The primary investment objective of the Partnership is absolute return on capital. The business of the Partnership is buying and selling securities of medium to large capitalized companies, including stocks, warrants, rights and options of U.S. and non-U.S. entities. The Partnership may invest and trade in public and private securities and may lend funds or assets and borrow money, with and without collateral. The Partnership ordinarily will invest in securities that trade in sufficient volume to allow for swift execution of transactions. Positions in securities may be held for very short periods, even as little as a portion of one day. The Partnership may engage in transactions in exchange-listed options in conjunction with or in lieu of taking a position in underlying securities, including writing uncovered options. The Partnership also may engage in short sales of securities and margin transactions. The Partnership may also invest or trade in cash commodities, commodity futures, or commodity options contracts after securing all necessary registrations from the N.F.A., C.F.T.C., or other regulatory agencies. The Partnership shall have the power to do any and all acts necessary, appropriate, proper, advisable, incidental or convenient to or for the furtherance of the purposes and business described herein, and shall have, without limitation, any and all of the powers that may be exercised on behalf of the Partnership by the General Partner.

The Partnership and the General Partner operate under the following philosophy:

• The two most vital attributes of an investment are its underlying risk-reward ratio and
• certainty of prediction.

An open mandate helps an investment fund achieve strong returns because it prevents a situation where an investment with strong certainty of prediction and risk-reward ratio exist in a certain trade category, and the General Partner has identified the investment, but the Partnership cannot take advantage of the investment because it lies outside of the Partnership's, closed mandate. An open mandate allows the General Partner to set a very high bar for certainty of prediction and risk-reward ratio, then survey the world's set of possible investments, and only pick those that meet the high bar. The General Partner believes that when investment funds limit themselves to a single industry, asset class, or other trade category, sometimes the bar for an investment drops, for the funds have fewer opportunities to choose from and an institutional bias toward making some investments. A lower bar for investment increases the risk of loss. Therefore, it is advantageous to have an open mandate, with the attendant high bar for investment (in terms of certainty of prediction and risk-reward ratio), and willingness to stay in cash when no investments can be found that meet the bar. If there are only a small percentage of very attractive investments, then increasing the Partnership's range of investment increases the likelihood that one of those rare, very attractive investments will come into the Partnership's range.

The General Partner focuses on fundamental analysis and is disposed to investing around catalysts. The Partnership is an absolute return fund. Therefore, it may engage in any investment that, in the view of the General Partner, is likely to promote the investment return of the Partnership.

The Farris Fund's fields of investment may include the following but are not limited to the following: equities, fixed income, commodities, currencies, futures, options, venture capital, private equity, initial public offerings, restricted securities, and private placements. The Partnership may invest long and short, trade on any exchange, invest in domestic and foreign assets, and use the degree of leverage the General Partner deems appropriate.

The Partnership's investment program will emphasize active management of the Partnership's portfolio, with an emphasis on capturing profits on short-term movements. This policy will result in the Partnership taking frequent trading positions. Consequently, the Partnership's portfolio turnover and brokerage commission expenses may exceed those of most investment entities of comparable size. It is the intent of the General Partner to minimize the effect of active trading by having acquired very competitive commission rates.