Summary

The Trading Advisor and Its Principals The Trading Advisor's principals are Francisco J. Vaca, Ph.D. and Paul Rabar. The sole trading principal, Dr. Vaca, is the Chairman and Chief Executive Officer of Vaca Capital Management LLC. Paul Rabar does not participate in the making of trading or operational decisions for the Trading Advisor. [The Trading Advisor has been the general partner and investment manager of Vaca Capital Partners L.P., a private investment fund pursuing a long-short investment strategy in the U.S. public equity markets, since February 25, 2002.] Prior to forming Vaca Capital Management LLC in November 2000, Dr. Vaca was an Executive Researcher at C&D Commodities, Inc., where he researched and implemented systematic trading strategies for the futures and equities markets from 1996 to 2000. While working on his Ph.D., Dr. Vaca taught undergraduate physics at Columbia College (Chicago) from 1992 to 1995. Dr. Vaca earned his B.S. in Physics and Mathematics from the Universidad Michoacana (Mexico) and his M.S. and Ph.D. in Physics from the University of Illinois at Chicago.

The Trading Advisor's models were developed through an extensive research and development effort, which uses mathematically and statistically sound research techniques and methodologies. This effort continues on an on going basis. For example, the Trading Advisor continually monitors the models in an attempt to ensure that trade generation and resulting performance are commensurate with expectations from a statistical standpoint. The Trading Advisor's research effort also seeks ways to improve the risk-reward characteristics of existing models and adapt those models to changing market conditions. Finally, through its on going research, the Trading Advisor seeks to develop new models.