Emerging Manager Conference New York April 2013

Disclaimer
The information contained is not intended and should not be construed as investment advice, a recommendation of any kind, or an offer, or the solicitation of an offer, to buy or sell any securities, including any interest in any Abraham Investment Management, LLC investment product. This information is qualified in its entirety by the more complete disclosures, risk factors, and other terms and conditions that are contained in such offering documents. This information is as of the date indicated, may be estimated and is subject to change without notice. No representation is being made that any investment product will or is likely to achieve its objectives, that its strategy will be successful, or that any investor will or is likely to achieve any results shown or will make any profit or will be able to avoid incurring losses. Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts, commodity options or forex can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. This presentation might contain references to hypothetical trading results HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS

Background Andrew Abraham

Commodity Trading Advisor- Abraham Investment management Investor in Commodity Trading Advisors since 1994 Author

Marc Faber Review

I have read many, many books about economics and investments. What most investment advisors overlook is that, One of the most important issues when investing is that it fits your personality and risk profile. Andrew Abrahams book contains many other great investment insights, which will help you improve your investment returns. MF

Marc Faber Marc Faber Limited Suite 801, The Workstation 43 Lyndhurst Terrace Central, Hong Kong T: 852-2801 5410 F: 852 2845 9192 www.gloomboomdoom.com

The Goal of Our Discussion Attempting to Create Wealth by Investing in Managed Futures Over Time 3 Topics to be Covered

The Reality of Investing & What to Expect The Goal is to Compound Money over long periods Guidelines for Investing with World Class Money Managers

Past Performance is not indicative of future performance

The Goal is not Just Making Money

There is a much larger reason that you need to become aware of managed futures as an asset class and that is the Threat of Inflation.
The thing that scares me most is significant inflation, which could destroy our society.

Paul Singer, the principle of Elliott Associates L.P. $16 Billion Hedge fund

Past Performance is not indicative of future performance

It Has Been a Very Challenging Last 2 years for Managed Futures

Two Back to Back years of negative and sub performance. Repeatedly Trend Following is DEAD! Received an email Find a New Line of Work!

Past Performance is not indicative of future performance

Possibly Great Time To Invest in Managed Futures

As much as Past Performance is not Necessarily Indicative of Future Performance Being a contrarian Now could be a great time to invest in managed futures.

Business Week 1979- Then The Biggest Bull Market in Stocks.

We are Dealing with Uncertainty

Past Performance is not Necessarily Indicative of Future Performance

Worlds Greatest Investor Warren Buffett-Are You Sure You Want to Invest?

Just Recovered from 2008 with 2- 50% Drawdowns

Would You be Satisfied over 15 years?

Compare Buffet to Some Unique of CTAs that have been around for Decades
While Countless CTAs have failed & closed there are some unique World Class Managers that have created wealth Salem Abraham 17.75% CAGR since 1988 Chesapeake 11.63% since CAGR 1988 Clarke Worldwide 14.72% CAGR 1996 Eckhardt Aggressive 19.87% 1991 EMC 21.04% 1985 Mark Walsh 19.99% 1985 Saxon 19.43% 1993
Past Performance is not Necessarily Indicative of Future Performance

There is No Holy Grail

It is never easy! There are always long periods of drawdowns & losing periods. Salem Abraham worst draw down -31.96% Chesapeake worst draw down -36.73% Clarke Worldwide worst draw down -27.15% Eckhardt Aggressive worst draw down -40.39% EMC 21.04% worst draw down -45.35% Mark Walsh worst draw down -43.04% Saxon 19.43% worst draw down -65.86%
Past Performance is not Necessarily Indicative of Future Performance

Taking a Closer Look Permission from Iasg.com PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

EMC Past Performance is Not Indicative of future Performance

Drawdowns are Inevitable

Even the successful unique CTAs that know how to deal with risk management, money management and proper trading psychology also went through some very ugly periods of trading. The irony is that probably the vast majority of investors who allocated to them did not achieve the success they did. As most traders and investors do they jump ship at the first draw down or period of illusive profits.

How Easy It Really Wasnt 1 year + of No profits

Steep & Sharp Draw Downs

Long Flat Period of Elusive Profits

The Goal is to Compound Money over long periods

Einstein Called Compounding the Greatest Mathematical Discovery of All Time!

Compounding at 15% over 20 Years

Compounding at 25 Years

Reasonable Returns + Time + Compounding of Money = Extreme Wealth.

Past Performance is not Necessarily Indicative of Future Performance

It is Possible But Not Easy!

$300,000 in 1988 -2013 $30,000,00

Many CTAs fail, however there are a few select world class money managers who have audited real time numbers who have succeeded and compounded money.

Past Performance is not Necessarily Indicative of Future Performance

Rules for Investing in World Class Money Managers

10 year record Liquid & Transparent 15% CAGR ( Compounded Annual Growth Rate) Doing the Uncomfortable: Buying the Drawdown Performing Strong Due Diligence Allocating no more than 5% of assets in anyone manager Accepting there is nothing perfect, no magic manager and even following these rules there still will be loses!
Past Performance is not Necessarily Indicative of Future Performance

Contact Details
Andrew Abraham Andrew@AbrahamCta.com Tel US 954 903 0638 Tel Intl 972 54 319 4101 Skype -Abraham Investment Management Website www.AbrahamCTA.com Abraham Investment Management