the Multi-Strat Fund to certain additional potential liabilities that may exceed the value of the Multi-Strat Fund's original investment therein. Directional Trading Certain of the positions taken by the Multi-Strat Funds may be directional (Le., designed to profit from forecasting absolute price movements in a

n acceptable price or at a price sufficient to protect the Capital Structure Fund from the anticipated decline in value of the portfolio position. Directional Trading Certain of the positions taken by the Capital Structure Fund may be directional (i.e., designed to profit from forecasting absolute price movements

nvestment in those companies may be illiquid. It is not generally possible to hedge against the credit risks to which these companies are exposed. Directional Trading Certain of the positions taken by an Underlying Fund may be directional — designed to profit from forecasting absolute price movements in a particu