Managed Futures Database, Resource & Tools

Program Details

PDFPermalink

Financial Commodity Investments (FCI) 

Credit Premium Program

Manager: Craig Kendall

Address: 462 Herndon Parkway Suite 205, Herndon, VA, 20170, U.S.A.

PAST PERMORMANCE IS NOT INDICATIVE OF FUTURE RETURNS.

Overview

Program Type:CTA
Inception Date:Feb 1, 2009
AUM:$9,793,687
QEP:Yes
Incentive Fee:25%
Annual Mgt Fee:1%
Min Investment:$50,000
Disclosure Doc:View
Performance Program S&P 500
Total ROR:-15.32%186.09%
Annual ROR:-4.87%37.07%
YTD:0.00%5.53%
1 Year:0.00%14.40%
Alpha:-1.12
Beta:0.00
Statistics Program S&P 500
Average Monthly Gain:2.80%2720.28%
Average Monthly Loss:-5.39%-3.41%
Winning Months:2527
Losing Months:1513
Current DD:36.326.97
Max DD:36.3217.03
Sharpe Ratio (RF 1%):-0.32
Annualized Std Dev:18.53

Methodology

Discretionary:50%
Systematic:50%

Strategy

DirectionalLong / Short
Holding PeriodLong Term
---------------------------
Option Writing:100%

Monthly Returns as Percentage by Year

JanFebMarAprMayJunJul AugSepOctNovDecYTD
2012-6.29-4.82-14.313.12-9.87-28.96
20113.572.131.284.02-1.86-1.600.08-15.962.26-1.345.553.64-0.11
20101.530.87-1.721.174.782.51-1.292.08-12.292.21-0.730.98-0.96
20096.374.522.35-6.468.190.81-0.17-2.070.763.641.6620.49

PAST PERMORMANCE IS NOT INDICATIVE OF FUTURE RETURNS.

Program Info

FCI - CREDIT PREMIUM PROGRAM (CPP) engages in the selling or "writing" options (puts and calls) on futures contracts in the natural gas, crude oil, coffee, soybeans, corn, and financial currency markets, among others. However, in the future, FCI - CPP may trade a broader portfolio of options, futures and cash markets. In doing so FCI reserves the right to place trades in any commodity futures contract or option contract thereon, on any exchange, foreign or domestic, at FCI's sole discretion.

Similar to FCI's Option Selling Strategy program, the primary trading strategy of FCI - CPP will be to sell, on behalf of
a client, options on futures contracts. However, FCI - CPP is different from the Option Selling Strategy program because FCI - CPP may sell options that are (a) likely to be closer to the expiration date, ranging from four (4) days to ninety (90) days from expiration, [versus thirty (30) to forty-five (45) days from expiration for the Option Selling Strategy program], and (b) closer to being "in the money". The program also utilizes more of a vertical credit and calendar spread strategy, thus reducing per trade capital requirements. When premium collection transactions become unprofitable contracts, offsetting futures contracts or options are purchased as a hedge to limit further future contract losses. The net effect is that FCI - CPP targets higher returns with additional contracts being executed. There is an increased likelihood of the strike price being met on options written versus the portfolio of options written in the Option Selling Strategy program.

Furthermore, FCI - CPP is more progressive with its rolling forward, exiting out of option contracts, and with the rolling further out as a hedge to limit contract losses. FCI - CPP will also utilize directional future trades from time to time. This will occur when underlying futures appear to be over extended in either an over or under valued status in relation to historical values of an underlying commodity. Finally, FCI - CPP program will utilize larger margin account balances with capital requirements targeted at a range of 40% to 60% of the total account balance.

Company Info

Financial Commodity Investments, which is located in the greater Washington D.C. Metropolitan area, manages several absolute return strategies. Our performance has low correlation to the equity, fixed income and real estate markets. These alternative strategies are leveraged, and maintain high levels of liquidity. As a result of our asset management skill in executing these alternative strategies, the managed futures accounts under our management have posted positive returns in recent periods. (Past performance is no indication of future results)

Financial Commodity Investments (FCI) is a registerred CTA (Commodities Trading Advisor). Accounts are managed on a separate basis according to one of our specific strategies. Please visit our website at www.financialcii.com.

Manager Info

Craig B. Kendall, CPA, is the principal owner and manager of the Financial Investment, Inc. (FII) family of companies. This includes Financial Commodity Investments (FCI), Financial Investment, LP (FILP) and Kendall & Company, CPA's.

His business experience includes more than 20 years in the finance, accounting and investment banking industries. In 1997, Mr. Kendall founded FII as an investment firm that acquires equities, private placement memorandums, and other investments. Established Financial Investments Limited Partnership (FILP), a limited partnership developed to capitalize on the opportunities available using proprietary trend tracking investment models.

Mr. Kendall holds FINRA Series 3 and Series 66 licenses.

Under Mr. Kendall's leadership, FII has been named an Inc. 5000 company nationally, and received the "Fantastic 50" award in 2008 and 2007 from the Virginia Chamber of Commerce. He led FCI to a ranking as a Top 20 Commodity Trading Advisor (CTA), in the Barclay Managed Funds Report.