Capital Trading Group

CTA Profile - Hanley Alternative Trade Group, LLC
Program - HGC Agricommodity Program
Principal(s): Mark Bradbuy, Mike Ortiz, Tom Burnham & George Hanley 4.7 Exempt - Qualified Eligible Clients Only
Trading Strategy: Agriculture / Grains / Tropicals

Investment Restrictions: 4.7 Exempt - Qualified Eligible Clients Only

Trading Description:
HGC Agricommodity Program is focused on producing risk managed returns in the soybean complex, grains and tropical commodities. Our concentrated portfolios allow us to judiciously manage risk and returns using an approach to portfolio construction that would be impractical in a broadly diversified offering. The Program is directed by an experienced team of portfolio managers with over 70 years of collective experience trading commodity derivatives. The returns are derived from three complimentary trading styles: hedged directional, relative value and volatility arbitrage, the goal of which is a return target of 12% – 15% and draw downs of 7%-10%.

Risk Strategy:
Portfolio construction is the foundation of the Program’s risk management discipline. Relatively low margin usage means the Program does not rely upon leverage to capture it’s returns. In addition, market views are expressed using a blend of exchange traded options and futures, the goal of which is to create asymmetric payoffs. Typical positions constrain the downside risk of the portfolio while maintaining exposure to outsized profits. Percent of NAV limits are monitored at three levels: portfolio, trading theme and individual commodity. The Program attempts to limit the loss on any single trade to no more than 2.0% of its NAV. Similarly, the managers attempt to limit the loss on any campaign to no more than 6.0%. Peak to trough draw-downs are expected to be less than 15%. To date these percent of NAV limits have never been reached. Non-parametric testing – the Program’s portfolio is subjected to daily scenario analysis and stress testing. This testing methodology establishes that NAV limits are adhered to and the Portfolio properly captures the manager’s market view. Value at Risk routines are run every day by the firm’s risk managers. The output is used as a first-order assessment of the Program’s capital exposures and market risk.

Premium Selling - Although the Program is not a naked seller of option premium, many trading strategies involve selling options to fund the directional leg of a trade or “campaign”. In general, however, the fund seeks to avoid trading strategies that expose it to unlimited losses in the event of extreme adverse moves in price or volatility. Liquidity Risk – HGC Agricommodity Program seeks to minimize liquidity risk by only trading exchange traded instruments in the form of managed accounts. The Program maintains nearly all of its positions in the most liquid contracts and options traded on the world’s largest exchanges. Risk Management Infrastructure - Hanley has built-out its risk management system through purchase from third party vendors and internal development. Middle office, back office, trade reconciliation, trade allocation and compliance are all handled in-house with Hanley’s and dedicated staff. Two risk management professionals One dedicated compliance officer Audit Committee.

Trading Approach

Systematic - 0.00%
Discretionary - 100.00%
Trading Methodology
Trend Following: Medium Term Fundamental Momentum Discretionary Arbitrage
Markets Traded
Non Diversified 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	1.83%

Recent Performance

Currency Denomination - US Dollars

2010	Monthly Return	YTD Return	Assets Under Mgt
07/31/10	-0.66%	-0.73%	26,000,000
06/30/10	0.14%	-0.07%	22,000,000
05/31/10	0.17%	-0.21%	22,000,000
04/30/10	-0.27%	-0.38%	22,000,000
03/31/10	-0.36%	-0.11%	16,000,000
02/28/10	-0.83%	0.25%	16,000,000
01/31/10	1.09%	1.09%	16,000,000
2009	Monthly Return	YTD Return	Assets Under Mgt
12/31/09	0.03%	1.83%	16,000,000
11/30/09	1.15%	1.80%	16,000,000
10/31/09	0.64%	0.64%	25,000,000

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	07/21/10
Starting Date of Program	09/01/09
Accepting New Money?	Yes
Average Annual Rate of Return	1.32%
Peak to Valley Drawdown	-1.80 %
Average Margin as % of Equity	5.00%
Round Turns per Million	2,000
Minimum Sized Account	250,000
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.

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