Battalion Capital

Management, LLC (Strategy B Prop)

Fund Investment Objectives

Capitalizing on its wealth of experience in fund management accumulated since 2007, BATTALION CAPITAL has introduced a refined strategy that will allow investors to benefit from a managed account structure. The goal is to bring significant absolute performance to investors with optimal transparency, liquidity and strictly controlled risk. Led by a team of traders with over 65 years of experience, Battalion Capital employs discretionary energy commodities trading strategies that are designed to average from a few days to a few weeks in duration. Trades are discussed collectively and fully documented by a committee, which is chaired by fund manager Lawrence Roche. Specific profit objectives and risk/stop levels are always determined prior to execution. We never engage in the naked short selling of options, and all futures trades are exchange-cleared. Our expected margin-to-equity ratio is approximately 16% and should rarely exceed 30%. Battalion Capital has identified approximately eight scenarios that trigger new positions, all of which have historically had little to no correlation with markets outside the energy complex. Relative value spread trading comprises the largest proportion of our overall strategy. Another strategy involves taking advantage of monthly roll periods or liquidations, which set up divergences in the market. Returns are based on proforma adjustments to a proprietary account to reflect fees. Client accounts will be traded in like fashion.