INVESTMENT APPROACH

• React to the markets versus anticipate them

• Sell Put Options – Fund commits to purchasing stock at contract prices on specific

dates generally one to six months in duration:

- Generates cash

- Results in income from expired contracts, or the purchase of securities at prices generally lower than market as of date of original trade

- High rate of expiration – allows for leverage and greater number of contracts sold

- Multiple price points and maturities, spreads risk and opportunities

- Profits derived during flat or even modestly down markets

- Shorter term "in the money" puts

• Opportunistic approach to buy on dips or get enhanced income on snap back rallies

Risks

- Does not fully exploit rapidly rising markets

- Sharp market drops increases volatility and thus value of contractual liability. This could result in exiting contracts at losses as compared to underlying intrinsic values