Beacon Management Corp.

Enhanced Financial

The Enhanced Financial program is a moderate volatility program that represents the Meka probram as applied to currency and domestic interest rates. Meka is an aggressive, highly leveraged investment program based on technical analysis. Technical trading systems determine whether to be long or short each market. The trading systems are predominately trend-following in nature. Exposures to markets (positions sizes) are based upon relationship among the different markets and among the different trading systems. The exposure to most markets can be long or short, depending upon market conditions. The trading system vary from short-term methods that trade almost every day to long-term methods that sometimes hold positions for over a year. These include systems based on moving averages, break outs, option replication, and volatility. Under Meka, the amount of funds normally committed as margin for commodity futures contracts averages approximately 40% to 50%. However, under certain conditions the amount committed as margin may be substantially higher. Instruments Traded. The Enhanced Financials trade currencies and domestic interest rates on futures exchanges. The allocation amont the currencies and interest rates varies fromtime to time. The following contracts are currently traded in the program: British Pound, Japanese Yen, Euro FX, Swiss Franc, Canadian Dollar, Australian Dollar, US Treasury bond, US 10-year note, US 5 year-note, and Eurodollars.