Doubling the Market

March has proven to be another amazing month for Solimar Fund, delivering a solid return of 7.40% net of fees compared to the S&P 500's return of 3.1%. March performance caps off an eye catching first quarter with returns of 19.19% net of fees, surpassing the S&P 500's best Q1 returns in 5 years of 10.15%. Even with this phenomenal start for the S&P 500, the Solimar system was still able to nearly double those returns. While we only expect this to happen consistently on a longer timeframe like 3 to 5 years, we want to explain why outsized CAGR is so important for creating wealth.

Before we get there, we’d like to take a moment to pause and share our gratefulness for the wonderful first 6 months in the Solimar Fund. It’s a blessing. We expect ~70% of months to be positive and we’ve started with 83% so far. For that, we are thankful. Now back to the storyline.

Unlocking the Power of CAGR

Understanding Compound Annual Growth Rate (CAGR) is crucial for investors to grasp the long-term potential of their investments, and the opportunity costs of not investing a small portion of your portfolio in Solimar Fund. CAGR, representing the annual growth rate of an investment over time, shows the average yearly growth when compounding is considered (ie none of your earnings are withdrawn from the fund).

For instance, if Solimar Fund achieves a CAGR of 59% net of fees as its theoretical backtested returns suggest, it means investments are growing at an average rate of 59% annually. This rapid growth leads to significant wealth accumulation. For example, a $100,000 initial investment could quadruple to approximately $430,000 over 3 years, soar to around $1.4 million in 5 years, and balloon to an impressive $17.4 million over a decade. These numbers highlight the extraordinary power of sustained high CAGR in wealth creation.

By comparison, if the same $100,000 investment were made in Buying & Holding an index fund returning 10% CAGR, the 3, 5, and 10 year account balance would be approximately $133,100, $161,100, and $259,400, respectively.

The difference is life changing. CAGR matters.

Let’s talk Risk

Naturally, when considering high CAGR, concerns about risk arise. With algorithmic trading strategies like ours, investors can take comfort in the ability to assess past risks and drawdowns with relative precision. By examining historical data since 1985, including turbulent periods like the Covid crash, 2008 financial crisis, and others, our algorithm consistently demonstrates significantly lower downside volatility compared to the S&P 500 over those periods. Our backtested maximum drawdown is only half the drawdown of the market. Double the returns for half the risk!

Our effective risk mitigation techniques affirm our commitment to delivering superior risk-adjusted returns. We both have the bulk of our wealth invested in this system and are very prudent with risk. Rest assured, we've dedicated extensive efforts to fine-tuning the risk mitigation components of our algorithm, ensuring investors can navigate market volatility with confidence.

As we continue on this journey, we remain steadfast in our commitment to top of class risk adjusted returns, transparency, and above all, delivering value to our investors.

Thank you for being part of the Solimar Fund family. If you haven’t already, schedule a call with Geoffrey or Tyler. We love introducing the fund to people and inviting you to join us in growing your wealth and financial freedom.

Warm regards,

Geoffrey & Tyler

_{2by2 Capital LLC | [email protected] | www.2by2Capital.com}

_Disclaimer

_{Solimar Fund is a private fund operating under Rule 506(c) of Regulation D, which allows us to engage in general solicitation and advertising to raise an unlimited amount of capital from accredited investors, provided we take reasonable steps to verify their accredited investor status. This fund is exclusively available for investment by accredited investors, as defined by applicable securities laws}

_{This material does not constitute an offer or the solicitation of an offer to purchase an interest in Solimar Fund, LP (the “Fund”), which such offer will only be made via a confidential private placement memorandum. An investment in the Fund is speculative and is subject to a risk of loss, including a risk of loss of principal. There is no secondary market for interests in the Fund and none is expected to develop. No assurance can be given that the Fund will achieve its objective or that an investor will receive a return of all or part of its investment. All statements herein are qualified in their entirety by reference to the Memorandum, and to the extent that this document contradicts the Memorandum, the Memorandum shall govern in all respects.}

_{The hypothetical backtest results presented herein are for illustrative purposes only and do not represent actual trading or future performance. Past performance, whether actual or simulated, is not indicative of future results. The backtest is based on historical data and assumptions that may not be accurate or complete. Investors should not rely solely on this information when making investment decisions and should consult with financial advisors to understand all risks associated with investing in our hedge fund.}

_{Past and simulated performance is not necessarily indicative of future performance. Any performance data prior 10/2023 does not represent the performance of the Solimar Fund. 2023 performance data prior to launching the Fund is taken from actual returns net of fees from a live trading account managed by 2by2 Capital. Data prior to 2023 represent the simulated performance of 2by2 Capital’s long-short algorithm.}

_{Information provided reflects 2by2 Capital’s views as of the date of this document. Such views are subject to change at any point without notice. The information contained herein is for informational purposes only and should not be considered a recommendation to buy or sell any securities. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based on any information provided herein. There is a risk of loss from an investment in securities, including the risk of loss of principal. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular investor’s financial situation or risk tolerance. Asset allocation and portfolio diversification cannot assure or guarantee better performance and cannot eliminate the risk of investment losses. Past performance is not necessarily indicative of future performance. There can be no assurance that the performance achieved above will be achieved at any time in the future. All investments involve risk, including the loss of the entire investment.}