TAPPING THE CORRIDORS OF THE CAPITOL:

HOW CAN HIRING A LOBBYING FIRM ADD VALUE TO MY FUND?

Getting an edge in the market today is like searching for a needle in a haystack. We will help you find that edge by monitoring market-moving events on the Hill. Hedge fund managers, private-equity funds, investment banks and even wealthy private investors are hiring lobbyists to tell them what the government is going to do. They are making money off of what Congress does by monitoring moves that may have a significant impact on a small set of companies: Will Congress pass legislation banning gambling over the Internet? Will lawmakers approve new regulations for Fannie Mae and Freddie Mac? Which airline will win from the Transportation Department a new daily nonstop flight to China? Will the FDA approve a new prescription drug?

We also recommend that prior to investing in any company a check should be made of legislative schemes and proposals that may impact their business.

CAN YOU GIVE US A CONCRETE EXAMPLE?

On November 16, 2005, then Senate Majority Leader Bill Frist announced a full Senate vote on a bill to create a $140 billion public trust fund for asbestos claims. Two days prior to the Senator’s announcement the stock prices of some companies that used asbestos, including USG Corp., W.R. Grace & Co. and Crown Holdings Inc. went up. The stock prices of other companies in their sectors were fairly flat on those days, as was the market as a whole.

IS THIS CONSIDERED “INSIDER INFORMATION”?

Information obtained by a lobbyist from a government official is in the public realm and not considered insider information. This is not intended to be legal advice and you should consult your attorneys for more information.

WILL YOU HAVE TO REGISTER MY FUND WITH THE SENATE LOBBYING REGISTRAR?

Right now, lobbyists only have to disclose their work for clients seeking to influence government. Hedge funds and other clients simply monitoring goings-on on the hill do not have to register.