Summary

The objective of this managed futures strategy is to enhance the consistency of overall returns by taking advantage of various market conditions with a vast array of investment vehicles and techniques. The focus of this strategy will be on stock indices. Typically, all financial markets tend to move in three stages: a trending phase, counter-trend and consolidation. Like the seasons in nature, each stage has its own characteristics, its own "weather" so to speak. Each, therefore, is susceptible to greater exploitation and protection, when the most appropriate vehicles and techniques for the specific market condition are applied. It is central to this strategy (and the one that follows, as well) that the Advisor make use of flexibility to match the optimum trading style to the specific market situation. In the best sense, these strategies may by thought of as "all weather" strategies. It is felt that over the long term the stock market continues to offer the greatest opportunity for wealth creation. The basic vehicles will be stock index futures, which can offer stability as well as growth opportunities, and/or options on those futures which can add leverage and versatility. At times, the index of choice to be traded (or serve as the underlying entity for option trades) will be the broad based S&P 500 index or its "mini" version. At other times the blue-chip Dow Jones Industrial future; or its mini version will be the vehicle of choice; or the tech/growth laden Nasdaq 100 index in its various versions will be utilized; or other, more specialized indices may be used either singly or in combinations with each other or with one or more of the major indices or its related option contracts. The Advisor may choose to use spreads, be long or short the future or the option, or swing-trade the future, or apply dollar-cost-averaging approaches, or other trading styles, very much directed by, and in sync with, the market situation at the time. New accounts in this strategy (and added funds coming into existing accounts) will typically begin trading at the beginning of a calendar month, subject to the discretion of the Advisor. In addition, the Advisor anticipates the possibility of market conditions which may hold up the start of trading and relegate it to the next appropriate opportunity, which could come at any time during the month. In fact, the Advisor requires total discretion to time market entries and exits or, to pass up a trade altogether. In the opinion of the Advisor, the appropriate investor for this strategy will be the general investor who is looking for a growth component for his investment portfolio and has sufficient risk capital to cover the required minimum starting requirements. At least 18 months should be allowed to evaluate performance of this strategy so as to experience a range of market conditions in terms of trending and consolidating markets, volatility and the market response to economic and exogenous conditions.

We have two programs in this strategy, Regular and Institutional. Both implement the identical strategy but the larger principle required, for the Institutional program affords that program greater trading flexibility.