2. Strategy Overview: Our strategy manages capital through a disciplined and systematic-based approach to achieve consistent investment returns through all market cycles. US stocks are evaluated on key characteristics of financial measures, capital efficiency, valuation, momentum, sentiment, and risk factors that lead to positive or negative performance relative to peers. Selected stocks are used to construct a market and sector neutral portfolio.

3. Strategy Philosophy: We have identified a diverse series of key 2nd derivative stock factors that lead to positive performance and absence of these characteristics lead to under performance relative to peers. Our proprietary selection process utilizes individual factor scores to create an overall ranking of stocks based on unique scoring combinations of our factors. By including a diverse set of stock characteristics into our systematic market neutral portfolio construction, investment returns are intended to be uncorrelated with individual sectors and the overall market.

4. Portfolio Construction: Market and Sector Neutral- Selected stocks are matched dollar neutral at the sector level. Individual position exposure is controlled through equal weight positions. No market timing- Scheduled rebalancing of new positions and tolerance based weighting adjustments. Monthly screen for new positions, weekly market and sector neutrality rebalance.

5. Risk Management: Our market and sector neutral portfolio construction is intended to mitigate systematic risk. Selected stocks are also screened for liquidity, stock price minimum, and cost to borrow limits.

6. Company Overview: Ferro Investment Management LLC. was formed in 2010 as an asset management company based on the partners combined 67 years of successful investment management experience. Our Market Neutral strategy was seeded by the partners and managed for three years prior to seeking external investors in June of 2013.

7. Management Bios: Jeffrey Ferro Mr. Ferro is Co-Founder and Managing Member of Ferro Investment Management LLC. with responsibility over investment strategies, portfolio management and marketing. Prior to forming Ferro Investment Management LLC, Jeffrey Ferro served as Vice President of HSBC Customized Execution Services (“HSBC”). In this role, he developed and tested global algorithmic strategies for client and internal trading desks, consulted clients on global transaction analysis and execution strategies, and managed the execution of global equity programs in developed, emerging, and frontier markets. Prior to joining HSBC, Mr. Ferro was at Barclays Capital as Vice President on the Equity Proprietary Strategies Desk with focus on trading small cap, healthcare, derivative, risk arbitrage and Latin American strategies. From 2005 to 2006, Mr. Ferro served as Senior Trader of Healthcare and Consumer sectors for ING’s equity mutual funds and as Head Trader for ING’s two internal hedge funds from 2003 to 2005. He started with ING as a small cap Trader for ING Pilgrim Funds in 1999 and also served as a Pricing Analyst with Bankers Trust from 1996 to 1999. Mr. Ferro graduated from Marist College with a B.S. in International Business. Dennis Ferro (CFA) Mr. Ferro in Co-Founder of Ferro Investment Management LLC. and brings thirty-five years of investment experience. From 2003 to 2008, Dennis Ferro served as President and Chief Executive Officer of Evergreen Investments, an asset management company with over $200 billion in assets under management. From 1999 to 2003, Mr. Ferro served Evergreen Investments as Chief Investment Officer and, prior to that, as Chairman of the Investment Policy Committee. Before joining Evergreen Investments, Mr. Ferro was the Managing Director and Chief Executive of London-based Zurich Investment Management, Ltd., where he oversaw the combination of Zurich Investment Management Ltd. European assets with the international equity and fixed income assets of Kemper Investments. Mr. Ferro additionally has served as the President and Chief Investment Officer of both CIGNA International Advisors, Ltd. and Japan Bankers Trust, Ltd., based in Tokyo, Japan. Mr. Ferro has been identified as one of the top one hundred mutual fund portfolio managers by Barron’s financial magazine, and has appeared as a guest and commentator on CNBC, Bloomberg News, and CNN. Mr. Ferro additionally sits on the Board of Directors of Principal Financial Group. Mr. Ferro holds a CFA designation and is a member of the American Bankers Association, Investment Committee. Mr. Ferro earned his B.A. from Villanova University, and an MBA in finance from St. John’s University.