PHILOSOPHY

THE TANTALLON EMERGING MARKETS FUND (formerly Tantallon BRIC Fund)

The Tantallon Emerging Markets Fund is a long bias, value driven Long/Short Fund investing in Emerging Markets. It combines a thematic top-down approach with bottom-up stock selection.

The Fund will limit its gross and net exposures to 200% and 125% respectively, and may have a small net negative exposure depending on market conditions. The Fund shorts specific names only in order to add alpha and seeks to preserve capital actively through synthetic and physical index futures and options.

The geographic focus is the BRIC countries (Brazil, Russia, India and China), Korea, Mexico, South Africa and other Emerging Markets. Except for Greater China, which may have a maximum of 45% of NAV, other large Emerging Markets may not be more than 30% of NAV. Up to 10% of the portfolio may also be invested in companies whose earnings or assets have significant Emerging Markets exposure, but are listed on non-EM stock exchanges.

The manager believes that investing in a multi-country, multi-currency portfolio requires the flexibility to reflect the differing stages of economic and corporate cycle. The portfolio reflects a value bias, but will invest in growth as well as mature companies that may not reflect value characteristics in all its holdings. Stock selection is based on understanding the industry dynamics and cycle, absolute valuation measures, as well as relative cross border value comparisons. Tantallon's investment process is characterized by a high level of company and corporate contact. We believe that meeting with company management provides critical insight into the future growth prospects of a company and its industry dynamics, more so than relying solely upon sell side research.