There can be no assurance that any alternative investment fund will achieve its investment objectives. Alternative investment funds typically charge higher fees than other types of investments, which can offset trading profits, if any. Performance compensation may create an incentive to make riskier or more speculative investments. Alternative investment funds are typically not registered with securities regulators and are therefore generally subject to little or no regulatory oversight. Capstone’s investment vehicles are also subject to counter-party risk illiquidity risks ability to acquire assets at favorable spreads and spread-widening risks hedging risks and custodial risks. The investment and trading risks associated with each vehicle’s investment instruments and techniques are described in detail in the vehicle’s offering documents.

Interests in alternative investment funds are subject to limitations on transferability and are illiquid, and no secondary market for interests typically exists or is likely to develop. Investments in illiquid assets and foreign markets and the use of short sales, options, leverage, futures, swaps, and other derivative instruments may create special risks and substantially increase the impact and likelihood of adverse price movements. Alternative investments may exhibit high volatility, and investors may lose all or substantially all of their investment. Investments in alternative investments are speculative and involve a high degree of risk.

Investment and Trading Risks: Capstone serves as the investment manager to a number of investment vehicles that pursue alternative investment strategies. This document may not be reproduced or distributed without the express written permission of Capstone. The content herein is based upon information we deem reliable but there is no guarantee as to its reliability, which may alter some or all of the conclusions contained herein. This document is not an offer to sell or the solicitation of any offer to buy securities. Each illustration discussed in this document has been selected solely for this purpose and has not been selected on the basis of performance or any performance-related criteria. The market data highlighted or discussed in this document has been selected to illustrate Capstone’s investment approach and/or market outlook and is not intended to represent fund performance or be an indicator for how funds have performed or may perform in the future. You should not rely on the information discussed herein in making any investment decision. Such views may be subject to change without notice. The market commentary contained herein represents the subjective views of certain Capstone personnel and does not necessarily reflect the collective view of Capstone Investment Advisors, LLC (“Capstone”), or the investment strategy of any particular Capstone fund or account.

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