Legacy Capital Management, LLC : LCM Growth Fund

Investment Strategy

The trading systems of the Trading Advisor draw upon the judgment, experience and knowledge of the fundamental and technical factors affecting various markets and attempts to identify optimal trading opportunities within these markets. The Trading Advisor will generally employ an approach that utilizes both fundamental and technical methods when deciding to take positions in Forex and/or Forex OTC Options trading. The approach can generally be classified as fundamental in nature, although other methods can be employed by the Trading Advisor. The Trading Advisor will seek to exploit perceived market inefficiencies in the price of selected Forex trading contracts through both long and short positions. The Trading Advisor has no set policy with respect to the time horizons of its long or short positions, but places an emphasis on the short-term time frame. Positions are commonly held overnight. In evaluating the various factors which make up a trading decision, the systems pay close attention to each trade's risk-reward potential, how it fits into the risk profile of the entire portfolio, and whether it adheres to the account's overall trading goals. Portfolio Selection The primary focus of the Trading Advisor’s trading program is trading complex Forex OTC Options strategies, trading primarily in the currencies of the “G-7” (United States, Japan, Germany, France, United Kingdom, Italy and Canada) Forex trading markets, although the Trading Advisor has sole discretion as to which Forex OTC Options contracts it will trade. Currently the Trading Advisor trades only in the off-exchange Forex OTC Options Forex market. The Trading Advisor reserves the right to decide to trade in other Exchanges, and will endeavor to inform the Limited Partners of this in the event he decides to do so.