The primary investment objective of the Partnership is growth of capital. The business of the Partnership is the buying and selling of securities, including, without limitation, stocks, options, warrants, and rights of U.S. and non‑U.S. entities. The Partnership may invest and trade in public and private securities and may lend funds or assets and borrow money, with and without collateral. The Partnership ordinarily will invest in securities that trade in sufficient volume to allow for swift execution of transactions. Positions in securities may be held for very short periods, even as little as a portion of one day. The Partnership may engage in transactions in exchange‑listed options in conjunction with or in lieu of taking a position in the underlying securities, including writing uncovered options. The Partnership also may engage in short sales of securities and margin transactions. The Partnership shall have the power to do any and all acts necessary, appropriate, proper, advisable, incidental or convenient to or for the furtherance of the purposes and business described herein, and shall have, without limitation, any and all of the powers that may be exercised on behalf of the Partnership by the General Partner. The General Partner has delegated discretionary authority over the Partnership’s trading activity and management of the Partnership’s portfolio to the Investment Advisor.
The General Partners believe in an investment philosophy and trading plan founded upon the recognition of Five Basic Principles.
1. Risk Management is Crucial to Successful Trading.
Losses are a reality. Generally however, they can be minimized through the successful employment of disciplined risk management techniques. Profits must be taken at opportune times. Understanding this, most successful money managers set realistic limits on draw downs.
2. Consistency is Key.
Successful managers generally do not focus primarily on the total return produced by their strategies. Rather, these managers focus on maximum draw down, duration of draw down, volatility, and other risk related benchmarks. If the risk criteria are satisfied, only then will the managers consider total return. Trading is a systematic process whereby the goal is to earn steady, consistent returns with minimum risk.
3. Markets are Constantly Changing.
The successful manager recognizes that the perfect trading system does not exist. Methods that work in one market phase can fail in another. As market conditions change, the strategies employed require modification. The effective money manager understands and recognizes market phases and adjusts trading strategies appropriately. Understanding and recognizing the market is a key to consistent success.
4. Prepare to be Wrong.
The successful manager recognizes and understands that a trading method provides a probability platform for predicting market movement. Whether fundamental or technical, it is only an edge in understanding and possible predicting what might happen in any given trade. Winning traders do not dwell on their losses or applaud their gains. Rather, the successful managers learn from their trading experiences; and if necessary or possible, modify their strategy so that profits outnumber the inevitable losses.
5. Follow Trends.
Generally the successful managers stick with trends either long term or short term. The Trend is your friend. Many successful managers employ strategies that buy securities that act strong and sell those that act weak.
The General Partners intends to employ an opportunistic strategy that will allow flexibility and optimal performance through the use of numerous strategies. The trading strategies utilized by the General Partner will be a continuous assessment of the economic environment to isolate both positive and negative trends in sectors and industries. The investment managers will be investing in domestic and foreign stocks listed or traded on the New York Stock Exchange, the American Stock Exchange, and the Nasdaq. The fund may invest in small, mid, and large cap stocks. The fund may also invest in exchange traded funds (ETF s) to gain exposure to favorable sectors or indexes. Options strategies will be an integral part of the funds positions and trading plan.