INDUSTRY DEVELOPMENTS

Pinnacle is pleased to provide its' members with a number of unique and informative research white papers, industry related links and monthly newsletters updating investors on the recent performance and outlook for the advisors' managed account programs, recommended trading systems and structured fund products.

I - Research (White Papers):

*ALTERNATIVE RAPM's FOR ALTERNATIVE INVESTMENTS - Authored by Milind Sharma. This paper highlights the inadequacies of traditional RAPM'S (Risk-Adjusted Performance Models) and proposes AIRAP (Alternative Investments Risk Adjusted Performance), based on Expected Utility theory, as a RAPM better suited to Alternative Investments. <download pdf>

*BENEFITS OF MANAGED FUTURES - Prepared by Burak Cerrahoglu and Dulari Pancholi, research associates @ The Insberg School of Management, University of Massachusetts. In conjunction with The Center for International Securities and Derivatives Markets, this paper provides an excellent overview into the managed futures industry, with a special focus on the risk and return performance data of the industry as a whole (in comparison to other asset classes, in particular). <download pdf>

*BENEFITS OF MANAGED FUTURES/2004 UPDATE - Prepared by Burak Cerrahoglu, research associate @ the University of Massachusetts. This report updates the previous paper published by the author on the managed futures industry, with a broader discussion on the types of trading classes associated with the industry and a look into the performance attributes of managed futures in general. <download pdf>

*FOUNDATIONS of PORTFOLIO THEORY by Harry M. Markowitz. Dr. Markowitz offers a general review and brief summary of the value of diversification in the traditional investment portfolio, with particular attention given to the utility of adding additional non-correlated assets to the portfolio. This presentation goes to the heart of why a growing number of highly respected industry professionals accept and practice the inclusion of alternative investments in their portfolio modeling equations. <download pdf>

*TACTICAL ASSET ALLOCATION AND COMMODITY FUTURES by Gerald R. Jensen and Jeffrey M. Mercer @ the University of Northern Illinois, in conjunction with financial and academic support from the Foundation for Managed Derivatives Research. The authors examine the diversification benefits of adding managed and unmanaged commodity futures to a traditional portfolio that consists of U.S. Equities, foreign equities, corporate bonds, and treasury bills, using historical performance data for each group form the period of 1970 to 1999. This paper is quite informative, though lengthy (43 pages) and somewhat technical. <download pdf>

*A BENCHMARK OF COMMODITY TRADING ADVISOR PERFORMANCE by Richard Spurgin of the University of Massachusetts School of Management, in conjunction with support from the CISDM. This report describes how an index can be used as a benchmark to gauge commodity trading advisor performance. Spurgin details 3 principal purposes for doing so and then applies his proposition in a somewhat formulaic fashion, though with added data for real world comparison and application. <download pdf>

II - Industry links:

Securities and Exchange Commission
Commodity Futures Trading Commission
National Futures Association
National association of Securities Dealers

The Barclay Group
Institutional Advisory Services Group
Managed Accounts Report
Infovest21, LLC

Managed Funds Association
Alternative Investment Management Association
Futures Industry Association
Center for International Securities and Derivatives Market

Hedge Funds
HFR Asset Management
Institutional Investor

Albourne Village
Emerging Manager Monthly
Emerging Manager Focus
FINalternatives
Fund Fire
HedgeFundLaunch.com
Hedge Fund Center
Texas Hedge Fund Association
3PM (Third Party Marketing Association)

Barclay Hedge
Raise AUM
Energy Hedge Fund Center
Opalesque

Member / NFA Registered / CFTC Member/Texas Hedge Fund Association

There is a risk of loss in Hedge Fund, FX and Futures trading. Past performance is no guarantee of future results.