CUNNINGHAM ASSET MANAGEMENT's proprietary trading methodology allows for the simultaneous allocation of funds across several asset classes including cash, cash equivalents, equity securities and option contracts, fixed income instruments, futures contracts, forward contracts, futures options and other commodity interests. This approach is not restricted against or biased towards any particular market, asset class, and industry/sector or individual security. The objective of this approach is to reduce the funds risk level without sacrificing overall rates of return. CAM's long-term, trend-following trading program attempts to detect a trend, or lack of a trend, with respect to a particular commodity or security interest by analyzing price movement and volatility over time. This program consists of multiple, interdependent and parallel systems, each designed and tested to seek out and extract market opportunities on different time horizons. Most of these time frames are decidedly long term by industry standards. The Fund will utilize the CAM Dynamic Asset Allocation Program, which trades markets that may include, but is not limited to, equity securities and option contracts, fixed income instruments, currencies and their crossrates, energies, financial and interest rate products, grains, stock market indices, meats, precious and industrial metals, soft commodity products, and may in the future include options and over-the-
counter foreign exchange transactions. The percentage of the Fund's assets that will be
used to trade commodity or securities interests will be based on the trading signals
generated by the program. CAM estimates the allocation in commodity or securities interests to average from 30% to 70% of the pool's assets under management. The program utilizes the TPR Trading System described below. The TPR Trading System, a computerized technical trading system, uses the concepts of opportunistic Trend following, Pattern recognition, and Risk management in making trading decisions. The System's methods are mathematical, complex, non-linear, and based upon repetitive market formations caused by behavioral biases of key market participants. The System utilizes approaches from the field of behavioral finance employing non-emotional sets of trading rules, and applies virtual judgment and intuition through documented logical algorithms.