Alesia Capital Management

LLC (Discretionary)

Fund Investment Objectives

ALESIA CAPITAL MANAGEMENT attempts to meet its return objective by making trading decisions based on the Advisor's proprietary trading methods, as generally described below. The Advisor will rely on the skills, experience and judgment of the principals in order to achieve its objective. In managing clients' accounts, Alesia will use primarily fundamental analysis, although technical analysis also may be employed to help determine specific entry and exit points and the placement of stop-loss orders. The fundamental factors to be analyzed will include the product supply and demand outlook, inventory levels and storage capacity, import and export markets, economic trends, and government policies. The Advisor seeks to identify favorable risk-reward trade offs in the futures markets. For example, Alesia may purchase particular futures contracts based on an assessment that the underlying commodity is undervalued, based on fundamental factors and a probabilistic calculation of the profit opportunity versus the risk of loss. This calculation may involve developing a weighted average of the various prices at which the commodity is likely to trade over the relevant time horizon to determine an expected future price or price range. Alesia anticipates trading in a variety of futures markets, involving multiple underlying commodities, including but not limited to crude oil, industrial metals, precious metals, equity indexes and foreign currencies. The Advisor reserves the right to trade, or discontinue trading, any exchange-traded futures contract or futures option, as it considers appropriate from time to time. The Advisor may modify its trading strategies as a result of new market developments and ongoing analysis. Accordingly, the Advisor's trading strategies in the future may differ significantly from the Advisor's current strategies. The Advisor may refrain from trading or investing at certain times, such as when the Advisor determines that the risk-reward trade-offs are unattractive. A critical element of investment success is risk management. The Advisor has various specific approaches to risk management, which may include, at various times, using options as a hedge, placing stop-loss orders, and other methodologies. In general, however, Alesia believes the most important method of managing risk is to limit position size, so as to maintain significant excess margin capacity (i.e., free, available cash) in each account. At most times, the Advisor would expect each client's account to have free cash equal to 30 to 75% of the account's equity value.