Leeward Pointe Natural Gas Program

leeward pointe
Natural Gas Strategy
TYPHON CAPITAL MANAGEMENT
RISK DISCLOSURE STATEMENT
THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF
YOUR FINANCIAL CONDITION. IN CONSIDERING WHETHER TO TRADE OR TO AUTHORIZE SOMEONE ELSE TO TRADE FOR YOU, YOU SHOULD BE AWARE OF THE FOLLOWING:
IF YOU PURCHASE A COMMODITY OPTION YOU MAY SUSTAIN A TOTAL LOSS OF THE PREMIUM AND OF ALL TRANSACTION COSTS.
IF YOU PURCHASE OR SELL A COMMODITY FUTURE OR SELL A COMMODITY OPTION YOU MAY SUSTAIN A TOTAL LOSS OF THE INITIAL MARGIN FUNDS AND ANY ADDITIONAL FUNDS
THAT YOU DEPOSIT WITH YOUR BROKER TO ESTABLISH OR MAINTAIN YOUR POSITION. IF THE MARKET MOVES AGAINST YOUR POSITION, YOU MAY BE CALLED UPON BY YOUR BROKER
TO DEPOSIT A SUBSTANTIAL AMOUNT OF ADDITIONAL MARGIN FUNDS, ON SHORT NOTICE, IN ORDER TO MAINTAIN YOUR POSITION. IF YOU DO NOT PROVIDE THE REQUIRED FUNDS
WITHIN THE PRESCRIBED TIME, YOUR POSITION MAY BE LIQUIDATED AT A LOSS, AND YOU WILL BE LIABLE FOR ANY RESULTING DEFICIT IN YOUR ACCOUNT.
UNDER CERTAIN MARKET CONDITIONS, YOU MAY FIND IT DIFFICULT OR IMPOSSIBLE TO LIQUIDATE A POSITION. THIS CAN OCCUR, FOR EXAMPLE, WHEN THE MARKET MAKES A “LIMIT
MOVE.” THE PLACEMENT OF CONTINGENT ORDERS BY YOU OR BY YOUR TRADING ADVISOR SUCH AS A “STOP-LOSS” OR “STOP-LIMIT” ORDER, WILL NOT NECESSARILY LIMIT YOUR
LOSSES TO THE INTENDED AMOUNTS, SINCE MARKET CONDITIONS MAY MAKE IT IMPOSSIBLE TO EXECUTE SUCH ORDERS.
A “SPREAD” POSITION MAY NOT BE LESS RISKY THAN A SIMPLE “LONG” OR “SHORT” POSITION.
THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE
LOSSES AS WELL AS GAINS.
IN SOME CASES, MANAGED COMMODITY ACCOUNTS ARE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT AND ADVISORY FEES. IT MAY BE NECESSARY FOR THOSE ACCOUNTS
THAT ARE SUBJECT TO THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS. THE RELEVANT OFFERING DOCUMENTS
CONTAIN A COMPLETE DESCRIPTION OF EACH FEE TO BE CHARGED TO YOUR ACCOUNT BY THE COMMODITY TRADING ADVISOR.
YOU SHOULD ALSO BE AWARE THAT THIS COMMODITY TRADING ADVISOR MAY ENGAGE IN TRADING FOREIGN FUTURES OR OPTIONS CONTRACTS. TRANSACTIONS ON MARKETS
LOCATED OUTSIDE THE UNITED STATES, INCLUDING MARKETS FORMALLY LINKED TO A UNITED STATES MARKET, MAY BE SUBJECT TO REGULATIONS WHICH OFFER DIFFERENT OR
DIMINISHED PROTECTION. FURTHER, UNITED STATES REGULATORY AUTHORITIES MAY BE UNABLE TO COMPEL THE ENFORCEMENT OF THE RULES OF REGULATORY AUTHORITIES OR
MARKETS IN NON-UNITED STATES JURISDICTIONS WHERE YOUR TRANSACTIONS MAY BE EFFECTED. BEFORE YOU TRADE YOU SHOULD INQUIRE ABOUT ANY RULES RELEVANT TO YOUR
PARTICULAR CONTEMPLATED TRANSACTIONS AND ASK THE FIRM WITH WHICH YOU INTEND TO TRADE FOR DETAILS ABOUT THE TYPES OF REDRESS AVAILABLE IN BOTH YOUR LOCAL
AND OTHER RELEVANT JURISDICTIONS. THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER SIGNIFICANT ASPECTS OF THE COMMODITY MARKETS. YOU SHOULD
THEREFORE CAREFULLY STUDY THIS DISCLOSURE DOCUMENT AND COMMODITY TRADING BEFORE YOU TRADE INCLUDING THE DESCRIPTION OF PRINCIPAL RISK FACTORS IN THE
RELEVANT OFFERING DOCUMENTS.
THIS COMMODITY TRADING ADVISOR IS PROHIBITED BY LAW FROM ACCEPTING FUNDS IN THE TRADING ADVISOR’S NAME FROM A CLIENT FOR TRADING COMMODITY INTERESTS. YOU
MUST PLACE ALL FUNDS FOR TRADING IN THIS TRADING PROGRAM DIRECTLY WITH A FUTURES COMMISSION MERCHANT.
Typhon’s Structure
Typhon is a multi-manager commodity trading advisor. Typhon provides institutional operations and
infrastructure for its emerging managers, allowing each Principal Trading Group to focus solely on trading and
research. Unlike a fund-of-funds, each of our trading groups is an internal division within Typhon, thus, these
services are provided without adding any additional fees.
Unified Operations and Risk
leeward
pointe
Natural
Gas
Strategy
proteus
Dynamic
Volatility
Program
plutus
Grain
Strategy
tauros
Livestock
Strategy
trevinci
Liquid Ag
Strategy
THIS MATERIAL IS CONFIDENTIAL AND IS PROVIDED SOLELY FOR PRESENTATION
PURPOSES. IT IS INTENDED FOR QUALIFIED ELIGIBLE PARTICIPANTS ONLY. PAST
PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RETURNS.
Typhon Capital Management
Talent Typhon is plugged-in to the universe of emerging traders, and identifies distinctive specialists
with definable edges.
Due Diligence Typhon has a rigorous due diligence process that it applies to emerging managers
before on-boarding.
Operational Support Typhon provides its managers with operational support (including legal,
compliance and administrative) and oversight; this tempers one of the largest risks with emerging
traders.
Risk Oversight Typhon provides risk management as well as defined risk limits for its managers. We
keep the roles separate and enforced.
Business Development Typhon’s business development team focuses on raising capital so our
managers can stay in the office focused on research and trading.
No Additional Fees Typhon’s business development team focuses on raising capital so our managers
stay focused on what they do best.
THIS MATERIAL IS CONFIDENTIAL AND IS PROVIDED SOLELY FOR PRESENTATION
PURPOSES. IT IS INTENDED FOR QUALIFIED ELIGIBLE PARTICIPANTS ONLY. PAST
PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RETURNS.
James L. Koutoulas, Esq.
Typhon’s CEO, James L. Koutoulas, Esq., founded Typhon 2008 in order to provide investors with the ability to access
emerging managers who are surrounded by institutional infrastructure. James has 18 years experience in accounting,
computer programming, operations and trading. He graduated the University of Florida with a B.S. in Finance as a National
Merit Scholar, and has a J.D. from the Northwestern University School of Law with a concentration in Securities Law.
James has become one of the futures industry’s leaders after co-founding the Commodity Customer Coalition and
recovering $6.7B for customers affected by the MF Global Bankruptcy. He now serves on both the Board of Directors and
Executive Committee of the National Futures Association.
Profiles
Business Insider- Meet James Koutoulas, The Man Who Never Wanted To Be A Lawyer But Now Fights For 8,000 MF Global Customers
Chicago Tribune- Hedge-fund Manager an Impassioned Advocate for Commodities Customers
Forbes- The Hero of MF Global’s High-Noon James Koutoulas Wins Big for Little Guys
Fortune- The Boy Wonder of the MF Global Nightmare
Motley Fool- You Want Real Change in the Financial Industry? I suggest you keep an eye on James Koutoulas
Thomson Reuters- Brash Commodities Trader Shakes up MF Global case
THIS MATERIAL IS CONFIDENTIAL AND IS PROVIDED SOLELY FOR PRESENTATION
PURPOSES. IT IS INTENDED FOR QUALIFIED ELIGIBLE PARTICIPANTS ONLY. PAST
PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RETURNS.
Due Diligence, Risk, and Operations Group
Typhon’s Due Diligence, Risk, and Operations Group has a wide breadth of experience across the commodities and
securities industries and supervises manager on-boarding, risk, and operations across all of Typhon’s trading groups.
Melvin Bacani
Satish S. Nandapurkar
Jacob Rossof, CFA®, FRM, PRM
Chief Risk Officer
Chief Operating Officer
Chief Information Officer
Founder and Principal
Silveus Financial
President and CEO
Chicago Climate Exchange (CCX)
Director and CEO
US Futures Exchange
Managing Directory of Products and Services
Chicago Mercantile Exchange
Earlier Career
Bank of America
Deutsche Morgan Grenfell
O’Connor & Associates/Swiss Bank Corp
BS Computer Science and Engineering, MIT
MA Economics, Boston University
Director of Risk Management and Finance
Silveus Financial
Vice President
Origami Capital Partners, LLC
Investment Manager
Glenwood Capital Markets, LLC
Founding Partner
Guidance Capital, LLC
Earlier Career
Morgan Stanley
Ennis, Knupp & Associates
The John Nuveen Company
BA / MA Economics, Boston University
MS Applied Mathematics, DePaul University
Chief Information Officer
Leeward Pointe Capital, LLC
Energy / IT Team Lead
Citadel
Business Intelligence / Technical Lead
Morgan Stanley
Technical Lead
Data Mining Systems / Deutsche Bank
Data Mining & Artificial Intelligence / Associate
Morgan Stanley
BS Pure Mathematics, University of Michigan
THIS MATERIAL IS CONFIDENTIAL AND IS PROVIDED SOLELY FOR PRESENTATION
PURPOSES. IT IS INTENDED FOR QUALIFIED ELIGIBLE PARTICIPANTS ONLY. PAST
PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RETURNS.
Operational Team
Typhon’s operational team has a wide breadth of experience across the commodities and securities industries.
Paul Moran
Managing Director
Senior Vice President
Bn2 Capital Holdings
Director of Managed Futures
PFG
FX Portfolio Manager
Proprietary Capital
Managing Director- FX
Rosenthal Collins Group
Chief Operating Officer
RCG/QFS- Taiwan
Senior Bank Official
Bank of Ireland
Clongowes Wood College
BSc Galway Mayo Institute of Technology
Diana Rydbeck
Managing Director
Compliance, Operations, and Investor Relations since 2009
Typhon
Operations Team
Commodity Customer Coalition
Anna Sergel
Director of Operations
Assistant Director of Investor Services,
Legal and Compliance Associate
AlphaMetrix
BA Smith College
MA Chicago School of Professional Psychology
BS University of Florida
THIS MATERIAL IS CONFIDENTIAL AND IS PROVIDED SOLELY FOR PRESENTATION
PURPOSES. IT IS INTENDED FOR QUALIFIED ELIGIBLE PARTICIPANTS ONLY. PAST
PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RETURNS.
leeward pointe Natural Gas Group
The Leeward Pointe Natural Gas Group have a combined 25+ years experience building proven core trading-desk
technology and successful data-focused businesses within the world of finance. Adam & Melvin first collaborated together
when they worked at Citadel’s Energy desk. They have been managing the Leeward Pointe Natural Gas Strategy since
November 2013.
Adam O’Shay Ph.D.
Melvin Bacani
Head, leeward
CIO,
pointe Natural Gas Group
Head of Quantitative Analysis
e360
Head of Fundamental Natural Gas Trading
Optiver US LLC
Senior Quantitative Research Meteorologist
Citadel
Senior Developer
Risk Management Solutions
BS Atmospheric Science, Cornell University
MS / PhD Atmospheric Numerical Modeling,
Florida State University
leeward pointe Natural Gas Group
Energy / IT Team Lead
Citadel
Business Intelligence / Technical Lead
Morgan Stanley
Technical Lead
Data Mining Systems / Deutsche Bank
Data Mining & Artificial Intelligence / Associate
Morgan Stanley
BS Pure Mathematics, University of Mathematics
THIS MATERIAL IS CONFIDENTIAL AND IS PROVIDED SOLELY FOR PRESENTATION
PURPOSES. IT IS INTENDED FOR QUALIFIED ELIGIBLE PARTICIPANTS ONLY. PAST
PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RETURNS.
Investment Overview
Fundamental
Modeling/Analysis
• Internal Supply/Demand
Modeling
Risk Management
• What-if scenario examination
•Proprietary strategies based on
Machine Learning technology
•Proprietary Stress Test
interface with Daily Stress Tests
of Portfolio
•Statistical data mining 3rd
party data/modeling
• Analysis/tracking Margin to
Equity
• Geopolitical research
• Historical price curve analysis
Trading Strategies
• Intra-day demand-profile based
• Structural S/D based
• Weekly Pipe Scrape / EIA
• Relative Value across the
futures curve
• Seasonal Spreads & StripSpreads
THIS MATERIAL IS CONFIDENTIAL AND IS PROVIDED SOLELY FOR PRESENTATION
PURPOSES. IT IS INTENDED FOR QUALIFIED ELIGIBLE PARTICIPANTS ONLY. PAST
PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RETURNS.
Edge
The firm’s edge is captured through uniquely proprietary quantitative models that analyze
the North American Natural Gas balance
Proprietary:
This edge is enhanced by leveraging proprietary strategies using the EarthRisk Technologies data suite, as a
means to calculate the risk of future temperature extremes and their effects on the energy markets.
Established business knowledge:
Adam O’Shay and Melvin Bacani have a combined 25+ years experience building proven core tradingdesk technology and successful data-focused businesses within the world of finance.
Risk Management:
The firm’s focus on innovative technology, efficient trading systems, and disciplined risk management allows
it to profit in a market that moves rapidly. These processes, core to the business, illuminate trade
opportunities that allow Leeward Pointe to achieve exceptional results.
THIS MATERIAL IS CONFIDENTIAL AND IS PROVIDED SOLELY FOR PRESENTATION
PURPOSES. IT IS INTENDED FOR QUALIFIED ELIGIBLE PARTICIPANTS ONLY. PAST
PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RETURNS.
Components of the Strategy
Utilize Futures and Options across the North American Natural Gas markets.
Trades are executed on futures exchanges due to the efficiency of credit and margin capital
management
Specific components of the strategies will focus on market dislocations
caused by supply demand imbalances, pipeline bottlenecks, pricing
inefficiencies and value dislocations.
In these trades, capital is deployed using a disciplined analytical evaluation of market fundamentals
and key technical attributes to implement relative value and directional positions
Outright positions are managed intra-day, balance of the month and out to
several years
THIS MATERIAL IS CONFIDENTIAL AND IS PROVIDED SOLELY FOR PRESENTATION
PURPOSES. IT IS INTENDED FOR QUALIFIED ELIGIBLE PARTICIPANTS ONLY. PAST
PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RETURNS.
Risk Overview
• leeward pointe trades the exchange cleared energy markets of North America
(CME/NYMEX & ICE)
• Guiding tenet: Effective and disciplined risk and operational management is essential to
generating superior performance, investor returns, and a sustainable business for years to
come
• Risk, Compliance, and Operational policies are essential to guide the firm’s operations and
sustainability
• Portfolio risk discussions are held daily, regarding portfolio composition, fundamental
drivers supporting positions and stop-loss parameters
THIS MATERIAL IS CONFIDENTIAL AND IS PROVIDED SOLELY FOR PRESENTATION
PURPOSES. IT IS INTENDED FOR QUALIFIED ELIGIBLE PARTICIPANTS ONLY. PAST
PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RETURNS.
Summary of Returns
Client Monthly Net Performance
May
Jun
Jul
Aug
Year
Jan
Feb
Mar
Apr
2014
2013
0.90%
0.33%
(0.05%)
(0.34%)
0.01%
Growth of $1,000
$1,200
11/13
5/14
2%
$1,100
$1,000
0%
$900
$800
Monthly Return
Leeward
Barclays CTA Index
-2%
S&P 500
Sep
Oct
Nov
Dec
Year
0.23%
0.10%
0.33%
0.33%
Leeward
0.99%
5.00%
(0.90%)
0.90%
(0.52%)
0.66
0.37
1.50%
CTA1
3.25%
S&P 5001
17.88%
(0.87%)
1.03%
(0.87%)
1.39
0.71
2.32%
-26.85%
(3.56%)
4.31%
(3.56%)
2.09
1.10
8.05%
-43.18%
(0.52%)
Selected Statistics
Annualized Return
Max Margin to Equity
Max Drawdown
Largest Gain
Largest Loss
Sharpe Ratio
Sortino Ratio
Volatility (σ)
Correlation (r)
THIS MATERIAL IS CONFIDENTIAL AND IS PROVIDED SOLELY FOR PRESENTATION
PURPOSES. IT IS INTENDED FOR QUALIFIED ELIGIBLE PARTICIPANTS ONLY. PAST
PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RETURNS.
leeward pointe Strategy Details
Strategy AUM
$1.5mm
Minimum Investment
US $250,000
Management Fee
2%
Incentive Allocation
20% Monthly
Max Leverage Available
5:1
Max Margin: Equity
10%
Lock-up / Liquidity
No Lock-up / Daily Liquidity
THIS MATERIAL IS CONFIDENTIAL AND IS PROVIDED SOLELY FOR PRESENTATION
PURPOSES. IT IS INTENDED FOR QUALIFIED ELIGIBLE PARTICIPANTS ONLY. PAST
PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RETURNS.
Contact Information
[email protected]
+1.312.836.1180
190 South LaSalle St., Suite 3000
Chicago, Illinois 60603
Typhon Capital Management, LLC is registered as a Commodity Trading Advisor and Commodity Pool Operator with the National Futures
Association, with a 4.7 exemption for serving Qualified Eligible Participants only. Typhon Global Fund Management, LLC provides services only to
non-US investors and tax exempt US institutional investors. Typhon Securities, LLC is currently exempt from registering with the Securities and
Exchange Commission.
THIS MATERIAL IS CONFIDENTIAL AND IS PROVIDED SOLELY FOR PRESENTATION
PURPOSES. IT IS INTENDED FOR QUALIFIED ELIGIBLE PARTICIPANTS ONLY. PAST
PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RETURNS.