JUPITER TRADING ADVISORS
Jupiter Global Composite Strategy Investment Summary
THIS INFORMATION IS PROVIDED BY JUPITER TRADING ADVISORS, LLC FOR INFORMATIONAL USES ONLY AND SHOULD NOT BE USED OR CONSIDERED AS AN OFFER TO SELL, BUY OR SUBSCRIBE FOR SECURITIES, COMMODITY FUTURES, OR OTHER FINANCIAL INSTRUMENTS OR PRODUCTS. THERE ARE SIGNIFICANT RISKS INVOLVED IN INVESTING IN HEDGE FUNDS (INCLUDING COMMODITY POOLS) WHICH INCLUDE THE POSSIBILITY OF AN ENTIRE LOSS OF YOUR INVESTMENT. HEDGE FUNDS OFTEN ENGAGE IN LEVERAGE AND OTHER SPECULATIVE PRACTICES THAT INCREASE THE RISK OF INVESTMENT LOSS. IN ADDITION, SUCH FUNDS MAY BE HIGHLY ILLIQUID, PRICING AND VALUATION MAY NOT BE READILY TRANSPARENT, INVOLVE COMPLEX TAX STRUCTURES, THERE MAY BE DELAYS IN RECEIVING IMPORTANT TAX INFORMATION, HEDGE FUNDS DO NOT HAVE THE SAME REGULATORY REQUIREMENTS AS MUTUAL FUNDS, AND HIGH FEES MAY BE CHARGED. YOU ARE URGED TO CONSULT WITH YOUR PERSONAL FINANCIAL ADVISORS BEFORE MAKING ANY INVESTMENT. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY SUCH ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. JUPITER TRADING ADVISORS HAS PREVIOUSLY ENGAGED IN ACTUAL TRADING. THE METHODS, STRATEGIES AND PRODUCTS PREVIOUSLY EMPLOYED BY JUPITER TRADING ADVISORS DIFFERS FROM THE STRATEGIES AND PRODUCTS EMPLOYED FOR THE PRODUCT BEING DISPLAYED HERE. THE ACTUAL RESULTS OF JUPITERS’ PREVIOUS TRADING IS AVAILABLE UPON REQUEST. The Global Composite strategy begins in January of 1999 and continues through May of 2011, it is only available to Qualified Eligible Persons.
jupiter trading advisors 191 North Wacker Drive ◆ Chicago, IL 60606 ◆ info@jtadvisors.com ◆ www.jtadvisors.com
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Jupiter Trading Advisors G lobal C omposite S trategy I nvestment S ummary Investment Philosophy
The Jupiter Global Composite strategy focuses on trading equity indices in the United States and Europe using proprietary quantitative, systematic models. The Global Composite program objective is to complement long-weighted equity and / or fixed income portfolios by generating significant alpha while mitigating draw downs in declining sideways markets. Risk is managed by tactical capital allocation, disciplined trade entry selection and hard margin utilization limits. The combination of proven proprietary models and stringent risk management procedures provide stable returns year after year.
Investment Strategy ▲
Systematic Mean Reversion. Jupiter GC utilizes a proprietary systematic mean reversion strategy designed to be uncorrelated to standard benchmarks of U.S., global equity and fixed income security performances.
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Statistical and Quantitative Analysis. Jupiter’s staff performs statistical and quantitative analysis of historical data using proprietary software to identify promising trade opportunities as well as suggest optimal entry /exit points and capital allocation to individual trades. Disciplined entry points are scaled over multiple time frames to reduce initial and total position risk.
Capital Preservation. The strategy is designed to preserve capital during stressful market periods, allowing it to capture advantages when opportunities are the greatest. ▲ High-Alpha Low-Beta. Jupiter’s objective is to mitigate drawdowns experienced by long weighted stock portfolios, thereby increasing overall portfolio returns. The strategy performs extremely well in declining and sideways markets, while producing consistently positive returns in rising markets. ▲ Low-Risk, High-Percentage Opportunities. The Global Composite strategy analyzes shifts in implied volatility overlaid with 50+ heat map indicators to generate short term low-risk, high-percentage opportunity trades. ▲
Jupiter GC Results vs. Benchmark (January 1999 - M ay 2011)***
Compounded Annual Return 1-Year Rolling Return (1) Annualized Standard Deviation Correlation to S&P / Euro Stoxx Sharpe Ratio (2% RFR) 1 Year Rolling Sortino Ratio (12% MAR) Average Margin : Equity Profitable Months Average Monthly Return – Gross Average Monthly Gain – Gross Average Monthly Loss – Gross Largest Monthly Gain – Gross Largest Monthly Loss – Gross (1)
Jupiter GC (HYPOTHETICAL) 17.11% 14.99% 9.17% 3.16 2.62 6.03% 89% 1.77% 2.19% (1.45%) 15.21% (6.33%)
S&P 500 0.03% 14.90% 16.32% (0.10) 0.32 0.26
EURO STOXX 50 (2.26%) 9.84% 19.97% (0.18) 0.17 (0.10)
55% 0.16% 3.32% (3.98%) 10.44% (17.25%)
56% 0.00% 4.01% (4.91%) 16.81% (17.95%)
(1) Net of Fees (2&20) ***JUPITER GC RESULTS ARE HYPOTHETICAL USING BACK TESTED DATA. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY SUCH ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. JUPITER TRADING ADVISORS HAS PREVIOUSLY ENGAGED IN ACTUAL TRADING. THE METHODS, STRATEGIES AND PRODUCTS PREVIOUSLY EMPLOYED BY JUPITER TRADING ADVISORS’ DIFFERS FROM THE STRATEGIES AND PRODUCTS EMPLOYED FOR THE PRODUCT BEING DISPLAYED HERE. THE ACTUAL RESULTS OF JUPITERS’ PREVIOUS TRADING IS AVAILABLE UPON REQUEST.
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Jupiter Trading Advisors G lobal C omposite S trategy I nvestment S ummary Competitive Edge ▲
Proprietary Statistical Models. Jupiter’s models isolate current price behavior as functions of historical market volatility, options-implied futures volatility, inter-market correlations, credit market indicators as well as price response to macro and micro-economic data releases and currency market inputs. The Trading Advisor benchmarks the current configurations against recorded history and extreme behavior using the previously referenced database of market prices across several asset classes and instruments to generate trade signals.
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Market Volatility Adaptation. The Jupiter GC strategy adapts to prevailing market volatility conditions by adopting a dual approach – a distinct tactical response to trading “normal” markets as compared to the tactical response when markets are experiencing extremes in panic or euphoria.
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Significant Alpha Generation. Strategies adopted during periods of high volatility result in the trading program achieving large absolute returns along with lower realized volatility, especially in periods when most investments are underperforming.
Worst Intra-Month NAV (Unrealized Loss)***
Value Of Initial $1,000 Investment*** $7,000
30%
Jupiter GC (HYPOTHETICAL) S&P EURO STOXX 50
$6,000
Capturing Short Term Anomalies. The trading models capture very short term statistically defined anomalies during “normal” markets, in sharp contrast to the trading approach adopted for “high volatility environments. The core differences in approach are the typical trade durations (30 minutes to a few days) and position sizes employed (very low leverage, smaller scales). This acts as a defense against the onset of unpredictable factors that cause large scale market panics. ▲ Strategic Position Allocation. The Global Composite strategies are defensively designed to enter and exit the markets at the open and/or the close during high volatility environments, by passing the intraday randomness of price responses to news events. When statistically modeled trade signals are not active during high volatility environments, the program remains on the sidelines, invested 100% in cash or cash-equivalents. ▲ Consistent Returns. Jupiter’s profile of consistent returns is created through distinct approaches to “normal” markets and high-volatility environments. During “normal” markets, Jupiter utilizes short-term trading with a disproportionate emphasis on high cash balances and low leverage. Opportunistic and patient allocation of capital is employed during liquidating high-volatility environments. ▲
Jupiter GC (HYPOTHETICAL) S&P EURO STOXX 50
25%
$5,000 20%
$4,000 15%
$3,000 10%
$2,000
5%
$1,000 $0 1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
0%
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
***JUPITER GC RESULTS ARE HYPOTHETICAL USING BACK TESTED DATA. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY SUCH ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. JUPITER TRADING ADVISORS HAS PREVIOUSLY ENGAGED IN ACTUAL TRADING. THE METHODS, STRATEGIES AND PRODUCTS PREVIOUSLY EMPLOYED BY JUPITER TRADING ADVISORS’ DIFFERS FROM THE STRATEGIES AND PRODUCTS EMPLOYED FOR THE PRODUCT BEING DISPLAYED HERE. THE ACTUAL RESULTS OF JUPITERS’ PREVIOUS TRADING IS AVAILABLE UPON REQUEST.
30%
Jupiter GC (HYPOTHETICAL)
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Jupiter Trading Advisors G lobal C omposite S trategy I nvestment S ummary Risk Management Margin Utilization - Maximum YTD
▲
Maximum % Margin Utilization Tactical Defense. Risk is a function of both price levels and prevailing market volatility as compared Annual (HYPOTHETICAL) to expected return from the strategy’s trade-specific 50% entry/exit signals. As the onset of cycle change is 45% usually unheralded by predictive factors, the strategy 40% maintains a posture of “tactical defense” by allocating 35% low capital relative to assets under management and 30% imposes hard maximum limits on margin-to-equity 25% ratios. 20%
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Weighted Portfolio Leverage. Portfolio leverage is chosen to incorporate a risk premium to account for unusual market conditions that are typically associated with maximum drawdowns in high volatility environments.
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▲
▲
Scaled Capital Allocation. The strategy further mitigates risk by allocating capital in staggered pre-determined position size scales, with individual allocations not exceeding leverage factor of 0.2x ($20 notional asset value controlled per $100 invested). Capital allocation builds up to an average of 6.7% over the course of the staggered allocation process. Capped Margin Utilization. As a hard riskmanagement rule, the Trading Advisor begins reducing positions when margin requirements exceed 65% of total equity through more than one session. Risk Mitigation. To mitigate the severity and magnitude of potential drawdowns the Trading Advisor will scale down positions to a core level when a portfolio’s predetermined drawdown levels or margin utilization levels are breached on a daily mark-to-market basis.
15% 10% 5% 0% 1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2010
2011
Maximun Leverage YTD Maximum Annual Leverage (HYPOTHETICAL) 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
***JUPITER GC RESULTS ARE HYPOTHETICAL USING BACK TESTED DATA. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY SUCH ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. JUPITER TRADING ADVISORS HAS PREVIOUSLY ENGAGED IN ACTUAL TRADING. THE METHODS, STRATEGIES AND PRODUCTS PREVIOUSLY EMPLOYED BY JUPITER TRADING ADVISORS’ DIFFERS FROM THE STRATEGIES AND PRODUCTS EMPLOYED FOR THE PRODUCT BEING DISPLAYED HERE. THE ACTUAL RESULTS OF JUPITERS’ PREVIOUS TRADING IS AVAILABLE UPON REQUEST.
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Jupiter Trading Advisors G lobal C omposite S trategy I nvestment S ummary Mean Reversion Characteristics
As shown in the data table below, months which experience unusually high intra-month drawdowns, more often than not result in a positive NAV at month end. The Global Composite Strategy also produces an extremely impressive monthly win / loss percentage rate. Drawdown & Gain / Loss Analysis (HYPOTHETICAL) Largest Gain / Loss Intra-month Reference for Reference Year Drawdown Month Month 1999 -4.56% July -2.30% 2000 -1.57% April 1.76% 2001 -11.77% September 6.95% 2002 -6.38% July 4.02% 2003 -4.57% March 9.86% 2004 -1.62% September 1.38% 2005 -1.21% February 1.71% 2006 -3.08% May 2.90% 2007 -2.20% October 1.81% 2008 -16.37% January 1.00% 2009 -9.30% March 11.06% 2010 -6.04% May 13.61% AVG -5.72% 4.48%
Average Up Month 1.86% 2.04% 2.29% 3.29% 2.22% 0.81% 0.86% 1.17% 1.92% 3.87% 2.34% 3.93% 2.22%
Average Down Month -2.30% -0.05% -1.07% -0.05% -0.36% -0.35% N/A N/A -0.25% -3.88% -4.45% -1.76% -1.45%*
% Profitable 92% 92% 92% 92% 92% 83% 100% 100% 83% 92% 83% 75% 90%
*Average of non-zero values. Ignores years where all months were positive.
***JUPITER GC RESULTS ARE HYPOTHETICAL USING BACK TESTED DATA. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY SUCH ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. JUPITER TRADING ADVISORS HAS PREVIOUSLY ENGAGED IN ACTUAL TRADING. THE METHODS, STRATEGIES AND PRODUCTS PREVIOUSLY EMPLOYED BY JUPITER TRADING ADVISORS’ DIFFERS FROM THE STRATEGIES AND PRODUCTS EMPLOYED FOR THE PRODUCT BEING DISPLAYED HERE. THE ACTUAL RESULTS OF JUPITERS’ PREVIOUS TRADING IS AVAILABLE UPON REQUEST.
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Jupiter Trading Advisors G lobal C omposite S trategy I nvestment S ummary Exchange Traded Fund Evolution: The Advantages of Stock Index Futures
In December 2008 the Trading Advisor began trading ETF’s for proprietary accounts on international stock market indexes using the Global Composite strategy. As of July 1st, 2011 the portfolio has approximately $5,000,000 in assets under management. While the strategy has proven successful as shown in the actual trading results contained in this document, the Advisor has identified several limitations in trading ETF’s that are eliminated by the advantages of index futures. The Advisor’s analysis of these limitations and advantages are summarized below. ▲
Capital Productivity. Research and experience show that leverage and under-capitalization are the two main threats to hedge fund survival, with their impact magnified during market panics. The Global Composite strategy typically scales into positions with small unit exposures to both leverage and margin utilization, thus entering panics with a cash-rich posture to benefit from the reversion of the dislocations to the mean. In addition, futures require less margin collateral to be posted in comparison to ETF’s. These factors contribute to a vast difference in capital productivity favoring futures, which increases staying power during market panics.
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Scalability & Liquidity. As assets under management grow, the flexibility to strategically maneuver in and out of positions become increasingly difficult and costly in ETF portfolios. The Global Composite strategy is scalable up to $1 billion in the S&P futures and €800 million in the EURO STOXX 50 futures verses $100 million in the various ETF products. At the futures program’s maximum scale, the Global Composite strategy would represent less than 1% of the average daily volumes in each futures market; whereas at $100 million, the universe of tradable ETFs narrows considerably.
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Expanded Trading Hours. The ability to trade futures in a 24 hour format versus the 7-8 hour day session available for trading ETF’s allows the Global Composite strategy to take advantage of trading opportunities created in the Asian/European time-zones, which pay off in the US day session. The extended trading hours feature also helps with increasing risk controls during periods of multiple
standard deviation price changes. ETF portfolios endure the risk of adverse multiple standard deviation gap/jump openings which are widespread during market panics. Consequently, risk control parameters for ETF portfolios have to be more stringent in order to dampen the impact of such price gaps/jumps. Because the ETF instruments can only be traded during US hours, the ETF investor loses on two counts - an abnormally small de-risked position at times of maximum opportunity, and the lack of participation during time zones that experience large, tradable price travel range where the strategies models have consistent profit profiles. ▲
Cost Effective Shorting. The ability of the Advisor to enter a short futures position by simply “hitting the bid” vs. “borrowing” the stock after the broker confirms a locate in an ETF allows for greater maneuverability and less slippage when trading signals are produced. This key factor significantly eliminates the tracking error between theoretical and actual results. Furthermore, certain ETF’s are periodically and unpredictably designated “hard to borrow” by the Exchanges at times when the Advisor’s systems may already have legacy positions. Under such situations, the Advisor is forced to reduce risk of runaway moves by forcibly covering short positions prematurely at a time when the Advisor’s systems expect the exact opposite trading maneuver. The benefit of frictionfree and limitation-free futures is that such shortcovering spikes can be advantageously put to use to add to legacy positions, as the scaling-in/out process is a critical component in the strategies method of trading.
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Jupiter Trading Advisors G lobal C omposite S trategy I nvestment S ummary The Advantages of Stock Index Futures (continued) â–˛
Evolution. Given the Advisors depth of experience in the futures trading space, the Jupiter staff has spent a vast amount of time and resources quantifying the profitability of the Global Composite strategy if traded on the S&P 500 Stock Index futures and the Euro Stoxx 50 Stock index futures. The historical data indicates the strategy provides
consistently attractive returns over extended periods of time and market cycles. The Global Composite strategy has been back tested at the daily level to produce the hypothetical results contained within this document. The daily data dating back to January of 1999 is available upon request.
ETF Strategies: Actual Trading Results Since Inception Jupiter ETF Portfolio Returns & Volatility AUM $5,000,000 as of 6/1/2011 2009 2010 2011 January* February March April May June July August September October November December
5.74% (0.09%) 4.89% 1.51% 2.67% 0.34% (3.45%) 0.11% 2.15% (0.41%) 2.73% 1.63%
(1.17%) 3.90% 2.22% 0.10% (0.12%) (1.33%) 11.94% (1.16%) 4.70% 1.51% (0.22%) 3.73%
1.75% 2.50% 1.59% (0.43%) 2.45% 1.45%
Annual Returns Portfolio Return YTD S&P 500 Return YTD Compounded Annual: Portfolio S&P 500
2010 26.02% 12.79%
2011 9.72% 4.95%
22.45% 18.63%
20.05% 15.70%
Annualized Volatility
* First year data includes partial December 2008 overlap for all statistics
Portfolio Volatility S&P 500 Volatility Portfolio / Market Ratio Portfolio Sharpe Ratio S&P 500 Sharpe Ratio
Drawdown & Average Gain/Loss Analysis ETF Portfolio S&P 500
Down Capture Month
Maximum Drawdown Lowest NAV Month Months to New High Average Up Month Average Down Month % Months Profitable
Jan 2009: n/a Feb 2009: 1% Oct 2009: 21% Jan 2010: 32% May 2010: 1% June 2010: 25% Aug 2010: 25% Apr 2011 n/a May 2011 n/a
(3.45%) Jul-09 4 2.93% (0.93%) 72%
2009 18.97% 24.77%
(17.99%) Feb-09 3 4.83% (4.45%) 66%
2009
2010
2011
8.17% 22.00% 37.15% 2.32 1.13
12.54% 19.31% 64.93% 2.08 0.66
2.39% 4.98% 48.00% 4.07 0.99
ETF Portfolio
S&P 500
5.74% (0.09%) (0.41%) (1.17%) (0.12%) (1.33%) (1.16%) (0.43%) 2.45%
(7.86%) (10.99%) (1.98%) (3.70%) (8.20%) (5.39%) (4.74%) 2.85% (1.35%)
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Jupiter Trading Advisors G lobal C omposite S trategy I nvestment S ummary Simulated Historical Data For The Global Composite Trading Program
PROGRAM SCOPE _____________________________________________________Equity Index Futures: USA, Europe MARKET CONDITION ______________________________________ Sporadic Or Sustained High Volatility Environment MARKET SELECTION_ ______________________________________ S&P 500 Index, Dow Jones EURO STOXX 50 Index MAXIMUM MARGIN _ ______________________________________________ EQUITY CONSTRAINT FACTOR: 65% TRADE DIRECTION _ ________________________________________________________ UNBIASED LONG/SHORT Portfolios: FUND 50-50:__________________________________________________50% allocation each to S&P 500 Index and to Dow Jones EURO STOXX 50 Index futures (no options) Benchmarks: MKT-SP_ ____________________________________________ 100% Buy and Hold Long-Only S&P 500 Index Futures MKT-EUROSTOXX ____________________________ 100% Buy and Hold Long-Only Dow Jones EURO STOXX 50 Futures
Annual Historical Performance % Net of Fees (HYPOTHETICAL) 1999 2000 2001 Jupiter GC (HYPOTHETICAL) 13.94 18.17 19.70 S&P 500 19.16 -10.05 -13.92 EURO STOXX 50 46.17 -2.94 -19.12
2002 2003 32.33 19.50 -23.52 26.36 -36.44 9.27
2011 Performance % (HYPOTHETICAL) Jan Feb Mar Apr May 2011 0.87 -0.01 2.37 1.49 0.79
Jun 1.14
Jensen’s Alpha vs. Benchmark Monthly (HYPOTHETICAL) Jupiter GC vs. Jupiter GC vs. S&P EURO STOXX 50 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
1.34% 1.85% 1.53% 3.90% 1.84% 0.48% 0.64% 0.98% 1.20% (0.22%) 0.97% 2.46% 0.70%
1.18% 1.67% 1.53% 3.74% 1.71% 0.42% 0.79% 1.01% 1.21% 0.76% 1.08% 2.27% 0.76%
2004 4.53 9.29 4.95
2005 2006 2007 2008 2009 2010 AVG 7.00 10.34 14.56 34.19 10.04 25.03 17.44% 3.39 13.84 3.16 -39.07 23.40 12.81 0.03% 21.74 14.83 5.44 -44.04 17.28 -5.99 -2.66%
Jul
Aug
Sep
Oct
Beta vs. Benchmark Monthly (HYPOTHETICAL) Jupiter GC vs. S&P 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
0.13 0.06 (0.10) 0.21 (0.08) (0.20) (0.09) (0.38) (0.15) (0.46) 0.10 0.09 (0.65)
Nov
Dec
YTD 6.64%
Jupiter GC vs. EURO STOXX 50 0.22 0.15 0.06 0.42 (0.00) (0.18) (0.10) (0.18) (0.23) (0.61) 0.04 0.12 (0.28)
***JUPITER GC RESULTS ARE HYPOTHETICAL USING BACK TESTED DATA. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY SUCH ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. JUPITER TRADING ADVISORS HAS PREVIOUSLY ENGAGED IN ACTUAL TRADING. THE METHODS, STRATEGIES AND PRODUCTS PREVIOUSLY EMPLOYED BY JUPITER TRADING ADVISORS’ DIFFERS FROM THE STRATEGIES AND PRODUCTS EMPLOYED FOR THE PRODUCT BEING DISPLAYED HERE. THE ACTUAL RESULTS OF JUPITERS’ PREVIOUS TRADING IS AVAILABLE UPON REQUEST.
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Jupiter Trading Advisors G lobal C omposite S trategy I nvestment S ummary ▲
The Global Composite consistently exhibits lower volatility than long weighted portfolios with heavy allocations in the S&P 500 and EURO STOXX 50 equities.
Historical Volitility *** 30%
Jupiter GC (HYPOTHETICAL) S&P EURO STOXX 50
25%
20%
15%
10%
5%
0%
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2003
2004
2005
2006
2007
2008
2009
2010
2011
Average Daily Volitility *** 3.0%
Jupiter GC (HYPOTHETICAL) S&P
2.5%
EURO STOXX 50
2.0%
1.5%
1.0%
0.5%
0.0%
1999
2000
2001
2002
***JUPITER GC RESULTS ARE HYPOTHETICAL USING BACK TESTED DATA. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY SUCH ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. JUPITER TRADING ADVISORS HAS PREVIOUSLY ENGAGED IN ACTUAL TRADING. THE METHODS, STRATEGIES AND PRODUCTS PREVIOUSLY EMPLOYED BY JUPITER TRADING ADVISORS’ DIFFERS FROM THE STRATEGIES AND PRODUCTS EMPLOYED FOR THE PRODUCT BEING DISPLAYED HERE. THE ACTUAL RESULTS OF JUPITERS’ PREVIOUS TRADING IS AVAILABLE UPON REQUEST.
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Jupiter Trading Advisors G lobal C omposite S trategy I nvestment S ummary Established Expertise
Seed Investor Summary of Terms
Mr. Buch began his trading career at Commodity Trading Services, LLC where he was a trader and creator of proprietary futures and options trading strategies in Crude Oil, Heating Oil, Unleaded Gasoline and Natural Gas markets. In 2002, he joined Victor Niederhoffer at Manchester Trading LLC, a quantitative hedge fund manager. As its Chief Operating Officer, Gitanshu was responsible for risk management and options trading for the firm’s portfolio of Equity Indices and Fixed Income Futures. In 2004, Mr. Buch left Manchester to start his own firm, Jupiter Asset Management (subsequently renamed Jupiter Trading Advisors). Jupiter was the sole trading advisor that managed Quartet Fund, a BVI mutual fund vehicle for exclusive investment by Octane Funds group. By mutual agreement, in 2010 Mr. Buch/Jupiter and Octane Funds terminated the management of the Quartet Fund.
Structure Commodity Pool
From December 2008 to present, Jupiter manages portfolios of high net worth individuals using the same systems and strategies that encompass the Global Composite Program. Portfolios managed at present focused instrument-mix on NYSE and NASDAQ listed ETFs that track MSCI, S&P benchmarked Country Equity Index and Fixed Income Funds as well as ETFs for physical Precious Metals.
Commodity Trading Advisor Jupiter Trading Advisors LLC Minimum Investment $200,000 Investor Eligibility Qualified Purchaser Available for Types of Investors U.S. Taxable & Off Shore Management Fees 0% per annum Performance Fees 10% per annum Performance Fee Participation 5% Auditor McGladrey & Pullen, LLP Administrator Cortland Fund Services, LLC Compliance Strategic Compliance Solutions Inception September 1st, 2011 Redemptions Monthly Lock-up 180 Days Exit Penalty None Clearing Broker Morgan Stanley Smith Barney
jupiter trading advisors 191 North Wacker Drive â—† Chicago, IL 60606 info@jtadvisors.com â—† www.jtadvisors.com