Profile FTC Gideon I

Equity Strategy with Mix of Trend-Following Approach and Market Neutral Overlay

The FTC Gideon I invests in equity indices futures and individual equity funds. The investment universe consists of over 1000 registered equity funds. Two different trading systems, both trend-following innature are applied.

In February 2009 a market neutral overlay was added to the fund. The goal is to create additional Alpha, especially in bear markets where the exposure of the FTC Gideon I to individual equity funds can drop to 0 percent while the overlay strategy due to its long/short approach can take advantage of trading opportunities.

Over time the combination of trend-following and the systematic overlayis expected to produce return in both up and down markets, with anemphasis on capital preservation.

The current trend-following systems were developed in 2004 and comprise two different trading systems – bottom-up and top-down - with purely systematic selection criteria. The systems follow a strict set of rules defining maximum sector allocation, upper limits for individual investments in sub funds as well as market entries, exits and positionsizes.

Since February 2009 an uncorrelated, market neutral trading model for equity futures is applied. This system is purely based on statistical rules. Signal generators are a combination of mean reversion and momentum in relatively short time intervals (average trade length: 3 days). This strategy has been in use in FTC’s diversified futures funds since 2008.