As a firm, Lido Isle Advisors’ primary goal is to create well-balanced, diversified investment portfolios that have the potential to deliver returns and limit risks in any market environment. We believe that liquid alternative assets – namely managed futures strategies managed by commodity trading advisors – are often the optimal investment to meet this objective.

Historically underutilized by investors, managed futures has emerged as among the fastest growing alternative investments due to outstanding performance in 2008, a general track record of strong risk management and the relatively high degree of transparency and liquidity. The chart below shows the cumulative growth in assets under management for CTAs over the last 30 years.

PERFORMANCE POTENTIAL IN ANY MARKET CONDITION

During the liquidity crisis of 2008, when seemingly every asset class fell in unison, the widely followed Barclay BTOP50 Index, which tracks a large and diverse group of CTAs, was up over 14% (The BTOP50 Index seeks to replicate the overall composition of the managed futures industry with regard to trading style and overall market exposure. The BTOP50 is a non-investable index of the 20 largest managed futures funds currently open to investment, and does not necessarily represent the performance of the entire managed futures universe.  Portfolios created by Lido Isle Advisors may exhibit different risk and return characteristics. For more information, visit  BarclayHedge ). Among the reasons for historically strong performance during periods of such market dislocation are CTAs’ diverse strategies, their ability to invest in a wide variety of uncorrelated markets, and the flexibility they have in taking short positions. To illustrate this, we have provided a comparative breakdown of the Barclay BTOP50 Index versus the S&P 500 Index during the 15 worst quarters for the S&P 500. One should note that CTA performance which constitutes this index is self-reported.

Past performance is not necessarily indicative of future results

RISK MANAGEMENT

www.barclayhedge.com/research/indices/cta/sub/cta.htm l ). This does not necessarily indicate that a more prolonged drawdown for the managed futures strategy index will not occur in the future. Futures trading does involve risk and may not be appropriate for all investors.

Historically, drawdowns in many Managed Futures strategies have been significantly smaller than in most other hedge fund strategies. As illustrated below (source: CMEgroup.com ), maximum drawdowns for Managed Futures strategies have been less than half those of the HFR Equity Hedge Index when comparing the Barclay BTOP 50 CTA Index for the period of January 1987 through June 2010 (source:  CMEgroup.com ). Additionally, should a CTAs business fail for any reason, investor funds should be untouched, as futures trading accounts require the segregation of customer funds from those of the CTA.

TRANSPARENCY & LIQUIDITY

Commodity trading advisors are among the most transparent and liquid alternative investment options, a significant advantage to investors today. Lido Isle receives daily brokerage statements for each CTAs trading activities in client accounts, allowing it to see every trade and to monitor compliance with stated strategies and risk parameters. And due to the highly liquid nature of the instruments traded by CTAs, it is typically easier to redeem funds from CTA investments than it is from other alternative strategies, such as real estate, private equity or venture capital.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.  MANAGED FUTURES INVESTMENTS ARE SPECULATIVE, INVOLVES RISK OF LOSS, AND ARE NOT SUITABLE FOR ALL INVESTORS.