TIME FOR YEAR END PORTFOLIO REVIEW, NEW YEAR INVESTMENT

PLANNING
December 20, 2010

As we enter the final weeks of trading in 2010, it is always worthwhile to put your portfolio in front of the mirror, so to speak - to review the good and bad decisions
and investments of the year gone by, and start planning ahead for decisions and investments to be made in 2011.

In general, an investor should ask the following questions:

1. What did I do right last year?

2. What did I do wrong last year?

3. What am I going to do to improve next year?

We asked the team at Attain to recount some of the conversations they have had over the past year in answer to the above questions, and have created a listing of
common themes (good and bad) from those conversations below.

What did I do right last year:

Investing into systematic, trend following program(Clarke Worldwide) very near its low point for the past two years

Locking in option selling gains in FCI halfway through the year

Taking profits on Clarke Worldwide when returns for the year were double his average

Stuck with Rosetta Capital through two sideways years, paying off in Oct

Stuck it out / added to underperforming programs like Clarke, Robison-Langley, etc. that had a tough year in 2009.

I waited for 2010 drawdowns to invest in programs that did well in 2009 (FCI, EVE) before adding them to my portfolio.

Used profits from one strategy type to diversify into another strategy type

What did I do wrong last year:

Stopped my multi-market programs (APA, Clarke, Robinson Langley, Hoffman) in the first half of the year, right before they came back in the 3rd quarter.

Invested in the Strategic trading system at equity highs

Had too much capital allocated to Strategic (I was overbalanced based on hypo track record)

Doubled my investment in a program in DD, then exited the whole investment when the DD continued, didn’t give new investment enough time .

Should have booked profits on personal positions in Gold or added a hedge

Should have waited to start new programs in my portfolio (EVE, FCI) until they entered DD

Missed out on the strong trends in metals for fear of investing in a newer program focusing on these markets

Should have booked option selling gains at a regular interval

What am I looking to improve next year:

Much better patience in starting new programs

Avoid wasting money on unproven recommendation services, trading schools, forex scams, and trading system purchases

Formalize my intentions for time frame and amount willing to lose for each program in my portfolio. Formalize what level of DD willing to see when getting
into new program

Book any option selling gains quarterly by resetting the account to the initial investment level

Avoid investing in CTAs with small amounts of money under management and short track records

My knowledge about each of the managers in my portfolio and what conditions they should do well in
 No more trading in my own account – am leaving it to the professionals

Not abandoning stocks 100% in lieu of managed futures, there is value in exposure to the potential profits of US companies (and the dividends)

Reviewing your Portfolio & Looking Ahead:

You can see that one man’s trash (what I did wrong) such as getting out of systematic multi-market programs early in the year before their strong 3rd quarter, was
another’s treasure (what I did right) where they bought into the very drawdown which scared out others.

Let us know what you did right and wrong in 2010, and what you are looking to change in 2011. The following list of things we believe should be considered at this
time of year can help you get started.

1. What is my Investment Window? How much time have I given a certain program - how much more time am I willing to give it? Too often investors jump on a
hot program, and then jump off of it at the first sign of trouble. This is a sure fire way to accumulate losses instead of gains, as you are continuously getting in at the
top and out at the bottom. One way to combat that urge to get in/get out quickly is to set an investment window for each program you invest in. We recommend you
give any program at least two years to show you what it can do. And you should really push that out to as long as three years, as touched on in our newsletter
analyzing drawdown cycles in managed futures (view it here). We agree that managed futures programs should perform regardless of the environment over the lon
term, but even the best can suffer over the short term due to a poor trading environment for their type of strategy.

2. What Strategy Types am I exposed to? Is my portfolio filled with all option sellers? All day trading system? All trend followers? It's important to assign a
strategy type to each program in your portfolio to insure you do not have more exposure than you bargained for in any one area. Many investors had way too much
trend following exposure back in 2004/2005 - and then ditched it all and loaded up into option selling programs in 2006/2007 just as volatility spiked in 2008, then
flopped back into trend followers in 2009 just as they struggled and option sellers shined. These investors would have been better served to have had equal
exposure between the two strategy types the whole time.

3. What Markets am I exposed to? Which do I want to be exposed to? Do I have exposure to Crude Oil, Wheat, etc.? Do I want exposure to those markets?
What markets is my exposure in? Am I overexposed in any one sector? These are all great questions to ask of yourself, and the answers very well may surprise yo
as investors are usually much more exposed to stock indices than they think.

4. What are my Stop Trade Levels? Drawdowns can and will happen in the future. Do you have a plan, written down, on what you will do when the drawdown hit
for one the components in your portfolio? It is important to set a stop trade level for each of the programs in your portfolio, so you don't make emotional based
decisions during a stressful drawdown. It is much better to make the decisions right now, with a clear head, on what you will do when a certain program gets to a
certain level.

5. What does my overall portfolio look like? Your managed futures portfolio likely doesn’t exist in a vacuum, and it pays to make sure it can play well with others
in your portfolio. For the grand majority of people, that means the managed futures portion of your overall portfolio should not be adding to the stock exposure you
already have; which means avoiding option selling programs which will struggle when stocks sell off and volatility spikes. For others who may be invested in long
only commodities (i.e. GLD), you may want to avoid programs which would increase exposure to your long bets on commodities.

Conclusion:

It appears to us that the main themes separating ‘did well’ and ‘did poorly’ above surround diversification and timing. But this isn’t the diversification we usually talk
about, as it has more to do with maintaining diversification rather than obtaining diversification.

Diversification is an easy concept to understand when setting up a portfolio (obtaining), but becomes much harder to stick by when one of the components of a
portfolio is struggling (maintaining). It isn’t clear when in the moment why you should keep a program in a portfolio when it is the worst performer and dragging dow
the whole portfolio, but the answer is diversification. It is there for a rainy day, in a way; and we see that in the ‘things I did well’ themes, with comments about the
rewards people saw for ‘sticking it out’.

As for timing – that is a much harder issue to grasp for most people, as its core principle is investing into programs which are currently unattractive and avoiding
those which are very attractive. We are set up as humans to do the exact opposite, going after that which makes us feel good and avoiding that which doesn’t look
safe. But we can hear how mistakes were made in getting in at equity highs, and that some people’s best moves were getting in at drawdown levels.

In the end, it is important to remember that the best performing portfolio over the past 3,5, 10 years or whatever time frame you are looking at is likely not going to
be the best performing one over the next 3 years. No one wanted to include long volatility programs such as trend followers in 05, and 06 - but those programs did
great job absorbing the sting of some short option programs in 07 and 08. Likewise, you couldn’t find one person in a thousand to invest in short volatility programs
after the crisis in 08, when they went on to be the best performers in 09.

The markets are ever changing, and no one knows what 2011 will bring. But we should expect the unexpected, not fear it, and make sure we are both diversified
and prepared to make decisions based off timing. So make sure to review what has happened this year (the good, the bad, and the ugly), and where you can go
from here. A little bit of planning now could pay dividends in the future.

- Walter Gallwas

IMPORTANT RISK DISCLOSURE

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Feature | Week in Review |

Week in Review : Very quiet week ahead of holidays

Most sectors of commodity and index futures were fairly subdued during the last week as mixed headlines and the upcoming holidays kept investors on the tight
rein. Domestically economic data maintained signs the U.S. recovery is taking greater hold with further evidence higher consumer confidence along with better
guidance from the tech sector. Euro zone worries regarding sovereign debt continued with Irish debt being downgraded by ratings services after they reached a de
with the EU and rumors of other union members possibly having problems as well. In Asia the marketplace continued to try and read the Chinese government
regarding possible steps of putting the brakes on strong economic growth, although rumors of a possible rate hike did not con to fruition. The week also saw
President Obama sign into law the extension of previous tax cuts and jobless benefits that were about to expire boosting growth ideas and prices in some sectors.
The best performing sector for the week was the food arena which was led by Sugar +11.57%, Cotton +9.60% and Coffee +7.49% as worries of a tight
supply/demand balance sheets created an uneasiness that shortages might ensue if weather conditions around the globe do not improve in the near future. The
balance of the complex saw Corn finish +3.87% followed by Cocoa +2.22%, Soybeans +2.18%, Lean Hogs +1.06% and Live Cattle +0.53%. Wheat -2.42% and OJ
-2.11% were the laggards.

The scenario in Metals were mostly higher as they partially regained some flight to safety buying due to worries in Europe and growth investing on signs of stable
economic growth in the U.S. Silver +1.82% led the rally followed by Platinum +1.38%, Copper +1.14% and Palladium +0.81%. Gold -0.41%was under slight
pressure from asset reallocation carried over from the week prior.

Energy futures maintained a firm undertone from the recent consumer confidence uptick along with a favorable weekly stocks report. For the week Heating Oil
added +0.54% followed by RBOB Gasoline +0.44% and Crude Oil +0.33%. Natural Gas -7.34% was pressured by heavier production and supplies.

Signs of better economic growth in the U.S. and strong quarterly results from a few larger tech companies led to a mostly higher trade in the stock index sector last
week with the S&P 500 futures +0.20% ending just off of a fresh two year high. The balance of the sector saw Dow futures add +0.76%, Russell 2000 futures
+0.34% and Mid-Cap 400 futures +0.21%. NASDAQ futures-0.08% ended just below unchanged on profit taking in some of the larger issues in the index.

Currency futures rebalancing continued as risk tolerance for the British Pound -1.27%, Euro -0.29% and Japanese Yen -0.08% remained under scrutiny. Swiss
Franc +1.26% and the U.S. Dollar index +0.37% benefitted from the uncertain debt situation in Europe and stagnant Japanese economy.

The Rate complex was fairly quiet after the previous week’s heavy down turn as market participants took a wait and see approach on the U.S. economic situation
heading into the holiday. 30-Year Bond futures fell a tepid -0.06% and 10-Year Note futures ended +0.01%.

Managed Futures

Managed futures returns remain positive across most strategy types in December. Medium to Long Term multi-market programs are leading the way with Hoffman
Asset Management claiming the top spot at +7.40% for the month. Hoffman has seen gains from long commodity & stock index trades, as well as short interest
rate positions.

Other top performing multi-market programs include Accela Capital Management Global Diversified +3.60%, APA Modified +3.46%, Covenant Capital Aggressive
+3.26%, APA Strategic Diversification +2.40%, and Robinson Langley +1.80%. Rounding out the multi-market results are Integrated Managed Futures Global
Concentrated +0.40%, Auctos Capital Global Diversified +0.20%, Clarke Capital Worldwide +0.10%, Clarke Capital Magnum -0.05%, and Clark Capital Global Bas
-0.21%,

Short-term multi-market programs have also done well this month. Quantum Leap Capital is the top performer in this sector at +3.60% this month. Other short term
traders in the black include Futures Truth MS4 +0.80%, GT Capital +0.60%, Dominion Capital Sapphire +0.60%, Applied Capital Systems +0.50%, Mesirow
Financial Commodities Absolute Return +0.37%, and Mesirow Financial Commodities Low Volatility +0.02%. Short-term traders in the red include Sequential
Capital Management -0.38%, DMH -0.70%, and Futures Truth SAM 101 -4.07%.

Stock index traders have not enjoyed the drastic decline in stock market volatility. Typically systems perform better when volatility is rising and not the other way
around, which we are seeing now. This month Roe Capital Jefferson is down -0.60%, Roe Capital Monticello -0.80%, and Paskewitz Asset Management Contraria
3X Stock Index -3.60%.

On the heels of an abrupt halt in volatility, many option trading managers are happily reporting an uptick in performance thus far in December. The top performer
has been ACE SIPC +3.27%, followed closely by diversified manager White River +3.15%. Others posting positive estimates for the month include: HB Capital
+1.7%, Cervino Diversified 2x +1.25%, Liberty Funds Group +1.02%, ACE DCP +0.78%, Crescent Bay PSI +0.77%, Cervino Diversified Options +0.53%, and
Clarity Capital +0.12%.

The following option managers are currently down for the month but have also recovered approximately ½ of their earlier monthly drawdown (we’ll see how the
second half of the month goes): FCI CPP -1.42%, FCI OSS -1.55%, and Crescent Bay BVP -4.82%.
Specialty market managers have been led by the agriculture managers for most of 2010 and the final month of the year appears to be lining up for more of the
same. Currently Global AG holds the top spot for December with an estimated gain of +14.71%, followed by Oak Investment Group + 8.10%, Rosetta +0.75%, ND
Shadrach + 0.26%, and NDX Abednego +0.09%.

Elsewhere, Gold managers are mixed with Cervino Gold + 0.18% and AFB Forty Eighter -1.35%, while fixed income specialist 2100 Xenon gave back some open
trade profits last Friday yet remains ahead +0.20% for the month. Spread trading specialist Emil Van Essen has recovered slightly from their earlier max intramonth
drawdown yet remains down approximately -2.65% for the month, and finally, F/X Trader P/E Investments has bounced back from a tough November and is up
+1.01% this month.

Trading Systems

Last week was a fairly quiet week with a lot of systems trading only once during the week, and it was nice to see day trading systems turn things around with the
majority of day trading systems finishing in the green. Swing systems didn’t join in on the success with many unable to recover from losses sustained earlier on in
the week.

Leading the way on the day trading side was Clipper ERL. Unlike most of the other day trading systems, Clipper was quite active during the week and made its bes
trade on Friday. Clipper got long around 11 am on Friday and was part of the big 4 point jump in the mini Russell 2000 market that took place right after noon. It he
the trade throughout the day and finally took a profit of $270.00 near the close. For the week Clipper ERL made $450.00. Other positive results were Compass SP
at $75.00 and Waugh ERL at $110.00. On the downside was Compass ES. However it was a small loss, for the week Compass ES finished at -$5.00.

Bam 90 Single Contract led the way on the swing side of things. It entered the week long from 12/9, where it had gotten long around 1217. From there it rode the 2
point rally to the high and took profit and reversed short at 1240.5 on Monday. Bam 90 Single Contract stayed short till Thursday where it once again took profit and
reversed long. On Friday, Bam 90 Single Contract stayed put and finished the week long. For the week Bam 90 Single Contract was up $814.25. The other positive
result for the week was Waugh CTO ERL at $140.00.

Unfortunately, there were more swing systems that finished in the red last week. Most of the systems that finished in the red last week, suffered some big losses
when they exited positions that were initiated two weeks ago. Systems like MoneyMaker and AG Mechwarrior had breakeven weeks if we just count the trades that
took place last week, but they took some big losses from short trades that were initiated two weeks ago and exited on Monday morning. Systems in the red include
Polaris ES at -$67.50, Bam 90 ES at -$160.00, MoneyMaker ES at -$697.50, AG Mechwarrior ES at -$777.50, Strategic ES at -$860.00, and Strategic v2 SP at -
$4,016.08.

IMPORTANT RISK DISCLOSURE

Futures based investments are often complex and can carry the risk of substantial losses. They are intended for sophisticated investors and are not suitable for
everyone. The ability to withstand losses and to adhere to a particular trading program in spite of trading losses are material points which can adversely affect
investor returns.

Past performance is not necessarily indicative of future results. The performance data for the various Commodity Trading Advisor ("CTA") and Managed Forex
programs listed above are compiled from various sources, including Barclay Hedge, Attain Capital Management, LLC's ("Attain") own estimates of performance
based on account managed by advisors on its books, and reports directly from the advisors. These performance figures should not be relied on independent of the
individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes
proprietary results, and other important footnotes on the advisor's track record.

The dollar based performance data for the various trading systems listed above represent the actual profits and losses achieved on a single contract basis in client
accounts, and are inclusive of a $50 per round turn commission ($30 per e-mini contracts). Except where noted, the gains/losses are for closed out trades. The
actual percentage gains/losses experienced by investors will vary depending on many factors, including, but not limited to: starting account balances, market
behavior, the duration and extent of investor's participation (whether or not all signals are taken) in the specified system and money management techniques.
Because of this, actual percentage gains/losses experienced by investors may be materially different than the percentage gains/losses as presented on this
website.

Please read carefully the CFTC required disclaimer regarding hypothetical results below.

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION
IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE
FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED
BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY
PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO
HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE
ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS
WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN
GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION
OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.

Feature | Week in Review |

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