Alloy Investments Advisors LLC

ITEM 5: FEES AND COMPENSATION

        The offering documents for the Fund set forth the specific fees and other material terms
regarding an investment in the Fund. All Investors must pay a management fee to Alloy. The
management fee is charged to the Investors monthly, in advance, at the rate of 0.125 % of the net
assets attributable to each of the Investors. Alloy Management, the general partner of the Fund, also
receives an annual performance-based allocation from each Investor in the amount of 17.5% of the
Net Profits allocated to each Investor for that calendar year. This performance-based allocation is
more fully described in Item 6: Performance-Based Fees and Side-by-Side Management. The
management fee and the performance-based allocation are fixed, but Alloy or Alloy Management,
as applicable, has the sole discretion to modify either of these with respect to any Investor.
Management fees and performance-based allocations are also paid by Sub-Advisory Account
clients on an individually negotiated basis.

       Under the terms of its advisory agreement with the Fund, Alloy deducts the management
fee mentioned above directly from the capital account of each Investor in the Fund. No portion of
the management fee is refundable if an Investor withdraws during a month. Investors are not
charged any redemption fees.

         Through the Fund, each Investor indirectly pays for its share of all costs and expenses directly
related to investment transactions, including but not limited to: brokerage commissions, borrowing
charges on securities sold short, interest on margin accounts, custodial fees, database subscriptions
and investment data, legal, accounting and audit fees and expenses, tax-preparation fees,
governmental fees and taxes, bookkeeping and other professional fees, printing and mailing
expenses, syndication and other expenses of the continuing offering of interests in the Fund, costs
of Fund compliance and reporting, costs of Fund governance activities (such as obtaining Investor
consents if and when necessary and appropriate), costs and expenses associated with negotiating
and entering into contracts and arrangements in the ordinary course of the Fund’s business, costs
and expenses of third party administrators retained for Fund purposes, costs and premiums of any
fidelity and performance bonds and general partner liability and errors and omission insurance
coverage obtained in Alloy Management’s discretion, costs and expenses of the Offshore Fund,
extraordinary expenses of the Fund, such as litigation costs, and all other reasonable expenses
related to the operation of the Fund and/or the purchase, sale or transmittal of Fund assets, as Alloy
Management determines in its sole discretion.

         Alloy and Alloy Management are responsible for the payment of their general overhead
expenses such as rent of offices, compensation and benefits of employees, travel, office expenses
and costs and expenses for regulatory filings which Alloy and Alloy Management are required to
file on their own behalf (including, but not limited to, Forms ADV and PF, if applicable).

       Neither Alloy nor any of its executive officers, employees or the Principals accept
commissions or other compensation for the sale of interests in the Fund or in connection with the
purchase or sale of any securities for the Fund.

ITEM 7: TYPES OF CLIENTS

        Alloy provides investment advisory services to the Fund and not individually to the
Investors in the Fund. The Fund requires newly admitted Investors to be “qualified clients” under
the Advisers Act. Additionally, the Fund has a minimum investment requirement of $1,000,000
for Investors, although this minimum may be waived or reduced as provided in the Fund’s offering
documents. Additionally, Alloy provides investment advisory services to Sub-Advisory Accounts.

ITEM 8: METHOD OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS

      All Investors receive a Confidential Offering Memorandum (a “PPM”) and other offering
documents before being given the opportunity to invest in the Fund. The PPM discusses in detail

the investment objectives, investment strategy and risk factors relating to an investment in the
Fund. The following is a summary of the information that appears in more detail in the PPM, which
should be reviewed by all potential Investors.

Introduction

        Alloy’s investment objective is to maximize long-term absolute returns, in variable market
and economic conditions, while managing risk and preserving capital. Alloy’s proprietary
methods first seek to identify areas of the public equities markets which it believes to be relatively
inefficient, due to lack of research analyst coverage, company size, or persistent human biases
which cause investors to misunderstand companies’ future prospects. Within these areas, Alloy
has conducted extensive, advanced statistical analyses on company financial information,
valuation data, and other proprietary variables, in order to develop systems which it believes can
identify securities which are likely to outperform and underperform their peers. Alloy
systematically utilizes these insights to select long and short candidates, and to periodically
rebalance the Fund’s portfolio. Regardless of the investment strategy, potential Investors should be
aware that investing in securities involves risk of loss that Investors must be prepared to bear. The
following Fund related information and risks also apply to advisory clients under Sub-Advisory
Account relationships.

INVESTMENT STRATEGY

        Alloy believes that investors may be well served by utilizing a systematic investment strategy
that can select securities in an unbiased manner, reducing the subjective judgments that often dilute
manager performance. Alloy’s focus is on statistical accuracy, investment discipline and consistent
implementation. However, Alloy does not deploy a “black box” strategy wherein a computer
algorithm executes trades without human interaction. While Alloy’s proprietary systems informs its
trading decisions, all trades are implemented and executed by its employees.

        Alloy has wide latitude in the selection of investments for the Fund. The Partnership
Agreement does not impose specific limits on the types or amounts of securities or other instruments
in which the Fund may invest, the types of positions it may take, the concentration of its investments
(whether by sector, industry, asset class or otherwise), the amount of leverage it may employ or the
number or nature of short positions it may take. In pursuit of its investment objective the Fund may
hold, sell, sell short, and otherwise deal in U.S. equity securities, foreign equity securities, and other
financial instruments such as ETFs (exchange traded funds). While the Fund’s portfolio may at times
be market neutral, there is frequently directional exposure in favor of the long or the short side. The
Fund uses opportunistic short selling as part of its balanced investment approach and also as a partial
hedge against directional market risk. The Fund may buy, sell, write, and trade options and other
derivative instruments (both publicly traded and over-the-counter instruments; both covered and
uncovered) on securities and securities indices for both hedging and speculative purposes. Depending
on conditions and trends in the financial markets, Alloy may pursue other strategies or employ other
techniques it considers appropriate and in the Fund’s best interests. The Partnership Agreement does
not impose specific limits on the types or amounts of securities or other instruments in which the Fund
may invest, the types of positions it may take, the concentration of its investments (whether by sector,
industry, asset class or otherwise), or the amount of leverage it may employ.

       Alloy also incorporates certain risk management trading principles of entry, exit and position
management to initiate, manage and liquidate positions based on changing market conditions. The
Fund seeks absolute returns and does not target its returns against any stock or other market index.

        The investment strategy is deployed with the objective of maximizing returns after transaction
costs and taxes, and as such, some positions may be held for investment periods exceeding one year,
although some positions may be held for much shorter time periods. Trading profits may be
comprised of both short term capital gains (which are currently taxed at rates equivalent to ordinary
income) and long term capital gains.

INVESTMENTS

        The Fund’s capital is invested primarily in publicly-traded equity securities (including
exchange traded funds) and equity and index options. Nevertheless, in the interest of both preserving
capital and taking advantage of profit opportunities, Alloy retains the flexibility to invest in a broad
range of securities, asset classes and situations and use a broad range of specialized investment
techniques.

        The Fund may invest in the securities of foreign issuers, including those traded overseas as
well as those traded in the United States. Trading in securities of foreign issuers often involves
additional risks (such as those associated with unfavorable changes in exchange rates) but also, in
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