DISCLOSURES

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These results of the Pearl Hedged VIX program ("Program") are based on live trading results and represent a composite of client accounts (OATs Methodology) and for which the Program has been executed without interference. The composite is created using actual trading results and are each shown net of all trade fees and net of a pro forma fee structure which includes 1% management fee and 25% performance fee. Live trading results are shown since October 2015. Past performance is not indicative of future results. Results are compiled by Michael Coglianese CPA, P.C. and are unaudited.


None of the results included herein should be construed as an offer to sell. Investors should consult their own adviser, legal, and tax consultants before making any investment decision. Individual accounts may vary in performance depending on size, funding level, and fee structure.


The Program is subject to a variety of risks, including but not limited to: investments may be speculative and subject to a high degree of risk; investments may be illiquid; an investor could lose all or a substantial amount of any investment in the Program.


Notice: For ease of analysis only, all performance information shown herein relies on unaudited performance, and net of any management or performance fee.


This presentation is intended solely for use on a confidential basis by those persons to whom it is transmitted by Pearl. Recipients, by their acceptance and retention of this presentation, acknowledge and agree to preserve the confidentiality of its contents. This presentation may not be reproduced in whole or in part, in any format or by any means including electronically or mechanically, by photocopying, recording or by any information or retrieval system, or by any other form or manner whatsoever, without the prior written consent of Pearl. No portion of this presentation may be used for any purpose other than that for which it has been submitted, without the specific prior written consent of Pearl.


Performance is preliminary and unaudited, and subject to change. Results are shown net of all fees and estimated incentive allocation unless otherwise noted.


Direct comparisons between the Program's performance and equity market indices are not without complications. The Program's portfolio may contain options and other derivative securities, fixed income investments, may include short sales of securities and margin trading, and may not be as diversified as market indices. The indices may be unmanaged, may be market weighted, and


The Program is subject to a variety of risks, including but not limited to: investments may be speculative and subject to a high degree of risk; investments may be illiquid; an investor could lose all or a substantial amount of any investment in the Program; there is no secondary market for interests in the Program nor is one expected to develop, and there are substantial restrictions on transferring an investment in the Program; the Program's portfolio may be leveraged and experience volatility; fees and expenses of the Program may be higher than those of other investments and will reduce the portfolio return. Past performance is not indicative of future results.


Use of SG CTA Index: The SG CTA Index is designed to represent the performance of the 20 largest CTA programs. To qualify for inclusion in the index, a program must be open to new investment and report returns on a daily basis.


At the end of each year all CTA programs in the SG CTA database that meet the inclusion requirements are ranked by program assets. The 20 largest programs are selected as index constituents for the following year. At the beginning of the year a hypothetical portfolio is formed with each constituent program given an equal allocation. The index daily return is simply the daily return of this hypothetical portfolio. There is no rebalancing of allocations during the year.


As of December 2014, the 20 programs in the index represented assets of approximately $93.5 billion.


The proprietor of the SG CTA Index is Societe Generale, and they, in conjunction with BarclayHedge, calculate the index. The index is available without cost online at https://cib.societegenerale.com/en/sg-prime-services-indices/.


Investors cannot invest in the SG CTA Index.


The CBOE Eurekahedge Relative Value Volatility Index is an equally weighted index of 20 constituent funds. The index is designed to provide a broad measure of the performance of underlying hedge fund managers that trade relative value or opportunistic volatility strategies. Managers utilizing the strategy can pursue long, short or neutral views on volatility with a goal of positive absolute return. The CBOE Eurekahedge Volatility Arbitrage Index is a collaborative index between Eurekahedge and the Chicago Board Options Exchange. For more information about hos this Index is created and maintained, please see www.eurekahedge.com/Indices/CBOE-Eurekahedge-Volatility-Indexes-Methodology.


Performance information used in this paper is disclosed in Appendix I of this document.



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