Northstar Commodity Investment Co., LLC managed futures program

Risk Disclosure Statement

PAST 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

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)


Growth in Managed Futures

$350

$300
Money continues to be invested in
$250
managed futures, as people look
US Dollars (in billions)

$200
for added portfolio diversification.

$150

$100

$50

$-
1990 1995 2000 2005 2010

Source: Barclay Hedge Ltd.


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.


Managed Futures Performance

Barclay 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.


Managed Futures

Who Invests in Managed Types of Accounts
Futures?

Individuals Individual/Joint
High Net Worth Individuals Corporate
Asset Managers Trust
Hedge Funds IRA
Pension Funds
Private Institutions


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


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


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.


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


Team


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


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.


Key Team Members

• Jason Ward, Director - Grains & Energy
Mr. 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 grain
and energy markets. Mr. Ward has been a regular contributor to the Associated Press
and Dow Jones for grain commentary and contributor to Bloomberg News for ethanol
commentary. Mr. Ward has an Agribusiness Marketing degree from the University of
Minnesota.

• Scott Strand, Investor Relations
Mr. Strand joined Northstar Commodity in July 2009, and has 4 plus years' experience
as a commodity advisor. Mr. Strand works with grain and livestock producers and
speculative investors. Mr. Strand places a strong emphasis on client advisor
relationships, while providing assistance in research activities. Mr. Strand is a graduate
of the University of Minnesota


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


Markets Traded

Grains Energy Livestock
Corn Crude Oil Lean Hogs
Cotton Ethanol Live Cattle
Soybeans Gasoline Milk
Soybean Oil Natural Gas
Soybean Meal
Wheat


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.


TBE Capital Performance

TBE 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: $2,224,617

Source: Northstar Commodity Investment Co. LLC.


Contact Information

CONTACT INFORMATION
Scott Strand
sstrand@northstarcommodity.com
888-876-0039

Northstar Commodity Investment Co, LLC
700 US Trust Building
730 2nd Ave South
Minneapolis, MN 55402
www.tbecapital.com


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