The market collapse and contagion that occurred in late 2008/early 2009 exposed the fault lines of Modern Portfolio Theory, which for over 50 years has served as a conceptual pillar of investment risk management. Even the best designed, fully diversified, expertly allocated portfolios suffered substantial losses in value during that period. These events motivated us to take our risk management activities to a significantly higher level on behalf of our clients. Through our extensive research, sophisticated analyses, and rigorous modeling and testing, we believe we have made significant breakthroughs in protecting investors from various types of market misbehavior. These risk management enhancements are combined in a coherent, integrated manner within The Giralda Fund.