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Vortex Currency Model

Principal Secured Managed Currency Trading

The Vortex Currency Group managed account program offered by Elsworth Berg Capital Management, LLC is a unique approach to buying and selling currencies. Designed to harness the power of the spot Foreign Exchange market (Forex or FX) while at the same time, maintaining security of investment principal. A complete Vortex Currency Group managed account application packet is available to qualified clients upon request. The minimum account investment is $50,000 USD and is limited to only “qualified clients“ and “accredited investors.”

Investment Objective and Strategy

The primary investment objective for all Managed Accounts is growth of capital. Our diversified group of traders engages in buying and selling currencies with the objective to produce consistent, above average returns. We believe our objective is best achieved by utilizing a disciplined trading approach to trading the world’s major currencies which consist of the US Dollar, Canadian Dollar, Australian Dollar, Swiss Franc, Japanese Yen, Euro and Pound Sterling. Every trade is preceded by a systematic and comprehensive analysis that combines fundamental with technical information. Although technical-based analysis with good insight of the price action may work efficiently for some trades, the fundamental element of analysis cannot be ignored. It is our opinion that it is the fundamental element that fulfills technical forecasts. Market analysis and research is conducted 24 hours a day across time zones, forecasting the impact of market forces, such as economic data releases, political news, and financial instruments on the dollar index and currency movements.

With every trade we bear in mind the standard hallmark of successful trades; preservation of capital, consistency of returns, ability to recognize the right timing for entry, exits, and potential for profit, trading is a matter of risk management. Knowing when to enter the market is as important as knowing when to take profit and when to take action to minimize loss. An entry and exit strategy should always be in place before a trade begins. Stop-loss and limit orders are frequently utilized with market orders for protection. The weight of risk to reward is always considered in placing a trade. It is also part of risk management to recognize that there will be times where extreme conditions will warrant staying away from the market. We set realistic goals and aim to achieve above average returns by observing sound trading practices.

Lock-up Period

All Managed Account contributions are split into two separate components with 30% being allocated to the Collateral Reserve Trust, and 70% remaining in the Trading Account with an initial lock-up period of one year. Any additional contributions will be subject to new and corresponding contribution dates and Lock-up Periods.

Management Fee

All Managed Accounts are charged a management fee of 2% per annum, assessed quarterly, in advance (i.e., 0.5%), based upon a valuation of the Managed Account at the beginning of each quarterly period.

Performance Fee

All Managed Accounts are charged a performance fee equal to 25% of net quarterly gains. To ensure that the performance fees are based on the long-term performance of a Client’s account, we adhere to a “high watermark” procedure in which a performance fee in charged only to the extent Net Profits in a Client’s account exceed any Net Losses that have not been recovered. In the event a Client’s account has Net Losses that have not been recovered, a performance fee will not be assessed until Client’s account has first recovered such Net Losses. A Client’s Collateral Reserve held in the Collateral Reserve Trust will not be included in their account value for the purpose of calculating the performance fee. Once made, a performance fee will not be reduced by losses incurred in subsequent periods.