Discretionary Ag-Only Program
-HAAR CAPITALS APPROACH: In managing the accounts of customers, Haar Capital uses a primarily fundamental strategy although technical analysis may also be employed to help determine specific entry and exit points and the placement of stop-loss orders. The advisor believes that commodity price changes occur due to a combination of changing fundamental factors and short-term ?noise? resulting from normal market volatility. Haar Capital seeks to filter out the short-term ?noise? and profit from longer-term trends. Among the fundamental factors to be analyzed will be product supply and demand outlook, projected carryout stocks as a percentage of consumption, weather developments and forecasts, economic trends, and government policies. Based on his extensive experience in managing commercial and speculative trading positions, and recognizing that future states of the world cannot be known with certainty, the advisor seeks to identify skewed risk-reward opportunities; i.e., situations in which the probability of a large gain is seen as being approximately equal to the probability of a small loss. The advisor may refrain from trading most markets at any given time, based on his assessment of neutral or unattractive risk-reward conditions. In addition to outright long and short positions, trading strategies may include inter and intra-market spread positions and the use of commodity options. The Program will be a diversified Agriculture-only trading program, focusing on the global Grains, Tropicals, Fibers and Meats markets. The market sectors that will be traded in this program may include, without limitation, Corn, Wheat, Oats, Soybeans, Soybean Products, Livestock, Coffee, Sugar, Cocoa and Cotton. To date Haar Capital has not managed any funds in this program.Principal Bio: Stanley Haar joined Smith Barney (Citigroup) as a financial consultant in May 2002; he resigned on August 1, 2005 to begin organizing the managed account program at Haar Capital. Before joining Smith Barney, Mr. Haar spent three months (February 2002-May 2002) focused on proprietary commodity trading and investments. From November 1997 to February 2002, Mr. Haar was manager of international business development for Franklin Templeton Investments. He provided legal, administrative and marketing support for the successful start-up of Bradesco Templeton Asset Management Ltda., a joint venture with one of Brazil?s largest banks. Mr. Haar also served on the investment committee of the Fundo Bradesco Templeton de Valor e Liquidez, a corporate governance equity fund, with portfolio management responsibility for the agribusiness and textile holdings in the fund. Earlier in his career, Mr. Haar spent 8 years with Continental Grain Company, holding various trading and management positions in the United States and Latin America. For 3 years he was the commercial director of Brazilian operations, with trading and risk management responsibilities for a soybean processing plant, country elevator network, vegetable oil refinery, feed mill, integrated poultry division, and grain export terminals.. Mr. Haar received a BA degree in Economics and International Studies from the School of International Service at American University (1971). He earned his degree in two calendar years with the highest GPA in university history, and was awarded a National Science Foundation Fellowship for graduate study in economics. In 1971-72, Mr. Haar was a Fulbright Scholar in Brazil, where his research focused on the International Coffee Agreement. Mr. Haar holds three graduate degrees from Stanford University: MBA (1977) from the Graduate School of Business, MA (1990) from the Food Research Institute (concentration in futures markets and international trade), and JD (1993) from Stanford Law School. He has written articles on futures markets and international investments for publications such as Commodities Magazine and the Global Finance Journal.