AHLT

AHLT is actively managed, pursuing capital appreciation through an alternative investment. The investment philosophy is based on the belief that financial markets exhibit persistent, exploitable trends or inefficiencies. The objective is to profit in both rising and declining markets while providing exposure that has a low, or negative, correlation to traditional asset classes. Investment decisions are based on a quantitative trend-following approach. The underlying portfolio is determined using trading models that analyze pricing data of more than 20 different global markets over a range of timescales. Signal filters are used to identify trends, and an overall risk assessment is considered to construct the portfolio. Positions may be long or short, using futures or forward contracts. Rebalancing occurs daily. The notional value of the derivatives will exceed that of the fund's net assets. The sub-advisor aims for a target volatility of 15%. The fund avoids K-1's by using a Cayman Island subsidiary.