Statistical Analysis Reports

Trading Strategy

Real Estate Trust Deed Investment Fund

Program Description

The LJL Secured High Yield Income Fund I LLC invests in single family residential first trust deeds with loan-to-values not exceeding 65%. The value being based upon the 30-day distressed sale price. The mortgages are standard 30-year fully amortized mortgages with a 5-year fixed interest rate and a 2-year prepayment penalty. The interest rates vary from 11% to 13%. The average life of a mortgage is less than 2 years with borrowers repairing their credit and refinancing or selling the property in an orderly fashion. Returns will be enhanced by the acquisition of sub-performing distressed mortgages at a discount, providing the same 35% equity cover, modifying these mortgages with existing borrowers and refinancing the loans within 2 years with conventional mortgages yielding the fund a capital gain upon refinance.

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Investment Information

Fund Type Mortgage Fund

Start Date 2007-04-01

Minimum Investment 25,000

Currency US Dollars

Domicile US

Auditor Armino McKenna

Legal Counsel Morrison & Foerster

Fund Fees

Management Fee 1.00%

Incentive Fee 0.00%

Loan Servicing Fee 0.5%

0.5% Loan Servicing Fee

Lock Up 1 Year

Additions Monthly

Withdrawals Monthly

Performance since April 2007

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007 0.13% 0.87% 0.82% 0.94% 0.88% 0.86% 0.93% 0.88% 0.88%

2008 0.91% 0.84% 0.90% 0.85% 0.82% 0.75% 0.83% 0.82% 0.85% 0.84% 0.85% 0.12%

2009 0.78% 0.74% 0.73% 0.73% 0.73% 0.75% 0.74% 0.75% 0.78% 0.78% 0.93% 0.42%

2010 0.66% 0.58% 0.66% 0.67% 0.58% 0.61%

Year	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2007		0.13%	0.87%	0.82%	0.94%	0.88%	0.86%	0.93%	0.88%	0.88%
2008	0.91%	0.84%	0.90%	0.85%	0.82%	0.75%	0.83%	0.82%	0.85%	0.84%	0.85%	0.12%
2009	0.78%	0.74%	0.73%	0.73%	0.73%	0.75%	0.74%	0.75%	0.78%	0.78%	0.93%	0.42%
2010	0.66%	0.58%	0.66%	0.67%	0.58%	0.61%

2007 2008 2009 2010 YTD
Annual Return 7.41% 9.80% 9.23% 3.81%

Maximum Drawdown 0.00% 0.00% 0.00% 0.00%

	2007	2008	2009	2010 YTD
Annual Return	7.41%	9.80%	9.23%	3.81%
Maximum Drawdown	0.00%	0.00%	0.00%	0.00%

Program Statistics
Maximum Drawdown	0.00%
Average Monthly Return	0.75%
Monthly Std. Deviation	0.18%
Current Losing Streak	0.00%
Gain Deviation (39 months gain)	0.18%
Loss Deviation (0 month loss)	%

Annualized Statistics
Compound ROR	9.36%
Standard Deviation	0.64%
Downside Deviation (2)	0.39%
Sharpe Ratio (3)	6.40
Sortino Ratio (4)	4.40
Gain Deviation	0.64%
Loss Deviation	%

Select an index or program to add as a benchmark:

Benchmark 1 = Lehman Bother's Aggregate Bond Index - Benchmark 2 = S&P Total Return Index

Comparisons	Program	Bond	SP Total Return
Annualized Compound ROR	9.36%	6.78%	-7.38%
Cumulative Return	33.74%	23.76%	-22.05%
Cumulative VAMI⁽¹⁾	1337	1238	780
Largest Monthly Gain	0.93%	3.73%	9.57%
Largest Monthly Loss	0.12%	-2.36%	-16.80%
Profit Loss Ratio	0.00	3.47	0.82
Correlation	—	-0.191	-0.155
Last Month	0.61%	1.57%	-5.23%
Last 12 Months	8.47%	9.50%	14.42%
Last 36 Months	31.34%	24.38%	-26.65%

Statistical Notes

1. The hypothetical growth of $1,000
2. Uses a 7.5% Minimum Acceptable ROR
3. Uses a 5.0% Risk Free ROR
4. Uses a 7.5% Minimum Acceptable ROR

* Targeted Return & Worst Expected Drawdown Estimates have been supplied by the Manager
** ROR = Rate of Return

For Statistical definitions and formulas see
"Building Wealth with Managed Futures"
by Kim Avery

THE RISK OF TRADING COMMODITY FUTURES, OPTIONS AND FOREIGN EXCHANGE ("FOREX") IS SUBSTANTIAL. THE HIGH DEGREE OF LEVERAGE ASSOCIATED WITH COMMODITY FUTURES, OPTIONS AND FOREX CAN WORK AGAINST YOU AS WELL AS FOR YOU. THIS HIGH DEGREE OF LEVERAGE CAN RESULT IN SUBSTANTIAL LOSSES, AS WELL AS GAINS. YOU SHOULD CAREFULLY CONSIDER WHETHER COMMODITY FUTURES, OPTIONS AND FOREX IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IF YOU ARE UNSURE YOU SHOULD SEEK PROFESSIONAL ADVICE. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE SUCCESS.

Fund Type	Mortgage Fund
Start Date	2007-04-01
Minimum Investment	25,000
Currency	US Dollars
Domicile	US
Auditor	Armino McKenna
Legal Counsel	Morrison & Foerster

Fund Fees
Management Fee	1.00%
Incentive Fee	0.00%
Loan Servicing Fee	0.5%
0.5% Loan Servicing Fee

Lock Up	1 Year
Additions	Monthly
Withdrawals	Monthly