MKC Global Investments LLC : MKC Global Fund, LP

Summary

MKC Global Investments is a Commodity Trading Advisor (CTA) and a Commodity Pool Operator (CPO). We operate with the primary purpose of generating absolute returns for the limited partners. The company is based in Seattle, Washington. MKC Global Investments utilizes a proprietary system designed to capture long term trends in the global futures and currency markets. Using the price of a market alone, not fundamental analysis or economic data, gives us the information needed to determine when to enter and exit a market. Risk management constitutes the majority of our system and remains the most important and involved aspect of MKC's methodology and portfolio management.

Investment Strategy

Our system utilizes price alone to signal when to enter a market, when to exit a market and helps determine position size. Broadly speaking, as trend followers, we choose to be buyers of a rising market and sellers of a declining one. Our system signals to go long after a market bottoms and begins to rise and signals us to exit after it peaks and begins to decline. The reverse holds true for short trades. Therefore, by definition we rarely catch turning points in a market's price, rather our strategy rides the price trend between them.

Risk Management

In actuality, MKC's system for entering and exiting a market involves only a handful of parameters. Our system is complex enough to generate the highest quality signals possible through thorough historical back testing, but broad enough to profitably work for every market in the world. We use the same system for every market, worldwide. Conversely, the substantial risk management protocols employed are more detailed. We enter a market with a predetermined stop price and only risk a maximum of 1% of assets under management per trade. Each market's volatility is tracked continuously in order to determine when the volatility skews the risk/reward ratio. The system also tracks the correlation of each position to ensure proper diversification. We believe in diversification to such an extent that MKC Global Investments trades more markets globally than almost any other managed futures fund. Several other aspects of our risk management system exist to lower the volatility of our portfolio and reduce the duration and extend of draw-downs. Risk management must be the cornerstone to any profitable strategy geared for long-term survival.