Performance

Optimum Income Program

TEOW Program

Rates of Return

The value of a professional money manager can best be measured by their performance relative to a benchmark. As noted below, the Optimum Income Program has delivered a +8.98% annualized return since inception, compared to -0.11% for that of its S&P 500 benchmark. Clearly, this outperformance represents value added by our management team.

Growth of $1,000,000

Don’t be fooled by the concept of a passive,“buy and hold” approach to investing -- $1 million invested passively in the S&P 500 in January 2008 would have eroded to $995,836. By sharp contrast, $1 million invested in our actively managed Optimum Income Program would have appreciated to $1,400,828, a case in point for active portfolio management!

Percentage of Winning Months

Consistent, positive returns enhance the effects of compounding and maximize ending wealth values. As reflected by the pie chart below, the Optimum Income Program has produced positive monthly returns 94% of the time, compared to only 57% for the S&P 500.

Down Market Outperformance

Our commitment to capital preservation can best be illustrated by comparing our returns to those of the S&P during negative quarters in the stock market. As reflected below, not only did the Optimum Income Program outperform the S&P, but actually managed to avoid loss altogether during these volatile periods.

Slow & Steady Wins the Race…

The Optimum Income Program is designed to get on base every time at bat, not hit home runs. Swinging for the fence results in strike outs, which our goal is to avoid. Our objective is to hit consistent singles and maintain a high batting average, which we have managed to do.

Quarterly Performance

DISCLOSURES

1.Performance is calculated by an independent CPA firm, CCS Financial Services. Account values are combined/aggregated every month to arrive at the composite value, and the composite monthly value is adjusted by the time weighted cash flow of the month to arrive at the monthly composite return. The monthly composite returns are geometrically linked to arrive at the quarter/annual composite returns. Returns are calculated using Modified Dietz, a timeweighted return (TWR) performance measurement methodology that prorates cash flows based on the # of available trading days in the month. Other performance calculation methods may produce different results. S&P 500 Index performance data is obtained from www.standardandpoors.com, presumed to be accurate but not guaranteed, and includes dividends.

2.This material is for informational purposes only and does not constitute an offer or public offering of securities or interests, general solicitation, general advertising or direct selling effort of any party associated with the advisor in any private investment fund managed by the advisor. Such an offering can only be made to investors who satisfy relevant investor eligibility criteria via the confidential offering memorandum of the appropriate private placement.

3. These charts and tables represent the Optimum Income Program composite performance of all client accounts similarly traded by the Advisor since 01/31/08, net of all fees and commissions. Trading commenced at the end of the day on 01/31/08 so there were no profits or losses on that day. Therefore, ending values on 01/31/08 are used as starting values for the composite. The composite does not reflect the performance of any one account, but rather a combination of the historical performance of multiple accounts. Therefore, an individual account and a particular trading portfolio may have realized more or less favorable results than the composite indicates. An investment cannot be made directly in the Optimum Income Program composite.

4. Trading option spreads on S&P 500 index futures contracts is speculative and MAY RESULT IN LOSSES. You should carefully consider all of the risks outlined in Newport Private Capital, LLC’s CTA Disclosure Document before investing. If you are unsure, you should seek independent professional advice.

Past results are not necessarily indicative of future results.
Commodity Trading Involves Substantial Risk of Loss