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Investment Name: Common Strategic Advantage Fund

Investment Type: Hedge Fund

- Confidential Summary Information Memorandum dated June 30, 2007
- Private Placement Memorandum dated June 30, 2007

Identity of Investment Manager(s):

Both documents identify James T. Hiroller, and his firm, Opportunistic Scams LLC, as the fund managers.

James T. Hiroller The offering documents state that Mr. Hiroller (1) graduated from the University of Georgia in 1982 with a Pharmacy Degree, (2) that he marketed various annuity products from 1989 through 2001 for Goliath Insurance Inc., (3) that he created Opportunistic Scams, Inc. in Georgia in 2002 and registered that company with the SEC as an investment adviser the same year, and (4) that he has been a successful investment adviser from 2002 to the present.

IW has confirmed Mr. Hiroller’s degree from the University of Georgia and his employment at Goliath Insurance Company during the years claimed. IW has also confirmed the dates of the creation of Opportunistic and the company’s active registration as an investment adviser with the SEC.

A search of court records reveals that in 1985 Mr. Hiroller was indicted in Bibb County Georgia for possession of controlled substances with the intent to distribute. He pled guilty to a reduced charge of possession with the intent to use. The following year he voluntarily surrendered his Pharmacy license and agreed not to reapply for such a license in the State of Georgia.

A search of the IW database reveals one regulatory action against Opportunistic. In 2002, the SEC filed an administrative action against Opportunistic alleging failure to comply with the recordkeeping provisions of the Investment Advisers Act of 1940 in connection with the management of a hedge fund called the First Try Fund. Opportunistic settled those charges by agreeing to a cease-and-desist order and a fine of $50,000.

A search of court records reveals two private lawsuits against Opportunistic relating to the First Try Fund. Both cases were filed in the State Court of Fulton County Georgia and were settled for confidential amounts.

Mr. Hiroller’s failure to disclose his criminal history and the existence of the First Try Fund, concern IW. While the criminal offense is not strictly related to investments, Mr. Hiroller’s failure to disclose the existence of the First Try Fund is, in IW’s opinion, a material omission which casts doubt on the extent to which the investor can expect candid disclosure of all relevant information.

The offering documents identify the attorney who prepared the documents as Bubba Cheatam. A search of publicly available records shows that Mr. Cheatam was suspended from the practice of law for six months in 2001, for failure to properly account for client trust funds.

Under the terms of the offering, Opportunistic receives a manager’s incentive allocation of 20% of all profits in the fund once the fund surpasses a ten percent return annually. The offering document does not disclose that the existence of a manager’s incentive allocation presents a potential conflict of interest.
The manager may be tempted to take excessive risk with the fund in order to earn gains above the level at which he begins receiving the manager’s incentive allocation. Most hedge fund offering documents include such a disclosure. The absence of that disclosure in these offering documents causes IW some concern.

In light of the information detailed above, IW gives the Common Strategic Advantage Fund an IW Safety rating of 49. IW rates the safety of unregistered investments on a scale of 40 to 80. A Safety Rating score of 40 indicates an investment that IW believes presents a significant risk of loss from recklessness or negligence. A Safety Rating score of 80 indicates an investment managed by a firm and/or individuals with a long track record of investment advisory work free of regulatory actions and/or private litigation, and offering documents that contain all appropriate disclosures and are otherwise free of red flags.*

*IW expresses no opinion on the investment strategy outlined in the offering documents. A single change in the facts underlying the IW score could change the score dramatically. IW customers desiring ongoing review of the investment should consider IW’s Constant Patrol™ subscription which includes one QualifEye™ analysis annually.