Pinnacle trading philosophy

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Pinnacle trading philosophy

• Medium term trading we take POSITIONS!
• We are patient trade at correct levels NO
  day trades
• Only technical analysis and limited fundamental
  research
• Chart formations, trend-lines, MAs, RSIs and
  Stochastics
• We ignore noise!
• Bad positions are cut quickly

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A look into Pinnacle's trading style

• Gearing limited to 2x max physical cash
  invested.
• 20 of exposure assumed remains in clients
  account.
• Our focus area very liquid Top 40 stocks
  (mining stocks).
• Trade entry and exit levels are determined
  beforehand.
• Flexibility around trading levels adjusting
  for market action.
• We average into Long and Short positions.
• Trading strategy we focus on the extremes.

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Performance figures for 2008
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Pinnacle performance

• Inception / Start date of Pinnacle 1st May
  2006
• Pinnacle performance to date 166 vs JSE
  All-Share 28
• Ability to sit in cash and earn 10.7 Safex and
  11.4 Money Market

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Comparative Futures Hedge Funds
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Administration of Pinnacle clients

• Make appointment with Afrifocus team at our
  offices.
• Open Futures account at Afrifocus after
  completion of docs.
• As of 1st July minimum R 100 000.00
• One year holding period for the product.
• Client receives log-in details track portfolio
  performance.
• Pinnacle Management team will not field daily
  calls.
• Pinnacle Performance period 1st Mar to 28th
  Feb.
• Year-end performance figures.

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Pinnacle costs involved

• No Initial Fee charge.
• No account administration charge.
• Brokerage costs _at_ 0.25 of exposure VAT
  (effective 0.285)
• VAT _at_ 14 charged on brokerage amount.
• Annual Performance Fee
• The first 10 performance on the market cap of
  the account belongs
• to the account holder. The client thereafter
  shares in a 9010 ratio with
• the managers of the Afrifocus/Pinnacle account.

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Pinnacle Future prospects

• Comparative international product in the
  pipeline
• Investigating hedge fund possibilities
• Target R 100 million for current Pinnacle
  product.