The General Partner has determined to invest the Partnership’s assets according to the Ascending Capital Model (ACM) trading signals and other technical and fundamental principles developed by the Investment Manager. The Principals of the General Partner have been engaged in market research, technical systems and development of a proprietary trading system, the ACM, since 2020. The ACM is intended to identify inflection points in stocks through a multi-disciplinary analysis of:
- fundamentals,
- catalysts,
- sentiment, and
- technical signals.
Empowered by this process and a deep belief in efficient markets, the key value-add of the fund is to identify and capitalize on rapid re-ratings of stocks based on ACM signals. These rapid re-ratings often occur just prior to, or after, key catalysts which the fund believes will impact fundamentals and sentiment favorably. Technical analysis then informs ideal entry levels, exit levels and holding periods.
Generally, the investment advisor intends to focus on a preselected list of researched stocks where, after applying the ACM, the investment adviser is able to predict near‑term price re‑ratings. However, as new opportunities arise daily, the Investment Advisor may often make trades based upon alternate trading strategies. An allocation for long‑term holdings may be held for stocks which appear to be on the cusp of multi‑quarter or multi‑year breakouts.
Legal Stuff
The primary investment objective of the Partnership is growth of capital. The business of the Partnership is the buying and selling of securities, including, without limitation, stocks, options, warrants, and rights of U.S. and non‑U.S. entities. The Partnership may invest and trade in public and private securities and may lend funds or assets and borrow money, with and without collateral. The Partnership ordinarily will invest in securities that trade in sufficient volume to allow for swift execution of transactions. The Partnership may engage in transactions in exchange‑listed options in conjunction with or in lieu of taking a position in the underlying securities, including writing uncovered options. The Partnership also may engage in short sales of securities and margin transactions. Positions are held for periods of time that may vary from a portion of one day to several quarters or more. While the ACM is based on the four components described above, market conditions and news bulletins affect the Investment Advisor’s ultimate buy and sell decisions. The Investment Advisor intends to use the ACM as a basis for portfolio management as well as other fundamental and technical methods and strategies. Margin loans may be employed at the discretion of the Investment Advisor. However, it is the current intention of the General Partner to use such loans only occasionally and only for short periods of time when needed to maximize trading opportunities.
The Partnership shall have the power to do any and all acts necessary, appropriate, proper, advisable, incidental or convenient to or for the furtherance of the purposes and business described herein, and shall have, without limitation, any and all of the powers that may be exercised on behalf of the Partnership by the General Partner. The General Partner has delegated discretionary authority over the Partnership’s trading activity and management of the Partnership’s portfolio to the Investment Advisor.