Primary Strategies & Target Allocation

Implement a return-oriented global asset allocation portfolio that seeks exposure to the following.

• (i) Secular investment themes.
• (ii) Relative value trading opportunities.
• (iii) A long volatility bias.

Secular themes are based on the global macro outlook while value trading opportunities are based on the assessment of under-priced/overpriced assets within the investment universe.

The investment horizon is predominantly medium to longer term (months to years) but can be opportunistically adjusted to a shorter term when appropriate.

Allocation of funds is based on marketplace opportunities in various assets classes.

Investment objectives are implemented directly through a discretionary trading strategy using cash, futures, options, swaps, bonds, interest rates, commodities, indexes, equities, CDS and other securities.

Target return is 15-20% p.a. every rolling 3-year period with mid-teen annualized volatility.

We filter North American listed securities (equities and Exchange Traded Funds) with a sophisticated, proprietary algorithm that searches for unusual trading patterns and confluences of signals indicating asymmetrical risk/return profiles (either to the upside or downside).

We also assess macro factors including the following.

• (i) Relative strength/weakness of currencies.
• (ii) Commodities, bell-weather stocks and the main S&P 500 Index.
• (iii) Sub-indices such as utilities and transportation.

Then we overlay pure technical trading strategies to optimize timing. Attack the opportunity with options strategies that minimize risk and maximize return. Preservation of capital is paramount.

We use long-term options to invest in "over the horizon" opportunities while limiting risk and capital usage.