The  following are the primary investment strategies employed at Redwood Capital  Management:

                      Distressed Securities 
                      o   Debt securities of companies that may go through or are currently going through a restructuring  
                           or the bankruptcy process.

                      Stressed Securities
                      o   Debt securities of companies that are experiencing some form of stress in their  business 
                           and as a result their market valuations have been negatively impacted.  These situations are
                           often characterized by competitive pressures,  cyclical/demand trends, management changes,
                           technological changes, etc.

                     Over-Secured  Debt
                     o    Bonds in the top layer of a company’s capital structure that typically represent a lower risk
                           profile than bonds in lower parts of  a company’s capital structure.  

                     Equities
                     o   Post-reorganization equities – Equities we receive as a result of a company’s restructuring through 
                          the bankruptcy process.
                     o   Undervalued equities  -  After evaluating a company we come to the conclusion that  the 
                          equity reflects a more attractive valuation than the debt of the company. Often  times these are 
                          companies going through significant change and/or have fallen  out of favor with mainstream investors.