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Crescent Bay Capital

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Managed Futures

Crescent Bay Capital

 


Principal Trader: David T. Bedford

 

Background

From September 1998 to August 1999 he took graduate courses at Golden Gate University. During this time his course work focused on quantitative analysis, statistics, and information technology. This coursework combined with his interest in the markets launched the pursuit of researching profitable trading methods. Since, August 1999he has been an active market participant testing his methods and skills in the futures markets.

 

From January 2003 to Present, he has been President of Crescent Bay Capital Management, Inc. He established this firm to form a business entity for the sole purpose of trading and market research. The successful development of multiple trading systems led him to register Crescent Bay Capital Management, Inc.

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Trading Methodology

Crescent Bay Capital Management, Inc. is an alternative investment group, specializing in managed futures and more specifically in trading options on futures contracts. Our goal is to generate returns non-correlated to those of equity and fixed income investments. A volatile economic environment, which can cause stress to a typical stock and bond portfolio, is often the optimal setting for our program. The non-correlated behavior of our program can potentially lead to a smoother equity curve for the investor's overall portfolio.

 

Type of Trading

Our investment strategy is to sell "out-of-the-money" options on the Standard & Poor's 500 stock index futures contract and collect the premium. Trades are usually made 30 - 45 days from expiration. The idea is to hold the option until expiration. This maximizes the return on the option by retaining all the funds received in the account when the option was initially sold. The goal is to be profitable regardless of market direction.

 

Past performance is not indicative of future results. There is an unlimited risk of loss associated with an options writing program. An investor could potentially lose more than the initial investment. Investors must read the current disclosure document before they invest.

 

THE FOLLOWING STATEMENT MUST BE READ AND AGREED UPON BEFORE ENTERING THE CTA SITE

CFTC RISK DISCLOSURE STATEMENT

I HAVE READ AND UNDERSTOOD THE STATEMENT ABOVE AND WISH TO PROCEED

THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.

THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS.

IN SOME CASES, MANAGED COMMODITY ACCOUNTS ARE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT AND ADVISORY FEES. IT MAY BE NECESSARY FOR THOSE ACCOUNTS THAT ARE SUBJECT TO THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS. THE DISCLOSURE DOCUMENT CONTAINS A COMPLETE DESCRIPTION OF THE PRINCIPAL RISK FACTORS AND EACH FEE TO BE CHARGED TO YOUR ACCOUNT BY THE COMMODITY TRADING ADVISOR ("CTA").

THE REGULATIONS OF THE COMMODITY FUTURES TRADING COMMISSION ("CFTC") REQUIRE THAT PROSPECTIVE CUSTOMERS OF A CTA RECEIVE A DISCLOSURE DOCUMENT WHEN THEY ARE SOLICITED TO ENTER INTO AN AGREEMENT WHEREBY THE CTA WILL DIRECT OR GUIDE THE CLIENT'S COMMODITY INTEREST TRADING AND THAT CERTAIN RISK FACTORS BE HIGHLIGHTED. THIS DOCUMENT IS READILY ACCESSIBLE AT THIS SITE. THIS BRIEF STATEMENT CANNOT DISCLOSE ALL OF THE RISKS AND OTHER SIGNIFICANT ASPECTS OF THE COMMODITY MARKETS. THEREFORE, YOU SHOULD PROCEED DIRECTLY TO THE DISCLOSURE DOCUMENT AND STUDY IT CAREFULLY TO DETERMINE WHETHER SUCH TRADING IS APPROPRIATE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. YOU ARE ENCOURAGED TO ACCESS THE DISCLOSURE DOCUMENT BY CLICKING THE LINKS PROVIDED UNDER EACH OF THE RESPECTIVE CTAS. YOU WILL NOT INCUR ANY ADDITIONAL CHARGES BY ACCESSING THE DISCLOSURE DOCUMENT. YOU MAY ALSO REQUEST DELIVERY OF A HARD COPY OF THE DISCLOSURE DOCUMENT, WHICH WILL ALSO BE PROVIDED TO YOU AT NO ADDITIONAL COST. THE CFTC HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN ANY OF THESE TRADING PROGRAMS NOR ON THE ADEQUACY OR ACCURACY OF ANY OF THESE DISCLOSURE DOCUMENTS.

OTHER DISCLOSURE STATEMENTS ARE REQUIRED TO BE PROVIDED YOU BEFORE A COMMODITY ACCOUNT MAY BE OPENED FOR YOU.


ADDITIONAL DISCLOSURE REQUIRED FOR ADMINISTRATIVE FEES:

A COMPLETE DISCUSSION OF FEES AND CHARGES ARE REPORTED IN THE CTA's DISCLOSURE DOCUMENT. SPECIFICALLY, ONE SHOULD RECOGNIZE THAT AN INTRODUCING BROKER MAY CHARGE A FRONT-END START UP FEE OF UP TO 6% OF THE INITIAL CONTRIBUTION.  PLEASE NOTE THAT THIS CHARGE IS NOT REFLECTED IN THE PERFORMANCE OF THE COMMODITY TRADING ADVISOR AND COULD HAVE A SIGNIFICANT IMPACT ON THE CUSTOMERS ABILITY TO ACHIEVE SIMILAR RETURNS.


I HAVE READ AND UNDERSTOOD THE STATEMENT ABOVE AND WISH TO PROCEED

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THERE IS RISK OF LOSS IN FUTURES, FOREX, AND OPTIONS TRADING AND PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING FUTURES AND OPTIONS CAN BE SUBSTANTIAL, THEREFORE ONLY GENUINE "RISK" FUNDS SHOULD BE USED IN SUCH TRADING. FUTURES AND OPTIONS MAY NOT BE A SUITABLE INVESTMENT FOR ALL INDIVIDUALS AND INDIVIDUALS SHOULD CAREFULLY CONSIDER THEIR FINANCIAL CONDITION IN DECIDING WHETHER TO TRADE. OPTION TRADERS SHOULD BE AWARE THAT THE EXERCISE OF A LONG OPTION WILL RESULT IN A FUTURES POSITION.