The Fund's investment objective is to create a portfolio of risk-adjusted investments that optimizes total return (income + capital appreciation) with an emphasis on the preservation of capital. The Fund attempts to realize its objective through investment primarily in securities of non-investment grade issuers that the Investment Manager believes have superior risk/return characteristics, satisfactory fundamentals, upside appreciation potential and whose issuers are capable of meeting their obligations to their creditors. No assurance can be given, however, that the Fund will achieve its objective. The following is a general description of the principal types of securities in which the Fund may invest, certain trading techniques that it may employ, the investment criteria that it plans to apply, and the guidelines that it has established with respect to the composition of its investment portfolio. The following description is merely a summary and the Investment Manager has discretion to cause the Fund to invest in other types of securities and to follow other investment criteria and guidelines. In an attempt to attain the Fund's investment objective, the Investment Manager utilizes a credit intensive, bottoms-up, capital structure evaluation of non-investment grade debt issuers. The Investment Manager generally seeks the best risk/return investment amongst the securities of a given company. The Fund's core portfolio is expected to consist of securities issued by companies believed by the Investment Manager to be upper tier improving credits with proven products, market leadership and solid management. These companies are expected to have significant business and infrastructure and, when available, the debt will be secured by the assets of the company. The Investment Manager also expects to invest in securities of middle tier and high yield companies whose securities prices are event-driven, i.e. expected to appreciate due to the occurrence of a significant event such as an acquisition of the company, which may result in a credit ratings upgrade and/or a call or tender for outstanding bonds at a premium. These companies are expected to be growth companies with good management in consolidating industries.