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How Energy Alpha Works

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The Energy Program seeks value in short- and long-term fundamental expectations. The program uses proprietary statistical and fundamental models to provide a framework for the Advisor's decision making. The Advisor will look to the current state of the US and global economies, the supply and demand dynamics of energy markets in various locations, as well as any macro themes driving the markets.

The Energy Program typically results in 35% of the total assets of the Clients’ accounts being used to margin positions.  However, these percentages may be substantially different at Blue Creek’s discretion. Trade structures are designed to limit risk and do not take outright short option positions in the market. Please note that while Blue Creek adheres to certain risk management techniques, there can be no guarantee that these techniques will be successful.

The Focus

The Energy Program uses proprietary statistical and fundamental models to provide a framework for the Advisor's decision making. Trades will be executed via futures contracts as well as volatility & skew cognizant option spreads to remove unwanted risk while allowing for asymmetrical returns. The Energy Program will focus primarily on major futures contracts with liquid options, but not be limited to such and include some of the fundamental triggers listed below 

1

Supply of US and Global Economies

2

Supply & Demand Dynamics of Energy Markets in Various Locations

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4

Volatility and Skew cognizant Option Spreads for Asymmetric Returns without Unwanted Risk

5

Macro Themes Driving Markets

Fundamental Triggers

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