GRT Closed-End Opportunities Strategy

Closed-End Opportunities Strategy from GRT Capital Partners, L.L.C.

The investment objective of the GRT Closed-End Opportunities Strategy is to provide total return from a mix of income and capital appreciation. In seeking to achieve the investment objective, the strategy invests primarily in securities issued by closed-end funds and exchange traded funds. The strategy invests primarily in domestic funds, however, the strategy may also invest in foreign funds.

The strategy engages in opportunistic trading of closed-end funds to attempt to capture value as changes occur in the discounted price of the closed-end funds. The discount can fluctuate relative to the historical discount for a given fund or just in absolute terms.

The strategy may invest in a wide spectrum of closed-end funds. The closed-end funds may have portfolios in equities, fixed income securities, or both. The funds may have widely different investment objectives and strategies which vary as to investment styles, industries, foreign countries, and so on, to the same degree as open end mutual funds. The closed-end funds may range in size from very small to very large.

The strategy may utilize a variety of investment techniques in addition to long positions in closed-end funds. For example, the strategy may also take short positions in closed-end funds. The strategy may engage in trading in exchange traded funds (“ETF’s”) and in derivatives directly or indirectly related to closed-end funds or the portfolios of closed-end funds. The strategy may choose to move all or a substantial part of its portfolio out of closed end-funds when it seems advantageous to do so.

GRT Capital intends to run an active long-short portfolio and expects to employ what the Investment Manager deems to be prudent leverage.