J E Moody & Company LLC

(Commodity Relative Value)

Fund Investment Objectives

The JEM COMMODITY RELATIVE VALUE Program brings diversified relative value trading to the commodity markets, covering multiple sectors, models, and time frames. JEM CRV employs market and fundamental indicators to capture changes in relative price between related instruments in the energy, metal, grain, livestock, and food / fiber markets, while maintaining approximate market or sector neutrality. Trades are typically driven by capital flows or changes in relative supply and demand. This systematic strategy does not make un-hedged directional bets. CRV seeks pure alpha with no commodity Beta and nearly zero correlations to CTAs, hedge funds, stocks and bonds. Trades are implemented using offsetting long and short positions in commodity futures contracts, thus reducing exposure to sudden changes in market direction. CRV's rigorous risk management limits exposure to each commodity market and sector, and results in very low drawdowns.