Argus Capital Mgmt, Pty, Ltd.

Dynamic Multi-strategy Program

The above results represent proprietary trading net of pro forma management and performance fees (2%/20%) and converted to USD, from October 1996 to July 2005. From August 2005 the results represent Argus’ first client managed account (USD & 2%/20% fees). Argus’ trading style is systematic. There are three strategies that trade a total of 73 futures markets. Each strategy / market combination (a “unit”) can be allocated risk capital by the central capital allocation model in a dynamic and systematic way. The first strategy captures trend-following opportunities over a variety of time frames; the second strategy follows a short term volatility breakout methodology; and the third strategy provides a more unique diversifier to the mix, capitalising on mean reversion of spreads in certain related markets. A major distinguishing feature of the overall trading program is the highly reactive, systematic capital allocation methodology that allows the program to shift capital towards the better performing units. The underlying premise of the manager for this approach is that the persistence of a return series generated from a strategy operating on one market is higher (and hence more predictable) than the persistence of the price series of that market itself. In essence this leads to the program trading its risk-adjusted return series’ on a unit by unit basis, through the proprietary daily capital allocation methodology.