nstead, Gruss altered reports in order to conceal the magnitude of the difference from Zwirn. 184. In March 2006, Gruss instructed Law to decrease the Offshore Fund's monthly expenses by $500,000. This adjustment increased the Offshore Fund's February 2006 returns. Law was uncomfortable with the instruction, but

ived, inter alia, by removing the profits and losses associated with the Restricted Investments from the overall profits and losses associated with the Offshore Fund's portfolio pursuant to the Restricted Investment Reallocation. As a consequence of the Restricted Investment Reallocation, other shares of the Offsh

to the extent such investment criteria cause the non-SRI Investors to have different exposures and weightings than would otherwise be applicable to the Offshore Fund's Regular Portfolio in the absence of the SRI Shares. Regulatory and Tax Risks Limited Regulatory Oversight While each of the Partnership and the Un

below. (See "Hedging"). The Restricted Investments Reallocation involves a bookkeeping entry relating to the investment performance of a subset of the Offshore Fund's portfolio (the "Regular Portfolio") and the SRI Shares are not and will not be, managed as a segregated, or even separate, portfolio; that DOC ID-