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Monitoring the Hedge Funds & Managed Futures on Our Platform

Tracking and monitoring is a critical component of our commitment to maintaining a high-quality platform of hedge fund and managed futures programs. Our Research and Investments Team closely monitors the investments on our platform. The team leads formal quarterly onsite manager interviews and/or conference calls regarding investment performance, processes and portfolio specifics. We review positions for the managers for which we have transparency. On an ongoing basis, our team performs quantitative analysis of performance against predefined parameters, looking for unexplained variances.

Monitoring the managers on the Altegris platform is an ongoing activity. We track quantitative and qualitative aspects of the alternative investments on our platform. Our process is designed to ensure that the investments on our platform are performing as we originally expected. - Matthew Osborne, Chief Investment Officer

Reviewing Investment & Manager Performance

We also look for any material firm changes in business or investment strategy ('style drift') when possible, as well as material changes in operations, service providers and key personnel as well as any other piece of information that may cause us to re-evaluate the manager or the particular investment. Material market events or specific manager issues could require more frequent review. Of course, while this monitoring is extremely important, it cannot completely remove the risks associated with any investment in hedge funds or managed futures*. Should an issue arise during our ongoing monitoring, it is raised with our Investment Committee, which can result in recommendations regarding redemptions, future investments or removal of the investment from our platform.

Working With You

The quality of investments available on our platform of alternative investments forms the foundation for long term client relationships. As a sophisticated investor or investment professional, we begin with an evaluation of your current needs, financial situation and your investment goals or those of your clients. We invite you to contact us today or click one of the links below to learn more.

* Understanding Our Process

Altegris Investments offers its client’s what we believe are high quality alternative investments. As part of our effort to meet that goal, our investment professionals provide high quality due diligence on the investments on our platform. The term due diligence as it relates to securities offerings has its origins in the Securities Act of 1933 and provided a defense to underwriters in public offerings who could demonstrate that they made a reasonable investigation and reasonable determination that the terms of the registration statement were correct. The terms "reasonable investigation and made a reasonable determination" came to mean the standard of reasonableness that a prudent man would exercise in dealing with his property. Originally the term was limited to public offerings of equity investments, but over time it has come to be associated with investigations relating to private and other offerings as well. Of course, due diligence is not a panacea against investment failures or even against fraud. Even a well run fund can fail due to unpredictable market conditions, unforeseen competition, or technical setbacks. All investments contain risks and alternative investments are subject to a set of unique risks. Similarly, some frauds are difficult or impossible to detect regardless of the thoroughness of the due diligence effort. As a result, our due diligence effort is not a guarantee that the funds we offer will succeed or that we can uncover every instance of fraud or potential fraud. Rather, it is a designed to help us determine that the management and operations of the investments on our platform have sound operating and trading infrastructures and to increase the odds that that their managers are doing what they say they do and will continue to do so. Our due diligence is performed by a team of highly experienced professionals. Although there are components of our due diligence efforts that are common to all of the investments we offer, each due diligence effort will rise of fall on in light of the particular facts and circumstances of each offering. The following describes in general terms the starting point for our due diligence inquiry. The list is not exhaustive and not all items listed are components of every investment review. While checklists can provide a useful starting point, there is no "one size fits all" due diligence inquiry. For example some of the investments on our platform, like managed futures accounts and commodity funds, provide us with complete trade transparency. Other investments, like fund of funds, offer us little or no trade transparency.

The Altegris Process

Click on the steps below to learn more about the Altegris Research and Investment Process.

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Toll Free: 800-828-5225 | Phone: 858-459-7040 | Fax: 858-456-9209 | info@altegris.com

Alternative investment products, including hedge funds and managed futures, involve a high degree of risk, often engage in leveraging and other speculative investment practices that may increase the risk of investment loss, can be highly illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual funds, often charge high fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager. Alternative investment performance can be volatile. An investor could lose all or a substantial amount of his or her investment. Often, alternative investment fund and account managers have total trading authority over their funds or accounts; the use of a single advisor applying generally similar trading programs could mean lack of diversification and, consequently, higher risk. There is often no secondary market for an investor's interest in alternative investments, and none is expected to develop. There may be restrictions on transferring interests in any alternative investment. Alternative investment products often execute a substantial portion of their trades on non-U.S. exchanges. Investing in foreign markets may entail risks that differ from those associated with investments in U.S. markets. Additionally, alternative investments often entail commodity trading, which involves substantial risk of loss. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

Altegris, a FINRA and NFA member, offers various alternative investments, including hedge funds, futures funds and managed futures and commodities accounts, that may operate in commodities markets and foreign markets, among others. Altegris and/or its officers/partners may have a financial interest in such alternative investments. In working with clients, Altegris acts in its capacity as an SEC-registered Broker-Dealer and/or as a CFTC-registered Introducing Broker and CTA. Although Altegris may give securities-related advice that is incidental to its securities brokerage services, it is not an Investment Adviser. When acting as an Introducing Broker for individually managed accounts, Altegris receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. CTAs may also pay Altegris a portion of the fees they receive from accounts introduced to them by Altegris. When acting as a Broker-Dealer, Altegris enters into selling agreements with hedge funds and futures funds that it offers (including funds sponsored by affiliates), pursuant to which Altegris, with respect to the interests it sells, is paid a portion of the management and/or performance fees charged by the funds or their managers in respect of those interests. Altegris may also provide ongoing managed futures consulting services to its clients for a monthly service charge pursuant to individual managed account consulting arrangements.