Trading Approach

Hathersage's trading approach is discretionary. It draws upon the nearly twenty-five years trading experience of Bill Lipschutz, sole principal of the company, in trading proprietary risk for Salomon Brothers and for various private individuals and institutions in the international currency markets and upon his understanding of the fundamental and technical factors affecting various financial and commodity markets.

Although Hathersage's trading decisions are discretionary and are based upon its experience, its approach relies on a disciplined system of risk management. In weighing the various factors which make up a trading decision, particular attention is paid to each trade's risk/reward potential, how it fits into the risk profile of the entire portfolio and whether it in fact adheres to our overall goal of achieving the highest return on capital consistent with asset management principles designed to minimize the risk of loss.

The risk controls that were developed and employed by Bill and his team in trading multi-billion dollar institutional positions are virtually the same ones used by Hathersage today. All positions are monitored twenty-four hours a day and are evaluated on a real time basis using sophisticated computer analysis. The ability to instantaneously analyze and adjust portfolios, structured through the use of both currency and option positions, under changing market conditions allows Hathersage to limit exposure to capital loss. This process of scenario analysis and Hathersage's understanding of the dynamics of various trade constructs allows for the creation of portfolios with asymmetric risk and profit characteristics.

Hathersage continuously reevaluates and refines its trading methods and strategies. It is this ability of Hathersage to adapt its trading approach to varying market conditions which allows the firm the potential for profitable trading in virtually any market environment.