Friday, August 10, 2007

GOIH Investment Holding Corp.----Relative Economic Arbitrage

We will have more information coming regarding our business model and the funding of our trading vehicle. Our strategy of global relative economic cycle arbitrage will begin in earnest once we receive the funding from our $75,000,000 International Offering.

Our models indicate that the global financial markets are linked and what occurs in one market is not isolated and has an effect in the global market place. Accordingly, we have developed models that take into account the economic and financial cycles relative to other markets and sectors; and create relative arbitrage opportunities between markets, sectors, and currencies. Our models indicate that in a period of high volatility relative trading will yield above market performance.


We have developed models that replicate the financial sector of the S&P 500 Index, i.e., the largest sector, and its performance relative to indices we have constructed based on what our models indicate are sectors, companies, indices, and currencies that have positive and negative correlation.

For example, there are several stocks in the financial sector of the S&P Financial Index that historically have a certain performance relative to the Housing Sector Index once volatility reaches a certain level, i.e., the Vix Index.

The basic strategy is to create a trade based on the spread, i.e., historical difference, between the indices.

Because GOIH has the expertise to create its own indices and base the trade on its construction; and GOIH has the expertise to price a currency exchange rate relative to the return on the trade, we believe this gives GOIH a major strategic advantage over its less informed competitors.


Funding of Trading Vehicle:

We plan to fund the trading vehicle with short term asset backed commercial paper by entering into a Credit Default Swap with G1 Structured Credit Corp as a counterparty for the return of principal to investors in the fund.