JTM Capital Management LLC : JTM Absolute Return Strategy

Summary

JTM Absolute Return Strategy employs a discretionary option spread strategy with a focus on domestic agricultural futures markets. Listed AUM includes notional funds. One account included in the summary composite gets preferential exchange fees. Performance includes all fees.

Investment Strategy

The Advisor’s trading edge is ultimately derived from three factors: (1) The Advisor believes that option markets are segmented and can reflect pricing inefficiencies due to behavioral biases. The Advisor has developed and maintains proprietary technology that is used to identify potential trading opportunities. (2) A flexible discretionary trading approach that draws on John Taylor Malueg’s trading experience for all aspects of the strategy’s implementation. (3) Positions exhibit favorable risk/reward characteristics and are robust to moderate risk assumptions, but positions may still lose value.

Risk Management

Monitoring margin to equity ratio and changes to the bottom line every day come first. The Advisor expects to maintain a margin to equity ratio below 40%. Margin utilization may temporarily exceed 40%, and there may also be instances where the Advisor does not deploy any capital. The Advisor generally seeks to limit potential single position drawdown risk to no more than 5% of a client’s nominal account value. If a position was to go badly astray, a stop loss may be executed, or the Advisor may offset at least part of the position immediately, in order to get it back down to a comfortable position size. The Advisor favors liquid markets and will trade exchange listed products. If a stop loss on a core position has been executed, the Advisor will review the position carefully before re-entry.