Hedge funds are trading methodologies that are path dependent on skill and risk. Unlike traditional long only investments where risk and return may not be dictated by volatility and co-variance, the long/short world has measurable risks that do ultimately determine the ranges of return. Therefore a strategy capable of making large short term profits should be viewed as having the ability to generate large losses. At FCM we make use of quantitative analytics to:

1. Construct portfolios of strategy buckets,
2. Build each strategy bucket with the best combination of hedge funds, and
3. Manage our portfolio as market risks and correlations inevitably change.

FCM generally avoids investments in funds primarily engaged in Reg D securities, Reg S securities, Mortgage-Backed Securities, Emerging Markets investments, Private Equity investments, or Real Estate.

The combination of these tools and our judgment dictate the way we run our business.