The Rama Fund, LLC
Performance Results
Please find enclosed the updated performance results for The Rama Fund, LLC (the “Fund”We will forward this information to you on a monthly basis as performance for the Fund is updated. This information is being provided to you if you are an investor in The Rama Fund or if you have expressed an interest in receiving performance information on the Fund. If you are an interested party or if you wish to stop receiving this information, please inform us and we will accommodate your request.
Note: This material incorporates The Rama Fund’s Private Placement Memorandum and other related documents.Potential investors should read the Private Placement Memorandum and related documents and not invest based only onthis material. There is no assurance the Fund will achieve its objectives. This is not an offer of interests in the Fund.Such an offer can be made only through the Fund’s confidential Private Placement Memorandum and related documents.There are numerous risks associated with an investment in the Fund. Please review these materials carefully, particularlythe information contained in the memorandum under the heading “Business Risks.”
This material constitutes part of an investor kit and must be read in conjunction with the Private Placement Memorandumand related documents in order to understand more fully all of the implications and risks of the offering securities to whichit relates. This material is not authorized for distribution unless accompanied by the Private Placement Memorandum.
Fund Objective
The Rama Fund offers the benefits of trust deed/mortgage investing without the barriers to entrytraditionally inherent in this asset class, including real estate experience and personal time commitment.Our Fund combines low volatility, preservation of capital, investment transparency, and diversification,while offering attractive returns traditionally associated with higher risk investments.
The Fund is a California Limited Liability Company that allows investors to pool their financialinvestments through the acquisition of membership interests. The Fund’s pooled resources are loaned toreal estate owners and secured by deeds of trust/mortgages encumbering the underlying real estate. TheFund invests in first trust deeds and requires substantial equity cushion to protect the capital invested. Themaximum loan-to-value will not exceed 70%.
Performance Results
The Fund’s net return for the month of December 2015 was 0.75%. Since the Fund’s inception inSeptember 2008 through the most recent month ended December 2015, the Fund has generated anannualized net yield of 9.87% and a cumulative net return of 97.82%.
Performance Statistics
Oct 2008 – Dec 2015 %
Average Monthly Net Return 0.79
Highest Month 0.95
Lowest Month 0.62
Monthly Standard Deviation 0.06
Positive Months 87
Negative Months 0
Net of fees. Years denoted with an “A” reflect audited results. Current year return figure reflects our YTD performance. Full year return figure for2008 reflects annualized historical performance. Individual returns may vary based on the date an investment was made and the election to reinvestmonthly distributions.
Note: This material constitutes part of an investor kit and must be read in conjunction with the Private Placement Memorandum and related documentsin order to understand more fully all of the implications and risks of the offering securities to which it relates. This material is not authorized fordistribution unless accompanied by the Private Placement Memorandum.
The Rama Fund Overview
+ $176.0 million assets under management2
+ Commenced September 26, 2008
+ 12 month lock-up with 90 days redemption notice
+ Management fee: 1.0% annual rate based on AUM, paid monthly
+ Investors’ preferred return: 8.0% annual rate, distributed monthly
+ Performance fee: 50% of excess annual return above 8.0%, paid monthly
Asset Allocation
+ 40% Construction
+ 20% Bridge Loans
+ 10% Commercial
+ 20% Rehab
+ 10%
If you have any questions regarding this communication or the Fund in general, please contact:
Alim Kassam
Chief Executive Officer
(818) 914-3000 ext. 204
alim@ramacapital.com