FACET CAPITAL PARTNERS

Facet Cycles Fund, LP

A N E Q U I T I E S LO N G - S H O RT C YC L E S F U N D

Facet Capital
Partners
February 15, 2016

Important Notice

The following materials provide information regarding Facet Cycles Fund, LP

(the Fund) involving the issuance and offering of Fund
securities by Facet Capital Partners LLC (the Manager or FCP).
These materials have been prepared to provide preliminary information
about
the Fund to a limited number of sophisticated prospective investors, to assist
them in determining whether they have an interest in the type of securities
described herein. These materials are not intended as an offer to sell, or the
solicitation of an offer to purchase, any security. In making a decision to
invest in
any securities of the Fund, prospective investors should rely only on the
Confidential Private Placement Memorandum of the Fund (the
Memorandum),
as amended or supplemented from time to time, and not on these materials,
which contain preliminary information that is subject to change and that is
not
intended to be complete or to constitute all the information necessary to
adequately evaluate the consequences of investing in such securities.
Nothing in these materials should be construed as a recommendation to
invest
in any securities that may be issued by the Fund or as legal, accounting or
tax
advice. An investment in securities of the type described herein presents
certain
risks. Before making a decision to invest in any securities of the Fund, a
prospective investor should review the risk factors described in the
Memorandum and consult with its own legal, accounting, tax and other
advisors
in order to independently assess the merits of such an investment.
We or a company or person connected or associated with us may be an
advisor
or lender, an underwriter or distributor of, or a market maker or otherwise
hold a
long or short position as a principal in, a security or a related financial
instrument discussed herein. Fees may be shared with affiliates or third
parties.
Such conflicts are described in greater detail in the Memorandum.
Seismic does not make any representation or warranty, express or implied as
to
the accuracy or completeness of the information contained herein.Facet
These Capital
materials contain information about the Manager, certain of its personnel
and
affiliates and the historical performance of other investment vehicles whose
portfolios are managed by the Manager. This information has been supplied

These materials also contain forward-looking information that is not purely

historical in nature. Such information may include, among other things,
projections, forecasts or estimates of cash flows, yields or returns, scenario
analyses and proposed or expected portfolio composition. The forward-looking
information contained herein is based upon certain assumptions about future
events or conditions and is intended only to illustrate hypothetical results under
those assumptions (not all of which will be specified herein). Actual events or
conditions are unlikely to be consistent with, and may differ materially from,
those assumed. In addition, not all relevant events or conditions may have been
considered in developing such assumptions. Accordingly, actual results will vary
and the variations may be material. Prospective investors should understand
such assumptions and evaluate whether they are appropriate for their purposes.
In addition, these materials contain information about the municipal arbitrage
strategy investment asset class. Prospective investors should not view the past
performance of the asset class as indicative of the Funds future results.
Distribution of this information to any person other than the person to whom
this information was originally delivered and to such person's advisors is
unauthorized and any reproduction of these materials, in whole or in part, or the
disclosure of any of their contents, without the prior consent of Seismic is
prohibited. These materials are not intended for distribution to, or use by any
person or entity in any jurisdiction or country where such distribution or use
would be contrary to local law or regulation.
These materials have been approved by Facet Capital Partners, LLC for
distribution only to persons who are Accredited Investors (as defined in
Regulation D under the Securities Act of 1933 as amended) and Qualified
Purchasers (as defined in section 2(a)(51) of the Investment Company Act).
Transmission of this communication to any other person is unauthorized. Any
investment or investment activity to which this document relates is only available
to relevant persons and will be engaged in only with relevant persons. This
document is not available for distribution to private customers. Additional
information is available upon request; interested parties should contact Facet
representatives.

Partners

Summary
Highly empirical model predicts cyclical turning points in the S&P 500
stocks
Analyzes price and volume behavior with a statistical edge
Signals managed as a complete quantitative long - short investment
strategy
Mean reverting in nature and non-correlated to the general market
Historical back-tested performance of 25% net annual returns (after
fees and commissions)
Low volatility with a Sharpe ratio of 1.92
Facet Cycles Fund is in the incubation stage, and is neither soliciting
nor accepting investments at this time

Facet Capital Partners

Team
Christopher Dewey Managing Partner
Former Executive Vice President, Jeffries
Former Vice Chairman, National Securities
Founder, Co-Founder, Director and/or CEO of:
MAKO Surgical (sold in 2013 for $1.6 billion), Z-KAT Surgical, Robotic
Ventures, Bonds Direct Securities, Cannon Group, Orthosensor, Auris
Surgical Robotics
MBA, Wharton School of Business

Dimitri Villard Managing Partner

Former Director, Socit Gnrale Investment Banking; SG Cowen

Former Managing Director, Laidlaw & Co investment bank
Chairman, Pivotal BioSciences, Inc; Executive Committee, Tech Coast Angels
Independent Director, Staffing 360 Solutions (NASDAQ: STAF)
Raised Michael Steinhardts first offshore fund; launched ACLI Internationals
commodities futures fund
BA, Harvard University; MS, China International Medical University

Facet Capital Partners

Team
Bengt Berggreen Partner, Head Trader & Portfolio Manager
Bengt Berggreen has 20 years of experience in the asset management field. He has
served as an institutional trader for some of the biggest managers, such as Franklin
Templeton, GE Asset Management and Nuveen Investments. During this period, he
traded large equity orders in most markets around the world, in addition to options and
futures across different asset classes. His background also includes investment strategy
R&D, portfolio management and experience as a commercial pilot. He has a Bachelors
degree in Aeronautical Science from Embry Riddle Aeronautical University, and holds an
Airline Transport Pilot certificate with advanced ratings, and FINRA Series 3 license.

Alex Bernal Partner, Consultant

Alex Bernal is a Certified Market Technician and a Certified Financial Technician. He
started his career at the Beverly Hills branch of Bear Stearns & Co.in the wealth
management division. In 2007 he moved to M&N Trading, LLC. where he joined the prop
trading desk specializing in statistical arbitrage in areas such as global yield curve
spreads and STIR futures. Most recently he has been a consultant at Aether Analytics
LLC. He has a BA in economics from the University of Southern California.
Facet Capital Partners

Team
S. Kris Kaufman Director of Research (Facet Cycles Fund)

S. Kris Kaufman, has degrees in both physics and math. He spent over 15 years in
geophysical research as a senior staff geophysicist and project manager for Halliburton
subsidiary Sierra Geophysics. His projects included non-linear inversion modeling, 3-D
seismic wave propagation modeling, and writing the first commercial 3-D wave propagation
software for the oil industry. Most recently, his work has focused on the financial application
of both chaos and complexity theories blended into forecasting models using geneticallyenhanced neural networks.

Jay Gould, Esq. Winston & Strawn - Legal Counsel

Jay Gould is a partner in the Corporate Department in Winston & Strawn LLP's San Francisco
and New York offices, and serves as co-chair of the firm's Financial Services Practice. Mr.
Gould concentrates his practice on investment funds and investment management, and
counsels clients involved in all aspects of the financial services industry.Prior to joining the
firm, Mr. Gould served as chief counsel for E*TRADE Global Asset Management, Inc., vice
president with TransAmerica Life Companies, senior counsel to Bank of America NT&SA, and
as an attorney with the SEC and four other major international law firms.

Auditors TBD
Administrator TBD
Custodian Interactive Brokers

Facet Capital Partners

Investment Strategy

Stocks exhibit cyclical behavior of various magnitudes and across multiple time
frames. Our time span focus is on the swing trading cycles that occur over several
days.

We use proprietary science to measure the probability of finding future cyclical

turning points as well as turn direction in non-linear systems such as the stock
market. We also look at various price and volume relationships to find major turning
points.

The cyclical turns are forecasted on a calendar date basis using our Precision Turn
Predictor model, while the price-volume signals are generated by our Price Volume
Crossover tool. These signals carry statistical significance and serve as the
backbone of our long/short investment strategy.

We invest long or short in up to 21 of the highest-rated S&P 500 stocks (maximum

14 positions long or short), using up to 50% leverage for portfolio adjustment, but
with a maximum100% net exposure in either direction.

Average holding period 3.4 days

Facet Capital Partners

Investment Strategy
Investment Strategy is
Decoupled into Two
Parts

Long or Short Entry

Signals with a Known
Edge Probability

Probability-Based
Risk Management

Edge %
Duration

Facet Capital Partners

Stop Levels
Profit Targets
Exit Timing

Investment Strategy
Entry Signal Parameters

How much of an edge does

the signal have over a random
entry?

Express this as the excess win

rate percentage

How long does the edge last?

Express duration as the time

it takes for the edge to decay
to half its strength

Facet Capital Partners

Investment Strategy
Directional Edge
Bias

The probability of finding

price at a certain level in
the future is expressed as a
cone of probability

If there is a directional
edge, then the cone is
tilted up or down

Volatility Bias

Market volatility can

change, and this changes
the width of the cone
Facet Capital Partners

10

Risk Management Strategy

Constrain stops to never move away

from the trade

Constrain stops and targets to

pinch out the trade as expected
duration is approached

Hang stops and targets from the

best price achieved during the trade
(Chandelier)

Constrain the target probability to be

optimal for all other settings

Facet Capital Partners

11

Precision Turn Predictor

Natural Non-Linear Systems Exhibit Cycles
Traditional time cycle methods assume too much
Phase is unstable: our quasiperiodic model shows where spectral peaks
are formed by linear combinations of two dominant periods

Transforms Price Series

Eliminate phase
Emphasize trend changes using TMI, a dimensionless curvature
measure

Projects Future Trend Changes

Proprietary set of basis functions
Standard cycle technique
Find turn direction using the recent trend

Statistical Significance
TMI on Turn Dates vs. TMI Distribution
t-test for p-values
Facet Capital Partners

12

Price Volume Crossover Sell Performance

Winners exceeding
random (Edge)
peaks at 5.5% for
top 10% of sells
Peak duration is 2
bars
..and then returns
to zero
Half-life averages 6
bars

Facet Capital Partners

13

Backtest on S&P 500 Stocks

Includes 1.5% Annual Management Fee
and
15% Performance Fee (High Water Mark)
$0.05/share Commission

Facet Capital Partners

14

Backtest on S&P 500 Stocks

Includes 1.5% Annual Management Fee
and
15% Performance Fee (High Water Mark)
$0.05/share Commission

Worst Draw Down

9.5%

Facet Capital Partners

Sharpe Ratio 1.92

15

Incubator Account Live Performance

Facet Capital Partners

16

Facet Capital Partners, LLC

8 7 2 1 S A NTA M ON I C A B LV D ., S U I T E 1 0 0
LO S A N GE L E S C A 9 0 0 6 9
C O N TAC T: D I M I T R I V I L L A R D , MA N AG I N G PA RT N E R
T E L : (3 1 0 ) 7 3 4 - 4 5 5 1 E M A I L : DV @FAC E TC A PI TA L PA RT N E R S .C O M