Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 53

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 53
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 in Small and Mid-Capitalization Companies. The Fund may invest in companies with mid or small sized capital structures (generally a market capitalization of
$5 billion or less). Accordingly, the Fund may be subject to the additional risks associated with investment in these companies. The
market prices of the securities of such companies tend to be more volatile than those of larger companies. Further, these securities
tend to trade at a lower volume than those of larger more established companies. If the Fund is heavily invested in these securities
and the value of these securities suddenly declines, that Fund will be susceptible to significant losses.

Leverage Risk.Utilization of leverage
is a speculative investment technique and involves certain risks to the holders of common stock. These include the possibility of higher
volatility of the net asset value of the common stock and potentially more volatility in the market value of the common stock. So long
as the Fund is able to realize a higher net return on its investment portfolio than the then current cost of any leverage together with
other related expenses, the effect of the leverage will be to cause holders of common stock to realize higher current net investment
income than if the Fund were not so leveraged. On the other hand, to the extent that the then current cost of any leverage, together
with other related expenses, approaches the net return on the Fund’s investment portfolio, the benefit of leverage to holders of
common stock will be reduced, and if the then current cost of any leverage were to exceed the net return on the Fund’s portfolio,
the Fund’s leveraged capital structure would result in a lower rate of return to Stockholders than if the Fund were not so leveraged.
There can be no assurance that the Fund’s leverage strategy will be successful.

Market Discount from Net Asset Value.Shares
of closed-end investment companies frequently trade at a discount from their net asset value. This characteristic is a risk separate
and distinct from the risk that the Fund’s net asset value could decrease as a result of its investment activities and may be greater
for investors expecting to sell their Shares in a relatively short period following completion of the Offering. The net asset value of
the Shares will be reduced immediately following the Offering as a result of the payment of certain costs of the Offering. Whether investors
will realize gains or losses upon the sale of the Shares will depend not upon the Fund’s net asset value but entirely upon whether
the market price of the Shares at the time of sale is above or below the investor’s purchase