BOOTH BAY FUND MANAGEMENT, LLC Dear Investor, For the fourth quarter of 2014, the Boothbay Absolute Return Strategies Fund posted net returns of 1.88%1, versus returns of the HFR Global Hedge Fund Index of -1.74% and Market Neutral Index of +0.96%, and a return of the S&P 500 of +4.92%. While we were pleased with our 4th quarter returns on a risk-adjusted basis, we are still increasing risk towards industry norms in order to increase absolute returns. Building Out the Portfolio As we have previously discussed, we are running with a very low risk profile for what we expect to be a temporary period as we continue to build out the portfolio by adding more non-correlated teams. This is more a function of waiting to add more non-correlated trading groups to best increase expected return for a given level of increased risk than of raising risk by increasing current allocations to existing managers, which would increase risk proportionately with the increase in expected return. On a positive note, we are encouraged by the pipeline of trading groups, which is being aided by a few minor developments. One is that teams tend to free up at year-end, after getting compensation from their prior firms. Secondly, our portfolio manager sourcing abilities, which are largely based on networking and relationship building, continue to grow geometrically with more time, more relationships, and more name recognition. Lastly, recent changes at some prime brokers have left a large number of proprietary trading groups without homes, so there is a fair amount of new talent looking for capital. We are in the process of onboarding up to four or five new teams that fit into our favorite category of "other," as explained below. It is often these types of strategies that are most additive to the portfolio level risk /reward characteristics. Not only will the portfolio become more diversified as we add traders, but the constituents of the portfolio should continue to improve