Water Island Long/Short Fund Class I (ATQIX) Exchange: NMFQS

To pursue its investment objective, the Fund employs a "long/short" investment strategy to attempt to achieve capital appreciation and manage risk by purchasing stocks believed to be undervalued and selling short stocks believed to be overvalued. The Fund's investment adviser (the "Adviser") believes that a combination of long and short positions may provide positive returns through a complete market cycle and may offer reduced risk. The Adviser seeks to identify companies where recent events or potential future catalysts may drive the company's share price higher or lower. Examples of such events and catalysts, which the Fund refers to as "event driven investment opportunities," include, but are not limited to: announcements or potential announcements of restructurings (bankruptcies, spinoffs, and asset sales), mergers and acquisitions, management change, institution of shareholder-friendly practices, regulatory changes, litigation, earnings results and outlook, and changes in industry or sector fundamentals. The Adviser's investment approach is to identify these event driven investment opportunities and purchase or sell short such securities when the Adviser believes the market is under or over appreciating the potential value creation opportunity from such event or catalyst. The Adviser may sell an investment held long or close a short position, or buy the security to cover a short investment, for a number of reasons, including if the anticipated events or catalysts do not occur or do not affect the price of the securities as expected, or if the anticipated events or catalysts do occur and cause the securities to be, in the Adviser's view, more fairly valued in the market. In light of this catalyst-focused approach, the Adviser expects to engage in active and frequent trading of portfolio securities to achieve its investment objective. In certain circumstances, the Adviser may seek to proactively engage with company management to address opportunities that may further unlock value or discuss concerns. The Adviser derives the ratio between long and short positions for the Fund based on its bottom-up analysis supplemented with macro-economic and market analyses. Under normal market conditions, the net long exposure of the Fund (long exposure minus short exposure) will range between 20% and 80%. The Adviser seeks to minimize the variability of Fund returns by managing long and short exposures and/or by holding a material level of cash and/or cash equivalents. For example, the Fund may hold long positions in securities with a value equal to 70% of its net assets and have short sale obligations equal to 35% of its net assets, resulting in 35% net long exposure. Assuming a 70% long exposure, 30% of Fund assets will be held in cash or cash equivalents, including cash and cash equivalents held to cover the Fund's short sale obligations. During periods of excessive market risk or when there is a lack of attractive investment opportunities that meet the Fund's investment objective, the Adviser may reduce the net long exposure of the Fund or may hold material levels of cash and/or cash equivalents. The Fund may at times hold long and short positions that in the aggregate exceed the value of its net assets (i.e., so that the Fund is effectively leveraged). In order to meet its investment objective, the Fund will invest in a portfolio of securities including: equities, debt (such as corporate bonds, debentures, notes and other similar instruments), warrants, distressed, high-yield (these are referred to as junk bonds), convertible, preferred, when-issued, and other securities the Adviser believes will further its investment objective. The Fund invests primarily in long and short positions in equity securities, such as common stock, preferred stock and securities convertible into such stock, and other instruments that have economic characteristics similar to equity securities. The Fund may also invest in derivatives. The principal types of derivatives in which the Fund may invest are options, total return swaps, credit default swaps, credit default indexes, currency forwards, and futures. Furthermore, the Fund may invest in instruments, such as commodity-related exchange traded funds ("ETFs") and exchange traded notes ("ETNs"). The Adviser expects the Fund's assets to be invested in various industries; however, if, for example, a large percentage (namely, at least 50%) of investment opportunities are occurring within the U.S. are within one sector over a given period of time, a large portion of the Fund's assets could be concentrated in that sector for that period of time. The Fund is not limited with respect to issuer, geography, market capitalization, credit quality, sector or industry and the Fund is non-diversified as defined by the Investment Company Act of 1940, as amended (the "1940 Act"). In addition, the Fund may invest in cash or cash equivalents, money market funds, or money market instruments such as Treasury bills and other short-term obligations of the United States Government, its agencies or instrumentalities and prime commercial paper. The Fund may, but is not required to, seek to reduce currency risk by hedging part or all of its exposure to various foreign currencies.