Novus Investments, LLC : Novus Precious Commodities

Summary

The Novus Precious Commodities Strategy seeks to achieve maximum growth of capital within defined risk limitations. The Strategy trades commodity futures (long and short) on a discretionary basis with an emphasis on precious metals. Our goal is to exploit the underlying trends and volatility with proper risk management tools such as limit orders, trailing stops, and occasional selective option strategies to enhance returns. We believe that the continued expansion of money supply (Austrian definition of inflation), and other inflation-fueling monetary and fiscal policies (using debt to bail out more debt), along with supply/demand imbalances will help these markets continue to develop tradable trends for years to come. The goal is to outperform commodity and managed futures index funds through the prudent use of leverage with proactive management of risk.

Results through Oct, 2010 are based on actual client returns adjusted for a 2% Management Fee and a 15% Incentive Fee, paid quarterly.

Investment Strategy

Diversified discretionary macro w/ emphasis on precious metals.

Risk Management

initial risk averages 2% per position and 10% total for all positions. Stops and options are used to hedge risk at all times.