Cornerstone/ICA TALF Fund, LLC was established in May, 2009 as a single strategy hedge fund. Each Series within the fund own TALF eligible Aaa/AAA rated Asset Backed Securities (ABS), financed by investor capital and loans from the New York Federal Reserve’s Term Asset-Backed Securities Loan Facility (TALF). Eligible ABS includes securities backed by consumer, student and small business loans, as well as Commercial Mortgage Backed Securities. The fund is closed to new investors.

The primary objectives of our new fund, Cornerstone Treasury Strategies Fund LLC, are current income and capital preservation. The fund’s focus is the bond carry/curve trade as an “enhanced cash” investment strategy. Essentially, the bond carry/curve trade involves borrowing short (O/N-90 days) and buying a leveraged position of longer dated fixed income securities. Cornerstone intends to invest primarily in three year U.S. Treasury Notes. During the holding period, typically one year, you get the advantage of considerable positive carry (difference between investment income and borrowing cost) and a steep yield curve. A steep yield curve may provide, over time, a move to lower relative interest rates (and higher relative prices). In addition, the fund will be actively managed to both enhance return and preserve capital.