Northstar Commodity Investment Co., LLC managed futures program

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TBE Capital is Northstar Commodity Investment Co., LLC managed futures program. TBE Capital trades highly liquid futures and options in the agriculture markets. To learn more please contact Scott Strand 888-876-0039 or by email at sstrand@northstarcommodity.com

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Northstar Commodity Investment Co., LLC managed futures program

  1. 1. 2nd Quarter 2012
  2. 2. Risk Disclosure StatementPAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.PLEASE NOTE THAT THERE IS A SUBSTANTIAL RISK OF LOSS ASSOCIATED WITH TRADING FUTURES AND OPTIONS CONTRACTS. FUTURES TRADING IS NOT SUITABLE FOR ALL INVESTORS. www.northstarcommodity.com PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION
  3. 3. What are Managed Futures?• An alternative investment associated with Commodity Trading Advisors (CTA).• CTAs are professional money managers that manage client’s assets on a discretionary basis using futures and options.• CTAs are registered with: – National Futures Association (NFA) • NFA is overseen by the Commodity Futures Trading Commission (CFTC) www.northstarcommodity.com PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION
  4. 4. Growth in Managed Futures $350 $300 Money continues to be invested in $250 managed futures, as people lookUS Dollars (in billions) $200 for added portfolio diversification. $150 $100 $50 $- 1990 1995 2000 2005 2010 Source: Barclay Hedge Ltd. www.northstarcommodity.com PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION
  5. 5. Benefits of Managed Futures• Ability to Profit in any Economic Environment – Trading advisors have the ability to produce returns regardless of market direction. – Trading advisors may implement long, short or neutral trading strategies.• Diversification – Allocating a portion of ones assets to a managed futures account can increase portfolio diversification and may reduce overall portfolio volatility.• Transparency and Liquidity – Investor money is deposited into a customer segregated account, providing investor full view of all trades, positions and account balances. – Investor may request to redeem capital at any time. www.northstarcommodity.com PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION
  6. 6. Managed Futures PerformanceBarclay CTA Index: Leading industry benchmark representing performance of commodity trading advisors.S&P: 500 large cap common stocks traded in the United States.Sources: Northstar Commodity Investment Co. LLC Barclay Hedge Ltd. www.northstarcommodity.com PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION
  7. 7. Managed FuturesWho Invests in Managed Types of Accounts Futures? Individuals Individual/JointHigh Net Worth Individuals Corporate Asset Managers Trust Hedge Funds IRA Pension Funds Private Institutions www.northstarcommodity.com PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION
  8. 8. Northstar Commodity Investment Co. LLC• Commodity risk-management advisory serving the grain, livestock, and renewable fuel industries.• Commodity Trading Advisor• Expert analysis specializing in all areas of agri-business: – Grain (Corn, Soybeans, Wheat) – Livestock (Lean Hogs, Live Cattle, Dairy) – Energy (Crude Oil, Ethanol, Gasoline, Natural Gas) – Fertilizer www.northstarcommodity.com PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION
  9. 9. AgMotion Inc.• Integrated holding company whose operations meet the diverse and changing needs of agribusiness.• Consist of three operating units: – Northstar Commodity Investment Co. LLC – US Commodities LLC – United Bio Energy LLC• Four offices, 72 employees, $500 million in sales in 2011 www.northstarcommodity.com PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION
  10. 10. Northstar Commodity Investment Co. LLC Agricultural Network• Northstar Commodity has an extensive network throughout the Midwest.• Provides market consulting to: – Grain producers – Livestock producers – Ethanol Plants – Grain elevators• Current agricultural clients are located in MN, IA, ND, SD, NE, KS, OK, WI, IL, IN, OH, PA, and KY. www.northstarcommodity.com PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION
  11. 11. Northstar Commodity Research• Northstar Commodity Investment Co. LLC relies on in-house fundamental research.• Senior Vice President and Trading Principal: Mark Schultz• Northstar Commodity Research Department – Tracks and records over 75 daily and weekly data points – Tracks foreign/domestic grain and livestock prices – Relies on network of grain and livestock producers throughout the Midwest www.northstarcommodity.com PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION
  12. 12. Team www.northstarcommodity.comPAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION
  13. 13. TBE Capital Trading Program• Program Name: TBE Capital (TBE)• TBE trades highly liquid futures and options contracts in grain, livestock and energy markets.• TBE employs fundamental strategies to make investment decisions.• TBE uses technical analysis to determine specific timing and price targets for entry and exits of specific trades.• Preserve capital• 100% discretionary www.northstarcommodity.com PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION
  14. 14. Trading Principals• Mark Schultz, Senior Vice President and Trading Principal Mr. Schultz is the Senior Vice President of Northstar Commodity and Trading Principal for its managed futures program, TBE Capital. Mr. Schultz was born and raised on a family farm in Janesville, MN that grew corn and soybeans and raised hogs. Mr. Schultz has more than 18 years of experience as a market analyst. He is co-author of the weekly AgInvestor Newsletter. Mr. Schultz has been a featured analyst for Bloomberg News and provides opening calls after major USDA reports. Mr. Schultz also provides market commentary for CNBC, Wall Street Journal, Linder Farm Network, and WNAX radio. Mr. Schultz brings a vast knowledge of the global fundamental factors in the grain and livestock markets• Timothy Carlson, Chief Executive Officer (CEO) Mr. Carlson has 10 plus years of experience in the commodity industry and has been a principal and CEO of Northstar Commodity since May 2002. Mr. Carlson is co- founder and Chief Operating Officer (COO) of AgMotion, Inc., parent company of Northstar Commodity. www.northstarcommodity.com PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION
  15. 15. Key Team Members• Jason Ward, Director - Grains & EnergyMr. Ward has 10 years of experience as a market analyst with Northstar Commodity.He is co-author of the weekly AgInvestor Newsletter. Mr. Ward specializes in the grainand energy markets. Mr. Ward has been a regular contributor to the Associated Pressand Dow Jones for grain commentary and contributor to Bloomberg News for ethanolcommentary. Mr. Ward has an Agribusiness Marketing degree from the University ofMinnesota.• Scott Strand, Investor RelationsMr. Strand joined Northstar Commodity in July 2009, and has 4 plus years experienceas a commodity advisor. Mr. Strand works with grain and livestock producers andspeculative investors. Mr. Strand places a strong emphasis on client advisorrelationships, while providing assistance in research activities. Mr. Strand is a graduateof the University of Minnesota www.northstarcommodity.com PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION
  16. 16. Risk Management• TBE Capital believes in highly structured risk management practices and incorporates: – Pre-determined margin to equity ratio – Reward vs. Risk – Reduce exposure to market moving reports – Constant daily monitoring of accounts www.northstarcommodity.com PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION
  17. 17. Markets Traded Grains Energy Livestock Corn Crude Oil Lean Hogs Cotton Ethanol Live Cattle Soybeans Gasoline Milk Soybean Oil Natural GasSoybean Meal Wheat www.northstarcommodity.com PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION
  18. 18. TBE Capital Markets Traded Position Analysis Energy Position Duration Percent 1% Livestock 0-14 days 66% 19% 15-29 days 21% 30+ days 13% Total 100% Instruments Traded: Percent Futures 34% Options 66% Total 100% Grains 80%Source: Northstar Commodity Investment Co. LLC. www.northstarcommodity.com PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION
  19. 19. TBE Capital PerformanceTBE Capital Performance PAST PERFORMANCE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec YTD 2010 -5.1% 4.6% 7.3% 19.2% -0.7% -7.8% 33.2% 54.9% 2011 15.5% -21.0% -15.5% 6.6% -14.5% 2.2% 3.4% 7.6% -15.4% 2.1% -4.6% 1.1% -33.5% 2012 13.1% 5.6% -0.7% 18.5% Performance results include commissions, exchanged, NFA and monthly accounting fee. Performance is net all fees . Program Details: Return Since Inception: 22.9% Year To Date Returns: 18.5% Start Date: June 2010 Assets Under Management: $2,224,617Source: Northstar Commodity Investment Co. LLC. www.northstarcommodity.com PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION
  20. 20. Contact Information CONTACT INFORMATION Scott Strand sstrand@northstarcommodity.com 888-876-0039Northstar Commodity Investment Co, LLC 700 US Trust Building 730 2nd Ave South Minneapolis, MN 55402 www.northstarcommodity.com www.tbecapital.com www.northstarcommodity.com PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CONFIDENTIAL INFORMATION

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