County Cork LLC : RLA I

Summary

RLA I Program is managed by Ronald L. Anderson. Anderson previously managed the Crush, Fundamental, and Ag Spread programs at Kottke Associates. The trading methodology is based on fundamental analysis. That is, Anderson examines external factors that affect supply and demand, such as weather, governmental policies, and import-export activity.

Investment Strategy

Anderson will try to identify fundamental factors that will correlate to and be highly predictive of the market movement of the cash markets underlying the futures and options traded. The Anderson Trading Program I and II will trade futures and options on futures contacts primarily on soybeans and soybean products, i.e., soybean meal and soybean oil, traded on the Chicago Board of Trade (CBOT). Most of the transactions will be spread transactions designed to take advantage of perceived price disparities between the futures markets and the underlying cash markets for soybeans and soybean products. Initiation of spread positions will be discretionary and, as noted, will be predicated predominantly upon the fundamental analysis of changes in supply and demand data in the relevant underlying cash markets. (Anderson will also trade spread transactions on other agricultural products traded on the CBOT and other exchanges.) Anderson expects that the majority of spread transactions entered into will be "crush" and "reverse crush" spreads, which anticipate changes in the dollar value of the difference between the cost of soybeans and the combined sales values of the products of soybeans - soybean meal and soybean oil - that are not reflected in the current futures prices for these products. In lieu of futures contracts, and only if sufficient liquidity develops, Anderson may purchase options on futures contracts in the crush spread, which began trading on the CBOT in February 2006. In addition to crush and reverse crush spread transactions, Anderson may also enter into spread transactions in the individual contracts underlying these spreads, as well as intercommodity spreads comprising just two of the three soybean-related contracts. Anderson may also enter into spread and intercommodity spread transactions on other agricultural products. --- IMPORTANT DISCLOSURE --- THE PERFORMANCE SET FORTH ABOVE IS FOR A PROPRIETARY ACCOUNT MAINTAINED BY A PRINCIPAL OF COUNTY CORK TRADED PURSUANT TO THE RLA I PROGRAM. THE PERFORMANCE HAS BEEN PRO FORMA ADJUSTED FOR A 2% (ANNUALIZED) MONTHLY MANAGEMENT FEE AND A 20% QUARTERLY INCENTIVE FEE THAT WOULD HAVE BEEN CHARGED TO A CUSTOMER ACCOUNT PARTICIPATING IN THE RLA I PROGRAM. THE PERFORMANCE IS NET OF ACTUAL BROKERAGE COMMISSIONS AND TRANSACTION FEES CHARGED TO THE ACCOUNT, WITH PROFITS REINVESTED. PLEASE NOTE THAT ACTUAL CUSTOMER ACCOUNTS HAVE BEEN TRADED PURSUANT TO THE PROGRAM. COUNTY CORK HAS CHOSEN TO USE PERFORMANCE OF A PROPRIETARY ACCOUNT IN THIS PRESENTATION AS IT HAS CONTINUOUSLY OPERATED SINCE INCEPTION. PERFORMANCE INFORMATION FOR CLIENT ACCOUNT PERFORMANCE IS AVAILABLE UPON REQUEST.

Risk Management

Given current volatility in prices for all agricultural commodities, Anderson may choose to enter into option positions to offset the risk of some positions. Anderson may also enter into directional trades through the use of options and option spreads, i.e. call spreads and put spreads. Occasionally, and not as a primarily vehicle for trade, Anderson may enter into directional trades via buying and selling futures outright or in combination with options positions. Option trading and directional trades will not be primary members of the portfolio but will be traded on an opportunistic basis. Returns are based on proforma adjustments to a proprietary account to reflect fees. Client accounts will be traded in like fashion.