| Mutek
Investment Management, L.L.C. (MI) views itself as a professional group
of money managers that construct portfolios through diversification across
a broad range of commodity and financial futures markets. MI captures trend
and counter trend opportunities by utilizing a multi-strategy approach which
allocates capital incrementally between a diverse group of domestic and
international commodity and financial futures markets. MI's objectives are
capital conservation, controlled volatility and the generation of superior
risk-adjusted returns. MI's trading program initiates market positions based
on mathematical signals generated by MI's proprietary trading software.
MI trades a balanced portfolio of sectors, including currencies, indices, energies, metals, grains, softs and interest rates, both foreign and U.S. The program requires a minimum investment and is further diversified by additional U.S. and foreign markets as assets under management increase. As MI adds additional markets (anticipated migration from 28 to 60 over the next 12-24 months), its core program becomes less dependent on individual sector balancing but maintains an overall balance between traditional commodity and financial futures. MI considers its money management and risk control techniques an integral component of its overall trading program. Stop-loss orders are placed once a new position has been entered in order to protect initial capital. A predetermined amount of capital is risked, averaging less than 1/2 of 1% of total account equity on each new trade. MI's initial risk per trade combined with a balanced portfolio approach help protect capital from adverse volatile movements in any one market or market sector. Each trading strategy uses as few optimizable parameters as possible and holds its respective values constant across each market. In addition, MI adjusts the number of contracts held on each trade to normalize risk across its entire portfolio of markets. Complete adherence to the trading model removes subjectivity, creates accuracy, promotes discipline, and ensures consistent application. New accounts immediately enter all open positions being tracked by MI's systematic trading model as the intention is to fully diversify new accounts as quickly as possible and to help protect them against initial equity drawdowns. MI usually maintains between 6-18% of an account's equity as original margin. Ultimately, MI reserves the right to change its trading strategies and portfolio selection in light of ongoing research and development, including trading forward contracts as well as additional foreign futures and options on futures contracts.
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