Quest Partners, LLC

AlphaQuest-Original

Program Description: AlphaQuest CTA is a short-term systematic program trading in more than 25 global foreign exchange, fixed income and commodity markets. The investment objective is to achieve long-term capital growth (25% expected annualized returns), with a focus on risk control, while maintaining no correlation to equities (r = 0.06) and a low correlation to "long-term trend following" strategies (r < 0.35) The Process Trading Philosophy: AlphaQuest's systems are designed to participate in many types of market movements where the reward-to-risk ratio is attractive (i.e, explosive price moves, price reversals from major long-term price moves, etc.) Trade Exit Strategies: Each trading system generates a tight money management stop as well as a price/time objective for each trade initiated. Risk Allocation: Each of the more than 25 global markets traded is allocated an equal risk contribution per system. Each system is allocated an equal monthly risk contribution to the portfolio. More than four different trading systems are used. Diversification: AlphaQuest CTA uses multi-dimensional diversification to reduce risk; geography (US, Europe, Asia), sectors (currencies, fixed income, energy, stock indexes, metals), time-frames (systems used are very short term and have a very low correlation to each other)