I. Determine Client Objectives and Risk Policies

The Hennessee Group's advisory process begins with sufficient client disclosure to determine an investor's suitability for hedge funds. Our disciplined approach to investment consulting is designed to build and manage wealth through consistency of returns, while managing downside risk. The goal of this first step is to establish:

· Investment goals · Investment constraints

· Time horizons · Absolute or relative return expectations

· Risk tolerance · Liquidity parameters

II. Analysis of Current Portfolio

We conduct a detailed inquiry into your hedge fund investment experience and an understanding of your non-hedge fund investments.

III. Qualitative and Quantitatve Asset Allocation

Together with defined investment policies and statement of objectives, including after tax return expectations, the plan is then translated into the selection and weighting of investment styles and funds for your customized hedge fund portfolio.

Our approach to constructing a portfolio focuses on research and fundamental analysis. We integrate our own "top down" approach in evaluating the opportunities in over twenty investment styles, combined with our thorough "bottom up" process of manager selection.

IV. Qualitative and Quantitatve Manager Selection

In order for a fund to be selected, it must pass through Hennessee Group's extensive manager selection that evaluates many aspects of the hedge fund. Once complete, Hennessee Group will recommend a fund for investment.

V. Performance Review of Recommend Portfolio

Hennessee Group offers semi-annual portfolio performance reviews in which we evaluate performance of the portfolio and each fund and make possible recommendations for reallocations.

In addition, Hennessee Group will monitor each hedge fund on an ongoing basis (see research and services for additional information).