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Traxis Fund

Confidential

1 Performance Review ­ June 2009

(June 1 through June 30)

June Traxis Fund Estimated Gross Return1 S&P 500 Total Return

2, 3

YTD 19.45% 3.16% 9.59% -8.74%

Annualized Since Inception (6/2/03) 9.35% 1.23% 5.40% 3.70%

2.04% 0.20% -0.52% -0.16%

MSCI All Country World Index Total Return2, 4 US Government 10 Year Note

Past performance is no guarantee of future results and current performance may be higher or lower than the performance quoted. See important footnotes 1-4 in section called "Notes to Performance".

Monthly Gross Performance (%)1

Jan 2003 2004 2005 2006 2007 2008 2009 -0.54 -0.38 4.32 1.17 -6.23 -6.07 -0.92 1.48 0.09 -0.01 -0.86 -4.63 Feb 1.12 -2.06 1.08 1.13 -4.11 7.46 Mar 1.35 -0.70 2.88 3.39 7.05 12.46 Apr -3.63 1.49 -7.10 3.65 -0.46 8.13 May Jun 2.79 1.18 0.16 0.92 1.99 -4.61 2.04 Jul 4.23 -4.94 3.58 0.57 1.89 1.18 Aug 5.71 1.60 1.72 2.75 -2.38 -0.58 Sep 1.66 -3.45 6.01 1.35 7.78 -8.19 Oct 2.78 -0.14 -3.11 3.13 8.53 -11.18 Nov -0.91 1.58 4.70 1.97 -4.30 -5.77 Dec 3.66 6.78 3.18 1.50 -0.45 3.36 YTD 21.55 -0.53 16.86 13.78 23.93 -27.61 19.45

Significant Contributors

Significant Detractors

Long Thailand Banks Long China H Shares Long US Technology Stocks Long 10 Year US Treasuries Long Japan Stocks Long Argentina External Debt Long Japan Brokers / Short Japan Stock Index Long Thailand Stocks Long Indonesia Stocks Long Latin Airlines / Short Latin Stock Index

Long Russia Stocks Long India Stocks Long Russia Cellular Stocks Short Protection on US Financials CDS Basket Long Taiwan Stocks Short Emerging Markets Copper Stocks Short Industrial Machinery Stocks Relative to S&P 500 Long US Homebuilder Stocks Relative to S&P 500 Short Iron Ore Stocks Short Hungarian Forint

The information and any disclosures provided herein are in summary form and have been prepared for informational purposes for investors of the Traxis Funds. Please refer to the confidential offering memorandum of the Fund in which you invest (the "Memorandum") for more detailed information and disclosures. The information and any disclosures provided herein may be considered confidential. Any use, distribution, modification, copying, forwarding or disclosure by any person is strictly prohibited. The information and any disclosures provided herein do not constitute a solicitation or offer to purchase or sell any security or other financial product or instrument. The current month performance data herein is an estimate. Past performance does not guarantee future returns. There can be no assurance that any Fund will achieve any targeted rates of return, and there is no guarantee against the loss of your entire investment. FOR CLIENT USE ONLY: This material may not be reproduced, shown or quoted to anyone other than the intended user.

Traxis Fund

Confidential

2

Quarterly Conference Call

On Wednesday, July 15th, we will be holding a call to update you on the Fund. The Traxis Partners portfolio management team will discuss recent performance and the investment outlook. A question & answer session will follow. Details are as follows: Title: Chairperson: Date: Time: Dial in (audio only): Conference ID: Expected Duration: Traxis Fund Quarterly Update Call Madhav Dhar Wednesday, July 15th 10:00 AM ET Domestic: 888.562.3356 International: 973.582.2700 18152426 45 minutes

For a replay of the call, please send an email request to [email protected] Investment Commentary The month of June was another relatively pleasant one for Traxis and our portfolio rose another 2% for the month. We started investment life at Traxis on June 1st 2003, so May 31st this year was something of a birthday, but as you age, it is more a time for reflection and audit, than celebration As of the end of May, the Traxis Fund had completed six years and in mid June, given the tumultuous boom-bust cycle of the past years, our moment of review and reflection this time was suitably longer, deeper and more somber. Nothing would be gained by rehashing for you our failures and triumphs, although, we find that it certainly is good for the investment soul to meditate on mistakes and misjudgments. These six years did teach us that we were most vulnerable to losses when we had experienced a patch where we had prospered. We joke about hubris, but the ancients were right that "Pride goeth before a fall and a haughty spirit before destruction." And as some have said, "it's not enough to be a good security analyst, you also have to be a good insecurity analyst." It was also interesting that the S&P 500 on the day we started, June 1st 2003, was slightly above where it finished on May 30, 2009. The index's total return for those six years was 7.5% only because of dividends. Did we imagine that returns would be that meager for the next six years

The information and any disclosures provided herein are in summary form and have been prepared for informational purposes for investors of the Traxis Funds. Please refer to the confidential offering memorandum of the Fund in which you invest (the "Memorandum") for more detailed information and disclosures. The information and any disclosures provided herein may be considered confidential. Any use, distribution, modification, copying, forwarding or disclosure by any person is strictly prohibited. The information and any disclosures provided herein do not constitute a solicitation or offer to purchase or sell any security or other financial product or instrument. The current month performance data herein is an estimate. Past performance does not guarantee future returns. There can be no assurance that any Fund will achieve any targeted rates of return, and there is no guarantee against the loss of your entire investment. FOR CLIENT USE ONLY: This material may not be reproduced, shown or quoted to anyone other than the intended user.

Traxis Fund

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3

when we launched? Of course not! That spring the U.S. economy was emerging from a steep recession, stocks seemed to have stabilized after a 49% fall after the bursting of the tech bubble, the war in Iraq was going well, and George W. Bush had high approval ratings. Over the next six years of toil and trouble our gross return was 72.3% and 37.6% net of fees and expenses through June 30, assuming a management fee of 1.5% and incentive allocation of 20%. In other words, we earned 9.4% gross (5.4% net) per annum when the S&P was returning 1.2% per annum or, put another way, we beat the S&P by 820 basis points (bps) gross per annum and 420 bps net a year, which is pretty good. The ten year U.S. Treasury bond had a total return of 3.7% per annum over the same period. Admittedly we had more volatility in our returns than you or we would have liked, but as Warren Buffett likes say, and we would like to believe, in the long run volatility smoothes out but the compounded returns remain. On to the markets - Our best guess is that from here the return from equities over the next six years will be higher than the slim pickings we have just experienced and that stocks will beat the daylights out of Treasury bonds. We have been through an absolutely unique period in the history of financial returns. As of the end of the first quarter of 2009, for the previous five years, bonds had earned 6.2% per annum and stocks minus 4.8%. That's a performance spread of a staggering 1100 bps a year! For the ten years ended March 30, the returns are also is in favor of bonds (6.2% versus minus 3.1% for a spread of 930 bps per annum) over stocks. The spread is also negative for the past twenty years. To add to this already poisonous brew, stocks in most of the major markets of the world have had negative real (inflation adjusted) returns for the past ten years. In the U.S. the S&P 500 adjusted for inflation is down over 50% from the level of 10 years ago and even more from the highs of 2000. By contrast, bonds have had a small, positive real return over the last decade. We have indeed been through a grim period for equity investors. In other words it has been much better to be a lender rather than an owner! This is not the way the world is supposed to work, and entrepreneurial capitalism cannot continue if it does. Way back in 1831 Alexis de Tocqueville wrote that what made America great was its democratic institutions and the entrepreneurial spirit of its people. The rewards to the high quality, fixed income investor cannot indefinitely exceed those earned by the risk taking equity owner. Equity investing is the well-spring of economic growth, and it has to generate positive real returns and real returns that are significantly higher than those of bonds. In the U.S. over the twentieth century stocks had a real return of 6.9% a year versus l.5% for bonds, according to a study by Dimson, Marsh, and Stauntion published by the London Business School. However, the financial history of the U.S. shows that such moments of extreme bond outperformance in the past have been great times to buy stocks and sell bonds. There have only

The information and any disclosures provided herein are in summary form and have been prepared for informational purposes for investors of the Traxis Funds. Please refer to the confidential offering memorandum of the Fund in which you invest (the "Memorandum") for more detailed information and disclosures. The information and any disclosures provided herein may be considered confidential. Any use, distribution, modification, copying, forwarding or disclosure by any person is strictly prohibited. The information and any disclosures provided herein do not constitute a solicitation or offer to purchase or sell any security or other financial product or instrument. The current month performance data herein is an estimate. Past performance does not guarantee future returns. There can be no assurance that any Fund will achieve any targeted rates of return, and there is no guarantee against the loss of your entire investment. FOR CLIENT USE ONLY: This material may not be reproduced, shown or quoted to anyone other than the intended user.

Traxis Fund

Confidential

4

been two. The first was after the second quarter of 1932, and the S&P 500 there upon delivered a whopping 34.8% compound annual return for the next five years. Treasuries returned 4.9% a year over the same period so the performance spread in favor of stocks was 29.9% a year, that's 2990bps! The other was after the third quarter of 1949, and the subsequent numbers are 23.2% per annum for stocks and a pitiful 1.8% for bonds. Both periods though blissful for equity owners were volatile and we expect the next five to six years to be the same. Well managed hedge funds with their flexibility and ability to sell short should be particularly well-suited to navigate such an era. Now back to the present: we have had a good run, but in recent days we have significantly reduced our net risk exposure. In the last month or so, a number of high regarded forecasters have asserted that the U.S. economy is about to blast off into a strong recovery that will assume the shape of a "V". Certain key leading indicators such as the PMI have signaled such an outcome, and production commodity prices, and car loadings have risen. However in recent weeks it appears from the jobs numbers and retail spending surveys that the supposedly spendthrift American consumer is sensibly continuing to save more and spend less. What increases in final demand there have been seem more related to one off government stimulus programs such as Cash for Clunkers.

The information and any disclosures provided herein are in summary form and have been prepared for informational purposes for investors of the Traxis Funds. Please refer to the confidential offering memorandum of the Fund in which you invest (the "Memorandum") for more detailed information and disclosures. The information and any disclosures provided herein may be considered confidential. Any use, distribution, modification, copying, forwarding or disclosure by any person is strictly prohibited. The information and any disclosures provided herein do not constitute a solicitation or offer to purchase or sell any security or other financial product or instrument. The current month performance data herein is an estimate. Past performance does not guarantee future returns. There can be no assurance that any Fund will achieve any targeted rates of return, and there is no guarantee against the loss of your entire investment. FOR CLIENT USE ONLY: This material may not be reproduced, shown or quoted to anyone other than the intended user.

Traxis Fund

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5

Thus we fear that although the U.S. economy has stabilized it is not yet growing, and that the profile of the next quarter or two may be an "L" or even a "W". This is not what investors expect or want, and we have taken in some sail. However it is always dangerous to react to high frequency economic releases so we will remain open-minded.

Barton M. Biggs

Madhav Dhar

Cyril Moullé-Berteaux

Amer Bisat

The information and any disclosures provided herein are in summary form and have been prepared for informational purposes for investors of the Traxis Funds. Please refer to the confidential offering memorandum of the Fund in which you invest (the "Memorandum") for more detailed information and disclosures. The information and any disclosures provided herein may be considered confidential. Any use, distribution, modification, copying, forwarding or disclosure by any person is strictly prohibited. The information and any disclosures provided herein do not constitute a solicitation or offer to purchase or sell any security or other financial product or instrument. The current month performance data herein is an estimate. Past performance does not guarantee future returns. There can be no assurance that any Fund will achieve any targeted rates of return, and there is no guarantee against the loss of your entire investment. FOR CLIENT USE ONLY: This material may not be reproduced, shown or quoted to anyone other than the intended user.

Traxis Fund

Confidential

6

Traxis Fund LP Exposure Report as of June 30, 2009

Estimated Exposure4 Gross Long Gross Short 41.6% 2.1% 10.8% 47.9% 3.0% 105.4% -12.8% -5.4% -2.1% -9.3% -0.5% -30.1%

Net Equity US Europe Japan Emerging Markets Rest of World1 Total Equities Fixed Income2 US Europe Japan Emerging Markets Rest of World1 Total Fixed Income Opportunistic Currencies3 Metals Energy Total Opportunistic TOTAL FUND 28.8% -3.3% 8.7% 38.6% 2.5% 75.3%

Total Gross 54.4% 7.5% 12.9% 57.2% 3.5% 135.5%

9.1% 0.0% 0.0% 8.4% 0.0% 17.5%

30.6% 0.0% 0.0% 9.6% 0.0% 40.2%

-21.5% 0.0% 0.0% -1.2% 0.0% -22.7%

52.1% 0.0% 0.0% 10.8% 0.0% 62.9%

-1.3% -1.7% -0.4% -3.4%

4.2% 0.0% 0.0% 4.2%

-5.5% -1.7% -0.4% -7.6% -60.4%

9.7% 1.7% 0.4% 11.8% 210.2%

nm 149.8% Portfolio VaR5 = 7.4%

1 2 3 4 5

Australia, Hong Kong, Singapore, Canada, New Zealand All expressed in US 10-year note equivalent terms Gross Long, Gross Short = Long, Short USD Figures may not add due to rounding Monthly, 95% confidence Value-at-Risk. Since March 2009, calculation uses equal weights on the past 3 years of historical data, rather than exponential weights on 1 year of data used in previous VaR calculation methodologies, which results in a lower VaR calculation following periods of relatively high market volatility.

The information and any disclosures provided herein are in summary form and have been prepared for informational purposes for investors of the Traxis Funds. Please refer to the confidential offering memorandum of the Fund in which you invest (the "Memorandum") for more detailed information and disclosures. The information and any disclosures provided herein may be considered confidential. Any use, distribution, modification, copying, forwarding or disclosure by any person is strictly prohibited. The information and any disclosures provided herein do not constitute a solicitation or offer to purchase or sell any security or other financial product or instrument. The current month performance data herein is an estimate. Past performance does not guarantee future returns. There can be no assurance that any Fund will achieve any targeted rates of return, and there is no guarantee against the loss of your entire investment. FOR CLIENT USE ONLY: This material may not be reproduced, shown or quoted to anyone other than the intended user.

Traxis Fund

Confidential

7

Notes to Performance

1

2

3

4

The estimated gross return represents the investment return of each of the Traxis Fund Onshore LP, Traxis Fund Offshore LP and Traxis Fund Offshore II LP (collectively, the " Traxis Fund" or the "Fund"), before deduction of any fees and expenses, including the management fee and incentive allocation, and includes reinvestment of dividends, interest and earnings. Investors in the Traxis Funds will receive under separate cover a capital account statement showing their individual capital account balance for the beginning and end of such period. The indices are unmanaged portfolios of securities. Their performance results do not reflect the deduction of management fees, incentive compensation, commissions or other expenses. The performance of the indices may vary from that of the Master Fund. The Master Fund may, at times, have higher or lower volatility than any of the indices. The S&P 500 Total Return Index consists of 500 stocks chosen for market size, liquidity and industry group representation. It is a market value weighted index with each stock's weight in the Index proportionate to its market value. The index is one of the most widely used benchmarks of U.S. equity performance. As a Total Return index, it measures the market performance, including price performance and income from dividend payments. The MSCI Inc. ACWI (All Country World Index) Total Return is a free-float adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets. As a Total Return index, it measures the market performance, including price performance and income from dividend payments.

Contact Information Fund: Timothy Shannon Traxis Partners 600 Fifth Avenue, 26th Floor New York, NY 10020 Tel: 212.332.5169 Fax: 212.332.5178 Email: [email protected] Administrator: David Saul International Fund Services (Ireland) Limited Third Floor, Bishop's Square, Redmond's Hill Dublin 2, Ireland Tel: (353 1) 655 8231 Fax: (353 1) 707 5101 Email: [email protected]

Data Sources Traxis Partners may from time-to-time use one of more of the following data sources in the Investment Commentary, tables or charts: Bloomberg, Markit Group, JPMorgan, Global Insight, Emerging Portfolio.com, MSCI Inc. Index (an affiliate of Morgan Stanley & Co.), Eurostat, Thomson Reuters Facts and views presented in this Report are subject to change, and there is no guarantee that the Fund will invest in accordance with such views. These are our views as of the date hereof and not as of any future date. Qualifications The information presented in this report to investors in the Traxis Funds (the "Report") is highly confidential and may be delivered to investors who previously received a Memorandum (as defined below) in Traxis Fund Onshore LP (the "US Feeder Fund"), Traxis Fund Offshore LP (the "Cayman Feeder Fund") and Traxis Fund Offshore II LP (the "Cayman Feeder Fund II") (collectively, the "Feeder Funds" and individually a "Fund"). This Report is not to be reproduced or distributed to any other persons (other than professional advisers of any investors receiving these materials), and is intended solely for the use of the persons to whom it has been delivered. Any investor (and each employee, representative, or other agent of any investor), however, may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of a Fund and all materials of any kind (including opinions or other tax analyses) that are provided to an investor relating to such tax treatment and tax structure. This Report has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell Interests or any other security or instrument or to participate in any trading strategy. This Report should be read in conjunction with each Fund's confidential offering memorandum. Moreover, the specific terms applicable to the Interests described generally in this Report, and offered in the Memorandum, will be governed by the terms of the applicable limited partnership agreement (the "Partnership Agreement") for the US Feeder Fund, the Cayman Feeder Fund or the Cayman Feeder Fund II, as the case may be. No representation or warranty (express or implied) is made or can be given with respect to the accuracy or completeness of the information in this Report. No person has been authorized to make any representations concerning the Interests described in this Report that are inconsistent with the statements contained in this Report, the Memorandum, or the applicable partnership agreement. There can be no assurance that a Fund's investment objectives will be achieved or that there will be any return of capital. Holding an investment in a Fund involves a high degree of risk, including the risk that the entire amount invested may be lost.

The information and any disclosures provided herein are in summary form and have been prepared for informational purposes for investors of the Traxis Funds. Please refer to the confidential offering memorandum of the Fund in which you invest (the "Memorandum") for more detailed information and disclosures. The information and any disclosures provided herein may be considered confidential. Any use, distribution, modification, copying, forwarding or disclosure by any person is strictly prohibited. The information and any disclosures provided herein do not constitute a solicitation or offer to purchase or sell any security or other financial product or instrument. The current month performance data herein is an estimate. Past performance does not guarantee future returns. There can be no assurance that any Fund will achieve any targeted rates of return, and there is no guarantee against the loss of your entire investment. FOR CLIENT USE ONLY: This material may not be reproduced, shown or quoted to anyone other than the intended user.

Traxis Fund

Confidential

8

Additional information is available upon request. Traxis Partners LP and its affiliates ("Traxis Partners") disclaim any and all liability relating to this Report, including without limitation any express or implied representations or warranties for statements contained in, and omissions from, this information. To recipients in Canada: The information presented in this Report may be delivered by Traxis Partners or placement agents engaged by the Fund, to permit prospective investors in the Provinces of Ontario, Québec, British Columbia, Alberta and Manitoba only. As stated above, this Report has been prepared for informational purposes and is not, and under no circumstances is to be construed as, an advertisement or a private or public offer of the Interests. No securities commission or similar authority in Canada or elsewhere has reviewed or in any way passed upon this document and any representation to the contrary is an offense. The Interests and investment strategies described in this Report have not been registered with, or approved or disapproved by, the US Securities and Exchange Commission, the US Commodity Futures Trading Commission, the Cayman Islands Monetary Authority, or any other US or Cayman Islands federal or state governmental agency or regulatory authority or any national securities exchange. No agency, authority or exchange has passed upon the accuracy or adequacy of this Report, the Memorandum or the merits of an investment in the Interests. Any representation to the contrary is a criminal offense. Investors should not construe the contents of this Report as legal, tax or financial advice. Each investor should consult his, her or its own professional advisors as to the legal, tax, financial or other matters relevant to an investment in a Fund. Traxis Partners does not render advice on tax or tax accounting matters to clients. This material was not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer under U.S. federal tax laws. There is no guarantee that the benchmarks listed in the Performance Review on page 1 of this Report are representative benchmarks against which the performance of a Fund should be compared. Traxis Partners and/or each of their employees may have investments in securities or derivatives of securities of companies or in sectors mentioned in this Report and may trade them in ways different from those discussed in this Report. Under the Investment Advisers Act of 1940, Traxis Partners LP is required to maintain a disclosure document, otherwise known as Part II of Form ADV. In summary, Part II of Form ADV discloses, among other things, the advisory services provided, fees charged by these entities, as well as certain affiliations. If you would like to receive a copy of Part II of Form ADV for the entities above, please send a written request to Investor Relations, Traxis Partners, 600 Fifth Avenue, 26th Floor, New York, New York 10020 or email your request to [email protected] Traxis Partners does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. It was not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer under U.S. federal tax laws. Federal and state tax laws are complex and constantly changing. You should always consult your own legal or tax advisor for information concerning your individual situation. Risk Factors and Conflicts of Interest Please refer to a Fund's Memorandum for a more detailed discussion of risks. As the investment program of Traxis Fund LP (the "Master Fund") develops and changes over time, an investment in the Fund may be subject to additional and different risk factors from those described in the Fund's Memorandum. An investment in a Fund is a potentially suitable investment only for sophisticated investors who, in consultation with their own investment and tax advisors, fully understand and are capable of assuming the risks inherent in investing in the Fund. In addition, certain inherent and potential conflicts of interest exist between and among the general partners of the Feeder Funds and Master Fund (the "General Partners"), the adviser to the Master Fund, and each of their respective affiliates on the one hand and the Fund on the other, as defined and as more fully described in the Memorandum. Investment and Trading Risks. An investment in any Fund is speculative and involves substantial risks, including risk of loss of your entire capital investment. The investment program of the Master Fund, in which each Fund invests, involves significant trading risks, including risks arising from: the volatility of the global equity, currency, and fixed income markets; short sales; leverage; the potential illiquidity of derivative instruments; the potential loss from counterparty defaults; and borrowing. No guarantee or representation is made that the Master Fund's investment program will be successful. Investment results may vary substantially over time. Reliance on Fund Management. The Master Fund's overall success, and in turn that of each Fund, is largely dependent on the skill and expertise of the Adviser and its principals to develop and implement the investment program and objectives pursued by the Master Fund. If any of the principals of the Adviser cease to be involved in the management of the Master Fund and its investment program, or if the Advisory agreement entered into with the Adviser (the "Advisory Agreement") is terminated and the Adviser no longer manages the Master Fund's investment program, each Fund could be adversely affected. There is no prohibition on any principal of the Adviser resigning.

The information and any disclosures provided herein are in summary form and have been prepared for informational purposes for investors of the Traxis Funds. Please refer to the confidential offering memorandum of the Fund in which you invest (the "Memorandum") for more detailed information and disclosures. The information and any disclosures provided herein may be considered confidential. Any use, distribution, modification, copying, forwarding or disclosure by any person is strictly prohibited. The information and any disclosures provided herein do not constitute a solicitation or offer to purchase or sell any security or other financial product or instrument. The current month performance data herein is an estimate. Past performance does not guarantee future returns. There can be no assurance that any Fund will achieve any targeted rates of return, and there is no guarantee against the loss of your entire investment. FOR CLIENT USE ONLY: This material may not be reproduced, shown or quoted to anyone other than the intended user.

Traxis Fund

Confidential

9

Limited Liquidity. There is no public or secondary market for the Feeder Funds' Interests, and no such market is expected to develop in the future. An investment in a Fund provides only limited liquidity through quarterly withdrawals after the expiration of a one year lock-up period, and such withdrawal rights may be delayed or deferred as agreed upon from time to time by the General Partner and the Adviser. Investors may not transfer all or any portion of their Interests without the written consent of the General Partner of the relevant Fund, which consent may be withheld in its discretion and which is expected to be granted, if at all, only under extenuating circumstances. Compensation Arrangements. The Adviser, in addition to a management fee, will receive, indirectly, compensation in the form of a fee based on the performance of the Master Fund's investments. The receipt by the Adviser of a performance-based fee may create an incentive for the Adviser to make investments that are riskier or more speculative than those that might have been made in the absence of such a fee. In addition, the performance-based fee will be calculated on a basis that includes realized and unrealized appreciation of assets, and any such fee paid to the Adviser may be greater than if such a fee was based solely on realized gains. In addition, a Fund's fees and expenses may offset such Fund's trading profits. Diversification. Although it is anticipated that the Master Fund will be diversified across different investment views and strategies, the Master Fund may concentrate its investments in a limited number of issuers, countries, sectors, currencies or instruments. Adverse movements in a particular economy, sector or instrument type in which the Master Fund is concentrated could negatively affect performance and increase risk of loss to a considerably greater extent than if the Master Fund's investments were more diversified. Leverage. The investment program will involve margin transactions, short sales, and short-term borrowings; these types of leverage can, in certain circumstances, have an adverse effect on a Fund. The Adviser may enter into option transactions, forward and futures contracts and may buy and sell securities on margin, increasing the volatility of the Master Fund's investments. Trading securities on margin, unlike trading in futures (which also involve margin) will result in interest charges and, depending on the amount of trading activity, such charges could be substantial. In addition, because the use of leverage will allow the Master Fund to control positions worth significantly more than its actual investment in such positions, the amount that the Master Fund may lose in the event of adverse price movements will be high in relation to the amount of its investment. The use of leverage will also magnify the volatility of changes in the value of the Master Fund's portfolio investments. Non-US Investments. The Master Fund may invest in securities of non-US issuers listed on non-US securities exchanges or traded in non-US over-the-counter markets. Investments in certain foreign securities may be subject to greater risks than investments in US securities due to a variety of factors including currency controls and currency exchange rate fluctuations, changes in governmental administration or economic or monetary policy or changed circumstances in dealing between nations. Risks associated with investing in non US securities may be greater with respect to those issued by companies located in less developed countries. Investments in Non-US Currencies. Portions of the Master Fund's assets may be held or traded in securities denominated in non-US currencies and may therefore be subject to risks associated with investments in such currencies. Market Liquidity. During periods of limited liquidity and higher price volatility, the Master Fund's ability to acquire or dispose of its investments at a price and time that the Master Fund deems advantageous may be impaired. Absence of Regulatory Oversight. The Traxis Funds are not registered as investment companies under the U.S. Investment Company Act of 1940 (the "1940 Act") in reliance on an exception from the definition of investment company available to privately offered investment companies. The significant investor protection provisions of the 1940 Act will not apply to an investment in the Fund. Placement Fees and Other On going Fees. The payment of the Placement Fee and the payment of other on going fees (the latter of which are to be paid by the Adviser or a General Partner or either of their affiliates) could create conflicts of interest between and among the General Partner, the Adviser on the one hand, and the Feeder Fund and the Master Fund on the other. A portion of the management fee may be shared with placement agents engaged by Traxis Partners on an on going basis in connection with their sales of the Feeder Fund and registered representatives may share in a portion of that fee. Risk Management Risk management involves determining the risk of the portfolio as precisely as possible. This process implies an effort to monitor risk, but should not be confused with and does not imply low risk. The Funds' portfolio formation is designed to give it a good sense of the risks to which the Funds' portfolio will be exposed, but these estimates are subject to error.

The information and any disclosures provided herein are in summary form and have been prepared for informational purposes for investors of the Traxis Funds. Please refer to the confidential offering memorandum of the Fund in which you invest (the "Memorandum") for more detailed information and disclosures. The information and any disclosures provided herein may be considered confidential. Any use, distribution, modification, copying, forwarding or disclosure by any person is strictly prohibited. The information and any disclosures provided herein do not constitute a solicitation or offer to purchase or sell any security or other financial product or instrument. The current month performance data herein is an estimate. Past performance does not guarantee future returns. There can be no assurance that any Fund will achieve any targeted rates of return, and there is no guarantee against the loss of your entire investment. FOR CLIENT USE ONLY: This material may not be reproduced, shown or quoted to anyone other than the intended user.

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