UBTI: UBTI, Unrelated Business Taxable Income, is a concern to tax exempt investors in a hedge fund because the receipt of UBTI requires the tax exempt entity to file a tax return that it would not otherwise have to file and pay taxes on income that would otherwise be exempt, at the corporate rate. UBTI includes most business operations income and does not include interest, dividends and gains from the sale or exchange of capital assets. Hedge Funds trade their own securities and therefor the tax exempt investor's share of such income of the hedge fund is not UBTI and not subject to federal income tax. However, hedge funds may subject tax exempt entities to UBTI under certain circumstances where the hedge fund is borrowing or purchasing securities on margin. Such transactions may subject the tax exempt to UBTI tax.

ULPA: Uniform Limited Partnership Act, see also the RULPA, Revised Uniform Limited Partnership Act U.L.P.A. ¤ 101 et seq. (1976), as amended in 1985 (R.U.L.P.A.).

UP %: The Up Percentage Ratio is a measure of the number of periods that the investment outperformed the benchmark when the benchmark was up, divided by the number of periods that the benchmark was up. A high ratio indicates superior performance.

Up Capture Ratio - A measure of the investment's compound return when the benchmark was up divided by the benchmark's compound return when the benchmark was up.

Upper quartile: The point at which 25% of all returns in a group are greater and 75% are lower.