Summary

As the name implies, the Spread/Index Program was established by combining a modified version of our Flagship spread trading program with a portfolio of our most profitable short term Index trading systems. The Spread Program component is derived from our established CTA program with profitable results in both 2007 and 2008 and over $37 million AUM. The index programs are a portfolio of short term proprietary index trading systems that have been traded extensively and comprise a diverse group of styles and different indexes. Each index system in the portfolio has been traded with real money for between one and seven years. The allocation to each system within the portfolio is dependent on that system’s results, the correlation to the other systems in the portfolio and the length of the track record trading actual money. The two components were combined because they showed low to negative correlation to each other and tended to offset the drawdowns of the other component. The Spread Index Program is designed to have lower risk and significantly lower drawdowns than the Spread Trading Program alone.