Boussard & Gavaudan Ltd

Fund Objective

The Fund seeks to produce long-term appreciation of its assets. It aims to generate a target annualised return in excess of 10 percent (net of all fees) by investing in the Sark Fund (holds an interest in excess of 50 percent) and other assets in future. Over time, a proportion of the net assets of the Company may, at the discretion of the Investment Manager, be invested in other hedge funds (provided that, where such hedge funds are managed by the Investment Manager. The Fund will invest through a share class which will not be subject to management or performance fees at the level of the underlying hedge fund) and/or other financial assets selected by the Investment Manager which, with the possible application of leverage and when taken with the returns achieved from the Sark Fund, are intended to allow the Fund to achieve its target annualised return. The Fund intends to hedge fully the currency exposure in respect of each of its investments.