Investing in Avalon

Investing in Avalon Global Opportunity Fund B.V. involves a certain amount of risk considerations, including currency fluctuations, lack of liquidity as well as price volatility of the securities.

The Fund may also invest in privately issued securities, which also may present additional risk considerations. Also, government involvement in and influence on the private sector, economic and political factors as well as leverage and/or other factors which might adversely affect Avalon’s activities and the value of its investments are part of the risk. These risk factors may result in greater price volatility.

There are particular risks relating to the investment and trading of fixed income / debt instruments which include the uncertainties involved in trading in emerging markets. The ability to trade profitably in emerging markets may be affected by world events, changes in foreign policies and other economic and political factors that are outside the control of the fund.

When investing in emerging markets there may be no established or recognized market for some or all of the fund’s investments. In other cases, any market may be relatively small or poorly developed. The prices of some investments may not be published and may not be readily ascertainable from any independent source. This not only results in some illiquid investments held by the fund, but also in difficulties in ascertaining their value for the purpose of the calculation of the net asset value by the fund administrator.

It may not always be possible to execute a buy or a sell order at the desired price or to liquidate an open position, either due to market conditions on exchanges or due to the operation of daily price fluctuation limits or “circuit breakers”. It is also possible that an exchange or governmental authority may suspend or restrict trading on an exchange or in particular securities or other financial instruments traded on such exchange.

Therefore the fund is only suitable for sophisticated investors who have a limited need for liquidity and the investment in the fund would not constitute a complete investment program. These sophisticated investors have the financial resources necessary to withstand the risks involved in the fund’s investment program.

Prospective investors should also maintain investment holdings with risk characteristics different from Avalon’s, and are urged to consult with their own professional advisors to determine the suitability of an investment in the fund and the relationship of such an investment to the their overall investment program and financial and tax position. There can be no assurance that the investment objective of the fund will be achieved.