MT RUSHMORE SECURITIES, LLC Presents THE ALTERNATIVE FUND PLATFORM
Dear Investor and Advisor, Our objective is to provide you with: ACCESS: Leading Alternative Managers at Low Minimums. PEACE OF MIND: Enhanced Liquidity, Intraday Transparency, Third Party Valuations. EASY ONLINE: Allocations, Distributions, & Tracking. Toward this end we target investments funds backed by formidable due diligence and exhaustive background checks, real time monitoring, and best custodial and administrative practices. In particular we target alternative managed futures and alternative equity based funds and platforms which provide: Access: To investable liquid, managers a low minimums that would otherwise require direct investments as of much as 1m to 20+m and that represent a significant percentage of the industry s assets. To managed investments non-correlated to traditional equity investments. Mitigation of Fraud: No trader has access to client investment funds. Traders are monitored on a 24-hour basis. Estimated valuations are provided on a continuous basis throughout the day and official Net Asset Values are provided by a third party. Every manager s background is investigated and periodically reviewed by experts. High Liquidity: Monthly and many cases twice-monthly subscriptions and redemptions. n addition we offer an ancillary fund, Hedge Gateway, that facilitates even greater diversification with I less money. Be on the alert for a new monthly Fund Profile & Recovery Report. In the pages to follow we review, Why Managed Futures and Why an Alternative Investment Platform. It reviews the merits and selection criteria for this non-correlated asset class. Yours for successful investing, Gary Spitz
Why Managed Futures? Why Managed Futures Non-Correlation: Managed Futures has fulfilled a key objective of Modern Portfolio Theory: It is a proven, efficient Non Correlated Asset Class which, when added to a traditional portfolio has been shown to improve diversification, return, and volatility characteristics. Performance: Managed Futures outperformed traditional portfolios over the last 20 years and during every major down (and crisis) market. Liquidity: Avoids the illiquidity of many hedge fund strategies and policies. Regulation: Regulated (unlike Hedge Funds) by CFTC and the NFA. Past performance is not necessarily indicative of future results. Futures trading involves risk of loss and is not suitable for everyone.
30 Year Comparison Managed Futures Outperformed Stocks by at least 178% Consider an initial investment of $10,000 invested in 1980. If placed in a US stock fund mirroring the S&P 500, the investment would have been worth approximately $288,000 as of early 2008. The same amount allocated to a basket of international equities reflecting the Morgan Stanley Capital International Index of world stock would have grown to $120,000. But the same investment in managed futures, based on the Center for International Securities and Derivatives Markets weighting, would now be worth more than $513,000. There are multiple year periods when managed futures were down to flat (1988-1990, 2000-2001, 2004-2006). In 1994-2001 stocks advanced significantly faster than managed futures. During these periods a stock investor would have fared better than one invested wholly is managed futures. The programs selected by individual investors could have resulted in a loss over the same time period. Investment in futures and/or options involves substantial risk. Past performance is not necessarily indicative of future results. Futures trading involves risk of loss and is not suitable for everyone. Indices of managed futures products are not indicative of the performance of any individual account.
23 Year Record of Managed Futures VS. Traditional Portfolio During Stock Market Declines Opportunity to Profit in a Variety of Economic Environments. Managed futures lack of long term correlation to other asset classes is well accepted. History shows us that managed futures are historically a better place to be during bear markets. Past performance is not necessarily indicative of future results. Futures trading involves risk of loss and is not suitable for everyone. Indices of managed futures products are not indicative of the performance of any individual account
20 YEAR COMPARISON OF MANAGED FUTURES PERFORMANCE TO THE S&P 500 Past performance is not necessarily indicative of future results. Futures trading involves risk of loss and is not suitable for everyone. Indices of managed futures products are not indicative of the performance of any individual account.
Why an Alternative Platform? ACCESS TO MANAGERS AND ANALYTICS Why an Alternative Platform and what to look for. Access to: Leading Alternative Managers Reduced minimums to access funds that otherwise would require as as much as $20m to $100m for a direct managed account investment. Software and Manager Database Manager screening functions, consolidated subscription and redemptions, asset allocation, research and account monitoring. In-house Research, quantitative screening, qualitative reviews, recorded manager calls and video presentations. Optional Leverage through Notional Funding: with no borrowing costs and limited risk. Past performance is not necessarily indicative of future results. Futures trading involves risk of loss and is not suitable for everyone. Indices of managed futures products are not indicative of the performance of any individual account.
Why an Alternative Platform? Oversight & Control Oversight Control 1. Due Diligence: Each manager is visited, thoroughly reviewed, evaluated and monitored by qualified research expert. 2. Background Checks: Thorough Investigation and background, check and annual reviews by qualified experts. 3. Each trader is monitored 24/7 brokerage and custodial accounts with US-regulated financial institutions. 4. Third Party Oversight. Three-way trade reconciliation by Administrator, Prime brokers and Platform Fund Sponsor Annual Audits Custodial oversight by industry leading clearing firms and bank. 1. Tracking Software: Investors and advisors / portfolio have software to monitor investments. 2. No trader has access to client funds. All funds are held in segregated 3. Liquidity & Limited Risk: Combines Liquidity of a Managed Account with Limited risk of a fund (and without collateral risk between managers). 4. Transparency to general market positions for individual traders and collective portfolio. 5. Continuous Intra-day valuations. 6. Bi Weekly liquidity with 2 days notice for Redemptions Switching between managers without transitional down time Changing allocations or leverage. Past performance is not necessarily indicative of future results. Futures trading involves risk of loss and is not suitable for everyone
Why an Alternative Platform? Efficiency & Value Efficiency 1. Data & Account Values Management: Portfolio and Account data can be imported and exported efficiently to Advisor Software. 2. Integrated Platform: offers due diligence, background checks, risk management and real-time technology. 3. Simplified Account Management: of many funds into one platform. Reduces paperwork. Value 1. Competitive Fees. 2. Able to negotiate rates with third party brokers, passed through without mark-up. 3. Independent managed account platform for hedge funds and managed futures. See: MANAGED ACCOUNT PLATFORMS COMBINE THE BEST OF Past performance is not necessarily indicative of future results. Futures trading involves risk of loss and is not suitable for everyone
Why Mt Rushmore Securities LLC? Why Mt Rushmore Securities LLC: Mt Rushmore has relationships with the AlphaMetrix platform as well as other funds to support service and enhance your investing experience : BEST ALTERNATIVE INVESTMENT CHOICES. Mt Rushmore can help you select the best alternative investments and create portfolios ideas for your clients.mt Rushmore has a combined total of 50+ years of experience in alternativeinvestments. Since 1999, our online, Consistency Index databases have rank 6000+ alternative managers based on the profit consistency. () MARKETING MATERIALS FOR YOUR CLIENTS. We will white label presentation materials for alternative products under your banner. Tell us what you need and we do the rest. ONGOING EVALUATION OF RESULTS. Mt Rushmore will help you evaluate results provide insightful monthly reports»» Monthly Profile & Recovery Report on each manager provides valuable data relating to starting, adding, and selling that is fundamental to any investment»» Quarterly review and ideas for rebalancing portfolio. ACCOUNT ADMINISTRATION. Your account executive will facilitate paperwork, account changes and interaction with the fund s services and research. THE HEDGE GATEWAY PLATFORM. An optional online fund platform enables diversification within AlphaMetrix s platform as well as other funds with less money and no additional fees. Offers manager reviews, asset allocation, online investing, and online statements. Hedge Gateway complements the AlphaMetrix platform. Offered by Mt Rushmore Management LLC. Past performance is not necessarily indicative of future results. Futures trading involves risk of loss and is not suitable for everyone.
MT RUSHMORE SECURITIES, LLC ww w. Co n s i s te n c y R a nki ng s. com About Firm About Mt Rushmore The firm, Mt Rushmore Securities LLC is a broker dealer based in Fairfield Iowa. The firm has published Consistency Index Newsletters covering over 5000 alternative investments since 1999. Mt Rushmore is a boutique firm dedicated to helping investors target consistent returns through the careful addition of alternative investments to their portfolio. The firm s main focus are managed futures managers and hedge funds. Key Members Gary Spitz, President Gary created the Consistency Index initially in 1991. The original publication was The CTA Consistency Index, published continuously since 1991, printed or online. Since 1999, Gary spearheaded the continuous publication of the Hedge Fund Consistency Index Newsletter which ranks and profiles 5000 Hedge Funds according to consistency on a risk-adjusted basis. Gary is president of Mt Rushmore Management, the Managing Member of the Hedge Gateway Funds, an alternative investment fund platform. The platform enables investors to customize their own portfolio via access to managers at lower minimums. It offers online asset allocation tools and account tracking data. Milton Klein, Vice President Milton has over 30 years investment experience in alternative investments as well as managing a real estate management company, Mattco Equities, Inc. His primary responsibilities are investment research and investor relations with Investment Advisor Firms. Mr. Klein was a CPA and attorney in NYS. He has qualified for Series 3, 22 and 63. He graduated with honors from the Wharton School at the University of Pennsylvania with a BS in Economics. Mr. Klein also graduated from the NYU Law School. He was admitted to the NYS Bar in 1966. David Lonsdorf, Vice President David s primary responsibilities are administration, compliance and marketing review. David has 5 years experience in alternative investments. Prior to joining Mt Rushmore, he held executive administrative positions experience in the in the preventive health industry. Mr. Lonsdorf has a BS in Pharmacy from the University of Wisconsin and a Masters in Education from MIU He holds a 7, 63, 22, and 65 securities license.
MANAGED ACCOUNT PLATFORMS COMBINE THE BEST OF: MANAGED ACCOUNTS --> LIQUIDITY & TRANSPARENCY LIMITED PARTNERSHIPS --> LIMITED RISK FEATURES MANAGED ACCOUNTS LIMITED PARTNERSHIPS MANAGED ACCOUNT PLATFORMS High Transparency YES NO YES High Liquidity YES NO YES Intra Day Valuations YES NO YES 24/7 Oversight Possibly NO YES Easy to switch between investments YES NO YES Consolidated Paperwork NO NO YES Trader not in control of Funds YES NO YES Limited Liability NO YES YES No Collateral Liability between Managers NO YES YES Notes Managed Account Platforms Are funds of segregated managed accounts. High Transparency Limited partnerships and LLCs generally do not provide transparency. High Liquidity Limited partnerships and LLCs are frequently subject to 30 to 90 day advance notice, quarterly redemption, lock ups, and or gates. Intra Day Valuations Limited partnerships and LLCs are frequently subject to 30 to 90 day valuations. 24/7 Oversight Managed Account Platforms may provide this service. Easy to switch between investments Managed Accounts and Managed Account Platform may enable investor to switch investments without down time. Consolidated Paperwork Managed Account Platform may only require one subscription / redemption form for all investments. Trader not in control of Funds Managed Account Platform and Managed Accounts generally give manager power of attorney to trade but not control of funds. Limited Liability Managed Futures accounts have unlimited liability. No Collateral Liability between Managers Managed Account Platforms do not have risk between series. The definitions above are intended as general definitions, usage and descriptions. Please refer to a fund s offering memorandum for a complete definition of terms and description of risks.
MT RUSHMORE SECURITIES, LLC ww w. Co n s i s te n c y R a nki ng s. com NEXT STEPS Working with Mt Rushmore Securities LLC: Platform Demonstration: Experience how to select and monitor best managers. Select Best Portfolios for Investor Visit Website: Learn firsthand how platform structure protects the investor. Visit Executive Offices of Platform Manager Contact Information: Don Claus Don.Claus@MtRushmoreSecurities.com 312-555-1212 Past performance is not necessarily indicative of future results. Futures trading involves risk of loss and is not suitiable for everyone.
DISCLAIMER THESE MATERIALS ARE NOT AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITY. THE INTERESTS IN THE FUND CAN ONLY BE OFFERED BY THE FUND S CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM. PROSPECTIVE INVESTORS WHO ARE INTERESTED IN FURTHER INFORMATION CONCERNING THE FUND SHOULD REQUEST THE CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM FROM A MANAGING MEMBER, AS WELL AS CONSULT WITH THEIR FINANCIAL AND TAX ADVISERS CONCERNING THE IMPLICATIONS TO SUCH INVESTORS OF AN INVESTMENT IN THE FUND. NO ONE SHOULD INVEST IN THE FUND MORE THAN THEY CAN AFFORD TO LOSE. INVESTORS MAY LOSE ALL OR SUBSTANTIALLY ALL OF THEIR INVESTMENT IN THE FUND. INVESTORS MUST CAREFULLY REVIEW THE CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM, INCLUDING THE RISK FACTORS, BROKERAGE ARRANGEMENTS AND CONFLICTS OF INTEREST SECTIONS THEREOF BEFORE DETERMINING WHETHER TO INVEST IN THE FUND. Past performance is not necessarily indicative of future results. Futures trading involves risk of loss and is not suitiable for everyone.