BLUENOSE CAPITAL MANAGEMENT, LLC

BNC BI
Year 2008 2009 2010 2011 2011 2.26% 2.95% 1.33% 0.92% 1.80% 2.92% 1.22% 1.17% 2.79% -0.43% 2.20% -0.53% 1.75% 0.75% -1.62% 1.74% 0.84% 3.36% 2.66% 3.71% 1.81% 3.45% -5.77% 2.20% 1.46% 6.39% 2.33% 0.53% -2.97% 0.95% 2.80% Jan Feb March April May June July Aug Sep Oct 1.16% 0.06% 0.05% 3.09% Nov 0.00% 5.99% 2.21% 2.77% Dec 1.27% 2.30% 0.45% 0.62% YTD
2.46% 20.17% 21.30% 22.42% 3.33%

PASTPERFORMANCEISNOTNECESSARILYINDICATIVEOFFUTURERESULTS.

Account Information
Minimum Account RT/YR/$Million Discretion Average Margin/Equity Ratio Management Fee Incentive Fee $30,000.00 2500 100.00% 60.00% 2% 20% Start Date

Performance Analysis
October 2008 88.89% 29.42% 1.51% 2.01% 2.01% -2.26% Total Return Since Inception Compounded Average ROR Average Monthly ROR Std. Deviation of Monthly ROR Winning months 38 Average Gain Losing months 5 Average Loss

Time Windows
2000
Best 12 Months Worst 12 Months Average 12 Months Best 24 Months Worst 24 Months Average 24 Months Worst Peak/Valley Draw Down (July 2009) Length of Worst Peak/Valley Draw Down 28.12% 12.24% 20.25% 55.70% 38.06% 45.37% -5.77% 1 Month

Value of $1,000 Investment

1800 1600 1400 1200 1000 800
10/1/2008 1/1/2009 4/1/2009 7/1/2009 10/1/2009 1/1/2010 4/1/2010 7/1/2010 10/1/2010 1/1/2011 4/1/2011 7/1/2011 10/1/2011 1/1/2012 4/1/2012
BNCBI S&P500

600

Risk Disclosure
PASTPERFORMANCEISNOTNECESSARILYINDICATIVEOFFUTURERESULTS.FUTURESANDOPTIONSTRADINGINVOLVESSUBSTANTIALRISKOFLOSS.ANINVESTOR COULDPOTENTIALLYLOSEMORETHANTHEINITIALINVESMENT.INVESTORSMUSTREADTHECURRENTDISCLOSUREDOCUMENTBEFORETHEYINVEST. ACOMPLETEDISCUSSIONOFFEESANDCHARGESAREREPORTEDINTHECTAsDISCLOSUREDOCUMENT.

BLUENOSE CAPITAL MANAGEMENT, LLC

Who We Are
Bluenose Capital Management, LLC develops and implements strategies intended to generate above average returns while seeking to be flexible enough to profit in rising markets as well as declining markets and inflationary and deflationary environments. Furthermore, Bluenose believes that investments in stock indexes and commodities, not individual stocks or sectors, hold more possibilities for growth than day trading, swing trading, trend following or buy and hold strategies. Since market conditions are constantly changing, we continually reevaluate the particular strategies being employed at any point in time. Rob McLallen, III is Managing Director of Bluenose Capital Management, LLC. Mr. McLallen earned his BBA with a concentration in finance from The College of William and Mary. Mr. McLallen was a managing member of Castlemaine Partners, LLC, a Virginia registered investment advisor, a position he has held since the founding of the firm in August 2001 until December 2011. As a Managing Member of the firm he is responsible for the management of client funds, marketing and administrative functions. From August 2001 through December 2009, he served as managing member and principal of Hyperion Capital Management, LLC, the general partner of hedge fund Hyperion Capital Partners, LP. As Managing Member, he was responsible for all the administrative functions of the firm. Prior to this Mr. McLallen served as a financial advisor with Paine Webber and Merrill Lynch. He was responsible for building and preserving clients wealth through proper asset allocation, investment selection, and planning. Mr. McLallen is Series 63 (Uniform Securities State Law) and Series 65 (Uniform Investment Advisor Law) exemption qualified. Joseph Natoli is Managing Director of Bluenose Capital Management, LLC. Mr. Natoli earned his BS from Randolph Macon College and earned his MBA in finance from George Washington University. Mr. Natoli worked as the trading desk manager for Chesapeake Investment Services. Mr. Natoli was responsible for 20 million dollars in client assets and was responsible for advising clients on option strategies, placing discretionary trades and executing the strategies used at Chesapeake Investment Services from November 2000 until September 2003. These strategies included the writing of options on commodities and commodity indexes. In addition Mr. Natoli was constantly evaluating the commodity markets in relationship with the clients existing positions and determining if modifications were required as well as looking for additional opportunities. This was accomplished through a combination of technical and fundamental analysis. Mr. Natoli was a principal of Zephyr Asset Management, a commodity trading advisor, from 2004 through 2007. Mr. Natoli is Series 3 registered. In February 2010, Mr. Natoli and Rob McLallen, formed Bluenose Capital Management, LLC.

Investment Strategy
Bluenose Capital Management, LLCs strategy is based on the belief that investments in stock indexes and commodities, not individual stocks or sectors, hold more possibilities for growth than day trading, trend following or buy and hold strategies Bluenose Capital Management, LLCs trading strategy incorporates five vital elements; fundamental analysis, technical analysis, strategy, money-management and risk assessment. After assessing both the fundamental and technical conditions of the market Bluenose Capital Management, LLC then ascertains the best strategy. At the present time, Bluenose Capital Management, LLC believes that the selling of premium or the writing of options on commodities and commodity indexes is the best strategy. Risk assessment and money management work together. We understand the importance of proper money management as well as risk. Although risks cannot be eliminated and profits cannot be guaranteed, with money management and risk control, we will achieve the long-term growth our clients demand. The objective of our strategy is to achieve capital appreciation through the speculative trading of options on the futures contracts. Bluenose Capital Management, LLC currently engages in this strategy of selling or writing options (puts and calls) on stock index futures and commodities including, futures and cash markets, agricultural products, metals, currencies, financial instruments, stock and financial economic indices. This strategy, option writing, involves a potentially unlimited risk of loss. .

Risk Disclosure

PASTPERFORMANCEISNOTNECESSARILYINDICATIVEOFFUTURERESULTS.FUTURESANDOPTIONSTRADINGINVOLVESSUBSTANTIALRISKOFLOSS.ANINVESTOR COULDPOTENTIALLYLOSEMORETHANTHEINITIALINVESMENT.INVESTORSMUSTREADTHECURRENTDISCLOSUREDOCUMENTBEFORETHEYINVEST. ACOMPLETEDISCUSSIONOFFEESANDCHARGESAREREPORTEDINTHECTAsDISCLOSUREDOCUMENT.