Narragansett Multi-Strategy

Fund LLC

Fund Investment Objectives

The Fund invests in securities to produce above average returns under varying market circumstances. Ideally, our effort centers on identifying low-risk trades in options on indices, equities, and ETFs. These trades are then managed as a portfolio of risk and are adjusted at both the individual security level and at the portfolio level. Traditional methods of derivative management are employed. We monitor dollar-adjusted levels of delta, gamma, vega, rho, and theta. We also use stress testing and VAR measurements. The Fund concentrates on market-neutral strategies with the goal of achieving consistent returns in both rising and falling markets. These are coupled with an opportunistic component which effectively leverages inefficient markets. Portfolio composition will be roughly 80% market-neutral, with the remaining 20% devoted to the opportunistic component. The Fund will invest in derivative securities to create portfolio value, enhance returns, or hedge positions. All these tactics and strategies rely on the managers' expertise and experience in the capital markets and may include the use of various kinds of fundamental or technical analysis.