Financial Commodity Investments (FCI)

“Absolute Returns in an Uncommon Market”

462 Herndon ParkwaySuite 205

Herndon, VA 20170703 435-2777

Fax: 703 787-0111www.financialcii.com

ckendall@financialcii.com

This Presentation is not an offer to sell or buy an interest in any investment product or fund.

THIS INVESTOR PRESENTATION DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY INTEREST IN ANY INVESTMENT PRODUCT OR FUND. SUCH OFFER OR SOLICITATION MAY ONLY BE MADE BY MEANS OF DELIVERY OF A DISCLOSURE DOCUMENT WHICH CONTAINS A DESCRIPTION OF THE MATERIAL TERMS (INCLUDING RISK FACTORS, FEES AND CHARGES, AND TAX IMPLICATIONS) RELATING TO SUCH INVESTMENT PRODUCT OR FUND.

• Transactions in options carry a high degree of risk. Purchasers and sellers of options should

familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and

the associated risks. You should calculate the extent to which the value of options must increase for

your position to become profitable, taking into account the premium and all transaction costs.

• The purchaser of options may offset or exercise the options or allow the options to expire. The

exercise of an option results either in cash settlement or in the purchase acquiring or delivering the

underlying interest. If the option is on a future, the purchaser will acquire a future position with

associated liabilities for margin. If the purchased options expire worthless, you will suffer a total loss

of your investment which will consist of the option premium plus transactions cost. If you are

contemplating purchasing deep-out-of-the-money options, you should be aware that the chance of

options becoming profitable ordinarily is remote.

• Selling ("writing" or "granting") an option generally entails considerably greater risk than purchasing options. Although

the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will

be liable for additional margin to maintain the position if the market moves unfavorably. The seller will also be exposed

to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to

acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with

associated liabilities for margin (see the section on futures above). If the option is "covered" by the seller holding a

corresponding position in the underlying interest or a future or another option, the risk may be reduced. If the option is

not covered, the risk of loss can be unlimited.

• Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to

liability for margin payments not exceeding the amount of premium. The purchaser is still subject to the risk of losing

the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid

premium outstanding at that time.

What is Absolute Return Investing?

Making money in all market environments.

Making money regardless of market direction.

Making money while managing risk.

Opportunity to have positive returns as the equity markets or underlying commodity markets have negative returns.

FCI Specific Goals

Generate at least a 20% Return on Investment (ROI) to all investors.

Consistent performance in all market environments.

Diversify investments so as to reduce risk.

Execute investment strategies with the best risk/reward profile for all investors.

Generate superior risk-adjusted returns.

So How are we Different?

So how are we different

We use options on commodities exclusively.

We use Option software to actively seek out, document, and validate, option volatility strategies.

We are option Sellers. We let the time decay in options work in our favor.

Our sweet spot is to selling options 4-8 weeks out to get the maximum option premium decay in the shortest period of time.

Option time decay

So how are we different

Multi market approach to option selling

Markets traded: Precious metals, grains, softs, energies, stock indices, other commodities.

Target:95%+ winning trades; 150%+ annualized yield (gain/capital used)

Use of seasonality in commodities

Option strategies used

Selling Naked Calls and Puts

Calendar Spreads

Bull and Bear Vertical Credit Spreads

Diagonal Credit Spreads

Ratio Credit Spreads

Margin percentage used

Generally, 15% to 20% of margin available is used

When special opportunities present themselves or certain positions deteriorate, margins usage can top 40%.

Intra-month statistics

FCI does not keep daily statistics, only monthly statistic.

We execute strategies designed to reduce daily volatility:

FCI maintains positions in many different markets (usually 6 to 9) which restrains day-to-day volatility through diversification.

FCI does not buy or sell futures; rather it specifically trades out-of-the-money options whose prices are less volatile than futures positions as long as the options stay out-of-the-money.

                           

  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD

2004             5.9% -1.00% 9.80% 2.00% 5.70% 1.80% 26.34%

2005 -0.60% 2.90% 0.60% -8.30% -1.60% -2.00% -5.30% 14% 20.30% 4.50% 6.60% 5.00% 38.22%

2006 4.40% 3.10% 4.20% 3.20% 9.40% 3.70% 0.50% 14% -1.81%  -1.66% 1.72% 7.28%  58.48%

2007 1.3% 0.39% -0.18% 1.51%

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE.

FCI Monthly Returns

FCI returns vs Benchmarks

0%

20%

40%

60%

80%

100%

120%

140%

160%

FCI

S&P

FCI 12-month trailing returns

0

1

2

3

4

5

6

7

8+-

FCI distribution of monthly returns

PERFORMANCE ANALYSIS

Start Date: July 2004

Total Return Since Inception: 181.0%

Compounded Average Annual ROR 45.61%

Average Monthly ROR 3.33%

Winning Months: 24

Losing Months: 9

TIME WINDOWS

Length (Mths) Best Worst Average

1 20.30% -8.30% 3.33%

3 43.31% -11.57% 10.75%

6 67.47% -13.31% 22.60%

12 111.69% 2.80% 54.06%

24 150.59% 107.92% 122.20%

DRAW DOWN REPORT

DepthLength

Mths.Recovery

Mths. Start End

16.26% 4 2 Mar-05 Jul-05

3.44% 2 2 Aug-06 Oct-06

1.00% 1 1 Jul-04 Aug-04

0.60% 1 1 Dec-04 Jan-05

0.18% 1 * Mar-07 -

Profiles of professionalsCraig B. Kendall, is the owner and manager of Kendall & Company, Financial Investment, Inc. and Financial Investment, LP. Mr. Kendall, is a CPA licensed in the state of Virginia. Mr. Kendall operates, Kendall & Company, a local CPA firm, tailoring its services to entrepreneurial business needing comprehensive CPA and Chief Financial Officer, "CFO Services for Hire".

In 1997, Mr. Kendall, founded Financial Investments, Inc. an investment firm participating in the acquisition of equities, private placement memorandums (PMM), and has participated in other investments securities. In 2001, Financial Investments, Inc. developed and is the general manager of Financial Investment, LP (FILP), a limited partnership developed to capitalize on the opportunities available using alternative investment vehicles.

Profiles of professionalsGaurav P. Gupta holds a Bachelor of Commerce and a Masters of Commerce degree with a major in accounting from Mumbai University in India.

He holds a Series 3 license, which is the national commodity futures license that permits the selling of commodities and future contracts.

He also earned a Masters of Science in Finance from The George Washington University (GWU). While in GWU, he was The Vice President of Trading of Finance and Investment Club.

From June 2005 to May 2006, he worked with The American Council of Life Insurers. He is currently pursuing his Chartered Financial Analyst (CFA) and is a Level II Candidate.

Profiles of professionalsDean A. Daniel has 19 years experience in mergers & acquisitions, valuation and corporate finance. His knowledge of valuation, macroeconomics and business fundamentals complement and strengthen the statistical models used by FCI.

Mr. Daniel studied business and engineering while earning a Bachelor's of Science degree at the US Air Force Academy. He later received a MBA in finance at the Smith School of Business, University of Maryland. Mr. Daniel holds a Series 3 and Series 65 license. 

Program Name Financial Commodity Investments

Fund Category Option selling Strategies

Portfolio Manager Financial Commodity Investments

Minimum Investment $50,000

Onshore/Offshore Yes/No

Management Fee 2%

Incentive Fee 20%

High Water Mark Yes

Hurdle Rate No

Subscriptions Daily

Redemptions Daily, 15 days notice

Reports Daily and Monthly Statements

Prime Brokers Man Financial

Auditor Spicer Jeffries LLC

Legal Counsel Ruddy Law Office, PLLC

Financial Commodity Investments (FCI)“Absolute Returns in an Uncommon Market”

462 Herndon Parkway

Suite 205

Herndon, VA 20170

703 435-2777

Fax: 703 787-0111

www.financialcii.com

ckendall@financialcii.com