What caused to two large draw downs?
ANS: Over the 14-year history of our Program, we have experienced two large draw down situations. The first was early in the program (1992 Peak to valley loss of 14% – recovery period was 4 months), when our positions were over concentrated in too few markets. We are far more diversified today. The second (April 2000 Peak to Valley loss of 26% – recovery pending from litigation) involves alleged wrongdoing by certain exchange officials and officers and is presently being litigated in U.S. Federal Court. We have made a significant adjustment to our method of asset allocation since this situation occurred. FAQ: Why does no single strategy remain at the top of the performance list. This is also seems to be true for multi-strategy programs. ANS: The markets are in a constant state of flux. At different times, different markets are in vogue or the supply-demand situation is out of balance. That is when our strategies are most effective. Nevertheless, we would never concentrate on just a few
