QQFund.com^® Alpha Beta Program

 

QQFund.com Alpha Beta Program was established and managed by QQFund.com LLC in the USA since September 8, 2008 (the inception date of QQFund.com Alpha Beta Program) to the present.

 

QQFund.com Alpha Beta Program is a separately managed account (SMA) investment program. Its investment objective is for long-term capital growth. The benchmark reference of QQFund.com Alpha Beta Program is the SP500 index (but not the SPDR S&P 500 ETF Trust (SPY) or anything similar in that nature, etc.). There is no guarantee whatsoever that QQFund.com Alpha Beta Program will meet its stated investment objective.

 

For QQFund.com Alpha Beta Program, per QQFund.com’s proprietary
Qualitative/Quantitative Fund Management Methodology and

Qualitative/Quantitative Fund Portfolio Realization Process,

QQFund.com (at its sole discretion without any restrictions or limitations whatsoever and without notifying Client in advance whatsoever) may perform the following.

 

·    In the high-level, it may integrate its proprietary asset allocation methods (such as ALPHA asset allocation methods (to generate long-term ALPHA), BETA asset allocation methods (to catch long-term BETA) and/or their variants) together.

 

·    In the low-level, it may integrate its proprietary sub-processes (such as Stock Index Sub-Process, Risk Parity Sub-Process, Macro Trend Following Sub-Process, Global Macro Sub-Process and/or their variants) together.

 

·    It may further integrate these high-level asset allocation methods and these low-level sub-processes together to invest any regulated exchange-traded futures contracts worldwide.

 

For QQFund.com Alpha Beta Program, QQFund.com predominantly focuses on proactive risk management through the static/dynamic use of the above methodology, process, sub-processes and asset allocation methods, etc.

 

For QQFund.com Alpha Beta Program, HOWEVER, despite everything described above, QQFund.com (at its sole discretion without any restrictions or limitations whatsoever and without notifying Client in advance whatsoever) may perform any and/or all of the following.

 

·    It may statically/dynamically use any variation, combination and/or integration of any methodology, any process, any sub-process, any asset allocation method, any risk management method and any strategy, etc. to invest in any regulated exchange-traded futures contracts worldwide.

 

·    It may also statically/dynamically decide: which specific regulated exchange-traded futures contracts worldwide to invest in; the degree of diversification; the investment direction (long, short, or cash); when and how often to invest; the position size to use; the leverage to use; and the extent of systematic or discretionary involvement, etc.

 

·    Depending on the market conditions, at any given time, it may liquidate some or all positions of some or all Client Accounts and/or it may force some or all Client Accounts to stay in all cash (for a short period of time or for an extended period of time).

 

 

The investment in QQFund.com Alpha Beta Program should be considered as a long-term investment. Any investor of QQFund.com Alpha Beta Program should be able to commit funds to QQFund.com Alpha Beta Program for a minimum of FIVE (5) years, although it is NOT required.

 

HOWEVER, even if the funds are committed to QQFund.com Alpha Beta Program for a minimum of FIVE (5) years, there still can be no assurance whatsoever that QQFund.com will be able to generate profits for its Clients in such period.

 

 

The daily/monthly/annual returns of QQFund.com Alpha Beta Program tend to be random (unpredictable) rather than regular, consistent, smooth and steady.

 

QQFund.com believes that regular, consistent, smooth and steady daily/monthly/annual returns are something it has NEVER purported to do. QQFund.com believes that, relatively speaking, QQFund.com will NOT focus on achieving, will NOT know how to achieve and will NOT be able to achieve regular, consistent, smooth and steady daily/monthly/annual returns.

 

In the case that Clients are looking for regular, consistent, smooth and steady daily/monthly/annual returns, Clients SHALL NOT invest in QQFund.com Alpha Beta Program and Clients SHALL take the initiative to follow/complete the PROCESS 8: Terminate the Advisory Agreement (as defined in the Disclosure Document) to terminate the Advisory Agreement with QQFund.com IMMEDIATELY, since QQFund.com will NOT be able to achieve that.

 

 

 

QQFund.com Alpha Beta Program is entirely speculative, involves substantial risk and is NOT SUITABLE for all investors. It is designed for investors who have sufficient knowledge and experience in trading, financial and business matters to render them capable of evaluating the merits and risks of their investments and who are able to afford to lose all of the money, or more, that they invest in QQFund.com Alpha Beta Program.

 

QQFund.com Alpha Beta Program can neither be considered on a stand-alone basis nor provide beneficial diversifications to a portfolio unless it is traded successfully by QQFund.com. There can be no assurance whatsoever that QQFund.com will be able to generate profits for its Clients.

 

Client is directly and personally liable for the losses in the Client Account (carried by the Client FCM). Client’s potential loss is by no means limited to the amount of assets which Client deposits in the Client Account.

 

In the case that Clients cannot afford and/or are not willing to afford the losses as described above (and anywhere in the Disclosure Document), Clients SHALL NOT invest in QQFund.com Alpha Beta Program and Clients SHALL take the initiative to follow/complete the PROCESS 8: Terminate the Advisory Agreement (as defined in the Disclosure Document) to terminate the Advisory Agreement with QQFund.com IMMEDIATELY.

 

 

QQFund.com Alpha Beta Program invests/trades futures contracts (for the Client Account) which are designated as “1256” contracts by the IRS. The net profit will be treated as 60% long-term capital gains and 40% short-term, benefiting from potential favorable tax treatment under Section 1256 of the IRC. Please see “About Form 6781, Gains and Losses From Section 1256 Contracts and Straddles” (https://www.IRS.gov/forms-pubs/about-form-6781).

 

It is important to note that Section 1256 contracts are subject to mark-to-market accounting, meaning that Client will report these contracts as if they were sold at their fair market value on the last business day of the year. This affects how gains and losses are calculated for tax purposes.

 

After year-end, Client will receive a tax statement (Form 1099-B) from the Client FCM, which will reflect the net return to Client. If the Client Account is taxable account, Client will need to use the information from Form 1099-B to report Client’s gains and losses on Form 6781 (https://www.IRS.gov/pub/irs-access/f6781_accessible.pdf), which is titled "Gains and Losses From Section 1256 Contracts and Straddles." This form is crucial for accurately reflecting the financial results of Client’s investing/trading activities in the Client Account.

 

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Disclaimer: HOWEVER, the above are for information purpose only. QQFund.com, its principal and/or its employees are not Certified Public Accountants (CPA) or tax advisors and do not render professional tax counsel. Client is urged to consult with the Client’s financial and tax advisors for the purposes of carefully assessing such matters with respect to the Client's particular financial and tax planning objectives and accounting standards.