presentation global edge capital management

February 2011

There can be no assurance that the investment objective of a managed futures account will be achieved.

Most managed futures accounts are highly leveraged, which may potentially provide higher return, but also increases the overall risk and volatility of the investment.

Managed futures accounts are less liquid than stocks and bonds.

Costs and expenses of managed futures accounts are significantly higher than mutual funds and other investment vehicles.

Investors in managed futures accounts realize taxable gains and losses in the year in which they occur and proper consideration should be given to the tax implications of an investment.

Futures and forward contracts have a high degree of price variability and are subject to occasional rapid and substantial changes. Investing in managed futures is speculative and investors must be prepared to lose all or a substantial amount of their investment.

Although offering potential benefits, an investment in an managed futures account managed by Global Edge Capital Management, involves substantial risk and is only suitable if you have the adequate means to provide for your current needs and personal contingencies, you can bear the economic risk of losing your entire investment and possess an appropriate level of financial sophistication and experience.

You should carefully consider whether your financial condition permits you to open a managed futures account.

This presentation does not constitute an offer or solicitation of securities to anyone in any jurisdiction and is being provided for informational purposes only.

For more information interested parties should read and understand out latest Disclosure Document.

Disclaimer

Managed Futures

Global Edge Capital Management

Contents

Managed Futures

Advantages

Reduce Portfolio Volatility Risk

Potential to Profit in Any Economic Environment

Increase Portfolio Diversification

Protect Against Inflation and Possibly Deflation

Managed Futures

Reduce Portfolio Volatility Risk

One of the key views of Modern Portfolio Theory, as developed by the Nobel Prize economist Dr. Harry M. Markowitz, is that more efficient investment portfolios can be created by diversifying among asset classes with low to negative correlations.

The primary benefit of adding managed futures to a diversified investment portfolio is that it may decrease portfolio volatility risk. This risk-reduction contribution to the portfolio is possible because of the low to slightly negative correlation of managed futures with equities and bonds.

Managed Futures

Correlation of Managed Futures with Others Investments

Managed Futures

Source : Altegris , 1989 - 2008

ManagedFutures

ConvertibleArb.

EmergingMarkets

EventDriven

Fundof Funds

GlobalMacro

Long/Short MarketNeutral

HedgeFunds

US Stocks US Bonds

Managed Futures 1

Convertible Arb. 0 1

Emerging Markets -0.05 0.4 1

Event Driven -0.1 0.53 0.69 1

Fund of Funds 0.24 0.51 0.75 0.68 1

Global Macro 0.38 0.39 0.6 0.55 0.71 1

Long/Short -0.01 0.48 0.66 0.78 0.78 0.6 1

Market Neutral 0.18 0.3 0.13 0.53 0.39 0.29 0.4 1

Hedge Funds -0.03 0.55 0.83 0.88 0.83 0.68 0.93 0.35 1

US Stocks -0.13 0.32 0.57 0.63 0.45 0.37 0.66 0.39 0.7 1

US Bonds 0.24 0.01 0.01 -0.09 0.06 0.32 0.05 0.1 0.06 0.24 1

Managed Futures

1) Managed futures : CASAM CISM CTA Equal Weighted2) Stocks: MSCI World3) Bonds JP Morgan Government Bond Global;Source: CME Group/Bloomberg

Volatitily

Ret

urn

Optimum Portfolio Mix (01/1987 – 02/2008)

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS

Potential to Profit in Any Economic Environment

Because of the diverse investment vehicles managed futures trading advisors participate in, some the advisors have the ability to profit in various economic conditions.

Managed Futures

Managed Futures

Casam CTA Index X S&P 500 (01/80 to 05/10)

Source: CME Group/Bloomberg

0%

1000%

2000%

3000%

4000%

5000%

6000%

7000%

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

Casam CTA Index S&P 500


Managed Futures

Source: CME Group/Bloomberg.From 1989 to 2010

-15.40%

23.97% 23.97%

-75.00%

31.60%

-55.37%-52.00%

-100

-80

-60

-40

-20

0

20

40

Worst Case Stock Markets Declines and How Managed Futures Performed Over the Same Period

Casam CTA Index S&P 500 NASDAQ MSCI International Stocks

Casam CTA IndexCasam CTA Index

Casam CTA Index

(Aug.89 to Oct.89) (Nov.07 to Feb. 09) (Mar.00 to Sep. 02) (Nov.07 to Feb.09)


Managed Futures

Source: CME Group/BloombergFrom 01/1980 to 09/2010

Worst Months for S&P 500 and How Casam CTA Index Performed Over the Same Period

-6.8%-8.0%

1.7%

-6.8%-8.0-%

1.7%

-6.42%

Best Months for S&P 500 and How Casam CTA Index Performed Over the Same Period


Increase Portfolio Diversification

Managed Futures trading advisors participate in a wide variety of commodity products and markets not available in traditional investment products. Global Edge Diversified program trades more than 100 different futures contracts diversified across 9 low correlated market sectors in various exchanges around the globe.

Managed Futures

Protect Against Inflation and Possibly Deflation

Managed Futures could also offer protection in an inflationary or possible deflation environment because commodity prices tend to shift up under this economic situation giving opportunities to a Managed Futures fund to profit from these price movements.

Managed Futures

Global Edge Capital Management, LLC

Disadvantages

Higher Volatility than Other Hedge Funds Strategies

Higher Drawdown than Other Hedge Funds Strategies

We recommend not more than 10% of a client’s overall investment portfolio be exposed to Managed Futures

Global Edge Capital Management

Global Edge Capital Management, LLC is an alternative investmentmanager that utilizes 100% systematic strategies, with long or short positions, through global futures contracts.

The trading system employed is based upon mathematical algorithms derived from statistically based research into historical price movements.

Our strategies analyze price, volume, and open interest as the primary sources of data for input to arrive at trading decisions. We do not incorporate fundamentals. In addition, we use several mechanical models to try to control exposure, drawdown and risk. While suchmodels help reduce risk, they cannot eliminate risk.

Global Edge Capital Management, LLC is constantly focused on thedevelopment of new strategies.


Strategies and Weightings


Medium Term Strategy 14%

Short TermStrategy

47%

Long TermStrategy

39%


• Long Term Strategy:• Trades from long term trends• Average Holding Period: 45 days

• Medium Term Strategy:• Trades from intermediate term trends• Average Holding Period: 20 days

• Short Term Strategy:• Trades from short term movements in overbought and oversoldmarkets• Average Holding Period: 7 days


Long Term System in a Favorable Market – Crude Oil Long Position

Trailing Stop

Trade EntryTrade Exit



Long Term System in an Adverse Market – Rubber TokyoLong Position

Short Position

Trade Entry – Short Position

Short Position ExitAnd

Long Position Entry

Trade Exit

Trade Entry



Short Term System in a Favorable Market – Lumber CME Short Position

Trade Entry

Trade ExitTrade Exit



Short Term System in an Adverse Market – Australian Dollar Long Position

Trade Entry

Trade Exit

Trade Entry

Trade Exit

Trade Entry

Trade Entry

Trade ExitTrade Exit


Risk Management


Stop losses are used in every trade to attempt a limited loss in each trade and are based on a robust volatility forecasting model and previous price levels.

Risk is defined as the theoretical loss from current price to the stop level, and is calculated on an individual trade level as well as in aggregate on a continual basis.

• Position level: each position has an initial risk ranging from 0.01% to 0.15% of our total equity

•Contract level: Max contract risk set at 1.3% (accounts for multiple systems trading the same contract).

•Sector level : each sector has a maximum risk of 5% of our total equity

•Market volatility is an important element in position sizing

•1800 round turn per million per year

•Average margin to equity: 12%

STOP LOSSES ARE NO GUARANTEE OF EXECUTION PRICE ON FAST MOVING MARKETS.

Drawdown Improvement


02/2008 – 80% Long Term, 5% Medium Term, 15% Short Term

10/2008 – Use of Profit Targets on Long Term Strategies



10/2010 – Dynamic Position Sizing Incorporated

Improvements

13.32%15.87%

35.14%

- 52 .0 0 %

-40-35-30-25-20-15-10-50

2008 2009 2010

Dra

wdo

wn



Exchanges Traded

North America: Chicago, New York, Kansas City, Montreal, WinnipegSouth America: São Paulo

Europe: London, Milan, Frankfurt, Madrid, StockholmAsia: Tokyo, Osaka, Hong Kong, Seoul, Singapore, Kuala Lumpur

Australia: SydneyAfrica: Johannesburg


Markets TradedCurrencies Swiss Bond Australian 10 Yr Bond OMX Index Energies Metals

German Bobl S&P CNX Nifty Index

Australian Dollar German Schatz Indices MSCI Singapore Stock Heating Oil High Grade Copper

British Pound Buxl MSCI Taiwan Index Kerosene Tokyo Platinum Tokyo

Canadian Dollar German Bund EOE Amsterdam Index Euro Stoxx Index Brent Crude Oil Palladium

Euro Interbank Libor JSE All Share Index S&P Canada 60 Gas Oil Gold CBOT

US Dollar Index Euro Swap Note -2 Yr MSCI EAFE Index Mini DJ STOXX 50 Index Natural Gas Mini Silver CBOT

Japanese Yen Euribor FTSE Eurofirst 80 Index SPI 200 Light Crude Oil Light Mini

U.S. Dollar/Korean Won Euro Swiss S&P Midcap 400 Mini DJIA Mini Gasoline Livestock

Mexican Peso Fed Funds Russell 2000 Mini

New Zealand Dollar Long Gilt S&P 500 Mini Grains Foods/Fibers Feeder Cattle

South Africa Rand Sterling Rate - 3Mth CAC 40 Index Live Cattle

Euro/Swiss Franc 5 Years Note DAX Soybean Oil Cocoa Lean Hogs

Euro/British Pound Swap Interest Rate - 5 Yr FTSE 100 Corn Cotton Brazilian Live Cattle

Euro/Japanese Yen New Zealand Bank Bill Hang Seng China Ent. Palm Oil Coffee

Swiss Franc Swap Interest Rate -10 Yr Hang Seng Index Mini Wheat Kansas City London Cocoa Others

Brazilian Real Euroyen - 3Mth MIB Index Mini White Maize London Coffee

10 Yr Mini JGB Nikkei 225 Index Mini Oats London SugarNo.5 Lumber

Financials 2 Years Note Topix Index Rough Rice Orange Juice CBOE Volatility Index

10 Years Note DAX Midcap Index Canola Sugar No. 11 Japanese Rubber

Aussie 30-Day Interbank Australian 90 Day Bank Bill Ibovespa Mini Wheat Carbon Emissions

Canadian Bakers Bills US T-Bonds Ibex 35 Index Soybean Meal

Canadian 10 Year Bond Australian 3 Yr Bond Nasdaq 100 Index Mini Mini Soybeans

Typical Region Breakdown


Asia30%

Europe20%

North America40%

South America10%

Global Edge Diversified Managed Accounts Program

Minimum Investment: US$ 200,000Management Fee: 2% per year, charged monthlyPerformance Fee: 20 % per year, charged quarterly, with high water mark50% Notional Funding Managed Account AcceptedRecommended Holding Period: 3 Years


Principal

Gabriel Pellegrini was born in 1981. He graduated Fundação Getúlio Vargas. Gabriel has been trading commodities and futures contracts since 2003, when he began to trade his own capital, and testing mechanical, rule based trading systems he developed. He continues to conduct research regarding the technical and methodological aspects of strategies upon which the Global Edge trading program is based. The goal of this continuing research is to develop new strategies and risk control measures uncorrelated with the running models. Mr. Pellegrini and his staff are responsible for the daily trading and the implementation of the systems and programs.

Ricardo J. de Souza was born in 1980. He graduated with a degree in business from Fundacao Armando Alvares Penteado in São Paulo, Brazil in 2006. He began his work in the financial markets in 2004, at Global Portfolio Strategists, one of the biggest family office trading firms in Brazil. Mr. de Souza’s main function at Global Portfolio Strategists was to choose hedge funds portfolios to suit client profiles. After this experience, Mr. de Souza began trading futures and other securities for his own account.



Highly Regulated

National Futures Association (NFA) is the industry wide, self-regulatory organization for the U.S. futures industry. NFA strives every day to develop rules, programs and services that safeguard market integrity, protects investorsand help them Members meet their regulatory responsibilities. ( http://www.nfa.futures.org/basicnet/Details.aspx?entityid=0392198&rn=Y )

Contact InformationGlobal Edge Capital Management

Rua João Cachoeira, 1682, ap 102São Paulo, BrazilCEP 04535-008

Tel: +1 347 329-4433 Fax: +55 (11) [email protected]


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