Webinar Deck: Efficient Methods for Managing Global Cash in Today's Regulator...
True Portfolio Diversification
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2. This presentation does not constitute an offer or solicitation of an offer for the purchase or sale of any securities. The risk of loss in trading commodities can be substantial. You should therefore carefully consider whether such trading is suitable for you in consideration of your overall financial condition. The high degree of leverage that is often obtainable in commodity trading can work against you as well as for you. The use of leverage can lead to large losses as well as gains. In some cases, managed commodity accounts are subject to substantial charges for management and advisory fees. It may be necessary for those accounts that are subject to these charges to make substantial trading profits to avoid depletion or exhaustion of their assets. The disclosure document contains a complete description of the principal risk factors and each fee to be charged to your account by the commodity trading advisor (CTA). The regulations of the Commodity Futures Trading Commission (CFTC) require that prospective clients of a CTA receive a disclosure document at or prior to the time an advisory agreement is delivered and that certain risk factors be highlighted. This document is readily accessible from the CTA. This brief statement cannot disclose all of the risks and other significant aspects of the commodity markets. Therefore, you should proceed directly to the disclosure document and study it carefully to determine whether such trading is appropriate for you in light of your financial condition. You may request delivery of a hard copy of the disclosure document, which will be provided to you at no cost. The CFTC has not passed upon the merits of participating in this trading program nor on the adequacy or accuracy of the disclosure document. Other disclosure statements are required to be provided before a commodity account may be opened for you. Past performance is not necessarily indicative of future results. 1 1
21. Systems Research and Technology Crude Oil Buy System Executive Summary Investment Strategy Systems Research and Technology Risk Management Performance Management Biographies Terms and Contact Information Our unique filter disallows the acceptance of trade entry signals when market conditions are not favorable (red bars). The red “dotted” line represents stop levels where the trade will exit. 5
22. Systems Research and Technology Crude Oil Sell System Executive Summary Investment Strategy Systems Research and Technology Risk Management Performance Management Biographies Terms and Contact Information In this “sell” or short system, the filter allows trade signals during the periods shown as red bars. Again, the red dotted line represents the buy stop levels to exit the short trade. 6
27. Risk Management Intrinsic diversification among markets Executive Summary Investment Strategy Systems Research and Technology Risk Management Performance Management Biographies Terms and Contact Information 8
28. Risk Management Zinc Systems - 2008 Executive Summary Investment Strategy Systems Research and Technology Risk Management Performance Management Biographies Terms and Contact Information We traded 26 different systems for Zinc in 2008. The return for each profitable system is less than 0.20% and some systems produced a small loss. When aggregated, however, the overall return was over 1.4% (green bar). This diversification within each market is designed to produce superior returns, while minimizing the negative contribution from lagging systems. There is risk of loss with trading commodities. Past performance is not necessarily indicative of future results. 9
37. Performance Lexington Keystone Trading Program Executive Summary Investment Strategy Systems Research and Technology Risk Management Performance Management Biographies Terms and Contact Information Performance is presented after all fees and expenses. Inception to Date Annualized Return 16.45% Average Winning Month 5.13% Average Losing Month -3.11% Largest Winning Month 22.90% Largest Losing Month -8.10% # of Winning Months/Losing Months 20/16 Annualized Sortino Ratio 1.49 Calmar Ratio 1.02 Past performance is not necessarily indicative of future results. 11
38. Performance Executive Summary Investment Strategy Systems Research and Technology Risk Management Performance Management Biographies Terms and Contact Information Past performance is not necessarily indicative of future results. 12
39. Performance Executive Summary Investment Strategy Systems Research and Technology Risk Management Performance Management Biographies Terms and Contact Information Total Return and Maximum Drawdown, Oct., 2006 - May, 2009 Past performance is not necessarily indicative of future results. 13
40. Management Biographies Rob Hounshell, CFA - President Rob has been a hands-on investment portfolio manager for over 20 years with various large financial institutions. He oversees and participates in all areas of Lexington Asset Management, and is also the principal trader. Rob is a graduate of Wake Forest University with a B.S. in Business, earned his MBA from Xavier University and holds the Chartered Financial Analyst (CFA) designation. Executive Summary Investment Strategy Systems Research and Technology Risk Management Performance Management Biographies Terms and Contact Information Mark Helweg – Chief Research and TechnologyOfficer Markhas been involved in futures trading, trading system development and CTA management since 1988. His engineering background serves as a foundation for the quantitative research methodology he uses to design and test superior trading systems. Mark has authored books and several articles regarding systematic futures trading. He is a graduate of the University of Memphis and earned a B.S. in Mechanical Engineering and a minor in Mathematics. Sam Varner – Chief Marketing Officer Samhas performed various duties during his extensive managed futures career, including commodities research, new business development and administration. Sam’s focus with Lexington Asset Management is client acquisition and retention. Sam is a graduate of the University of Mississippi with a B.A. in Marketing. Drew Day - Chief Operations Officer Drew leads the operational activities of Lexington Asset Management. He is responsible for compliance and operations management, human resources, accounting, and annual audits. He also assists with business development initiatives. He started his investment career with Landmark Asset Management in 2003. He also has served as a relationship manager and trainer for personal bankers at Branch Banking & Trust Co. Drew is a graduate of Union University with a Bachelor of Sciences in Business Administration degree in Management. 14
51. Current Assets Under Management $30 millionContact Information Rob Hounshell, CFA rob@lexingtonam.com 919.325.1819 Office 919.414.8678 Cell www.lexingtonam.com 15
