The primary investment objective of the Partnership is long term growth of capital. The business of the Partnership is the buying and selling of stocks, options, warrants, and rights of U.S. and non‑U.S. entities. The Partnership may invest and trade in public and private securities and may lend funds or assets and borrow money, with and without collateral. The Partnership ordinarily will invest in securities that trade in sufficient volume to allow for swift execution of transactions. Positions in securities may be held for very short periods, even as little as a portion of one day. The Partnership may engage in transactions in exchange‑listed options in conjunction with or in lieu of taking a position in underlying securities, including writing uncovered options. The Partnership also may engage in short sales of securities and margin transactions. The Partnership may also invest or trade in cash commodities, commodity futures, or commodity options contracts after securing all necessary registrations from the National Futures Association (the “NFA”), the United States Commodity Futures Trading Commission (the “CFTC”), and/or other regulatory agencies. The Partnership shall have the power to do any and all acts necessary, appropriate, proper, advisable, incidental or convenient to or for the furtherance of the purposes and business described herein, and shall have, without limitation, any and all of the powers that may be exercised on behalf of the Partnership by the General Partner. The General Partner has delegated discretionary authority over the Partnership’s trading activity and management of the Partnership’s portfolio to the Investment Advisor.
The Investment Advisor intends to employ an opportunistic strategy that will allow flexibility and optimal performance. The Investment Advisor intends that the initial hedge fund platform will consist of a number of large cap core equity positions.
To achieve its objective, the majority of the Partnership’s assets will be invested in a diversified portfolio of public securities. Investments will be made in a variety of asset classes and security types. The portfolio will include preferred securities, real estate investment trusts (“REITS”), master limited Partnerships (“MLP’s”), and both dividend and non‑dividend paying securities. The Investment Advisor will allocate the portfolio according to relative value among the asset classes. The Partnership’s portfolio will be adjusted by adding securities in sectors that are out of favor in both dividend and non-dividend paying securities. It is also intended that a portion of the Partnership’s assets will be allocated to hedging strategies designed to protect the Partnership’s interest rate sensitive securities and overall portfolio. The Investment Advisor believes this two pronged approach of dividend paying assets and out of favor securities will achieve superior performance on a risk adjusted basis.
The trading strategies utilized by the Investment Advisor will be a continuous assessment of the economic environment to isolate both positive and negative trends in sectors and industries. The investment selections will then be made on a company by company basis to determine optimal long or short positions. The Investment Advisor’s economic assessment and investment strategies are the result of multiple research resources, financial news services, the general and trade press, and industry research analysts.
Investment criteria of the Investment Advisor in its management of the Partnership’s assets include, but are not limited to, financial strength and stability; earnings per share analysis; growth projections for the companies; growth projections for the industry or sector; market share and/or market dominance; new products or services; debt to equity ratio; cash flow analysis; and, price to book analysis.