G3 Capital will undertake research which analyzes each issuer or security for:

• Profitability
• Liquidity
• Credit rating
• Stability rating
• Commodity price exposure
• Economic and reserve life (where applicable)
• Operating and administrative costs
• Cash flow, and
• Quality of management

This basic investment analysis is used in all strategies that G3 Capital employs.

Basic Trading Strategies

Arbitrage:

• Statistical arbitrage: A trading strategy that seeks to exploit small market inefficiencies that create predictable effects on prices.
• Dividend Arbitrage: A strategy that attempts to capture excessive dividend payouts on a global basis using CDS and total return swaps.
• Corporate Action Arbitrage: Company specific or M&A related strategy that takes advantage of mispricing of risk related to these transactions.
•Index Arbitrage: Through the use of ETF’s, options (listed and OTC) and EFP’s this strategy attempts to capture the various mispricing between the index and the synthetics.
•Long/Short Pairs Trading: The strategy of matching a long position with a short position in two stocks of the same sector.

This creates a hedge against the sector and the overall market that the two stocks are in.

Options:

• Calendar Spreads: An options or futures spread established by simultaneously entering a long and short position on the same underlying asset but with different delivery months.
• Married Puts: Purchasing a put while at the same time purchasing an equivalent number of shares of an underlying stock.
• Strangle: A position in both a call and put with different strike prices but with the same maturity and underlying asset.
• Conversion: A conversion is an arbitrage strategy in options trading that can be performed for a riskless profit when options are overpriced relative to the underlying stock.

Fixed Income:

• Corporate Bonds
• Municipal Bonds
• Treasury Bonds
• Non-US Soverign Debt
• Asset Backed Securities
• Collateralized Debt Obligations
• Collateralized Loan Obligations
• Convertibles

Equities:

• Long/Short
• IPO
• Secondary Offerings
• Preferred Offerings