THE BLACK MARLIN FUND

The Black Marlin Fund (“the Fund”) was established in February 2007 and commenced trading during March. It is an Australian unit trust and only accepts investments from wholesale investors.

Investment Strategy

The Fund employs a global macro investment strategy with an Asian theme focus across a wide range of markets including:

• Equities
• Commodities
• Foreign Exchange; and
• Fixed Income

Using a combination of macro economic analysis, micro economic analysis, funds flow and technical analysis, the Fund invests in market trends as they are perceived to arise. Shell Cove’s core trading strategy revolves around the management of trading opportunities developed from a wide range of market sources including independent research providers, international banks and finance houses, industry specialists and the personal experience of the principals.

As a result trading themes evolve and a trade or series of trades that will fulfill the theme’s view are developed. From this point the type of instruments and methodology of execution are selected that reflect the perceived profit opportunity and consequential risk.

Derivative transactions (normally relatively inexpensive long volatility) are used to enhance the risk/reward profile of the theme, and at this point profit objectives and loss tolerances are defined. Once trades are implemented the position is closely monitored and appropriately fine tuned to maximize both the short and longer term views of the opportunity as it evolves.

The Fund will generally only trade in the G30 markets and will trade in listed derivatives as well as cash securities. OTC instruments will only be used where listed securities do not provide the appropriate investment profile and where there is ample liquidity. Leverage is used via long derivatives. Total leverage (as measured by aggregate absolute equivalent asset position) is limited to 300% of capital.

Fund Structure

The Fund is an Australian unit trust – the key elements of the Fund are as follows :