August 17, 2007

Dear Investor:

Much has happened since the end of July and we have taken a pause from the hectic activities of the past couple of weeks to write this letter to update all of our investors.

First of all, the fund is up approximately 117% for the month of August, through August 15. We are likely to be up more by the time you read this letter, perhaps as much as 183% MTD.

We have worked overtime to understand the causes of these gains and, to put it simply, the Percy Walker Neutral Asset Gatherer Evaluation (PWNAGE) system has worked as planned.  In brief, our PWNAGE system predicted that several very large trading entities would liquidate massive market-neutral portfolios.  Market-neutral funds attempting to make money by intercepting cash flows moving from securities of lesser value to those of higher value or that bet on fundamental factors or mean reversion of one type or another bet on market participants to make historically-precedented, value-oriented security selections.  Investment flows that ignore security-specific value, such as broad liquidations to meet margin calls or redemption requests, cause losses to such funds.  Our PWNAGE system tells us when this will happen.

Luckily for us, many hedge funds had more leverage than an Archimedean whore, while others were stocked with empty nutsacks as investors, ready to bail at the first signs of trouble.  As predicted by our PWNAGE system, the combination of margin calls and investor redemption requests led to conditions not seen since the last pyrotechnic show at a Great White concert.  We were there, Crassus-like, with our giant fire hoses, willing to put out the flames for those overcrowding the exits, but only if the price was right.

Anyway, congratulations on being invested in Percy Walker Omni Fund, L.P.  Let us know if you have any questions.

Sincerely,

/s/

Percival X. Walker

P.S.  Prediction: The Federal Open Market Committee will lower its target for the federal funds rate 50 basis points to 4-3/4 percent when it meets on September 18, 2007.