Pinnacle Alternative Investments LLC

Managed Account Program

Minimum Investment
Management Fee 0.00%
Performance Fee 0.00%
Annualized Volatility 0.00%
Sharpe (RFR=1%) 0.00


-RGT Advisors (Managed Account Program) is a long biased, long volatility futures CTA. The investment premise is that a major bull market is underway in world wide commodity markets. There are two powerful fundamental factors driving these markets. First is a secular increase in economic growth rates, particularly in the less developed world, and second is the fact that, over the short and medium term, there is little or no excess production capacity for many commodities. Given the expense and particularly the long lead times associated with developing new supply, this bull market has the potential to last for a long while, on the order of ten or more years. However there are periods in which, even if this long term premise is correct, markets will go sideways or even down, and perhaps dramatically so. In such environments, RGT uses long volatility option strategies to exploit violent price action in either direction. Thus it becomes possible to speculate intelligently and profitably in the futures markets, while maintaining a fundamental investment belief, yet without being subject to the enormous swings in equity that characterize a great many market players. To control the variance of its returns, RGT employs minimal leverage (appr. 7%, on average). In addition, RGT uses option hedging techniques to control absolute risk and drawdowns, and sometimes to protect unrealized profits. Finally, RGT employs strict loss limits per position or idea so that mistakes are not allowed to get out of hand and dominate the portfolio. Currently the risk management rule is that no loss can exceed 1% of portfolio value. This style of investing allows RGT to take, if deemed appropriate, contrarian positions, where value seems compelling but trend followers and trading systems are on the other side of the market. The idea is to exploit situations in which a vast majority of black box systems has lined up on one side of the market, but where price activity and economic reality may have diverged. When trading outright, such positions can be extremely dangerous. However with intelligent use of options, RGT can act quickly and decisively to exploit such market anomalies. In particular, volatility strategies can be designed to give a position time to work while making certain that losses cannot exceed predetermined limits. Such strategies can turn a poorly timed idea into a profitable position. For these reasons, RGT expects its results to be independent not only of general financial market performance but also of most other investment managers in the futures industry. -Principal Bios- David Gasner started in the investment business at Merrill Lynch in 1979 as an analyst in the arbitrage department. He has managed the arbitrage departments at Plaza Securities, Dillon Read, and most recently Toronto-Dominion where he was a Managing Director. He left there in 1999 to start GL Partners, which was a multi-strategy hedge fund. During the last fifteen years he has managed as much as $400 million with average returns in the high teens and no down years. Mr. Gasner is a graduate of Columbia University in economics and mathematics, was a Fulbright Scholar at Cambridge University, and was a National Science Foundation scholar at the Massachusetts Institute of Technology. Mr. Gasner was formerly an adjunct member of the mathematics department at Baruch College in the CUNY system and has sat on the boards of the World Music Institute and the Ibex Chamber Orchestra. Most recently, he took a year-long sabbatical and taught mathematics at the Dalton School in New York City. Jonathan Siegel has more than 25 years of management experience in the financial services industry. He began his career as a broker for Merrill Lynch and E.F. Hutton, and has held executive management positions with Geldermann, Inc., Daiwa Securities America, ING Barings, and Peregrine Financial Group. Mr. Siegel developed a variety of financial products delivering index exposure including the first variable-rate, non-principal guaranteed debenture rated AA- by S&P and marketed to US and foreign pensions, endowments, other asset allocation investors and consultants. He has extensive experience and expertise in the areas of administration, risk management, and compliance. Mr. Siegel holds a B.A. in Economics from Yale University.