We believe that trading psychology is the single greatest factor determining an investor’s (professional fund manager or individual investor) investment returns. One must possess the right trading psychology (mental and emotional composition) to position the fund or portfolio such that it has the opportunity to be successful in order to drive superior investment returns. Trading psychology consists of trading rules and ways of thinking. We are constantly refining internally established trading rules [read- refining not changing]. Trading rules facilitate risk control and tactics, including but not limited to, determining return risk profile, position size, scaling positions (in and out), loss limits for long and short positions, price targets, trading around core positions, reasons and implementation for bracket orders and balance and prioritization of technical vs. fundamental analysis, event driven occurrences by position and even hedging as it relates to the portfolio compared to the broad financial markets. Trading psychology is imperative for every aspect of portfolio management. In addition, it is central in terms of ways of thinking. One must recognize greed and fear, regret, euphoria and panic, as well as the necessity for patience, over-trading and the worst, vengeance trading. Understanding ways of thinking is just as important as trading rules themselves. For example, to avoid unnecessary “blind spots,” it is important to understand that price action does not make a sound premise necessarily correct. Constant application of trading psychology is required to deliver superior and of equal importance, consistent, investment returns. We are not inventors of the concept of trading psychology. In fact it has been written about for decades, including the famous “Market Wizards” series of books by Jack Schwager and even most recently discussed, albeit briefly, in the popular TV series, “Billions.” However, most financial markets participants ignore constant and broad application of trading psychology. We think it is paramount. We think it is central. We think it is required to produce superior investment returns.