Basu and Braun, LLC : Currency Program

Summary

The investment objective is to generate consistent, low-risk capital appreciation with minimal variance in returns. Profit potential is counter-balanced by levels of risk predetermined to be acceptable by preferences expressed by each individual client. Performance figures are net of all fees and published based upon an aggregation of all accounts. Investment time horizons for trade ideas vary from less than two hours and very rarely exceed 48 hours. Trade ideas are continuously evaluated and refined. The strength of Basu & Braun is a proven history and demonstrated ability to adapt the trading approach to varying market conditions in order to ensure profitable trading in virtually all market environments. (Performance figures from June of 2008 through July of 2009 include results from proprietary trading of an equity incubator)

Investment Strategy

The approach identifies intraday trading opportunities employing entirely interbank spot transactions (no forwards or options) mainly in Euro and Dollar but may trade other G7 currencies depending upon market conditions. The approach employs a trading strategy that benefits from directional movements in the market. A proprietary decision model provides an indicator that predicts a general trend in the market. Then, a mathematical-based model is applied systematically via an automated algorithmic computer interface to establish profit and stop-loss limits for every trade.

Risk Management

Risk is managed by maintaining low margin to equity ratios and incorporating tight stop losses in order to ensure preservation of capital. Risk exposure is structured and maintained within acceptable tolerances through the continuous systematic real-time monitoring of portfolio positions.