Cayler Capital LLC - Systematic Energy Diversified

4.7 Exempt - For Qualified Eligible Persons Only*

Overview

Strategy: 50% Spread Trading : 5% Option Trading : 45% Quantitative

Sectors: Energies

Minimum Investment: $250,000

Trading Description: The Systematic Energy Diversified Program comprises of 5 algorithms derived from the advisor's 10 years spent working at JP Morgan. The 5 algorithms focus on the movement of oil products around the world and forecasting future supply and demand. The program will trade futures and options on WTI, BRENT, Heating oil, and Gasoline. The algorithms look at the underlying fundamental data of each respective product and will identify trades within each product. The algorithms look at fundamental data in the energy markets. We are a very unique systematic strategy in that we don't use any technical analysis or standard price based indicators to identify opportunities.

Cayler Capital runs a complex VaR model to size the portfolio to target 15% annualized volatility. We look at historic 200d oil moves along with outlier moves over the last 10 years to evaluate risk. All trades are entered and exited on the close, so there is no intraday movement or change in the portfolio. 75% of VaR is dervied from relative value trades while only 25% is contributed from directional moves in the energy space.

Brent Belote is the founder, Chief Investment Officer and Trading Principal of Cayler. He is responsible for overall management, trading, marketing, and investor relations. He became a registered associated person and a listed principal of Cayler, and an associate member of NFA in such capacities on August 3, 2016. Mr. Belote has more than 10 years of experience in the commodities industry, specializing in energy products such as crude oil, heating oil, and gasoline.

From 2012 to 2016, Mr. Belote was in charge of JP Morgan's oil product derivative book for North America, where he managed a complex risk portfolio of oil derivatives in the heating oil, gasoline, WTI and Brent markets. He also worked with airlines to create jet fuel hedging strategies to effectively manage exposure and directed implementation of volumetric production payment offerings to mitigate hurricane risk.

Earlier at JP Morgan, from 2008 to 2012, he ran the WTI and Brent flow trading book for North America, where he traded volatility and flat price across the WTI, Brent and dated Brent curves. He also traded a macro proprietary portfolio comprised of currencies, metals, grains and energy futures and options.

Mr. Belote received his Bachelor of Science degree in Accounting from the University of California in Los Angeles in 2005, and his Master of Business Administration degree from the Leonard N. Stern School of Business at New York University in New York in 2009.

Statistical Report

For more information including commissions respective to each program, please e-mail ManagedFutures@ParkAvenueAssetMgt.com