CLAUGHTON CAPITAL LLC - Institutional Program - utilizes a unique fully systematic trading strategy on futures and currencies that we call Auto-Reactive Positioning (ARP). Our unique trading strategy provides the benefit of non-correlation, on both a monthly and daily basis, with traditional CTA startegies. ARP uses a strategy of trading within the range that confirms trades each trading day, and employs money management strategies to selectively emphasize certain classes of trades that are often profitable. The contraction and expansion of that range occurs on a dynamic basis by recognizing similar patterns that have proved to be successful in the past. This is what separates the ARP strategy from traditional CTA strategies and results in reduced drawdowns, enhanced performance, and non-correlation. ARP's ability to trade within the range also provides the additional benefit of non-correlation with other managed futures programs and traditional investments. Assets reported represent all assets traded in the firm. 4.7 Exempt status.