Capricorn Currency

Management Ltd (fxST Leverage 1)

Fund Investment Objectives

CAPRICORN CURRENCY MANAGEMENT'S FXST program seeks risk-adjusted returns (pure ALPHA), that is uncorrelated to other investment strategies by trading G10 currencies. Technical analysis is the major input behind the decision making process, however fundamentals are observed before entering a position. The instruments used in the strategy are; spot FX, forwards, and options, with trading possibilities in both the OTC and Futures marketplace. To control downside risk, the program uses a long-only option strategy. Furthermore, predetermined stop-losses are technically placed against each open spot position. The strategy is categorised as being short term, discretionary, however the expertise and success behind it comes from the high degree of discipline within the methodology. This is reflected in the relatively moderate number of trades executed, limited exposure to the market, and low margin-to-equity levels. Performance tends to be strong in most conditions other than congested markets. *Due to a restructuring of the Capricorn fxST strategy, the program is available to investors at a standard leverage of 1:1 times. For reporting purposes the composite of the program's returns have now been adjusted for to reflect 1:1 times leverage since inception.