Private Advisors, LLC

Private Advisors' hedge fund capabilities provide investors with access to diversified multi-strategy and single-strategy products with exposure to credit, equity and opportunistic hedge fund strategies. We seek to identify strategies and managers that will provide the most compelling risk/reward opportunities, which may include allocations to event-driven, global macro, income, long/short equity, and relative value/arbitrage strategies, depending on the investment mandate and our forward-looking analysis. We invest with managers that have a proven investment process and discipline; fundamental, research-driven strategies; returns that are generated from both long and short security selection; and a focus on capital preservation. Please see below for a description of our hedge fund capabilities:

Low Volatility Multi-Strategy
The Low Volatility Multi-Strategy capability was launched in 1998, and is structured to achieve consistent, positive returns that are not dependent on a rising equity market, nor correlated to the return of the S&P 500 Total Return Index. This strategy is managed with a goal of minimal equity beta exposure. We believe that a fundamentally oriented and value-driven investment approach can uncover investment opportunities that are out of favor with investors or that exist in strategies and asset classes that are not overly crowded.

Diversified Multi-Strategy
The Diversified Multi-Strategy capability was launched in June 2003 and provides broadly diversified exposure to a range of credit, equity, and other hedge fund strategies. This strategy seeks to generate net performance in excess of long-term equity market returns with volatility that is less than half that of the S&P 500 Total Return Index. Both manager and strategy selection are expected to contribute to performance over time.

Long/Short Equity
The Long/Short Equity capability was launched in November 2001 and seeks to provide long-term capital appreciation above historical equity returns with half the volatility of the S&P 500 Total Return Index. The Long/Short Equity Strategy invests in managers that focus on fundamentally oriented, bottom-up security selection, generate returns from both long and short stock selection, and seek to preserve capital in difficult market environments.