GammaQ : Breckhurst Commodity Fund

Summary

The Fund is an absolute return fund focused on the movement of grain, livestock and soft commodities and the mechanisms that price them.

Investment Strategy

The Fund is an absolute return fund focused on the movement of grain, livestock and soft commodities and the mechanisms that price them. Our approach involves direct communication with Farmers, Exporters, Import Trade Houses and End Users. We will maintain a sound fundamental understanding of the flow of the physical commodity as well as its relationship to related investment vehicles. We will aggregate this information to formulate the Fund’s core views and generate the optimal trade.

Risk Management

Positions will be adjusted and/or exited based on specific scenarios such as: –Profit target has been reached. Even though a fundamental view remains, we have targets placed that fairly value the asset in our opinion. These targets are set upon trade entry and may be adjusted based on a review of fundamentals if the Fund’s principals still believe value exists. –Fundamental conditions have changed prior to a trade playing out. –Stop/Risk levels are violated – these levels are set upon trade entry and will be reviewed when violated. The Fund will employ a second level of position management. This overlays into our risk management to protect profits and manage present volatility. We will utilize technical and statistical analysis to identify price points and expected probability distributions of current markets and positions in order to manage profits and preserve capital more efficiently. VAR and range analysis, sigma risk, correlation relationships and volatility trends are continuously run to stress test the portfolio for market impact.