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EFTA01374057

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AGP LP 519 Alpha Group Capital Paul Barrett customer property recovered from the insolvent broker-dealer's estate, if any, and maximum payment from the customer reimbursement fund established under US law to reimburse customers of insolvent broker-dealers, it will be an unsecured creditor of the insolvent broker- dealer with respect to such shortfall and, therefore, may not be able to recover equivalent assets in full, or at all. Any securities of the Master Fund held by the Prime Brokers may be held in a general client or -omnibus" account together with the securities of other clients. The use of an omnibus account could result in the Master Fund bearing losses as a result of a shortfall in the omnibus account that would not have ensued had its securities been held in a designated client account. Moreover, under contractual arrangements relating to the operation of the omnibus account, the Master Fund may be restricted from voting its securities as it wishes under arrangements relating to the operation of the omnibus account. Moreover, the Master Fund is subject to the risk that a Prime Broker may be unable to perform with respect to transactions, whether due to insolvency, bankruptcy or other causes. In addition, the nature of commercial arrangements made in the normal course of business between many prime brokers and/or custodians means that in the case of any one Prime Broker defaulting on its obligations to the Master Fund, the effects of such a default may have consequential negative effects on other prime brokers and/or custodians with whom the Master Fund deals. The Master Fund and, by extension, the Partnership may, therefore, be exposed to systemic risk when the Master Fund deals with prime brokers and/or custodians whose creditworthiness may be interlinked. Where a Prime Broker delegates the safe custody of the Master Fund's securities held by it pursuant to the relevant agreement to a sub-custodian located outside of the United St

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