efined, the "Capital Structure Fund").° The portfolio of the Capital Structure Fund overlaps substantially with a comparable portfolio in the Multi- Swat Funds (the "Multi-Strat Convertible Portfolio"), managed by the same portfolio manager, albeit on a more highly-leveraged basis than the Multi-Strat Conve

not be possible for the Multi-Strat Funds to enter into a hedging transaction at an acceptable price or at a price sufficient to protect the Multi- Swat Funds from the anticipated decline in value of the portfolio position. Event-Driven Investing Event-driven strategies focus on investing in positions who