Capital Trading Group

CTA Profile - GrowthPoint Investments LLC
Program - GEMS Diversified
Principal(s): N. Lee Gantt
Trading Strategy: Vertical Credit Spreads

Trading Description:
The GEMS Diversified Program engages in the selling or “writing” of options on futures contracts in the energy, grain, precious metal, and soft commodity markets. This program employs a strategy known as a vertical credit spread to limit the maximum loss that could be sustained by the option seller. The program works by selling a far out of the money option contract and the simultaneous purchase of an even further out of the money option contract in the same expiration month to “cover” the short option, therefore limiting the maximum loss potential to the option writer. Use of this type of spread results in a net credit to the seller’s account. The goal of the program is to hold the option spread until expiration, at which time both options in the spread will expire worthless allowing the seller of the spread to retain the entire amount of the net premium collected minus commissions.

This program relies heavily on fundamental analysis of the underlying commodity markets. Fundamental analysis looks at the supply and demand factors that influence the long-term direction of a given commodity market. Ideally, the discretionary portion of the program involves determining where the market will not go over the next 90 to 120 days based on the fundamental characteristics of the market and then positioning accordingly. If a market is deemed to have bullish fundamentals, put option spreads will be sold. If the market fundamentals are bearish, call option spreads will be sold.

The program sells option spreads every month with an average of approximately ninety days left until expiration. Each month, the plan will risk an average of 6% of NAV ideally spread over at least three markets (a grain, an energy, a metal, and/or a soft commodity). Therefore, approximately 2% of NAV will be at risk per trade. Ideally, it will sell option spreads as far out of the money as possible while raising a premium of $350 to $600 per spread. The goal is to hold each option sold until near expiration and retain 80-100% of the net premium collected as the option price decays to zero. The trade will be exited should the option spread price triple from our initial entry price. The program strategy will seek to limit draw-downs to 18%-20% of NAV in a given month should all open trades be exited for a loss, not taking slippage and commissions into consideration.

Trading Approach

Systematic - 20.00%
Discretionary - 80.00%
Trading Methodology
Non Trend Following: Fundamental Option Writer Vertical Credit Spread
Markets Traded
Diversified Metals Energies Agricultures Softs
Sector
US Markets
Contracts Traded
Futures Options

Annual Performance Since 2003

2003	0.00%
2004	0.00%
2005	0.00%
2006	0.00%
2007	0.00%
2008	0.00%
2009	0.00%

Recent Performance

Currency Denomination - US Dollars

2010	Monthly Return	YTD Return	Assets Under Mgt
07/31/10	-5.12%	-3.62%	397,605
06/30/10	1.58%	1.58%	223,530

VAMI Chart (Based on a $1,000 Initial Value)

Monthly Percentage Returns Chart

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS

Investment Details

Disclosure Document Date	05/01/10
Starting Date of Program	06/01/10
Accepting New Money?	Yes
Average Annual Rate of Return	-21.73%
Peak to Valley Drawdown	-5.12 %
Average Margin as % of Equity	70.00%
Round Turns per Million	3,000
Minimum Sized Account	25,000
Currency Denomination	US Dollars
Management Fee	2.00%
Incentive Fee	20.00%
Notional Funding?	Yes
Member of NFA	Yes
Other Memberships	None

Statistical Definitions
(1) From January 1990 or Starting Date of Program - The Annual Average Rate of Return represents the compounded rate of return for each year or portion thereof presented. It is computed by applying successively respective monthly rate of return for each month beginning with the first month of that period. This includes all monthly data from the inception of the program or from January 1990, whichever is less.
(2) From January 1990 or Starting Date of Program - The Worst Peak-to-Valley Drawdown is defined as the greatest cumulative percentage decline in net asset value due to losses sustained by the trading program during any period in which the initial net asset value is not equaled or exceeded by a subsequent asset value. "Monthly" indicates that the Worst-Peak-to-Valley Drawdown" is based on monthly Data.

Fee Range: 0.5% - 2.0%

Risk Disclosure
THE RISK OF TRADING COMMODITY FUTURES, OPTIONS AND FOREIGN EXCHANGE ("FOREX") IS SUBSTANTIAL. THE HIGH DEGREE OF LEVERAGE ASSOCIATED WITH COMMODITY FUTURES, OPTIONS AND FOREX CAN WORK AGAINST YOU AS WELL AS FOR YOU. THIS HIGH DEGREE OF LEVERAGE CAN RESULT IN SUBSTANTIAL LOSSES, AS WELL AS GAINS. YOU SHOULD CAREFULLY CONSIDER WHETHER COMMODITY FUTURES, OPTIONS AND FOREX IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IF YOU ARE UNSURE YOU SHOULD SEEK PROFESSIONAL ADVICE. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE SUCCESS. IN SOME CASES MANAGED ACCOUNTS ARE CHARGED SUBSTANTIAL COMMISSIONS AND ADVISORY FEES. THOSE ACCOUNTS SUBJECT TO THESE CHARGES, MAY NEED TO MAKE SUBSTANTIAL TRADING PROFITS JUST TO AVOID DEPLETION OF THEIR ASSETS. EACH COMMODITY TRADING ADVISOR ("CTA") IS REQUIRED BY THE COMMODITY FUTURES TRADING COMMISSION ("CFTC") TO ISSUE TO PROSPECTIVE CLIENTS A RISK DISCLOSURE DOCUMENT OUTLINING THESE FEES, CONFLICTS OF INTEREST AND OTHER ASSOCIATED RISKS. A HARD COPY OF THESE RISK DISCLOSURE DOCUMENTS ARE READILY AVAILABLE BY CLICKING ON EACH CTA'S "REQUEST DISCLOSURE DOCUMENT" BUTTON. THE FULL RISK OF COMMODITY FUTURES, OPTIONS AND FOREX TRADING CAN NOT BE ADDRESSED IN THIS RISK DISCLOSURE STATEMENT. NO CONSIDERATION TO INVEST SHOULD BE MADE WITHOUT THOROUGHLY READING THE DISCLOSURE DOCUMENT OF EACH OF THE CTAS IN WHICH YOU MAY HAVE AN INTEREST. REQUESTING A DISCLOSURE DOCUMENT PLACES YOU UNDER NO OBLIGATION AND EACH DOCUMENT IS PROVIDED AT NO COST. THE CFTC HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN ANY OF THE FOLLOWING PROGRAMS NOR ON THE ADEQUACY OR ACCURACY OF THE DISCLOSURE DOCUMENTS. OTHER DISCLOSURE STATEMENTS ARE REQUIRED TO BE PROVIDED TO YOU BEFORE AN ACCOUNT MAY BE OPENED FOR YOU.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. PROSPECTIVE CLIENTS SHOULD NOT BASE THEIR DECISION ON INVESTING IN THIS TRADING PROGRAM SOLELY ON THE PAST PERFORMANCE PRESENTED. ADDITIONALLY, IN MAKING AN INVESTMENT DECISION, PROSPECTIVE CLIENTS MUST ALSO RELY ON THEIR OWN EXAMINATION OF THE PERSON OR ENTITY MAKING THE TRADING DECISIONS AND THE TERMS OF THE ADVISORY AGREEMENT INCLUDING THE MERITS AND RISKS INVOLVED.

THE ABOVE PERFORMANCE NUMBERS HAVE BEEN SUPPLIED BY THE CTAS. CAPTIAL TRADING GROUP LP NO WAY GUARANTEES THE ACCURACY OF THESE NUMBERS AND HAS SUPPLIED THEM TO YOU FOR INFORMATIONAL PURPOSES ONLY. THIS DOES NOT CONSTITUTE A SOLICITATION TO BUY OR AN OFFER TO SELL. NO INVESTMENT SHOULD BE MADE WITHOUT FULLY REVIEWING THE ASSOCIATED RISK FACTORS, FEES AND CONFLICTS OF INTEREST AS OUTLINED IN EACH CTA'S RISK DISCLOSURE DOCUMENT. THERE MAY BE CTAS WHO HAVE CHOSEN NOT TO PARTICIPATE THAT MAY HAVE BETTER OR WORSE PERFORMANCE THAN THOSE CTAS IN OUR DATABASE.

PLEASE NOTE THAT THERE IS AN INHERENT RISK OF LOSS ASSOCIATED WITH TRADING FUTURES AND OPTIONS CONTRACTS. PLEASE CAREFULLY CONSIDER YOUR FINANCIAL CONDITION BEFORE INVESTING IN FUTURES AND OPTIONS CONTRACTS. FUTURES TRADING IS NOT SUITABLE FOR ALL INVESTORS