Quantitative Partners

Brokerage

Overview

Summary

Quantitative Partners Inc. offers professional, timely, cost effective order execution for institutional investors through Lamon & Stern: a registered broker/dealer. All QPI producing principals and employees are registered with Lamon & Stern.

Lamon & Stern understands the special needs of institutional money managers in a trading environment. Through Lamon & Sterns' trading network, institutional clients can place orders in the fast changing environment of today's marketplace with multiple trading desks and ECNs.

QPI commenced a relationship with Lamon & Stern to begin its trading activities at the request of some of our research clients who wanted to pay for QPI research products through soft dollar executions. Because of its attentiveness to individual client needs and its ability to work with money managers to help direct trades in conjunction with its research, QPI pushed Lamon & Stern to expand its brokerage business far beyond that of just soft dollar business.

Lamon & Stern

www.lamonandstern.com

Lamon & Stern, founded in 1979, is a NASD/SIPC-member firm based in Atlanta. Professional order execution for the institutional investor has always been a primary focus for the firm. Lamon & Sterns' OTC platform includes relationships with Knight Securities, Absolute Return Advisors, Pershing, ExGen Securities, and LaBranche. Lamon & Stern is an introducing brokerage through Pershing (DLJ). For more information on these firms, click on the links below to go directly to our affiliate firms websites.

Electronic Trading

State-of-the-art electronic trading is offered with Archipelago and the Real Tick Feed product through Absolute Return Advisors as well as LaBranche's proprietary trading system for listed business and Lava Trading for over-the-counter from LaBranche. Recently, we have added the ability for clients to use Neovest via ExGen Securities

Reporting & Soft Dollar Pay-Out Ratio

All QPI brokerage clients receive detailed, monthly reports directly from Lamon & Stern and or our affiliates. Typically, money managers use listed trades through Pershing, or Absolute Return Advisors. Hedge funds may use OTC trading through the various OTC firms listed above. The soft dollar ratio that QPI traditionally works with starts at 2:1 and will go to 1.5:1 or lower depending on the volume of trading business.

Summary

QPI is adept at communication of essential information of its various research vendors that impacts the daily market. In turn, many QPI research clients rely on Lamon & Stern for efficient, cost effective, institutional trade executions. QPI's affiliation with Lamon & Stern and network of affiliate firms ensures that QPI clients get the proper reporting while giving them the flexibility to pay for research with soft dollars. Please contacts us for further information. We will be glad to make a brokerage proposal and recommendation that meets your specific needs.

Soft Dollar Trading Instructions

QPI and Lamon & Stern offer soft dollar services to institutional money managers on a selective basis. We have several correspondent relationships through our affiliated broker/dealer, Lamon & Stern. These executing brokers have been selected in all cases to add-value beyond simply executing orders. QPI brokerage clients may trade with any or all of the following brokers for credit. All transactions will be consolidated on a single, detailed monthly statement.

Listed Transactions

Listed transactions may be executed through Pershing, a unit of Donaldson, Lufkin & Jenrette, LaBranche or Absolute Return Advisors for block activity. All listed transactions will be credited to your account at the agreed upon soft dollar ratio with Lamon & Stern.

OTC Transactions

Clients may choose to execute OTC orders on an agency or net basis through LaBranche. A net credit spread will be credited to your account if trades are completed through LaBranche. In addition, OTC transactions may be filled through Pershing or Absolute Return Advisors as well.

Regulatory

Since the trading firms listed above are generating a commission on a net trade, this business is only available to L.P.s whose partnership agreements allow use of commissions dollars and fees to defray the expenses of the limited partnership. For compliance purposes, Lamon & Stern must have on file copies of your entity's organizational agreement, subscription agreement and offering memorandum prior to initiating any trades to insure that the practices of the partnership are upheld.

For accounts that fall under Section 28(e), the normal soft dollar requirements are upheld.

Account Setup

To set up accounts with any of these brokers, please contact Lamon & Stern.

Monthly Statements

Each month you will receive statements within three trade days via facsimile. The statements include trade-by-trade detail and a summary of all research activity. Please see a sample statement in PDF format.