Investment Policy
In seeking to achieve its investment objective, GSDO will (directly or indirectly) allocate its assets to a relatively concentrated portfolio of independent investment managers ("Advisors") (or entities managed by them) selected by Goldman Sachs Hedge Fund Strategies LLC (the "Investment Manager"). It is expected that such Advisors will employ a broad range of alternative investment strategies, which will include both core strategies (i.e., event driven, tactical trading, equity long/short and relative value strategies) as well as other niche strategies.

There can be no assurance that GSDO will achieve its investment objective or that it will be able to implement its investment policy, or that the portfolio design, risk monitoring and hedging strategies of GSDO will be successful.

Investment Approach
The Investment Manager intends to pursue the investment policy and approach primarily by allocating the assets of GSDO to Advisors selected by the Investment Manager by (i) investing directly in an investment fund managed by an Advisor (a "Portfolio Fund") or (ii) investing with an Advisor indirectly through GSDO's investment in a separate company incorporated at the request of the Investment Manager with limited liability in the Cayman Islands, or such other jurisdiction as determined at the discretion of the Investment Manager (a "Portfolio Company").

Upon the launch of GSDO, the Investment Manager allocated GSDO's assets to 18 Advisors. The actual number of Advisors may vary and may change materially over time as determined by the Investment Manager. The number of Advisors to which GSDO allocates assets from time to time will be based on factors deemed relevant by the Investment Manager, which may include the amount of GSDO's assets under management, constraints on the capital capacity of Advisors, the availability of attractive opportunities, and other portfolio construction considerations.

The Investment Manager may, from time to time, vary or change materially the actual allocation of assets made by GSDO, as it deems appropriate, including without limitation by way of allocation of Company assets to any new Advisor, complete or partial withdrawal of an allocation to any existing Advisor, a reallocation of assets among existing Advisors, or any combination of the foregoing. In carrying out any reallocation of Company assets, the Investment Manager will have the discretion to determine the manner of such reallocation, including from which Advisors to withdraw assets and to which Advisors to allocate assets. Any reallocation of Company assets, for the purposes of diversification, to meet target allocations or otherwise, may take a significant period of time to implement due to the liquidity provisions and restrictions imposed by Advisors or for other reasons.

There can be no assurance that market or other events will not have an adverse impact on the strategies employed by Advisors. Advisors may at certain times hold large positions in a relatively limited number of investments. GSDO could be subject to significant losses if an Advisor holds a large position in a particular investment that declines in value and it cannot be liquidated without adverse market reaction or is otherwise adversely affected by changes in market conditions or circumstances.

The Investment Manager will seek (i) not to invest more than 20 per cent. of GSDO's total assets at the time of investment with any one Advisor and (ii) not to invest more than 50 per cent. of GSDO's total assets at the time of investment in any single investment sector, such as the relative value sector, the event driven sector, the tactical trading sector and the equity long/short sector (each, an "Investment Sector") (although it may deviate from any such guidelines from time to time). GSDO will also comply with the investment restrictions required by the listing rules (and which, where relevant, include the disclosure rules) made by the UK Listing Authority under section 74 of the Financial Services and Markets Act 2000. In the event that other restrictions are imposed from time to time and the current restrictions are amended or varied, GSDO would comply with the restrictions as amended or varied.

It is not proposed that GSDO will have any long-term or fixed structural gearing. GSDO may be indirectly exposed to gearing to the extent that Portfolio Funds or Portfolio Companies are themselves geared.

In accordance with the requirements of the UK Listing Authority, any material change to the investment policy of GSDO may only be made with the approval of a holder of £ Shares and/or € Shares and/or US$ Shares (or Shares denominated in any other currency) and/or C Shares, as the context requires (the "Shareholders").