Text Box: Kinkopf Capital’s Investment Philosophy Kinkopf Capital Management, LLC is a registered Commodity Trading Advisor (CTA) with the Commodity Futures Trading Commission (CFTC), and a member of the National Futures Association (NFA). We provide individual and institutional investors alternative investment opportunities in the managed futures arena. Diversification into this unique asset class has shown to provide risk reduction through portfolio diversification over time. Kinkopf Capital Management, LLC uses a systematic technical analysis approach that incorporates a diverse array of data that is programmatically analyzed and then statistically evaluated to produce a trading system that is long term stable yet robust to react to system changes over time. Kinkopf Capital Management, LLC core investment philosophy adheres to a strict process that follows a disciplined approach towards trading. Ken Kinkopf designed the statistical trading system to dynamically manage risk by using various techniques combining volatility measures, reversal flow, price target stops and timing stops. He calls his approach “Dynamic Risk Management”. In addition, Mr. Kinkopf’s trading system reduces market exposure by approximately fifty percent during an average year by limiting equity exposure to system tradable events only. Mr. Kinkopf continuously trades this system on a live daily basis since 1999. Mr. Kinkopf introduced a volatility scaling component in December of 2007 to address investor’s desire for a less volatile trading program. Back testing results have shown congruent returns with the desired reduction in volatility. Risk management and discipline are the keys for long term success in the markets. Discipline will allow our investment strategy to remain viable in the face of market adversity. Investor Expectations As an investor in any speculative venture, you must be comfortable with the amount of risk capital required for this investment. As an investor, you need to have realistic expectations about rates of return, tolerance to temporary drawdown's, and acceptance that the risk of loss always exists. Those who prematurely close their accounts out of panic and fear when they have encountered a period of flat returns or drawdown will inevitably experience losses. One should refrain from prematurely closing the account but instead, allow the account time to recover from those temporary losses in equity over time.   A wise investment decision would be to commit the risk capital for a minimum of three years and preferably five in this managed account program. The longer the period of time, the higher probability that the account can benefit from the compounded rate of returns.   Successfully futures trading involves patience and perseverance. Managed accounts should be looked upon as a long term portfolio component designed to help balance overall portfolio risk while adding diversification.

Investment Philosophy

Kinkopf Capital Management, LLC.

The risk of loss in futures or 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 conditions in deciding whether to trade.

 

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