The Discretionary Agricultural Program (“Heartland Agricultural Fund, LP”) portfolio is comprised of grains/oilseeds, livestock and soft commodities.  The program began trading in February, 2007.  Trading decisions are based on a combination of fundamental analysis and technical systems. Assets committed to margin will typically range from 5 to 10% of total assets. Trades are typically of a relatively short duration, ranging from a few hours to several weeks. The table below shows the market sectors that are traded, along with the percentage of trades that will typically be allocated to each sector in a given year.

The primary advantage of Brock Capital Management, LLC’s use of fundamental analysis combined with technical systems is that it allows the fund to keep most of its capital out of the markets at most times, safe from trendless markets, while being able to commit capital quickly in order to take advantage of opportunities that arise. Fundamental analysis consists of using supply and demand analysis to predict average prices for commodities over a specific period of time. By utilizing our experience and market knowledge, Brock Capital Management, LLC attempts to anticipate market conditions that will result in both price and volatility changes which lead to profitable trades. Brock Associates, a sister company, is one of the largest grain marketing consulting firms in the US, providing a constant flow of information to assess and analyze market conditions. This sets Brock Capital Management, LLC apart from other CTA’s who rely solely on technical indicators that analyze historical data and therefore may react slowly to changing markets.

Given the nature of agricultural markets and the correlation between them, there can be times when limited price movements materialize for a lengthy period of time, followed by periods of substantial price movements.  Brock Capital Management, LLC’s trading style is designed to protect investors’ capital during quiet periods while maintaining flexibility to aggressively pursue profits when opportunities arise.

From 1999 to 2007, Brock Capital Management, LLC operated the Systematic Agricultural Program (“Millennium Fund, LP”), which implemented trades based upon a series of technical indicators combined with fundamental filters. The Millennium Fund was closed in 2007 with the introduction of the Discretionary Agricultural Program.

For the performance history of Brock Capital Management for both the Discretionary Agricultural Program (“Heartland Agricultural Fund, LP”) and the Systematic Agricultural Program (“Millennium Fund, LP”), please view the performance page.