Bel Air Capital Asset

Management

Fund Investment Objectives

BEL AIR CAPITAL ASSET MANAGEMENT's objective is to achieve capital appreciation for its clients through speculative trading of futures and options. In order to do so, the Advisor currently offers one trading program. Although the system is primarily technical and rule based, the Advisor does give consideration to available fundamental data in order to give the best risk/reward possible and therefore, will exercise a certain level of discretion over the program. Decisions on whether or not to act upon a trade signal depends upon a combination of technical timing and potential risk points associated with trades. Entry points are determined by the market itself. Market psychology and market action suggests that the lowest risk time to buy or to sell occurs after a directional move (with the trend or counter to the trend) has been exhausted. Set ups for low risk entry into markets is associated with previous supply or demand price points (highs and lows). Once a potential set up point is identified, the market will move to confirm that a new high or new low has been established. The proprietary technical parameters used in association with the system determine at the earliest time when a high or low has been established. This method also helps in determining the risk associated with each trade. Stop losses may be used in association with the risk points associated with the potential new high or new low. The use of stop loss orders are at the discretion of the Advisor. Further discretion can be used to enter or exit trades by measuring volatility, risk associated with a trade and to determine the validity of the setup points. The program primarily involves buying and selling futures on United States regulated exchanges. The Advisor may trade options. The Advisor follows most commodity futures markets in the United States but focuses on currencies, financials, soft commodities, metals, grains, meats, agricultural products, stock indices, and other markets as the Advisor may determine in the future. The Advisor currently does not trade on international exchanges and does not trade FOREX, however there are no restrictions or limitations on what commodity interests or other interests the Advisor may or may not trade.