Since January 2000 this program has utilized stock index futures and options written on them exclusively. The program was modified in August 2002 to reduce the program’s volatility through the sale of options somewhat more distant from the future’s price than previously.

 

The program’s methodology is a proprietary, systematic, dynamic net (most option positions are hedged) option strangle selling program designed to capture premium decay as indicated above. The program is technical as opposed to fundamental in nature, and is fully quantified utilizing a number of parameters and algorithms. These include, among others, various volatility measures of the volatility of the S&P 500 index itself, methodology used to determine which options to sell, what quantity and expiration month to utilize, and other quantitative determinants, including the determination of exits when necessary whenever a position moves adversely.

 

John D. Raithel has been President of Raithel Investments, Inc. since its inception in June, 1993 and has been a Principal and Associated Person of Raithel Investments, Inc. since August 20, 1993. He also has been President and a Principal of Raithel White & Associates, Inc. since its founding in June, 1995. Raithel White & Associates, Inc. is a corporation that became registered as a CTA and a CPO in August, 1995. These registrations were terminated in January, 1998. In addition, from June, 1993 to April, 1995 he was employed by the Pilgrim Group, a mutual fund company based in Los Angeles, initially serving in the capacity of Sr. Vice President and Head of Fixed Income and then beginning in October, 1994 as Sr. Vice President and Chief Investment Officer. Prior to this, Mr. Raithel was Vice President and Director of Fixed Income at First Union National Bank (now Wachovia) in Charlotte, North Carolina from 4/85 to 4/93. From 8/81 to 4/85, he was employed by Chase Investors Management Corporation in New York, New York (now UBS Asset Management) as Vice President and Sr. Portfolio Manager in the Options and Futures Group. From 2/69 to 8/81, he worked for General American Life Insurance Company in St. Louis, Missouri in the Investment Department. 

 

John D. Raithel received a B.A. (Math) and an M.B.A. (Finance and Statistics) from Texas Christian University. He became a C.F.A. (Chartered Financial Analyst) in 1975 and an A.S.A. (Associate of the Society of Actuaries) in 1980.  He has also passed the following NASD examinations: 3, 7, 24, 30, 63, and 65.

 

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