RL Capital Management
October 2008 Update
In an effort to keep you informed about the performance of the RL Capital Managed Account Program, please find the attached monthly performance snapshot for October 2008. Through October, the program has produced net returns of 29% with a maximum drawdown of 13.2% since inception. Below is a comparison of the RL Capital Managed Account Program to various indices within the equity and commodity complexes.
About RL Capital
RL Capital uses a 100% mechanical trading method, which it applies to a diversified portfolio of commodity, domestic and foreign currency, and financial futures markets. By utilizing a systematic trend-following system, RL Capital intends to reduce if not eliminate the emotional and behavioral biases that many times result in second-guessing and indecisiveness in the trading process. The trading program is designed to answer questions such as, “When should I buy or sell?”, “How much should I buy or sell?”, or, “When should I get out of the trade?” before the trade is initiated. This design seeks to eliminate impulsive trading decisions, which we believe have a higher risk of large losses in the long run. By applying a disciplined, long-term approach to the markets, the RL Capital trading program is designed to ignore directionless daily price changes or “noise” and focus solely on price trend, thus eliminating the challenge of listening to market “gurus” or following market fundamentals for the purpose of predicting every short-term market movement. Our models have demonstrated consistently in the course of testing that market prices, which may at times seem random, are actually related through time in complex, nonlinear ways. The trading program is designed to take advantage of these relationships not by predicting price changes, but rather by filtering as much of this “noise” as possible in order to take advantage of burgeoning long-term trends.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE INFORMATION HEREIN IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT AN OFFER TO SELL, NOR AN OFFER TO PURCHASE AN INTEREST IN ANY MANAGED ACCOUNT. SUCH AN OFFER CAN BE MADE ONLY UPON DELIVERY OF AN OFFERING MEMERANDUM OR DISCLOSURE DOCUMENT.