INVESTMENT STRATEGY

The EAS Genesis Fund invests primarily in a combination of our three distinct sub-investment strategies: Hybrid, Concentrated Equity and Global Cycle.

The following illustrates the characteristics of each of sub-strategy:

Each sub-strategy invests in a combination of mutual funds and Exchange-Traded Funds (ETFs) across different investment styles and sectors. As such, there will be three different sub-universes of investments pursued within the Fund; specifically:

1) HYBRID.

Hybrid is a conservative, absolute return style. To pursue this objective, we buy individual mutual funds and ETFs which employ an array of strategies, each of which is expected to move somewhat independently of the broad stock and bond markets. Some of these funds will use short-selling techniques. The chart below shows the principal styles used in the Hybrid segment of the Fund. The Fund's position weightings to each style will vary over time. Click on any box to see a description of that Hybrid style.

Sources: Hedgeworld and Emerald Asset Advisors, LLC

Why Hybrid investing?

2) CONCENTRATED EQUITY.

Concentrated Equity is an equity strategy that pursues long-term growth of capital by using a limited number of holdings (typically 30 or less). Managers employing a Concentrated Equity approach use a variety of styles, including (but not limited to):

• Contrarian value
• High return-on-investment ("ROI") growth
• Sector rotation
• Multi-Cap investing

Emerald's Concentrated Equity strategy invests in a combination of mutual funds that each employ a Concentrated Equity style. We may also include short-index securities (dedicated short mutual funds or short ETFs) in this strategy to reduce portfolio volatility in times of perceived high market risk. Concentrated Equity generally yields a long-biased portfolio.

Why Concentrated Equity investing?

3) GLOBAL CYCLE.

Global Cycle is an equity-oriented style that takes a very long-term view of the global economy and financial markets. Emerald's Global Cycle Strategy seeks to capitalize on long-term themes identified by Emerald's research team. Examples of such themes may include India equity, China equity, alternative energy, potable water and global REITs. The themes are captured primarily through ETFs and Mutual Funds. We may also include short-index securities (mutual funds or short ETFs) in this strategy to reduce portfolio volatility in times of perceived high market risk.

Why Global Cycle investing?

IS IT A HEDGE OR A SHORT-BULL MARKET?

The EAS Genesis Fund may often use funds that short stocks and/or bonds. The short positions are used for one of two purposes:

1. To reduce overall portfolio volatility (i.e. to "hedge" the overall portfolio)
2. To seek profit from an anticipated decline in a market segment