Shield Plus LLC

Alternative Energy & Inflation

TRADING METHOD--SHIELD PLUS ALTERNATIVE ENERGY & INFLATION SHIELD PLUS LLC strives to simultaneously provide the potential for capital appreciation and preservation by employing a market-neutral investment approach. Such an approach combines two opposing positions, such as a long put and long call, and may make money as one position’s gain more than offsets the other’s loss regardless of market direction. Under such combined put and call positions, a loss may be realized if the market remains stable. To enhance the likelihood of capital appreciation, the Trading Program's and Fund’s investment approach pursues market-neutral positions in the most volatile energy, raw material and inflation-related markets. And to maintain protection of principal, the market-neutral approach uses fully-covered U.S. exchange-traded options in the previously mentioned markets. As a means of achieving added protection, the Trading Program and Fund do not borrow uncovered cash/securities to lever returns and risk. Further, unlike a long/short equity fund, where the long and short positions have two different underlying companies and unlimited risk, the Fund’s market-neutral positions have the same underlying market and known limited risk. Emphasis will be placed on achieving protected, absolute returns over a rolling two-year horizon rather than superior performance relative to an index or other benchmarks. Performance is based on a proforma adjustment to client accounts to reflect the current fee structure.