If I invest in my friend's trading based company that signs a contract to a fixed RoI can the gains be treated as long term if I leave it for a year?

So my friend has a company that seeks investments from friends and family (possibly other acquaintances too). They invest these funds into stocks, etfs, derivatives, etc using their patented algorithms and constantly learning more. Let’s say they guarantee a 10% return per year. (I asked and they said they tested their algorithms over years with dummy transactions and even in the last 2 years with actual money and they make more than 10%).

So, assuming they know and can deliver, they’ll need to send me some forms for taxes. (He said it will be treated as a Capital Injection.)

From my side, if I invest $10000 and hold the stock for more than a year, will I be taxed Long Term Capital Gain rate on the yield ($1000) or will it be short term gain/ordinary income? How can I optimize taxes in this investment?

To clarify based on comments: what questions could I ask to better understand the structure of the fund from my perspective of getting taxed? (I thought, from my perspective, what the company does and invests in would be opaque to me. I’d be getting some returns at the end of some period.)

The company is based out of Puerto Rico and I am based out of California, United States.

EDIT: Clarifications based on comments
The friend is a dear friend of my wife. He is a PhD in Chemical Engg with special interest in Quant/Algorithms. His continued ambition is to fund the startup space in Puerto Rico. As such, he is not shady/sneaky and we didn’t just stumble upon him.
I am wary of guarantees of this sort too. So I asked him point blank "how can you guarantee me any percentage if you are investing in the stock market and derivatives?" He showed me historical performance charts, the performance of his modified approach when the stock market was crashing during early Covid-19 phase. He said that the 10% is because he has consistently generated approx 30%.
So my question is with the assumption that his character is not in question. Would I be getting a 1099B with a bunch of short term cap gains or can the tax doc bunch up the total gain after 1 year as a long term gain?