Here are some regulatory notes before we get started. Solimar Fund is a Rule 506(c) of Regulation D fund and only available to verified accredited investors. All fund returns are net of fees and expenses, unaudited, as reported by NAV Fund Services. Individual results may vary. Past performance is not necessarily indicative of future results.
The Scorecard.
Solimar Fund returned -0.1% in June after fees. The SPY closed the month down -1.3%.
Summer swells: much to do about nothing
After the sharp rebound and new highs we wrote about last month, June was much quieter.
The fund was essentially flat, down just -0.1% after fees, while the S&P 500 declined -1.3%. It was not the kind of month that grabs attention, but in our view, these quieter months matter too.
Not every win in investing looks like a big gain. Sometimes it looks like avoiding unnecessary damage. Sometimes it looks like staying steady while the broader market moves lower. Sometimes it simply looks like preserving the ground you’ve already fought hard to gain.
That is part of the work.
This month was a reminder that compounding is not built only in the exciting moments. It is also built in the disciplined, uneventful stretches where risk is managed well, exposure is adjusted appropriately, and the process keeps doing its job.
*There is no guarantee such results will be achieved and individual results will vary based on entry point and length of investment.
Human behavior
It is easy to get conditioned to think that every worthwhile month should feel dramatic.
But some of the most valuable months in investing are the ones where the system simply does its job without much fanfare.
June was a good example. The market moved lower, leadership remained narrow, and there was plenty of noise underneath the surface. In that kind of environment, our goal is not to predict what comes next or make judgment calls in real time. Solimar is fully quantitative and algorithmic, so the portfolio simply responds to the market through its rules, signals, and risk controls.
That matters because one of the biggest challenges in investing is human behavior. Overreacting, forcing trades, and trying to outsmart every twist in the market can be counterproductive. Our process is designed to remove that impulse. It does not chase excitement, it does not panic during drawdowns, and it does not get overconfident after strong periods. It just keeps adapting systematically to the opportunity set in front of it.
Sometimes that leads to aggressive participation when conditions are favorable. Other times it leads to a quieter month, tighter positioning, or lower exposure when the environment is less supportive. Both are part of the design. Both are part of compounding.
Looking Ahead
We feel good about where the fund stands halfway through the year.
We have now outperformed the market year to date after a solid recovery in Q2, remained resilient through a softer June, and continued to build on the longer-term track record since launch. But the mindset remains the same as always: stay humble, stay systematic, and keep improving.
There will be louder months ahead, both good and bad. Our job is not to predict each one perfectly. Our job is to keep executing a repeatable process, manage risk intelligently, and allow the math of compounding to do its work over time.
Thank you, as always, for your trust and partnership.
Enjoy the ride.
Geoffrey & Tyler
2by2 Capital LLC | [email protected] | www.2by2Capital.com
Lifetime Performance Comparison: Solimar Fund vs. SPY
Solimar Fund Net Lifetime Performance (10/1/23-6/30/26): 84.9% after fees.
SPY Performance (10/1/23-6/30/26): 76.9%
The SPY is presented solely as a broad equity market reference. The Fund does not attempt to replicate the SPY, and its strategy and risks differ materially.
