The Advisor's objective for the Trading Program that is offered to investors by OptHedge is to generate attractive returns on Clients' assets through speculative trading strategies that involve executing trades on both futures contracts and options on futures contracts.
The Trading Program focuses on trading futures and/or options contracts on a diversified pool of futures products, including but not limited to various commodities (such as metals, softs, grains, and energies), stock indexes, U.S. treasury bonds, and foreign currencies.
The Trading Program focuses on identifying markets in which "volatility skew" opportunities potentially exist whereby the Advisor may attempt to purchase certain option contracts that may be trading at a low level of implied volatility and sell other option contracts that may be trading at a high level of implied volatility for the same underlying futures product. For example, the Advisor may seek to sell call and/or put options for a given futures product at certain selected strike prices and/or expiration months while simultaneously buying call and/or put options for that same futures product at certain selected strike prices and/or expiration months that may be different than for the options that are selected by the Advisor to be sold.
The performance shown for the Trading Program from October 2008 through September 2010 is the actual performance of proprietary accounts managed by the Advisor and reflects pro forma adjustments to such proprietary accounts to reflect a 2% annual management fee and a 20% monthly performance fee.
The performance shown beginning in October 2010 is the actual performance, net of all fees and expenses charged by the Advisor, of all client accounts traded by the Advisor pursuant to the Trading Program. The performance shown reflects the weighted average performance of all client accounts that have historically been traded by the Advisor pursuant to the Trading Program. Because the Advisor has not historically placed identical trades in all client accounts that have been traded pursuant to the Trading Program, the performance shown does not reflect the actual performance of any one specific client account. The performance shown only reflects the performance of client accounts that were traded for the entire month and does not reflect the performance of accounts that were traded only during a portion of any given month or the performance of accounts for clients who made material contributions to (or received material distributions from) their accounts on a date that took place in the middle of any given month.