Sarissa Resources Inc (SRSR)

[Suvorov]

Fort Orange Capital Mangement Mathematical Trading Models:

(Fat Tails x Gambler's Conceit) + Shorties' Patsy - DOL Judgment = Meglomaniac with Messiah Complex


Trader of the Year

“There were a lot of great trending opportunities last year and our models were able to capture those. We also had some difficult market conditions and we didn’t escape all of those,” says Daniel Byrnes, president of Fort Orange. The CTA

did well in metals early in the year, and in stock indexes and corn late in the year. “Our big winnings were in base and precious metals and global stock indexes,” Byrnes says.

Ironically Byrnes gave back a large percentage of profits in the second half by being wrong about energies. “We got crude oil, unleaded gas and heating oil dead wrong,” Byrnes says. Despite the drawdown, Byrnes says embracing the

volatility of markets is key to outsized returns and says some managers miss opportunities by being too risk averse.

“We are throwing out a lot of nets and we need a few big hauls to make money,” Byrnes says. “Most of the risk-adjusted strategies cause you to lose those fat right tails. We try and exploit those fat right tails. Occasionally we have

larger drawdowns, [but] one of the biggest risks is not making money. So we trade fairly aggressively and we try and control drawdowns.”

http://webcache.googleusercontent.com/search?q=cache:U2obznYlx2wJ:www.futuresmag.com/2007/02/23/weathering-storm-top-traders-2006+&cd=1&hl=en&ct=clnk&gl=ca


UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF NEW YORK
_____________________________________________
THOMAS E. PEREZ, Secretary of Labor,
United States Department of Labor,
Plaintiff,
-against- Civil Action No.:
1:15-CV-93
(FJS/DJS)
DANIEL M. BYRNES & the FORT ORANGE CAPITAL
MANAGEMENT, INC. PROFIT SHARING PLAN,
Defendants.


11 Q. What was your role in Fort Orange
12 Capital Management?
13 A. I was the president.
14 Q. Were there any other officers or
15 directors?
16 A. No.
17 Q. Were there shareholders?
18 A. No. Yes. I mean, just me, though.
19 Q. You owned 100 percent of the
20 corporation?
21 A. Yes.

25 Q. What kind of business was it?

2 A. Investment management.
3 Q. Did you have an investment strategy?
4 A. Yes.
5 Q. And what was it?
6 A. We used mathematical models to
7 follow price movements and buy and sell
8 investments.
9 Q. What kind of investments?
10 A. Commodity futures. Well,
11 derivatives, basically.

12 Q. Did you have any investment
13 guidelines while you worked there?

22 A. The strategy itself had the
23 parameters that would make the I guess what
24 you're considering guidelines were built into
25 the mathematical models.

2 Q. What were the parameters?
3 A. Various things, you know: How much
4 money to risk per trade; how often to trade;
5 under what conditions to trade.
6 Q. How much money to risk for trade,
7 what amount was that?


14 Q. Okay. So what did you do at the
15 company?
16 A. I was the president. I ran the
17 operation. I raised the money. I did the
18 trading. I managed the operation.

9 Q. What's curb-fitting?
10 A. Basically using data that appears to
11 say one thing, but may not be accurately
12 reflecting reality.


17 Q. Now, prior to the first investment
18 in Sarissa, the company, Fort Orange Capital
19 Management had been without employees for
20 quite some time; correct, employees other than
21 yourself?
22 A. Yes.
23 Q. Why did you not shut down The Plan?
24 A. Good question. You know, I expected
25 that I would be able to turn Fort Orange

around and, you know, bring back the employees
3 and, you know, go forward.
4 Q. And at the time the State
5 involuntarily dissolved the corporation. Why
6 did you not shut down The Plan?
7 A. I didn't know they voluntarily
8 dissolved the corporation until I read it in
9 filings with you guys. You know, I'm still
10 trying to, you know, turn the situation
11 around.

12 Q. When was the last time you did any
13 work for Fort Orange Capital Management?
14 A. Arguably, I'm still trying.
15 Q. How is that?
16 A. You know, we have a strategy that
17 actually works pretty well and I'm trying to
18 find someone to back it.
19 Q. You're currently trying to get Fort
20 Orange Capital Management back off the ground?
21 A. Correct.
22 Q. When Fort Orange existed with you as
23 the only employee, did you still have clients?
24 A. Not paying ones.
25 Q. What does that mean?

2 A. We didn't receive payment for them,
3 but I still had some clients who I was
4 managing their money, but we had no income.
5 Q. And about when did that happen?
6 A. We finally gave up on those in 2010.
7 Q. And why did you give up on those in
8 2010?
9 A. There's basically, you know, the
10 fallout of the financial crisis of 2008, the
11 liquidity needs of the investors. They had to
12 pull their money.
13 Q. And at that time, why did you not
14 terminate The Plan?
15 A. I, you know, was invested in Sarissa
16 and was waiting for it to work out.
17 Q. The Plan was invested in Sarissa you
18 mean?
19 A. Correct.
IMO