RIVERCAST CAPITAL (the "Advisor") engages in the leveraged trading of futures contracts using proprietary quantitative models. The Advisor makes short-term directional market predictions for periods of one hour to two weeks and bases its trades on these predictions. Models are created from analysis of pricing data on individual futures contracts as well as multivariate analysis. Statistical significance tests are employed to gauge the accuracy and strength of these predictions. Trade decisions are discretionary but based heavily on quantitative analysis and system trade rules. The strategy in relation to the market is mean reverting and counter-trend in nature. The Advisor has developed short-term (one to 24 hours) and longer-term (one to fourteen days) predictive trading models. Most trades are entered only when both short and longer-term models are in alignment. The Advisor employs leverage in trade decisions. Factors used to determine appropriate leverage include, market volatility, frequency of trade signals, weightings assigned to predictions, and optimization studies. Models are updated on an ongoing basis to stay current with market conditions.
RISK MANAGEMENT...The Advisor uses time stops to manage risk. In addition positions are monitored on an intraday basis and the advisor will exit positions if the trade expectation is no longer profitable. The Advisor reduces leverage in conditions of rapidly increasing volatility. The Adivsor will also reduce exposure in a drawdown of 12%, 16% and 20% from any month end peak.
SP (EMINI) FUTURES...The Advisor specializes in the trading of SP (emini) futures and the trading history is almost exclusively in this contract. Since 2007, trading is only in SP (emini) futures. Prior to 2007, 90% of trading was in SP (emini) futures and all profits over the whole period derive from SP (emini) futures.
The offered program is for consideration by qualified eligible persons ("QEPs") only, as such persons are defined in CFTC rule 4.7(a), and the Advisor will comply with the applicable requirements of R. 4.7.
THE PERFORMANCE RESULTS SHOWN HEREIN ARE ENTIRELY FROM THE PROPRIETARY TRADING OF THE ADVISOR'S SOLE PRINCIPAL. Performance results have been adjusted to reflect a monthly asset management fee equal to 1/12th of 2% (2.0% per annum) and a quarterly performance fee in an amount equal to twenty percent (20.0%).
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
COMMODITY TRADING INVOLVES A SUBSTANTIAL RISK OF LOSS. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.