The main strategies that may be employed by the
Fund's Sub-Advisers include:
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Relative Value Strategies,
which seek to exploit differences in valuation through the simultaneous purchase and sale of related financial instruments;
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Event Driven Strategies,
which involve investing in securities of companies currently or prospectively involved in a wide variety of corporate transactions or other events where the investment thesis is predicated
on the anticipated effect of such transactions or events;
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Global Macro/Fixed Income Strategies,
which seek to analyze macroeconomic variables to identify dislocations and forecast future moves in global asset/securities prices on a directional or relative value basis; and
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Equity Hedge (Long/Short) Strategies,
which seek to identify equities that are trading under or over their perceived intrinsic value or are deemed to be mispriced based on fundamental, statistical, technical or other
factors.
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Tactical and Other Strategies,
which relate to a variety of strategic and opportunistic investment strategies not captured above, such as short-term trading opportunities.
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As a result of the Sub-Advisers'
strategies, the Fund may invest in long and short positions in, among other investments: equity and fixed income securities of U.S. companies and non-U.S. companies traded on U.S. and non-U.S. exchanges and in the
over-the-counter markets, financial futures and options thereon, foreign currency forward contracts, and in asset-based investments such as real estate mortgages and tax liens. Derivatives may be used by the Fund for
a variety of purposes, such as to seek economic exposure to one or more alternative strategies, enhance returns, increase investment flexibility, speculate on a targeted investment opportunity, or for hedging
purposes. The Sub-Advisers use speculative investment practices, including leverage, that could increase the Fund’s volatility. Leverage, for example, is created through the Fund’s use of short sales,
securities lending and derivatives.
The Sub-Advisers have broad
discretion in the types of securities or instruments they may own, the type of trading strategies they may employ, and the amount of leverage they may use. The risk of loss may be significant if a Sub-Adviser employs
valuation assumptions or credit judgments that are incorrect, incorrectly evaluates market conditions or the nature and extent of spread relationships, or otherwise makes investment decisions that prove to be
unprofitable.
Additionally, up to 20% of the
Fund's assets may be managed directly by the Adviser. The Adviser may invest up to 10% of these assets in hedge funds, funds traded publicly on foreign exchanges, and, to a lesser extent, affiliated and unaffiliated
open-end and closed-end registered investment companies (“Underlying Funds”). A portion of the Fund's net assets (up to 15%) is expected to be invested in one or more wholly-owned subsidiaries formed under
the laws of the Cayman Islands (each, a “Subsidiary”). Any Subsidiary will be advised by the Adviser and may invest its assets in Underlying Funds or limited liability companies or other business entities
(each, a “Trading Entity”), the trading of each of which will be managed on a discretionary basis by a different third-party manager or Sub-Adviser, typically a commodity trading advisor (a “Trading
Advisor”) pursuant to such Trading Advisor's commodity-related investment program (a “managed futures program”). All or a portion of a Subsidiary's assets may also be managed directly by a Trading
Advisor which, in this case, would serve as a Sub-Adviser to the Subsidiary and indirectly the Fund.
Principal Investment
Risks
The Fund's investments are
subject to a variety of risks that may cause the Fund's net asset value to fluctuate over time. Therefore, the value of your investment in the Fund could decline and you could lose money. Also, there is no assurance
that the Adviser or the Sub-Advisers will achieve the Fund's objective.