciation in the market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">price of the security. A covered put option is a written put option with respect to which the Fund has sold short the underlying </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">security or to which cash or liquid securities have been placed in a segregated account on the books of or with a custodian in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">an amount equal to the exercise price less the amount of the premium received to fulfill the obligation undertaken (the latter, a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">“cash-covered put”). The sale of such an option exposes the seller during the term of the option to a decline in price of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">underlying security below the exercise price less the amount of the premium received while depriving the seller of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">opportunity to invest the segregated assets.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Fund and the Investment Funds may close out a position when buying or writing options by selling or purchasing an option </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">on the same security with the same exercise price and expiration date as the option that it has previously purchased or written </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">on the security. In such a case, the Fund or the Investment Fund will realize a profit or loss if the amount paid to purchase (or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">received to sell) an option is less (or more) than the amount received from the corresponding sale (or purchase) of the option.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds may enter into futures contracts in U.S. markets or on exchanges located outside the United States. Non-U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">markets may offer advantages such as trading opportunities or arbitrage possibilities not available in the United States. Non-</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">U.S. markets, however, may have greater risk potential than U.S. markets. In addition, any profits realized could be eliminated </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">by adverse changes in the relevant currency exchange rate, or the Fund or an Investment Fund could incur losses as a result of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">those changes. Transactions on non-U.S. exchanges may include both futures contracts that are traded on U.S. exchanges and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">those that are not. Unlike trading on U.S. futures exchanges, trading on non-U.S. exchanges is not regulated by the U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Commodity Futures Trading Commission (“CFTC”).</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Engaging in transactions in futures contracts involves risk of loss to the Fund or the Investment Fund that could adversely affect </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the value of the Fund’s net assets. No assurance can be given that a liquid market will exist for any particular futures contract at </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">any particular time. There is also the risk of loss by the Fund of margin deposits in the event of bankruptcy of a broker (known </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">as a “futures commission merchant” or “FCMs”) with which the Fund or an Investment Fund has open positions in one or more </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">futures contracts. Many futures exchanges and boards of trade limit the amount of fluctuation permitted in futures contract </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prices during a single trading day. Once the daily limit has been reached in a particular contract, no trades may be made that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">day at a price beyond that limit or trading may be suspended for specified periods during the trading day. Futures contract </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prices could move to the limit for several consecutive trading days with little or no trading, preventing prompt liquidation of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">futures positions and potentially subjecting the Fund or the Investment Funds to substantial losses. Successful use of futures </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">also is subject to the Adviser’s or an Investment Manager’s ability to predict correctly movements in the direction of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">relevant market, and, to the extent the transaction is entered into for hedging purposes, to determine the appropriate </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">correlation between the transaction being hedged and the price movements of the futures contract.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Commodity Futures Contracts and Options.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may invest in commodity futures contracts and options thereon. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Trading in commodity interests may involve substantial risks. The low margin or premiums normally required in such trading </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may provide a large amount of leverage, and a relatively small change in the price of a security or contract can produce a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">disproportionately larger profit or loss. There is no assurance that a liquid secondary market will exist for commodity futures </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">contracts or options purchased or sold, and an Investment Fund may be required to maintain a position until exercise or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">expiration, which could result in losses. Futures positions may be illiquid because, for example, most U.S. commodity </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">exchanges limit fluctuations in certain futures contract prices during a single day by regulations referred to as “daily price </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">fluctuation limits” or “daily limits.” Once the price of a contract for a particular futures contract has increased or decreased by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">an amount equal to the daily limit, positions in the futures contract can neither be taken nor liquidated unless traders are willing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to effect trades at or within the limit. Futures contract prices on various commodities or financial instruments occasionally have </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">reached the daily limit for several consecutive days with little or no trading. Similar occurrences could prevent an Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund from promptly liquidating unfavorable positions and could subject such Investment Fund and, therefore, the Fund to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">substantial losses. In addition, Investment Funds may not be able to execute futures contract trades at favorable prices if </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trading volume in such contracts is low. It is also possible that an exchange or the CFTC may suspend trading in a particular </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">contract, order immediate liquidation and settlement of a particular contract, or order that trading in a particular contract be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">conducted for liquidation only.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Trading in commodity futures contracts and options is a highly specialized activity which may entail greater than ordinary </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment or trading risks. The price of stock index futures contracts may not correlate perfectly with the movement in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">underlying stock index because of certain market distortions. First, all participants in the futures market are subject to initial </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">margin and variation margin requirements. Rather than meeting additional margin requirements, investors may close out </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">futures contracts through offsetting transactions which would distort the normal relationship between the index and futures </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">markets. Second, from the point of view of speculators, the margin requirements in the futures market are typically less </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">onerous than margin requirements in the securities market. Therefore, increased participation by speculators in the futures </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market also may cause temporary price distortions. Successful use of stock index futures contracts by an Investment Fund also </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">is subject to its Investment Manager’s ability to predict correctly movements in the direction of the market. Regulatory </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">developments affecting the exchange-traded and OTC derivatives markets may impair an Investment Fund’s, ability to manage </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or hedge its investment through the use of derivatives.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Under CFTC regulations, FCMs are required to maintain a client’s assets in a segregated account. If a FCM used by an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund fails to properly segregate, the Investment Fund may be subject to a risk of loss of the margin on deposit with </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the FCM in the event of the FCM’s bankruptcy. In addition, under certain circumstances, such as the inability of another client of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the FCM or the FCM itself to satisfy substantial deficiencies in such other client’s account, the Investment Fund may be subject </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to a risk of loss of its margin on deposit with its FCM, even if such margin funds are properly segregated. In the case of any </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">such bankruptcy or other client loss, the Investment Fund might recover, even in respect of property specifically traceable to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Investment Fund, only a pro rata share of all property available for distribution to all of the FCM’s clients, and the Fund may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">suffer a loss as a result.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Non-U.S. Futures Transactions.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may invest in non-U.S. futures contracts and in options thereon. Non-U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">futures transactions involve executing and clearing trades on a non-U.S. exchange. This is the case even if the non-U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">exchange is formally “linked” to a U.S. exchange, whereby a trade executed on one exchange liquidates or establishes a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">position on the other exchange. No U.S. organization regulates the activities of a non-U.S. exchange, including the execution, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">delivery, and clearing of transactions on such an exchange, and no U.S. regulator has the power to compel enforcement of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">rules of the non-U.S. exchange or the laws of non-U.S. countries. Moreover, such laws or regulations will vary depending on the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">country in which the transaction occurs. For these reasons, Investment Funds which trade on non-U.S. exchanges may not be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">afforded certain of the protections which apply to U.S. commodity futures transactions, including the right to use U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">alternative dispute resolution procedures. In particular, funds received from Investment Funds to margin non-U.S. futures </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">transactions may not be provided the same protections as funds received to margin futures transactions on U.S. exchanges. In </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">addition, the price of any non-U.S. futures or option contract, and therefore, the potential profit and loss resulting therefrom, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may be affected by any fluctuation in the foreign exchange rate between the time the order is placed and the non-U.S. futures </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">contract is liquidated or the non-U.S. option contract is liquidated or exercised.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Possible Effects of Speculative Position Limits.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The CFTC and the U.S. commodities exchanges have established limits </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">referred to as “speculative position limits” on the maximum net long or short speculative futures positions that any person may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">hold or control in certain derivatives traded on U.S. commodities exchanges. All accounts owned or managed by a commodity </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trading advisor, its principals and their affiliates generally will be combined for position limit purposes. Because futures position </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">limits allow a commodity trading advisor, its principals and their affiliates to control only a limited number of contracts in any </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">one commodity, the Adviser and each Investment Manager and their principals and affiliates are potentially subject to a conflict </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">among the interests of all accounts the Investment Manager and its principals and their affiliates control which are competing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">for shares of that limited number of contracts. Although each Investment Manager may be able to achieve the same or similar </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">performance results with OTC substitutes for futures contracts (except as described below), the OTC market may be subject to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">differing prices, lesser liquidity and greater counterparty credit risks than the U.S. exchange-traded market. Each Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Manager may be required to reduce the size or number of positions that would otherwise be held for an Investment Fund or not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trade in certain markets on behalf of the Investment Fund in order to avoid exceeding such limits. Modification of trades that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">would otherwise be made by an Investment Fund, if required, could adversely affect the Investment Fund’s operations and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">profitability. A violation of speculative position limits by the Adviser or an Investment Manager could lead to regulatory action </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">materially adverse to an Investment Fund’s prospects for profitability.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Periodically, the CFTC and exchanges change the position limits to which futures, options on futures and some swaps are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">subject. To the extent these contracts are traded, the Fund may be constrained by how many contracts it may trade. The CFTC </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">has also modified the bona fide hedging exemption for which certain swap dealers were previously eligible, which could limit </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the amount of speculative OTC transaction capacity each such swap dealer would have available for an applicable Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The speculative position limits of the CFTC and U.S. commodities exchanges are subject to change. Any new or additional </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">position limits imposed on an Investment Manager, its principals and affiliates may impact the Investment Fund’s ability to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">invest in a manner that most efficiently meets its investment objective.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Forward Trading.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Forward contracts and options thereon, unlike futures contracts, are not traded on exchanges and are not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">standardized; rather, banks and other swap dealers act as principals in these markets, negotiating each transaction on an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">individual basis. Forward trading is less regulated than futures trading: There is no limitation on daily price movements, and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">speculative position limits are currently not applicable. The principals who deal in the forward markets are not required to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">continue to make markets in the currencies or commodities they trade, and these markets can experience periods of illiquidity, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">sometimes of significant duration. There have been periods during which certain participants in these markets have refused to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">quote prices for certain currencies or commodities or have quoted prices with an unusually wide spread between the price at </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which they were prepared to buy and that at which they were prepared to sell. Disruptions can occur in any market traded by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Managers because of unusually high trading volume, political intervention, or other factors. The imposition of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">controls by governmental authorities might also limit such forward trading to less than that which the Investment Managers </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">would otherwise recommend, to the possible detriment of the Fund. Market illiquidity or disruption could result in major losses </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to the Fund. In addition, Investment Funds in which the Fund has an interest may be exposed to credit risks with regard to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">counterparties with whom the Investment Managers trade, as well as risks relating to settlement default. Such risks could result </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">in substantial losses to the Fund. To the extent possible, the Adviser will endeavor to select Investment Funds having </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Managers which it believes will deal only with counterparties which are creditworthy and reputable institutions, but </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">such counterparties may not be rated investment grade.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Call and Put Options on Securities Indices.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Fund or Investment Funds may purchase and sell call and put options on stock </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">indices listed on national securities exchanges or traded in the OTC market for hedging purposes and non-hedging purposes in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">seeking to achieve the investment objectives of the Fund or the Investment Funds. A stock index fluctuates with changes in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market values of the stocks in the index. Successful use of options on stock indexes will be subject to the Adviser’s or an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Manager’s ability to predict correctly movements in the direction of the stock market generally or of a particular </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">industry or market segment, which requires different skills and techniques from those involved in predicting changes in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">price of individual stocks.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Warrants and Rights.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may invest in warrants and rights. Warrants are instruments that permit, but do not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">obligate, their holder to subscribe for other securities or commodities. Rights are similar to warrants, but normally have a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">shorter duration and are offered or distributed to shareholders of a company. Warrants and rights do not carry with them the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">right to dividends or voting rights with respect to the securities that they entitle the holder to purchase, and they do not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">represent any interest in the assets of the issuer. As a result, warrants and rights may be considered more speculative than </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">certain other types of equity-like securities. In addition, the values of warrants and rights do not necessarily change with the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">values of the underlying securities or commodities and these instruments cease to have value if they are not exercised prior to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">their expiration dates.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Swap Agreements.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Fund or an Investment Fund may enter into OTC swap contracts or cleared swap transactions, which </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">include equity, interest rate, and index and currency rate swap agreements. These transactions will be undertaken in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">attempting to obtain a particular return when it is considered desirable to do so, possibly at a lower cost than if the Fund or an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund had invested directly in the asset that yielded the desired return. An OTC swap contract is an agreement </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">between two parties pursuant to which the parties exchange payments at specified dates on the basis of a specified notional </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">amount, with the payments calculated by reference to specified securities, indices, reference rates, currencies or other assets </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or instruments. In a standard OTC swap transaction, two parties agree to exchange the returns (or differentials in rates of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">return) earned or realized on particular predetermined reference investments or instruments, which may be adjusted for an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest factor. The amounts to be exchanged or “swapped” between the parties are generally calculated with respect to a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">“notional amount,” that is, the return on or increase in value of a particular dollar amount invested at, for example, a particular </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest rate, in a particular non-U.S. currency, or in a “basket” of reference securities representing a particular index. Most </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">swap agreements entered into by the Fund or an Investment Fund require the calculation of the obligations of the parties to the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">agreements on a “net basis.” Consequently, current obligations (or rights) under a swap agreement generally will be equal only </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to the net amount to be paid or received under the agreement based on the relative values of the positions held by each party </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to the agreement (the “net amount”). If the other party to a swap defaults, the Fund’s or the Investment Fund’s risk of loss </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">consists of the net amount of payments that the Fund or the Investment Fund contractually is entitled to receive. Although the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">terms of a swap may provide for termination rights, there can be no assurance that an Investment Fund will be able to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">terminate the swap. To achieve investment returns equivalent to those achieved by an Investment Manager in whose </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund the Fund could not invest directly, perhaps because of its investment minimum or its unavailability for direct </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment, the Fund may enter into one or more swap agreements under which the Fund may agree, on a net basis, to pay a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">return based on a floating interest rate, and to receive the total return of the reference Investment Fund over a stated time </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">period. The Fund may seek to achieve the same investment result through the use of other derivatives in similar circumstances. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The U.S. federal income tax treatment of swap agreements and other derivatives as described above is unclear. Swap </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">agreements and other derivatives used in this manner may be treated as a “constructive ownership of the reference property,” </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which may result in all or a portion of any long-term capital gain being treated as ordinary income. Cleared swap transactions </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">held may help reduce counterparty credit risk. In a cleared swap, the Fund’s or an Investment Fund’s ultimate counterparty is a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">clearinghouse rather than a swap dealer, bank or other financial institution. OTC swap agreements are generally not entered </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">into or traded on exchanges and often there is no central clearing or guaranty function for swaps. These OTC swaps are often </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">subject to credit risk or the risk of default or nonperformance by the counterparty. Certain swaps have begun trading on </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">exchanges called swap execution facilities. Exchange trading is expected to increase liquidity of swaps trading. Both OTC and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">cleared swaps could result in losses if interest rates, foreign currency exchange rates or other factors are not correctly </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">anticipated by the Fund or Investment Fund or if the reference index, security or investments do not perform as expected. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and related regulatory developments </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">require the clearing and exchange-trading of certain standardized swap transactions. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Swaps subject to mandatory central </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">clearing must be traded on an exchange or swap execution facility unless no exchange or swap execution facility “makes the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">swap available to trade.”</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Fund or an Investment Fund may pay fees or incur costs each time it enters into, amends or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">terminates a swap agreement.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Lending Portfolio Securities.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may lend their securities to brokers, dealers and other financial institutions </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">needing to borrow securities to complete certain transactions. The lending Investment Fund continues to be entitled to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">payments in amounts equal to the interest, dividends or other distributions payable in respect of the loaned securities, which </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">affords the Investment Fund an opportunity to earn interest on the amount of the loan and on the loaned securities’ collateral. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">In connection with any such transaction, the Investment Fund will receive collateral consisting of cash, U.S. government </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities or irrevocable letters of credit that will be maintained at all times in an amount equal to at least 100% of the current </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">market value of the loaned securities. An Investment Fund might experience loss if the institution with which the Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund has engaged in a portfolio loan transaction breaches its agreement with the Investment Fund.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>When-Issued and Forward Commitment Securities.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may purchase securities on a “when-issued” basis and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may purchase or sell securities on a “forward commitment” basis in order to hedge against anticipated changes in interest </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">rates and prices. These transactions involve a commitment by an Investment Fund to purchase or sell securities at a future date </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">(ordinarily one or two months later). The price of the underlying securities, which is generally expressed in terms of yield, is </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">fixed at the time the commitment is made, but delivery and payment for the securities takes place at a later date. No income </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">accrues on securities that have been purchased pursuant to a forward commitment or on a when-issued basis prior to delivery </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to the Investment Fund. When-issued securities and forward commitments may be sold prior to the settlement date. If an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund disposes of the right to acquire a when-issued security prior to its acquisition or disposes of its right to deliver </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">or receive against a forward commitment, it may incur a gain or loss. The risk exists that securities purchased on a when-issued </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">basis may not be delivered and that the purchaser of securities sold by an Investment Fund on a forward basis will not honor its </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">purchase obligation. In such cases, an Investment Fund may incur a loss.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Restricted and Illiquid Investments.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Although the Adviser anticipates that most Investment Funds will invest primarily in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">publicly traded securities, they may invest a portion of the value of their total assets in restricted securities and other </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investments that are illiquid. Restricted securities are securities that may not be sold to the public without an effective </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">registration statement under the 1933 Act or that may be sold only in a privately negotiated transaction or pursuant to an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">exemption from registration.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">When registration is required to sell a security, an Investment Fund may be obligated to pay all or part of the registration </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">expenses, and a considerable period may elapse between the decision to sell and the time the Investment Fund may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">permitted to sell a security under an effective registration statement. If adverse market conditions developed during this </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">period, an Investment Fund might obtain a less favorable price than the price that prevailed when the Investment Fund decided </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to sell. Investment Funds may be unable to sell restricted and other illiquid securities at the most opportune times or at prices </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">approximating the value at which they purchased the securities. The Fund’s interests in Investment Funds are themselves </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">illiquid and subject to substantial restrictions on transfer.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Fund’s ability to liquidate an interest in an Investment Fund will likely be limited. The Fund is subject to certain Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Funds’ initial lock-up periods beginning at the time of the Fund’s initial investment in an Investment Fund, during which the Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may not withdraw its investment. In addition, certain Investment Funds may at times elect to suspend completely or limit </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">withdrawal rights for an indefinite period of time in response to market turmoil or other adverse conditions (such as those </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">experienced by many hedge funds for a period of time commencing in late 2008 and during the crisis relating to COVID-19). </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds may also assess fees for redemptions or other withdrawals. The limited liquidity of these Investment Funds’ </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interests may adversely affect the Fund were it to have to sell or redeem such interests at an inopportune time. The Fund may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">need to suspend or postpone repurchase offers if it is not able to dispose of its interests in Investment Funds in a timely </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">manner.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Private companies, especially private technology companies, in the early phases of their life cycle may rely on projected rapid </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">growth of their revenues and/or user base for a substantial portion of their current valuation. Such projections may assume that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">current levels of rapid growth rate will continue for an extended period. If this projected growth rate were to slow substantially, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the value of such companies’ shares may be adversely affected.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Private companies have no obligation to become public or otherwise pursue an exit strategy that would allow existing investors </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to readily dispose of their interests or exit the investment. Even if such a company intends to pursue an exit strategy, the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">planned exit strategy may be impaired or delayed indefinitely depending on market circumstances or other factors beyond </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">their control.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Some of the Investment Funds may hold a portion of their assets in “side pockets,” which are sub-accounts within the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds in which certain assets (which generally are illiquid and/or hard to value) are held and segregated from the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund’s other assets until some type of realization event occurs. Side pockets thus have restricted liquidity, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">potentially extending over a much longer period than the typical liquidity an investment in the Investment Funds may provide. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Should the Fund seek to liquidate its investment in an Investment Fund that maintains these side pockets, the Fund might not be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">able to fully liquidate its investment without delay, which could be considerable. In such cases, until the Fund is permitted to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">fully liquidate its interest in the Investment Fund, the value of its investment in such Investment Fund could fluctuate based on </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">adjustments to the fair value of the side pocket as determined by the Investment Manager. In addition, if an Investment Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">establishes a side pocket prior to the Fund’s investing in the Investment Fund, the Fund may not be exposed to the performance </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of the Investment Fund’s assets held in the side pocket.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Counterparty Credit Risk.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Many of the markets in which the Fund and the Investment Funds effect their transactions are OTC or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">“interdealer” markets. With the exception of certain counterparties such as OTC swap dealers, the participants in these </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">markets are typically not subject to credit evaluation and regulatory oversight as are members of “exchange-based” markets. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">To the extent the Fund or an Investment Fund invests in swaps, other derivatives or synthetic instruments, or other OTC </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">transactions in these markets, the Fund or Investment Fund may take credit risk with regard to parties with which it trades and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">also may bear the risk of payment or settlement default. These risks may differ materially from those involved in exchange-</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">traded transactions, which generally are characterized by clearing organization guarantees, daily marking-to-market and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">settlement, and segregation and minimum capital requirements applicable to intermediaries. Transactions entered into directly </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">between two counterparties generally do not benefit from these protections and require separately negotiated documentation, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which in turn may subject the Fund to the risk that a counterparty will not margin or settle a transaction in accordance with its </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">terms and conditions because of a dispute over the terms of the contract or because of a credit or liquidity problem. Such </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">“counterparty risk” is increased for contracts with longer maturities when events may intervene to prevent settlement. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">ability of the Fund and the Investment Funds to transact business with any one or any number of counterparties, the lack of any </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">independent evaluation of the counterparties or their financial capabilities, and the absence of a regulated market to facilitate </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">settlement, may increase the potential for losses by the Fund. In addition, the Fund and the Investment Funds are subject to the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">risk that a counterparty may be unable to settle a transaction due to such counterparty’s insolvency, inability to access </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">sufficient credit, or other business factors.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Fixed Income and Convertible Bond Arbitrage.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Fixed income arbitrage is an investment strategy which involves taking </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">opposite positions in the market with respect to a bond in an effort to profit from small price discrepancies while limiting </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest rate risk. Convertible bond arbitrage involves a similar concept with respect to convertible securities, in which an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investor purchases convertible securities while simultaneously selling short the issuer’s common stock in an effort to profit </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">from a potential inefficiency in the value of a convertible security relative to the issuer’s common stock. The success of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment activities of an Investment Fund involved in fixed income and convertible bond arbitrage will depend on the ability </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of the Investment Fund to identify and exploit price discrepancies in the market. Identification and exploitation of market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">opportunities involve uncertainty. No assurance can be given that the Investment Fund will be able to locate investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">opportunities or to exploit price discrepancies correctly. A reduction in the pricing inefficiency of the markets in which the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund will seek to invest will reduce the scope for the investment strategies of the Investment Fund. In the event that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the perceived mispricings underlying the positions of the Investment Fund were to fail to materialize as expected by the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund, the Investment Fund could incur a loss. Fixed income and convertible bond arbitrage strategies often involve </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">substantial amounts of leverage in an effort to reap large returns from small inefficiencies. If an Investment Fund utilizes </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">substantial leverage in implementing such strategies, the impact on the volatility of, as well as the potential loss to, the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund and thus the Fund, could accordingly be substantial.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:0pt;margin-left:0pt;"><i>Other Instruments and Future Developments.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> An Investment Fund may take advantage of opportunities in the area of swaps, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">options on various underlying instruments, and certain other customized “synthetic” or derivative instruments, which will be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">subject to varying degrees of risk. In addition, an Investment Fund may take advantage of opportunities with respect to certain </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">other “synthetic” or derivative instruments which are not presently contemplated, or which are not presently available, but </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which may be developed and which may be subject to significant degrees of risk.</span>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:12.024pt;;"><b>Risks of Fund of Hedge Funds Structure</b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Investment Funds are not registered as investment companies under the 1940 Act. The Fund, as an investor in these </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds, does not have the benefit of the protections afforded by the 1940 Act to investors in registered investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">companies. Although the Adviser periodically receives information from each Investment Fund regarding its investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">performance and investment strategy, the Adviser may have little or no means of independently verifying this information. An </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund may use proprietary investment strategies that are not fully disclosed to the Adviser, which may involve risks </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">under some market conditions that are not anticipated by the Adviser. Investment Managers may change their investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">strategies (i.e., may experience style drift) at any time. In addition, the Fund and the Adviser have no control over the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds’ investment management, brokerage, custodial arrangements or operations and must rely on the experience </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and competency of each Investment Manager in these areas. The performance of the Fund depends on the success of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Adviser in selecting Investment Funds for investment by the Fund and the allocation and reallocation of Fund assets among </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">those Investment Funds.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The Investment Funds typically do not maintain their securities and other assets in the custody of a bank or a member of a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities exchange, as generally required of registered investment companies. It is anticipated that the Investment Funds in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which the Fund invests generally will maintain custody of their assets with brokerage firms which do not separately segregate </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">such customer assets as required in the case of registered investment companies. Under the provisions of the Securities </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investor Protection Act of 1970, as amended, the bankruptcy of any such brokerage firm could have a greater adverse effect </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">on the Fund than would be the case if custody of assets were maintained in accordance with the requirements applicable to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">registered investment companies. There is also a risk that an Investment Manager could convert assets committed to it by the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund for its own use or that a custodian could convert assets committed to it by an Investment Manager to its own use.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">For the Fund to complete its tax reporting requirements and provide an audited annual report to Shareholders, it must receive </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">timely information from the Investment Funds. Investment Managers typically experience delays in providing the necessary tax </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">information, thereby causing a delay in the Adviser’s preparation of tax information for investors. This delay will require </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Shareholders to seek extensions on the time to file their tax returns.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> An investor in the Fund meeting the eligibility conditions </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">imposed by the Investment Funds, including minimum initial investment requirements that may be substantially higher than </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">those imposed by the Fund, could invest directly in the Investment Funds. By investing in the Investment Funds via the Fund, an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investor in the Fund bears a portion of the Adviser’s Management Fee and other expenses of the Fund, and also indirectly bears </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">a portion of the asset-based fees, incentive fees and other expenses borne by the Fund as an investor in the Investment Funds. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Each Investment Manager receives any incentive-based fees to which it is entitled irrespective of the performance of the other </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds and the Fund generally. As a result, an Investment Manager with positive performance may receive </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">compensation from the Fund, in the form of the asset-based fees, incentive-based fees and other expenses payable by the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund as an investor in the relevant Investment Fund, even if the Fund’s overall returns are negative. Investment decisions of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds are made by the Investment Managers independently of each other so that, at any particular time, one </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund may be purchasing shares in an issuer that at the same time are being sold by another Investment Fund. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Transactions of this sort could result in the Fund directly or indirectly incurring certain transaction costs without accomplishing </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">any net investment result, which may result in the pursuit of opposing investment strategies or result in performance that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">correlates more closely with broader market performances. Because the Fund may make additional investments in or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">redemptions from Investment Funds only at certain times according to limitations set out in the governing documents of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds, the Fund from time to time may have to invest some of its assets temporarily in money market securities or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">money market funds, among other similar types of investments.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds may permit or require that redemptions of interests be made in kind. Upon its redemption of all or a portion </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">of its interest in an Investment Fund, the Fund may receive securities that are illiquid or difficult to value. In such a case, the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Adviser would seek to cause the Fund to dispose of these securities in a manner that is in the best interest of the Fund. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund may not be able to withdraw from an Investment Fund except at certain designated times, limiting the ability of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Adviser to redeem assets from an Investment Fund that may have poor performance or for other reasons.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Other risks that the Adviser believes are associated with the Fund’s fund of hedge funds investment approach include:</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Development and Implementation of Global Macro Trading Systems.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Managers may implement global macro </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment strategies via quantitative trading. In that connection, Investment Managers may employ quantitatively-based </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">financial/analytical trading systems to aid in the selection of investments for an Investment Fund, to allocate investments </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">across various asset classes and types and to determine the risk profile of the Investment Fund. The use of these trading </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">systems in an Investment Fund’s investment and trading activities involves special risks, both in the development of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trading systems and in their implementation. The accuracy of the trading signals (i.e., indicators of when a trade may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">desirable) produced by the trading systems is dependent on a number of factors, including without limitation the analytical </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and mathematical foundation of the trading systems, the accurate incorporation of such principles in a complex technical </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and coding environment, the quality of the data introduced into the trading systems and the successful deployment of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trading systems’ output into the investment process. Software development and implementation errors and other types of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trading system or human errors are an inherent risk of employing complex quantitatively-based trading systems in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment and trading processes. Trading systems may operate or be operated erroneously. Such errors may result in, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">among other things, the execution of unanticipated trades, the failure to execute anticipated trades, the failure to properly </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">gather and organize available data, and/or the failure to take certain hedging or risk reducing actions. These errors, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">including errors that appear in software codes from time to time, may be very hard to detect, may go undetected for long </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">periods of time, or may never be detected. The degradation or impact caused by errors may be compounded over time. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Such errors could, at any time, have a material adverse effect on the performance of an Investment Fund.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Other risks of such trading systems include:</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Trading Systems with Discretion.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Although an Investment Fund’s global macro trading strategies may be reliant on </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">technology, discretionary decisions may be used on occasion within trading systems. There may be some trading systems </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">where discretionary decisions are a large component of the trading system. Trade opportunities within such a trading </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">system may be subject to qualitative scrutiny and modification or approval by Investment Managers before execution. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Such discretionary trading decisions or modifications require the exercise of judgment by the Investment Managers. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Managers may, at times, decide to modify or not to make certain trades recommended by a trading system. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Additionally, in an attempt to improve results and/or achieve other specified objectives, certain Investment Managers have </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the ability, under certain circumstances, to delay trading or to execute trades on behalf of an Investment Fund that are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">either not derived from any one of the trading systems or are based on instructions from the Investment Manager. There </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">can be no assurance that the Investment Managers have or will correctly evaluate the nature and magnitude of the various </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">factors that could affect the value of and return on the Investment Fund’s investments. Prices of the Investment Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investments may be volatile and a variety of factors that are inherently difficult to predict may significantly affect the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">results of the Investment Fund’s, and thus the Fund’s, activities and the value of its investments.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Effectiveness of Trading Systems.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The success of an Investment Fund’s investment and trading activities will depend, to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">some degree, on the effectiveness of the Investment Manager’s trading systems. There can be no assurance that the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trading systems are currently effective or, if currently effective, that they will remain effective during the existence of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund. Trading systems are generally back-tested, to the extent practicable, prior to implementation on the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">basis of historical data. For example, event driven strategies may not be capable of being back-tested. Even if all of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">assumptions underlying the trading systems were met exactly, the trading systems can only make a prediction, not afford </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">certainty. Changes in underlying market conditions can adversely affect the performance of trading systems. There is no </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">guarantee that such trading systems will continue to be effective in changing market conditions, and past performance is </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">no indication of future performance or returns. Further, most statistical procedures cannot fully match the complexity of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the financial markets and, as such, results of their application are uncertain. Because the financial markets are constantly </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">evolving, most trading systems eventually require replacement or enhancement. There is no guarantee that such </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">replacement or enhancement will be implemented on a timely basis or that it will be successful. The use of a trading </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">system that is not effective or not completely effective could, at any time, have a material adverse effect on the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">performance of an Investment Fund and thus the Fund.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Technological Failures.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The successful deployment of an Investment Fund’s trading systems, the implementation and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">operation of these trading systems and any future trading systems, and various other critical activities of the Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Managers could be severely compromised by unforeseeable software or hardware malfunction and other technological </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">failures, power loss, software bugs and errors, malicious code such as “worms,” viruses, or “system crashes,” fire or water </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">damage, or various other events or circumstances either within or beyond the Investment Manager’s control. Software </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">bugs and errors, in particular, and their ensuing risks are an inherent part of technology-based analytics, systems and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">models. Any event that interrupts an Investment Manager’s computer and/or telecommunications operations could result </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">in, among other things, the inability to establish, modify, liquidate, or monitor the Investment Fund’s investments and, for </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">those and other reasons, could have a material adverse effect on the operating results, financial condition, activities and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">prospects of the Investment Fund and thus the Fund.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Valuation.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Certain securities and other financial instruments in which the Investment Funds invest may not have a readily </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">ascertainable market price and will be fair valued by the Investment Managers. Such a valuation generally will be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">conclusive with respect to the Fund, even though an Investment Manager may face a conflict of interest in valuing the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">securities, as their value will affect the Investment Manager’s compensation. In most cases, the Adviser will have no ability </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">to assess the accuracy of the valuations received from an Investment Fund. In addition, the NAVs or other valuation </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">information received by the Adviser from the Investment Funds will typically be estimates only, subject to revision through </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the end of each Investment Fund’s annual audit. Revisions to the gain and loss calculations will be an ongoing process, and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">no net capital appreciation or depreciation figure can be considered final until the annual audit of each Investment Fund is </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">completed.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Securities Believed to Be Undervalued or Incorrectly Valued.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> An Investment Manager may invest in securities that an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Manager believes are fundamentally undervalued or incorrectly valued, but such securities may not ultimately </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">be valued in the capital markets at prices and/or within the timeframe the Investment Manager anticipates. As a result, the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund may lose all or substantially all of its investment in an Investment Fund in any particular instance.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Investment Funds’ Turnover Rates.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> The Investment Funds may invest on the basis of short-term market considerations. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">The turnover rate within the Investment Funds may be significant, potentially involving substantial brokerage commissions </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and fees. The Fund has no control over this turnover. As a result, it is anticipated that a significant portion of the Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">income and gains, if any, may be derived from ordinary income and short-term capital gains. In addition, the redemption </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">by the Fund of its interest in an Investment Fund could involve expenses to the Fund under the terms of the Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment with that Investment Fund.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Investment Managers May Have Limited Capacity to Manage Additional Fund Investments.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Certain Investment Managers’ </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">trading approaches presently can accommodate only a certain amount of capital. Each Investment Manager will normally </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">endeavor not to undertake to manage more capital than such Investment Manager’s approach can accommodate without </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">risking a potential deterioration in returns. As a result, an Investment Manager may refuse to manage some or all of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund’s assets that the Adviser seeks to allocate to such Investment Manager. Further, in the case of Investment Managers </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">that limit the amount of additional capital that they will accept from the Fund, continued sales of Shares would dilute the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">indirect participation of existing Shareholders with such Investment Manager.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Dilution.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> If an Investment Manager limits the amount of capital that may be contributed to an Investment Fund from the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund, or if the Fund declines to purchase additional interests in an Investment Fund, continued sales of interests in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund to others may dilute the returns for the Fund from the Investment Fund.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;margin-left:18pt;margin-left:0pt;"><i>Investments in Non-Voting Stock; Inability to Vote.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;"> Investment Funds may, consistent with applicable law, not disclose the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">contents of their portfolios. This lack of transparency may make it difficult for the Adviser to monitor whether holdings of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Investment Funds cause the Fund to be above specified levels of ownership in certain asset classes. To avoid adverse </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">regulatory consequences in such a case, the Fund may need to hold its interest in an Investment Fund in non-voting form. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Additionally, in order to avoid becoming subject to certain 1940 Act prohibitions with respect to affiliated transactions, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">which are designed to protect registered investment companies, such as the Fund, from transactions which involve </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">overreaching by affiliates, the Fund intends to own less than 5% of the voting securities of each Investment Fund. This </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">limitation on owning voting securities is intended to ensure that an Investment Fund is not deemed an “affiliated person” of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Fund for purposes of the 1940 Act, which may, among other things, potentially impose limits on transactions with the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds, both by the Fund and other clients of the Adviser. To limit its voting interest in certain Investment Funds, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the Fund may enter into contractual arrangements under which the Fund irrevocably waives its rights (if any) to vote its </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">interest in an Investment Fund. The Fund will not receive any consideration in return for entering into a voting waiver </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">arrangement. Other investment funds or accounts managed by the Adviser may also waive their voting rights in a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">particular Investment Fund. Subject to the oversight of the Fund’s Board of Trustees, the Adviser will decide whether to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">waive such voting rights and, in making these decisions, will consider the amounts (if any) invested by the Adviser in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">particular Investment Fund. These voting waiver arrangements may increase the ability of the Fund to invest in certain </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Funds. However, to the extent the Fund contractually forgoes the right to vote the securities of an Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund, the Fund will not be able to vote on matters that require the approval of the interest holders of the Investment Fund, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">including matters adverse to the Fund’s interests. This restriction could diminish the influence of the Fund in an Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund, as compared to other investors in the Investment Fund (which could include other investment funds or accounts </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">managed by the Adviser, if they do not waive their voting rights in the Investment Fund), and adversely affect the Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment in the Investment Fund, which could result in unpredictable and potentially adverse effects on Shareholders. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">There are, however, other statutory tests of affiliation (such as on the basis of control), and, therefore, the prohibitions of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the 1940 Act with respect to affiliated transactions could apply in some situations where the Fund owns less than 5% of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">voting securities of an Investment Fund. In these circumstances, transactions between the Fund and an Investment Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">may, among other things, potentially be subject to the prohibitions of Section 17 of the 1940 Act notwithstanding that the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Fund has entered into a voting waiver arrangement.</span>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:12.024pt;;"><b>Repurchase Risks</b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">With respect to any future repurchase offer, Shareholders tendering any Shares for repurchase must do so by a date specified </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">in the notice describing the terms of the repurchase offer (the “Notice Date”). The Notice Date generally will be 95 days prior to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">the date as of which the Shares to be repurchased are valued by the Fund (the “Valuation Date”). Tenders will be revocable </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">upon written notice to the Fund up to 85 days prior to the Valuation Date. Shareholders that elect to tender any Shares for </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">repurchase will not know the price at which such Shares will be repurchased until the Fund’s NAV as of the Valuation Date is </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">able to be determined, which determination is expected to be able to be made only late in the month following that of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Valuation Date. It is possible that during the time period between the Expiration Date and the Valuation Date, general economic </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">and market conditions, or specific events affecting one or more underlying Investment Funds, could cause a decline in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">value of Shares in the Fund. Moreover, because the Notice Date will be substantially in advance of the Valuation Date, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Shareholders who tender Shares of the Fund for repurchase will receive their repurchase proceeds well after the Notice Date. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">In addition, the Fund is subject to certain Investment Funds’ initial lock-up periods beginning at the time of the Fund’s initial </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">investment in an Investment Fund, during which the Fund may not withdraw its investment. In addition, certain Investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Funds may at times elect to suspend completely or limit withdrawal rights for an indefinite period of time in response to market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">turmoil or other adverse conditions (such as those experienced by many hedge funds for a period of time commencing in late </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">2008 and during the crisis relating to COVID-19). During such periods, the Fund thus may not be able to liquidate its holdings in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">such Investment Funds in order to meet repurchase requests. In addition, should the Fund seek to liquidate its investment in an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">Investment Fund that maintains a side pocket, the Fund might not be able to fully liquidate its investment without delay, which </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">could be considerable. The Fund may need to suspend or postpone repurchase offers if it is not able to dispose of its interests </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:9.02pt;;">in Investment Funds in a timely manner. See “Repurchases and Transfers of Shares.”</span>
1Asset coverage per $1,000 of indebtedness is calculated by subtracting the Fund’s liabilities and indebtedness not represented by senior securities from the Fund’s total assets, dividing the result by the aggregate amount of the Fund’s senior securities representing indebtedness, and multiplying the result by 1,000.