Any statistic is based on the historical behavior of whatever is being measured - in this case, hedge funds. It measures the loss vs. gain in that past period. If the world didn’t change in any way, and the fund’s behavior didn’t, and loss vs. gain was a perfect measure, then loss vs. gain (or any other statistic being used) might well provide us a solid guideline for the future. Unfortunately, things don’t work that way. No statistic is perfect, and, in addition, both the world and fund behavior do change. Accordingly, investors should exercise caution in using statistics as guidelines to investment decisions. Statistics do not and cannot predict events in the future with any certainty. Investors should make their decisions based on a variety of factors in addition to looking at statistics and past results as possible guidelines.

Hedge funds have inherent in them an element of risk that is not present to the same degree in many other investments, such as mutual funds. That risk is the future use of bad judgment by the fund manager in such areas as portfolio concentration, leverage and/or liquidity. Further, that particular risk is not measurable, as, by definition, it relates to the future. For example, many hedge funds use large amounts of leverage and the risk control of the fund’s leverage is often totally dependent, from moment to moment, on the judgment of its manager. While the history of hedge funds overall has been good in this regard, there have been occasional hedge fund failures.

Accordingly, a single hedge fund, or a number of hedge funds, that might exhibit low loss vs. gain characteristics for the past, could become much more risky very quickly if the hedge fund managers in question did not control risk as well as they had in the historical periods measured.

Neither statistics nor past results are necessarily indicative of future performance.

Investor Suitability

The typical U.S. hedge fund will require that an investor is "accredited" under U.S. Securities and Exchange Commission guidelines. An individual investor is accredited if he or she has a net worth (including one’s home and furnishings) in excess of $1,000,000 or has had an individual income of more than $200,000 for the past two years or joint income with one’s spouse in excess of $300,000 in each of these years and has a reasonable expectation to reach the same income level in the current year.

Those hedge funds whose investment decisions are directed by a Registered Investment Advisor also may require that an individual investor be an "eligible client." An eligible client has at least $750,000 under management with the investment advisor or net worth in excess of $1,500,000.

The eligibility standards will vary for different types of investors (trusts, corporations, IRAs, etc.). If you would like more information on investor suitability, please contact RWC.

Explanatory Notes

A U.S. hedge fund is defined as a U.S. limited partnership or limited liability company that invests primarily in publicly traded securities or financial derivatives. This definition specifically excludes offshore funds. An offshore hedge fund is defined as an entity (usually a corporation) registered in an offshore tax haven, that invests primarily in securities or financial derivatives, and actually hedge, or can hedge. This definition specifically excludes offshore funds that cannot hedge.

Information on hedge funds is based on information from R. Witt & Company Fund, LP’s database and may not be representative of all hedge funds. We attempt to provide accurate information on hedge funds but do not warrant its completeness or accuracy. As with any investment, investors are subject to a risk of loss.

In some cases, predecessor portfolios (established prior to inception of the fund) have been included in performance numbers.

R. Witt & Company, LLC (RWC) and R. Witt & Company Fund, LP. (RWCF) are affiliates. Collectively, they may be referred to as "the RWC Companies."

All averages in this presentation are simple averages, not dollar-weighted averages.
Performance results (and other manager-specific information) herein are provided by the managers, are estimates and are subject to change. The information is not independently verified or audited, and performance results throughout are net of fees and performance allocations. In some cases, predecessor portfolios have been included. If a manager’s performance history began at a time other than the beginning of a quarter, the manager’s statistics were calculated assuming the performance history began at the beginning of the quarter.

· Source for market statistics is Bloomberg Business News. Hedge fund averages, S&P 500, DJIA, NASDAQ (1998 and forward), Russell 2000 (1998 and forward), Average Equity Mutual Fund, Average Bond Mutual Fund, and specific country indices have dividends reinvested (except for the following: Germany, Israel, Russia, Venezuela, South Africa, Czech Republic, Turkey, Argentina, Poland, Hungary). The Morgan Stanley Emerging Markets Index returns do not reflect the reinvestment of dividends. The index returns are from sources believed to be reliable but have not been independently verified.

"Market neutral" is standard industry terminology referring to certain styles, which in actuality may not be "neutral" in relation to the returns of the market. Perfect market neutrality would be exhibited by a correlation to the market of 0.

There can be no guarantee that the managers depicted in this letter will hedge or that their hedging techniques will be effective.

Changes in economic conditions will affect the managers and comparative indices in various ways. There can be no guarantee that past comparisons will be replicated.

"Funds Managed" refers to total equity under management by a manager and may include other strategies than that for which the returns are cited.

INVESTORS ASSUME RESPONSIBILITY FOR PERFORMANCE OF ALL DUE DILIGENCE. THE FINAL DECISION WHETHER OR NOT TO INVEST WITH A MANAGER RESTS SOLELY WITH THE INVESTOR, AND THE INVESTOR AGREES IT SHALL NOT BE BASED ON ANY INFORMATION PROVIDED BY RWC AND/OR ANY AFFILIATES.

INVESTMENTS IN HEDGE FUNDS ARE SPECULATIVE AND INCLUDE A HIGH DEGREE OF RISK. INVESTORS COULD LOSE THEIR ENTIRE INVESTMENT. HEDGE FUNDS ARE SUITABLE ONLY FOR PERSONS WHO ARE ABLE TO LOSE THEIR ENTIRE INVESTMENT. PROSPECTIVE INVESTORS SHOULD CAREFULLY CONSIDER THESE RISKS BEFORE INVESTING.

All information provided is accurate to the best of our knowledge and belief. Opinions and estimates constitute our judgment and are subject to change without notice. The information herein should not be construed as investment or legal advice. The RWC Companies assume no responsibility for the interpretation, accuracy or completeness of the information. Each reader is solely liable for any use such reader may make of this information.

The RWC Companies can assume no responsibility for investments in hedge funds by investors who review these pages. Investors are urged to seek professional advice in selecting individual hedge funds and to perform extensive due diligence on funds prior to investing.

IMPORTANT CONSUMER INFORMATION:
(1) A broker-dealer, investment adviser, BD agent or IA rep may only transact business in a particular state after licensure or satisfying qualifications requirements of that state, or only if they are excluded or exempted from the state's broker-dear, investment adviser, BD agent or IA rep requirements, as the case may be; and

(2) Follow-up, individualized responses to consumers in a particular state by broker-dealer, investment adviser, BD agent or IA rep that involve either the effecting or attempting to effect transactions in securities or the rendering or personalized investment advice for compensation, as the case may be, shall not be made without first complying with the state's broker-dealer, investment adviser, BD agent or IA rep requirements, or pursuant to an applicable state exemption or exclusion.

(3) for information concerning the licensure status or disciplinary history of a broker-dealer, investment adviser, BD agent or IA rep, a consumer should contact his or her state securities law administrator.