Summary

-First Southeastern Capital Management's philosophy is to capture intermediate to long-term trends in the most liquid domestic financial and currency futures markets using an adaptive trend-following approach coupled with a contrarian component. Risk and return have been carefully balanced through selectivity and diversification to create a robust trading system that has been successfully implemented with strict discipline. The goal is to capture long-term returns of 20-30% combined with a moderate volatility profile, i.e. drawdown potential of 15-20%. The system maintains an average margin-to-equity ratio of 18-22%.