Hyman Beck & Company hymanbeck.altavra.com

Technical vs. Fundamental Trading
Futures traders typically rely on either "technical" or "fundamental" analysis, or a combination of both, for their trading decisions. Technical analysis is based upon the theory that a study of the markets themselves will provide a means of anticipating future prices. Technical analysis of the markets generally includes a study of, among other things, actual daily, weekly and monthly price fluctuations, volume variations and changes in open interest. Technical traders frequently utilize charts and computers for analysis of these items, including a series of mathematical measurements and calculations designed to monitor market activity.

Fundamental analysis, on the other hand, relies on the evaluation of factors external to the market itself in predicting future prices. Such factors might include weather, government policies, domestic and foreign political and economic events and changing trade prospects. Fundamental analysis is premised on the concept that market prices frequently may not reflect the real value of a futures interest contract, although such value will eventually determine price levels. By analyzing underlying economic factors, a fundamental trader hopes to predict future market trends as price levels and actual value move into parity.

Hyman Beck & Company relies primarily on technical analysis. The trading methodologies employed by Hyman Beck & Company are based on programs analyzing a large number of interrelated mathematical and statistical formulas and techniques which are quantitative and proprietary in nature.

Technical Trend-Following Approach
The profitability of Hyman Beck & Company's trading pursuant to technical trend-following analysis, emphasizing mathematical and charting approaches, will depend on the occurrence in the future, as in the past, of major price trends in some markets. If there are no such price trends, trend-following trading approaches are likely to be unprofitable. There have been trendless periods in the past which can be expected to recur.

Technical, trend-following trading approaches will seldom direct market entry or exit at the most favorable price in the particular market trend. Rather, these types of trading styles seek to close out losing positions quickly and to hold profitable positions, or portions thereof, for as long as the trading systems determine that the particular market trend continues to exist. There can be no assurance that profitable positions can be liquidated at the most favorable price in a particular trend. As a result, the number of losing transactions can be expected to exceed the number of profitable transactions. However, if the systems are successful, these losses should be more than offset by a few large gains.

Hyman Beck & Company employs risk management techniques which have been developed by Messrs. Beck and Hyman with the objectives of limiting losses, controlling market exposure and capturing profits. Hyman Beck & Company's trading approach also includes a "neutral mode" which may indicate that no position is appropriate in a particular contract or contract group in an attempt to preserve capital in trendless markets. Position size is a dynamic function of the volatility and price trend of each market and may vary significantly from one trade to the next within each market.

Implementation of Trading Approaches
Hyman Beck & Company, from time to time, may change or refine the trading systems employed to manage its accounts as a result of ongoing research and development. Clients will not be informed of these changes as they may occur. Additional trading systems may be developed by the principals of Hyman Beck & Company and may be employed in trading accounts managed by Hyman Beck & Company. The principals of Hyman Beck & Company review and maintain discretion over all computer generated trading parameters.

Although technical trading systems normally consist of a series of fixed rules applied manually or by computer, such systems still require certain subjective judgments and decisions. For example, Messrs. Beck and Hyman will select the contracts and markets which will be followed, the contracts and markets which will be actively traded and the contract months in which positions will be maintained. Messrs. Beck and Hyman will also determine when to roll over a position (i.e., liquidate a position which is about to expire and initiate a new position in a more distant contract month). These types of decisions require consideration of, among other things, the volatility of a particular market, the pattern of price movements (both inter-day and intra-day), open interest, trading volume, changes in spread relationships between various contract months and between various contracts and overall portfolio balance and risk exposure. With respect to the timing and execution of trades, Messrs. Beck and Hyman may also rely to some extent on the judgment of others, such as floor brokers. No assurance can be made that consideration will be given to any or all of the foregoing factors by Mr. Beck and Mr. Hyman with respect to every trade for an account managed by Hyman Beck & Company or that consideration of any of such factors in a particular situation will lessen the account's risk of loss. Clients should be aware that such decisions may involve a substantial element of judgment and the unavailability of Messrs. Beck or Hyman to make such decisions could materially impair the operation of the technical trading approach.

Leverage and Risk Management
Along with the subjective decision making authority reserved for Messrs. Beck and Hyman, Hyman Beck & Company also maintains certain risk management procedures for determining the appropriate quantity of contracts to be traded for an account of a given size and for all accounts. Hyman Beck & Company may continually adjust its trading portfolios and the position size of an order immediately prior to placement, and/or after the initial position is established, based on such factors as past market volatility, prices of commodities, amount of risk, potential return and margin requirements. The decision not to trade a certain futures interest at certain times or to reduce the number of contracts traded in a particular futures interest may result in missing significant profit opportunities that otherwise might have been captured if Hyman Beck & Company depended solely on the computer-based aspects of its trading strategy or on different trading strategies altogether.

Hyman Beck & Company may, at its discretion, adjust leverage in certain markets or entire portfolios. Adjustments to certain positions or entire portfolios for leverage may positively or negatively affect performance. In addition, if an adjustment is made to one trading portfolio it is not necessarily made to all portfolios. Factors which may affect the decision to adjust leverage include research, portfolio diversification, current market volatility, risk exposure, subjective judgment, and evaluation of other general market conditions. No assurance is given to clients that such leverage adjustments will be to their financial benefit, and such leverage adjustments may actually result in lost opportunities or substantial losses.

New client accounts may encounter certain risks related to the initial investment of assets during account start-up periods. For example, during an account’s start-up period, the level of diversification may be lower than a previously existing account with a fully committed and diversified portfolio. Also, a new account may commence trading in markets which have experienced a trend in the account’s favor but then subsequently retrace.

Since Hyman Beck & Company considers preservation of initial assets paramount to producing trading results, Hyman Beck & Company employs risk management techniques in an effort to reduce risk. These techniques include attempts to trade multiple uncorrelated markets in an effort to diversify as well as to limit the equity committed to each market and market sector. No assurance can be given to clients that such techniques will be to their financial benefit, and such techniques may actually result in lost opportunities or substantial losses.

Hyman Beck & Company believes that a long-term commitment to its trading approach is necessary for profitable trading opportunities. Although client accounts may be closed at any time, Hyman Beck & Company suggests that prospective clients refrain from opening an account unless they can commit a minimum of two years to the investment. Due to the importance of diversification among many markets, Hyman Beck & Company suggests a minimum client account size of $1 million. Account sizes under $1 million may be exposed to increased volatility of returns and additional risk of loss. Account sizes under $5 million in the Global Portfolio may not participate in options trading as determined by Hyman Beck & Company.

The potential for profit, and associated risks, for a particular client’s account at different times, and for different client accounts at the same time, may vary significantly according to factors including, but not limited to, the Hyman Beck & Company portfolio traded, market conditions, the size of the given account, the brokerage commissions charged, the management and incentive fees charged, the contracts, if any, excluded by the client, and the account commencement date. Accordingly, no client should expect the same performance results as any other account or the composite performance presented herein.

Hyman Beck & Company currently offers its clients two portfolios in which to participate: its “Global Portfolio” and its “Volatility Analytics Portfolio.” Each portfolio is traded pursuant to Hyman Beck & Company's trading methodologies. Although some markets are traded in more than one portfolio, each portfolio may also trade markets which are unique to such portfolio as described below. Messrs. Beck and Hyman, at their discretion and according to their research, may add to or delete from the markets traded in each portfolio. The actual portfolio balance and number of markets traded may depend, in part, on the size of the client's account.

The Global Portfolio exercises a disciplined systematic trading style. It primarily employs a trend following approach by using proprietary computerized trading models, emphasizing mathematical and quantitative techniques to identify and exploit intermediate and long term price trends. Multiple trading models are utilized to obtain potential beneficial returns and provide an important level of diversification to the portfolio. Trading models may include trend following, mean reverting, counter trend, as well as models not dependent upon trend identification. Through ongoing research and development, Hyman Beck & Company plans to incorporate additional trading models as well as modify existing models over time.

Risk management and portfolio management strategies are utilized in the Global Portfolio to measure and manage portfolio risk and exposure. Quantitative methodologies such as leverage calculations, portfolio structure, risk balance, capital exposure and risk limits may be included at the overall portfolio level.

The Global Portfolio trades a diversified portfolio of commodity interests, to include but not limited to: futures contracts, forward contracts, foreign exchange commitments, options on physical commodities and on futures contracts, spot (cash) commodities and currencies. Trade duration spans across various time frames and could last over one year. Quantitative models driven mainly by volatility and correlation measurements are employed to control investment biases on the decisions that determine the portfolio’s leverage and entry and exit trade signals. Hyman Beck & Company’s trading models have evolved over the years as a result of a continuing commitment to research and development. The markets included in the Global Portfolio are drawn from several market sectors including, but not limited to, interest rates, currencies, grains, soft commodities, energies, precious and base metals and equity indices. Principal component analysis and market liquidity affect the portfolio’s composition over time periods.

The Volatility Analytics Portfolio primarily incorporates relative value and volatility arbitrage trading strategies which utilize quantitative models to systematically extract profits by identifying overvalued and undervalued spread relationships as well as price inefficiencies in the options markets. The portfolio predominantly trades in the interbank foreign exchange market and transacts over-the-counter forwards and options. Multiple strategies are employed to determine spread trading opportunities which sell option structures when the models indicate their current value is overpriced or buy option structures when the models indicate their current value is underpriced when assessed against historical valuation simulations. Spread strategies are implemented over various time horizons to further diversify risk and enhance returns. The arbitrage strategies do not seek to earn profits from momentum or directional price movement of the underlying currency pair (or security); rather it profits from movement in underlying volatility levels. Although spread and arbitrage strategies do not necessitate price trend, additional trading strategies capitalize on directional price movements. Volatility Analytics will trade option spreads (the purchase of one option and the simultaneous sale of another) as well as other option structures which eliminate the risk found in the selling of naked option strategies. As a volatility arbitrage strategy, the portfolio can either sell or purchase spreads to earn or pay time decay. Trading decisions are based on the relative value of the particular spread being evaluated.

Volatility Analytics employs multiple trading strategies and will dynamically exploit a variety of trading opportunities. Through ongoing research and development, Hyman Beck & Company plans to incorporate additional trading models as well as modify existing models as volatility changes over time.

Through ongoing research and development, Hyman Beck & Company may incorporate additional trading models as well as modify existing models over time.

The principals and key personnel of Hyman Beck & Company, Inc. are listed below. Hyman Beck & Company is wholly owned by Mr. Hyman and Mr. Beck.

Alexander Hyman

Alexander Hyman is the President and a principal of Hyman Beck & Company. Mr. Hyman is also a fifty percent shareholder of Hyman Beck & Company Mr. Hyman, along with Mr. Beck, is directly responsible for all trading and money management decisions made by Hyman Beck & Company. Mr. Hyman was graduated from Hofstra University in May 1983 with a B.B.A. degree in International Business and Economics. Mr. Hyman became registered as an Associated Person and listed as a Principal of Hyman Beck & Company effective March 1, 1991.

Carl J. Beck

Carl J. Beck is Vice President, Secretary, Treasurer, and a principal of Hyman Beck & Company. Mr. Beck is also a fifty percent shareholder of Hyman Beck & Company. Mr. Beck, along with Mr. Hyman, is directly responsible for all trading and money management decisions made by Hyman Beck & Company. Mr. Beck graduated magna cum laude from Fordham University in May 1983 with a B.A. degree in Economics and earned an M.B.A. degree in Finance from New York University in May 1989. Mr. Beck became registered as an Associated Person and listed as a Principal of Hyman Beck & Company effective March 1, 1991.
 

James F. Lubin

James F. Lubin is a principal of Hyman Beck & Company. Mr. Lubin is responsible for product development, strategic planning, investment strategy and business development. Mr. Lubin was graduated from Adelphi University in May 1979 with a B.A. degree in Economics and earned an M.B.A. degree in Finance from Adelphi University in May 1983. Mr. Lubin joined Hyman Beck & Company in July 2003. Mr. Lubin became registered as an Associated Person and listed as a Principal of Hyman Beck & Company effective August 11, 2003.
 

Dr. Socrates Ioannidis

Socrates Ioannidis is the director of quantitative research and a principal at Hyman Beck & Company. Dr. Ioannidis is responsible along with Messrs. Hyman and Beck for research activities and product development. Dr. Ioannidis holds a B.S. in Chemical Engineering from Aristotle University of Thessaloniki, Greece, a Ph.D. in Chemical Engineering from New Jersey Institute of Technology, and a M.S. in Mathematical Finance from New York University’s Courant Institute of Mathematical Sciences. Dr. Ioannidis has several publications in refereed journals in the area of chemical thermodynamics. Dr. Ioannidis joined Hyman Beck & Company in May 2000. Dr. Ioannidis became listed as a Principal of Hyman Beck & Company effective August 20, 2003 and registered as an Associated Person of Hyman Beck & Company effective June 23, 2010.

Norman Hyman

Norman Hyman is a principal and director of trading at Hyman Beck & Company. Mr. Hyman is responsible for all daily trading room personnel and activities including executions, reporting, and documentation. Mr. Hyman joined Hyman Beck & Company in January 1993 as a junior trader. Mr. Hyman became registered as an Associated Person and listed as a Principal of Hyman Beck & Company effective October 28, 1993 and October 21, 1999 respectively.

The descriptions above are from the manager's disclosure document.

THE RISK OF LOSS IN TRADING FUTURES, OPTIONS AND OFF-EXCHANGE FOREX CAN BE SUBSTANTIAL.  PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.  PLEASE READ THE CTA'S RISK DISCLOSURE DOCUMENT CAREFULLY BEFORE INVESTING MONEY.