The Partnership is a long/short equity trading fund. The General Partner intends to invest exclusively in "Level I" assets such as stocks, bonds, publicly traded funds, or any other assets that have a regular mark-to-market mechanism for pricing. The General Partner maximizes returns by constantly evaluating portfolio holdings for daily or even intra-day movements. The General partner employs high bandwidth data feeds, rapid executions including dark pools and ECNs, and proprietary technical buy and sell algorithms as part of its trading strategy. All positions are reviewed daily with the philosophy of starting each day from the previous night's close, not the original cost. Therefore, it is likely that the Partnership will generate mostly short term capital gains and losses. The General Partner will often trade the same security multiple times, opportunistically buying and exiting in order to generate superior performance. This is not to be confused with day trading, as all positions are analyzed from a fundamental, and not strictly technical, point of view.
Fundamental analysis starts with the precept that no one knows a business as well as the people running it. The General Partner therefore prefers, but is not restricted, to trade securities or sectors that have significant insider purchases/sales, buying and selling the securities at prices and points in time determined by its own proprietary technical analysis. Although the General Partner strives to outperform the S&P 500 in all periods, it believes the Partnership will have superior absolute performance in up markets as opposed to down markets as insider trading has proven to have more relevance on purchases than sales; consequently, the Partnership has a built in bias toward the long side. As an opportunistic long/short hedge fund, the General Partner occasionally uses leverage in Partnership investments and prefers to increase cash holdings and/or hedge positions with futures, options, ETFs, and/or derivatives in unfavorable markets.