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 -0.8% in March after fees. The SPY closed the month down -5.2%.
When It Matters Most
"The stock market is a device for transferring money from the impatient to the patient." - Warren Buffett
March was a punch. The U.S.-Iran conflict escalated sharply, oil crossed $100 a barrel raising the concern of stagflation setting in, and the Nasdaq and Dow entered correction territory. Growth sold off. Value sold off. There was almost nowhere to hide.
For Solimar, five consecutive months of negative returns is not something we gloss over. It stings. But context matters.
The broader market has been rolling over for months, grinding through one of the more difficult stretches in recent memory, and March was its sharpest test yet. A regime change has taken place, and our returns reflect that. We are not using it as an excuse. We offer it as an explanation.
These are the months that matter. Not the easy ones. Losing less when markets fall is not glamorous, and it doesn’t show up on a highlight reel. But it is exactly what we built this system to do. March was a real world test of that, and we will take it. A 4.4% outperformance this month closes the gap to the YTD returns of our benchmark (SPY).
*There is no guarantee such results will be achieved and individual results will vary based on entry point and length of investment.
Built for This
Solimar was not built to chase. It was built to survive and compound.
When volatility spikes, our system throttles itself. Position sizes shrink. Risk exposure pulls back automatically. The algorithm does not panic, it just gets quieter.
That discipline is what separates a down -0.8% month for us from a down -5.2% month for the SPY. It’s also the reason we had two benign months in a row.
Q1 of this year has felt similar to sideways quarters we have seen before during bigger market corrections. That is worth paying attention to.
Periods of chop and low returns have historically preceded sharper moves in one direction or the other. Does that mean a bigger correction is coming or a surprising move upward? Only time will tell. What we can say is that the system is designed for exactly that scenario. When others are forced to sell, we want to be the ones still standing with dry powder and a clear head.
We built our system to generate positive returns every year, no matter the market regime. The goal was always the same: exponential growth, with risk systems disciplined enough that you can sleep at night, all year long. That has not changed and we are right on track.
Nine Months to Go
Q1 is behind us. It was messy for most funds and investors. For us, it was a reminder of why enduring process and discipline matter more than any single month.
No down years is still the goal. We are grateful for your trust, particularly during months and quarters like this one.
Lifetime Performance Comparison: Solimar Fund vs. SPY
Solimar Fund Net Lifetime Performance (10/1/23-3/31/26): 54.5% after fees.
SPY Performance (10/1/23-3/31/26): 52.1%
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.
*Benchmark comparisons are provided solely for informational purposes, are not indicators of suitability as an investment, and do not represent a guarantee of future or similar results. Fund figures and returns represent actual returns net of fees and expenses, as reported by our third-party administrator, NAV Fund Services. Individual investor performance may vary due to factors such as investment timing and specific fee arrangements. These figures are for illustrative purposes only and do not represent a guarantee of future performance. Returns are unaudited and reflect the fund’s actual trading results net of fees. Past performance is not indicative of future results. Investing in the Fund involves risk, including the potential loss of principal. Participation is limited to verified accredited investors under Rule 506(c) of Regulation D, and all investors must provide supporting documentation to establish accredited status.Please see the Memorandum for full terms and risk disclosures.
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.
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.
