GRAHAM ALTERNATIVE INVESTMENT FUND I LLC - Annual Performance Review

I’ve put together this guide to help you understand how Graham Alternative Investment Fund I LLC (GAIF I) works. My goal is to explain these financial details in plain English so you can decide if this fund fits your goals.

1. What does this company do?

Think of GAIF I as a professional "all-weather" trader. Instead of just buying stocks, they use human experience and computer models to profit in both rising and falling markets. They trade everything from oil and gold to currencies across global exchanges. The fund uses a systematic, trend-following approach, executing thousands of trades annually across over 100 markets to capture price movements regardless of the broader economy.

2. How they performed this year

The fund had a modest year in 2025, earning a profit of about $237,675 (a 0.8% return). This was a significant drop from the $1.35 million profit (4.7% return) posted in 2024.

The year was a tale of two markets:

• The Wins: Metals provided a boost, as volatility in gold and copper futures added about 3.2% to the gross performance.
• The Losses: Energy and foreign currencies were a drag. Sudden price reversals in crude oil and natural gas cost the fund 2.4%, while currency volatility—specifically in the Japanese Yen and Euro—caused an additional 1.8% loss.

3. Who is behind the curtain?

Graham Capital Management manages your money and oversees over $20 billion in assets. Kenneth G. Tropin founded the firm, and Jens Foehrenbach joined as President and Co-CIO in 2025. Because they manage many other funds, they may prioritize larger institutional clients or their own internal accounts when trading, which could leave GAIF I with less favorable pricing.

4. How they manage your money and risk

The fund pools your money to trade efficiently and uses "guardrails" like stress tests to simulate market crashes. However, there is no limit on how much the fund can borrow to amplify trades. They use significant leverage, often holding positions worth over 500% of the fund's value, meaning small market moves can lead to large losses.

The manager also uses "alpha enhancement strategies," which act like a "turbo button" for trades. These strategies can increase your losses if they fail; in 2025, these models failed to adapt to high inflation, which hurt the fund's performance.

5. The cost of investing

This is not a low-cost fund. Beyond advisory and success fees, operating costs—such as legal and cybersecurity fees—run about 1.35% of your investment annually and are not capped. The management fee is 2% of assets, and the incentive fee is 20% of new profits. This creates a high hurdle for you to see real growth.

6. Important realities

• No easy exit: There is no public market for your units. You must provide 90 days' notice to withdraw money, and the manager has the right to restrict withdrawals.
• Valuation uncertainty: The manager decides what assets are worth if they believe "special circumstances" exist. These subjective prices may not reflect what you could actually get if you sold.
• Tech risks: They rely on third-party vendors. A data breach at a partner firm could freeze the fund’s ability to trade.
• Taxes: You may owe taxes on "profits" even if you haven't received any cash. You will receive a Schedule K-1, which may report "phantom income" that you must pay taxes on out-of-pocket.

7. Future outlook

The fund is meant to be a "diversifier"—it should zig when your stocks zag. However, it is a high-risk, speculative investment and is not a "set it and forget it" choice. It should only be a tiny piece of a larger portfolio. The fund is currently updating its algorithms to handle high volatility, but there is no guarantee these changes will improve results in 2026.

Final Thought for Investors: Before committing, ask yourself if you are comfortable with the liquidity restrictions and the tax complexity of a K-1. Because this fund uses high leverage and complex strategies, it is best suited for investors who have a high risk tolerance and are looking for a small, non-correlated addition to a much larger, diversified portfolio.