Southwest Managed Investments, LLC (“SWMI”), a Texas Limited Liability Company organized in January 2009, has been registered with the Commodity Futures Trading Commission as a Commodity Trading Advisor (“CTA”) since July 28, 2009, and has been a member to the National Futures Association (“NFA”) since that date.
SWMI was formed for the purpose of providing commodity trading advisory services. SWMI’s principals are Jonathan Teer and Gustavo Azurdia. Mr. Azurdia is SWMI’s trading principal while Mr. Teer concentrates on model development, system testing, program integration, industry trends, client development and relations, compliance and administrative back office operations.
Jon Teer received a Bachelors of Business Administration from The University of Texas at Austin in 1982. Since 1988, Mr. Teer has been involved in the futures industry and with futures trading on a full time basis. After 4 years of experience within the industry, Mr. Teer devoted his time and energies principally to developing, analyzing, testing, and refining trading strategies and methodologies. In November, 1992, Mr. Teer became registered as a CTA for the purpose of offering his trading services to the public and began operating as a sole proprietor under the name FF&CG Capital Management, trading his own and clients' accounts. In May, 1996, Mr. Teer also registered FF&CG Capital Management as an IB for the purpose of placing client funds with third party CTAs. Systematic trend following remains the only approach utilized by Mr. Teer to trade his own or clients’ funds. Mr. Teer’s model development, research, analysis, and testing are continuously refined.DOWNLOAD JON’S FULL BIO
SWMI currently offers one trading program: the Global Diversified Program. Additional leverage is garnered by taking exposure to multiple units of the Global Diversified Program versus a single unit of the Global Diversified Program. For example, larger
capitalized clients along with institutional investors may elect to invest in five unit increments, whereby the Global Diversified Program’s leverage is five (5) times that of a single unit of the Global Diversified Program.
The exact nature of SWMI’s trading strategy is proprietary and confidential. The following description is of necessity general and is not intended to be all-inclusive. SWMI’s strategy is strictly technical in nature. The general trading strategy of the SWMI program is trend following. No fundamental analysis is used. The strategy is not based on analysis of supply and demand factors, general economic factors or world events. The SWMI model generates its own entry and exit signals and trades both sides of the market (long and short). The SWMI model is very long term in time-frame focus. The SWMI model attempts to locate potentially profitable performance characteristics across a wide range of markets. Approximately 27 domestic and international commodity interests may be traded. Six of these may either be long or short interest rate contracts reflecting interest rates in Europe, the US and Australia. All markets are traded with equal parameters. SWMI reserves the right to make adjustments in the exact entry or exit price the program uses, or to delay entry or exit on any order, in order to attempt to reduce the impact of slippage. The balance of the commodity interests followed are currencies, grains, metals, softs and energies. The program utilizes one long-term time-frame model. It should be noted that there will be times when there is significant correlation between markets within a market sector or between market sectors, possibly in an adverse direction to positions held in a client's account. Clients of this program should be aware that this factor alone, although there are others, will lead to periods of extreme volatility and possibly very large drawdowns in an account's equity.
In 1999 Mr. Batla, former trading principal, decided to study different time frames as it related to trend following along with volatility and risk reward studies. Upon completion of the research and development of the initial trading system, trading began in September 1999, with some modifications and optimization taking place during this period. Beginning in January 2002, the optimize version of the initial system continued trading investor funds to present. In June 2003, minor changes were made to the system to make it less responsive to short term fluctuations. Also, in an attempt to reduce overall drawdown without significantly impacting the system’s performance, weekly data began to be utilized rather than the customary daily data utilized by most trend following CTAs.
Program: Global Diversified
Unit Size: $200,000 USD
Minimum Units: 1
Contracts Presently Traded:
US Dollar Index, Japanese Yen, British Pound, Swiss Franc, Euro FX, Australian Dollar, Live Cattle, Milk, Sugar, Coffee, Corn, Soybeans, Rough Rice, Brent Crude, NY Crude, Natural Gas, Cotton, Palladium, Copper, Silver, Gold, Eurodollar, 2 Year Treasury Note (US), 10 Year Treasury Note (US), 30 Year Bond (US), Australian 3 Year Govt Bond, and Euro Bobl.
|SWMI Global Diversified||-3.60||-5.55||14.94|
|Abraham Trading Co.||-0.44||-2.36||-15.37|
|Tactical Inv. Management||3.78||2.90||1.27|
|Red Rock Capital SGM||-1.54||-5.82||-8.48|
|Red Rock Capital CLM||4.29||-4.85||-3.74|
We attempt to keep an eye on the big picture. We feel it is important to be knowledgeable of the performance of not only other trend followers, but also CTAs with differing methodologies. In short, these are the CTAs on our radar and the ones which we watch, monitor, and track for various reasons.
Of course Southwest Managed Investment's Global Diversified Program is included on this list. This helps us to understand how we are doing and “measuring up” versus others in our industry. A handful of programs on this list are programs recommended by Jon Teer's IB, FF&CG Capital Management. Certainly we have an interest in tracking these programs.
The remaining CTAs on our list are tracked and monitored by us for various reasons. In some instances, we may discover a CTA whose performance merits inclusion in our tracking. A few of the CTAs on our board are CTAs that are being highly recommended by the IB community. Often times there is no clear reason in our mind as to why the IB community is universally recommending certain CTAs, nor does Mr. Teer's IB recommend these CTAs. *
THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IN CONSIDERING WHETHER TO TRADE OR TO AUTHORIZE SOMEONE ELSE TO TRADE FOR YOU, YOU SHOULD BE AWARE OF THE FOLLOWING:
IF YOU PURCHASE A COMMODITY OPTION YOU MAY SUSTAIN A TOTAL LOSS OF THE PREMIUM AND OF ALL TRANSACTION COSTS.
IF YOU PURCHASE OR SELL A COMMODITY FUTURES CONTRACT YOU MAY SUSTAIN A TOTAL LOSS OF THE INITIAL MARGIN FUNDS OR SECURITY DEPOSIT AND ANY ADDITIONAL FUNDS THAT YOU DEPOSIT WITH YOUR BROKER TO ESTABLISH OR MAINTAIN YOUR POSITION. IF THE MARKET MOVES AGAINST YOUR POSITION, YOU MAY BE CALLED UPON BY YOUR BROKER TO DEPOSIT A SUBSTANTIAL AMOUNT OF ADDITIONAL MARGIN FUNDS, ON SHORT NOTICE, IN ORDER TO MAINTAIN YOUR POSITION. IF YOU DO NOT PROVIDE THE REQUESTED FUNDS WITHIN THE PRESCRIBED TIME, YOUR POSITION MAY BE LIQUIDATED AT A LOSS, AND YOU WILL BE LIABLE FOR ANY RESULTING DEFICIT IN YOUR ACCOUNT.
UNDER CERTAIN MARKET CONDITIONS, YOU MAY FIND IT DIFFICULT OR IMPOSSIBLE TO LIQUIDATE A POSITION. THIS CAN OCCUR, FOR EXAMPLE, WHEN THE MARKET MAKES A “LIMIT MOVE.”
THE PLACEMENT OF CONTINGENT ORDERS BY YOU OR YOUR TRADING ADVISOR, SUCH AS A “STOP-LOSS” OR “STOP-LIMIT” ORDER, WILL NOT NECESSARILY LIMIT YOUR LOSSES TO THE INTENDED AMOUNTS, SINCE MARKET CONDITIONS MAY MAKE IT IMPOSSIBLE TO EXECUTE SUCH ORDERS.
A “SPREAD” POSITION MAY NOT BE LESS RISKY THAN A SIMPLE “LONG” OR “SHORT” POSITION.
THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY INTEREST TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS.
IN SOME CASES, MANAGED COMMODITY ACCOUNTS ARE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT AND ADVISORY FEES. IT MAY BE NECESSARY FOR THOSE ACCOUNTS THAT ARE SUBJECT TO THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS. THIS DISCLOSURE DOCUMENT CONTAINS, AT PAGE 10 (of the Downloadable Disclosure), A COMPLETE DESCRIPTION OF EACH FEE TO BE CHARGED TO YOUR ACCOUNT BY THE COMMODITY TRADING ADVISOR.
THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER SIGNIFICANT ASPECTS OF THE COMMODITY INTEREST MARKETS. YOU SHOULD THEREFORE CAREFULLY STUDY THIS DISCLOSURE DOCUMENT AND COMMODITY INTEREST TRADING BEFORE YOU TRADE, INCLUDING THE DESCRIPTION OF THE PRINCIPAL RISK FACTORS OF THIS INVESTMENT, AT PAGE 8 (of the Downloadable Disclosure).
YOU SHOULD ALSO BE AWARE THAT THIS COMMODITY TRADING ADVISOR MAY ENGAGE IN TRADING FOREIGN FUTURES. TRANSACTIONS ON MARKETS LOCATED OUTSIDE THE UNITED STATES, INCLUDING MARKETS FORMALLY LINKED TO A UNITED STATES MARKET MAY BE SUBJECT TO REGULATIONS WHICH OFFER DIFFERENT OR DIMINISHED PROTECTION. FURTHER, UNITED STATES REGULATORY AUTHORITIES MAY BE UNABLE TO COMPEL THE ENFORCEMENT OF THE RULES OF REGULATORY AUTHORITIES OR MARKETS IN NON-UNITED STATES JURISDICTIONS WHERE YOUR TRANSACTIONS MAY BE EFFECTED. BEFORE YOU TRADE YOU SHOULD INQUIRE ABOUT ANY RULES RELEVANT TO YOUR PARTICULAR CONTEMPLATED TRANSACTIONS AND ASK THE FIRM WITH WHICH YOU INTEND TO TRADE FOR DETAILS ABOUT THE TYPES OF REDRESS AVAILABLE IN BOTH YOUR LOCAL AND OTHER RELEVANT JURISDICTIONS.
THIS COMMODITY TRADING ADVISOR IS PROHIBITED BY LAW FROM ACCEPTING FUNDS IN THE TRADING ADVISOR'S NAME FROM A CLIENT FOR TRADING COMMODITY INTERESTS. YOU MUST PLACE ALL FUNDS FOR TRADING IN THIS TRADING PROGRAM DIRECTLY WITH A FUTURES COMMISSION MERCHANT OR RETAIL FOREIGN EXCHANGE DEALER, AS APPLICABLE.
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