Introducing TradeSmith

At TradeSmith, Our proprietary quantitative models are designed to balance stocks, ETFs, mutual funds, and income-producing investments with the intention of maximizing returns while controlling risk.

Portfolio Optimization Strategy

This strategy can only be applied to investors who meet the following qualifications:

Allocating a Substantial Investment for Portfolio Optimization

• Have a U.S.-based portfolio.
• We’re recommending you allocate a substantial amount you’re comfortable with, within a flexible range up to $250,000. This initial investment will act as a hedge against your current holdings.
• Are able to provide comprehensive portfolio holdings for strategy and risk analysis.

By regularly reviewing and evaluating your portfolio, we help you stay on track to achieve your financial goals or identify opportunities for adjustments to your investment strategy.

We will provide regular updates and make necessary adjustments based on market conditions to ensure your portfolio remains balanced and optimized.

Below is a detailed breakdown of our offering:

Investment Management Agreement

This Agreement is made and entered into on the __ of____, 2024, by and between TradeSmith LLC, ("The Company") and ___ ("Investor").

1. Portfolio Growth and Dividend Payment

1.1. The Company agrees to manage the Investor's investment portfolio and target a monthly increase of 45% of the portfolio value for the next 6 months.

1.2. The monthly increase shall be calculated as follows:

Initial Portfolio Value: $X
Monthly Increase: 45%

1.3. The portfolio will increase each month as follows:

Month 1: Initial Portfolio Value * 1.45
Month 2: Month 1 Portfolio Value * 1.45
Month 3: Month 2 Portfolio Value * 1.45
Month 4: Month 3 Portfolio Value * 1.45
Month 5: Month 4 Portfolio Value * 1.45
Month 6: Month 5 Portfolio Value * 1.45

2. Expected Return Over 6 Months

2.1. The Investor's portfolio is expected to grow exponentially each month by 45%. The formula to calculate the portfolio value at the end of 6 months is:

Portfolio Value = Initial Portfolio Value x (1.45)^6

2.2. Using this formula, the Investor's expected return over 6 months will be:

Expected Return = (Initial Portfolio Value × (1.45)^6) − Initial Portfolio Value

2.3. For an initial portfolio value of $250,000, the calculations are as follows:

Portfolio Value = 250,000 × (1.45)^6 ≈ 250,000 × 11.20 ≈ 2,800,000
Expected Return = 2,800,000 − 250,000 = 2,550,000

Therefore, the Investor's expected return over 6 months will be approximately $2,550,000.

3. Terms and Conditions

3.1. This Agreement shall commence on the date first written above and shall continue until terminated by either party with a 30-day written notice.

3.2. The Company shall provide monthly statements to the Investor showing the portfolio value and the monthly increase.

3.3. The Investor agrees to pay any applicable fees or charges as per the Company's fee schedule, which will be outlined separately.

3.4. The Company will adhere to strict performance metrics and compare portfolio performance against relevant market benchmarks.

3.5. Investors can withdraw funds with three months' notice if they need access to their capital. Usually, withdrawal requests can be accommodated even more rapidly than that.

3.6. No origination fees. 1% exit fee only if the investor has been in the fund for less than a year.

3.7 Inspired by Buffett’s initial partnerships, we operate with a zero-management fee structure. Our compensation is solely based on a performance fee, which is a percentage of the gains, ensuring we only profit when our clients do.

3.8 Clients have the ability to fund their accounts once a mutual decision is made to proceed. We limit the number of larger clients on-boarded each quarter to ensure that capital is deployed in a timely and opportunistic manner. The maximum waiting period is three months.

4. Risk Disclosure

4.1. The Investor acknowledges that all investments carry risks, including the potential loss of principal. Past performance is not indicative of future results.

4.2. The Investor agrees to review the risk disclosure statement provided by the Company and acknowledges understanding the risks involved.

5. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of [State/Country].

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

Name ("Account Manager")
Tradesmith

Signature

Name ("Investor")

Signature