1. Hedge Fund Strategies 101: Relative Value Hedge Fund Fundamentals | January 2015

2. 2 Introduction Hedge funds offer qualified investors a unique partnership, with the ability to invest alongside them. While hedge funds first began as a way to offer investors a balanced - or market-neutral – approach to investing, the methods for delivering returns have evolved through the years. This presentation provides a brief overview of some of the strategies used by hedge funds in the marketplace today. Topics: Investment Strategies Relative Value New Hedge Fund Partnerships Resources

3. 1 3 Hedge funds offer investors a broad range of investment options. No two hedge funds are identical, but funds can be categorized broadly by the type of strategies they employ. While the individual investment decisions made by each fund vary, hedge funds are united by the same fundamental goals: Portfolio Diversification- Prevents over-concentration in specific assets. Risk Management – Helps anticipate and avoid volatility in the marketplace Reliable Returns Over Time – Provides opportunities for asset growth Investment Strategies

4. 2 4 Relative Value Investment managers maintain positions based on valuation discrepancy in the relationship between multiple securities. Managers employ a variety of fundamental and quantitative techniques; investments range broadly across equity, fixed income, derivative or other security types. Positions may involve future corporate transactions, but these positions are predicated on realization of a pricing discrepancy between related securities rather than the outcome of the corporate transaction. According to the 2014 Preqin Report on Hedge Funds relative value strategies represent 13% of assets accompanied by industry funds. Source:2014 Preqin Global Hedge Fund Report

5. 3 5 Institutional Investors Seeking Out New Hedge Fund Partnerships According to Preqin’s 2014 Global Hedge Fund Report, investors expect to increase hedge fund allocations to their existing portfolios over the next 12 months.* Beyond multi-manager funds, public pension funds are the most active type of institutional investor seeking new hedge funds, with the proportion of the total number of fund mandates issued by this group rising throughout the year. This is in line with recent growth trends, which indicate that in 2007, around 196 public pension funds invested in hedge funds - today that number is around 377. The accompanying chart outlines how investors are expected to allocate – by strategy – over the next 12 months.** Source: 2014 Preqin Global Hedge Fund Report **Data for 2015 will be updated as soon as published.

6. 4 Resources: 6 For more information on hedge fund strategies, visit: 1.Managed Funds Association or www.managedfunds.orgManaged Funds Associationwww.managedfunds.org 2.Hedge Funds 101Hedge Funds 101 3.Hedge Fund Strategies: An Overview of the Various Investment Strategies Offered by Hedge Funds in the Marketplace TodayHedge Fund Strategies: An Overview of the Various Investment Strategies Offered by Hedge Funds in the Marketplace Today 4.Hedge Fund Research Strategy DefinitionsHedge Fund Research Strategy Definitions