Security In Uncertain Times www.CaneFunds.com Cane Capital - PowerPoint PPT Presentation

Security In Uncertain Times www.CaneFunds.com Cane Capital Management 8440 Jefgerson Hwy, Suite 402 | Baton Rouge, LA 70809 T: (225) 928-4200

TABLE OF CONTENTS Investment Objectives 1 History of Cane Capital 2 The Cane Advantage 3 Active Risk Budgeting 4 Strategy Summary 5 Rules-Based Investments 6 Portfolio Construction 7 Directional Futures 8 Relative Value 9 Arbitrage 10 Global Asset Allocation 11 Quantitative Value 12 Drawdown and Recovery 14 Institutional Support 15 About Cane Capital 17 Strategic Advisory Board 18 Disclosures 20 There is no guarantee any investment strategy will achieve its objectives, generate profjts or avoid losses. www.CaneFunds.com Cane Capital Management 8440 Jefgerson Hwy, Suite 402 | Baton Rouge, LA 70809 T: (225) 928-4200

INVESTMENT OBJECTIVES Security In Uncertain Times Cane Capital Management was founded in 2007 with two primary objectives: capital preservation and capital appreciation in both rising and falling markets. INVESTMENT STRATEGIES  economic analysis + quantitative market dynamics + implemented through directional macro exposures PROPRIETARY MODELS  in-depth quantitative research + rigorous ongoing testing + performance in multiple markets + adapt to both long and short opportunities This approach makes Cane Capital a leader in building investment strategies to increase potential return, protect investor capital, and minimize risk in volatile markets. 1

A HISTORY OF PERFORMANCE Cane Capital Management and Cane Global Master Fund Launched 2007 Equity Value Model, Momentum Model and FX Relative Value Bollinger Family Offjce Model Implemented Partners with CCM 2005 2015 Discretionary Fixed First Systematic Futures Long Term Futures FOMC Policy and Global CDMIX Developed Income Trader Model Implemented Model Implemented Allocation Models Added 2013 1999 2001 2003 2009 2000 2004 2010 2014 Discretionary Fixed Income Equity Factor RRM Partners with CCM Cane Global Master Fund and Currency Trader Modeling Developed Converted to a ’40 Act Mutual Fund, CDMIX 2002 2006 2008 2012 2016 Quantitative Trading Arbitrage Model Equity and Arbitrage ETF or Mutual Fund Additional Volatility Trading Models Developed Developed Models Enhanced Ofgering Explored Strategies Developed A 9 Year Track Record 2

THE CANE ADVANTAGE The Building Block of Wealth Preservation Our proprietary research helps drive the decisions you make. Competitive Opportunities • Long and short positions • Non-correlated strategies • Diversified across stocks, bonds, currencies and commodities • Seeks positive performance in market volatility • Objective to mitigate downside risk • Multiple alpha-generating models nucleus noun | nu · cle · us 1. The central and most important part, forming the basis for its activity and growth. 3

ACTIVE RISK BUDGETING Safeguard Your Future Strategies • Non-correlated, tactical strategies with • Each asset class analyzed for position and a fraction of the market volatility. sector concentration. › Futures monitored for risk at each level – portfolio, • Implemented across multiple, sector, individual. non-correlated asset classes. › Stop-losses engaged for each futures position. • Parameters built into each model during • Profit and volatility targets used daily in the R&D phase. futures book. • Managing losses and portfolio drawdown is • Position sizes reduced at various intervals of essential to compounding returns. volatility and profit. • Portfolio is systematically rebalanced. Because Risk Is Unexpected 4

STRATEGY SUMMARY Cane Seeks to Provide: LEFT TAIL RIGHT TAIL MEAN MEAN • Daily liquidity • 1940 Act regulation • 1099 tax reporting – + – + CANE ALTERNATIVE CANE ALTERNATIVE STRATEGIES FUND STRATEGIES FUND GLOBAL ASSET DIRECTIONAL QUANTITATIVE EQUITY FOMC POLICY FX CARRY ALLOCATION FUTURES VALUE VOLATILITY LEFT TAIL RISK STRATEGY VOLATILITY RISK BALANCE There is no guarantee the Fund will achieve its investment objective. 5

RULES-BASED INVESTMENTS Multiple Models | Independent Strategies Quantitative Value Directional Futures • Fundamental, factor-based models used • Rules-based techniques to identify to identify opportunities within individual opportunities in Commodities, Currencies, U.S equities. Equities, and Fixed Income. FX Relative Value Global Asset Allocation • Relative value between G-10 currencies. • Quantitative, statistical models identify long term opportunities within Commodities, Arbitrage Equities, Fixed Income, Real Estate, and Cash. • Arbitrage opportunities in volatility. FOMC Policy • Time and volatility premium on S&P 500 • Quantitative models attempt to identify Index puts and calls. periods of active FOMC Policy and invest in • Exploit ineffjciencies in the VIX index the short-term fixed income curve. futures curve. All strategies may not be engaged simultaneously. There is no guarantee any investment strategy will achieve its objectives, generate profjts or avoid losses. 6

PORTFOLIO CONSTRUCTION A Stabilized Portfolio Market Synergy Managing Risk FOREIGN EXCHANGE EQUITY EQUITIES VOLATILITY EQUITIES VOLATILITY FIXED INCOME CURRENCIES COMMODITIES FIXED INCOME COMMODITIES Preserving Your Wealth 7

DIRECTIONAL FUTURES Strategies Advantages • Short-Term | Momentum Driven • Investments are made both long and short to take advantage of directional moves within • Medium-Term | Trendfollowing – Price Driven commodities and financial futures. • Long-Term | Trendfollowing – Momentum Driven • Multiple models are traded across multiple time frames. Techniques • Long and short futures trades positions the • All models are applied symmetrically across all portfolio to capture fat tail events, which traded markets. typically have adverse efgects in the equity and • Positions sizes are based on volatility and fixed income markets. equalized across all markets. • Stop-Losses are put in place upon trade entry. • Market selection is driven by liquidity and THE MOST IMPORTANT COMPONENT diversification. we manage is underlying risk. We FOMC Policy constantly monitor total portfolio risk, • Quantitative models attempt to identify periods sector risk, and individual position risk, of active FOMC Policy and invest in the short- especially in leveraged positions like term treasury curve. futures contracts. • This model takes positions in the direction of FOMC policy or in the predicted direction of future policy moves. The use of Futures contracts involves risks difgerent from, or possibly greater than, the risks associated with investing 8 directly in securities and other traditional investments.

RELATIVE VALUE Advantages • G-10 currencies are held both long and short on a relative value, carry basis. • Interest rate risk is sometimes hedged by buying or selling fixed income futures in the U.S., Japan, and Europe in the directional futures book. • Technical overlay may at times neutralize exposure through the directional futures book. • Long term, there is a low correlation between the returns of employing these strategies and the returns gained from investing in more traditional asset classes, such as equities and bonds. G-10 Currencies • Australian Dollar • New Zealand Dollar • British Pound • Norwegian Krona • Canadian Dollar • Swedish Krona • Euro • Swiss Franc • Japanese Yen • U.S. Dollar Currency strategies may subject the Fund to currency trading risks that include market risk, credit risk and country risk. 9

ARBITRAGE Potential Advantages • Exploit ineffjciencies in equity index volatility (implied vs. realized), time, and volatility premium in put and call options, and VIX Index futures curve. • Structured through the use of options. • Options on volatility are used for protection against extreme market events. • Creates cashfmow and minimizes volatility of directional strategies. HISTORICALLY , directional strategies perform better in high volatility regimes. As volatility diminishes, volatility arbitrage increases in profitability, therefore ofgsetting many of the whipsaw losses in the directional strategies. 10

GLOBAL ASSET ALLOCATION Potential Advantages • Algorithms are used to identify which of the five major asset classes in which we invest. • The models are typically engaged in long term secular trends, while avoiding the prolonged downside of the asset classes. • Allocations change over time and market cycles. • The directional futures models typically participate in the shorter-term down trends in the above asset classes on an individual security level. Foreign investing involves risks not associated with U.S. investments, including adverse fmuctuations in foreign currency values, and adverse political, social and economic developments. The Fund may incur a loss as a result of a short position if the price of the short position instrument increases in value between the date of the short position sale and the date on which the Fund purchases an ofgsetting position. ■ Real Estate Asset Classes ■ Equities Equities Fixed Income Commodities ■ Commodities • U.S. • U.S. 5–7 Year Treasury • GSCI Commodity Index • • Foreign Developed U.S. 7–10 Year ■ Fixed Markets Treasury Income Real Estate • Emerging Markets • U.S. 10+ Year Treasury • Public REITS All asset classes may not be invested in simultaneously. Cash is used when not invested. Representative if model is fully engaged. 11 For illustration purposes only.