PROVEN INVESTMENT STRATEGY Prospero Capital is committed to building our investors' wealth through superior fundamental research and insight. Over time, this investment philosophy has created market-beating financial returns for our clients. Prospero utilizes a proprietary screening process applied to a large universe of US equities (currently 7500 individual securities) to uncover companies trading at significant discounts or premiums to historic levels of key fundamental variables that we believe impact valuation. Depending on the particular company and industry, the key metric may be Price-to-Earnings (P/E), Price-to-Book, Price-to-Sales, Price-to-EBITDA, Price-to-Cash Flow, or another ratio critical to success in that industry, or a combination of these factors. Prospero then forecasts the annualized growth rate of the key valuation variable above, calculates a "revaluation" to historical mean over a four year period, and then adds annual dividend yield to create a projected annualized rate of return for the stock. For example, if the current P/E of a $30 stock is 10, historical P/E is 15, and the projected growth rate in earnings is 10% with a 3% dividend yield, our analysis projects a $65.88 share price in four years net of all dividends, or compounded growth of 24.7% per annum. A similar analysis for stocks trading at extremely high levels versus their historical means generates our short positions. Prospero also employs relative valuation techniques of individual securities versus the S&P 500, given that many securities currently trade at high levels versus historical averages. Once securities are identified that fit our "reversion to mean" criteria above, the following factors narrow the investment pool further for inclusion in the funds (reverse logic applies to our short investments):      Strong Customer Loyalty Recurring Revenue Business Models Sustainable Competitive Advantages Potentially High Cash Returns on Invested Capital Excellent Management Teams Prospero expects that some of our investee companies will not have large institutional research coverage or high levels of institutional support. We believe it is increasingly difficult for small and mid-size public companies, particularly those that are self-financing and do not need investment banking services, to attract quality research coverage from large investment banks. This lack of coverage, combined with the size restraints and short-term investment horizons of many large institutional investors, provide a fertile environment for Prospero to identify superior companies trading at significant discounts to intrinsic value. Once Prospero invests in a company, we actively monitor the investee company, as well as its customers, suppliers, and competitors. Prospero will also seek to add value by maintaining an active dialogue with the management teams of investee companies and, where appropriate, by advocating to management specific courses of action such as divesting a non-core subsidiary. Accordingly, Prospero's ability to effect change will rest primarily on the persuasive power of its ideas and analysis.