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 9.2% in April after fees. The SPY closed the month up 5.3%.
Money Moves: Back to New Highs
Just a month ago, we were writing about patience.
Today, we're at new highs.
That causes Geoffrey and I to pause with gratefulness. And very importantly, to remember our ethos.
We believe strongly that money must stay in motion to grow. Stagnant money devalues.
The fund gained significantly during the month, reaching new all-time highs and outperforming the S&P 500 by close to 2-1. More importantly, the recovery happened quickly. What felt uncomfortable in the moment is now largely visible as a temporary detour in a much longer journey.
Such is the way. Drawdowns and all. Just keep moving forward.
*There is no guarantee such results will be achieved and individual results will vary based on entry point and length of investment.
The Difference Between a Drawdown and a Defeat
One of the biggest mistakes investors make is confusing a drawdown with a broken strategy.
A drawdown is temporary. It is the cost of participating in markets. Oddly, it avoids stagnation. It’s like wintertime preparing for spring.
A defeat would be abandoning a sound process because of short-term discomfort. Sometimes winter sucks but spring is coming!
Over the last several months, we experienced the normal ups and downs that come with active risk management. The system reduced risk when conditions deteriorated, preserved capital through a difficult period, and then re-engaged as opportunities improved.
While the headlines change dramatically from month to month, our approach remains remarkably consistent. An object in motion tends to stay in motion.
That consistency is important because long-term performance is rarely determined by what happens during the best months. More often, it is determined by how investors respond during the difficult ones.
Our longest drawdown to date is behind us and we are excited as we look to the future.
We are grateful our investors stuck with us as we continue to grow capital. Thanks for your trust. It means more than you know.
Looking Ahead
While we're pleased to be back at new highs, we know markets have a way of humbling anyone who becomes overly confident.
As we often remind ourselves, the goal is not to win every month. The goal is to continue building a strategy that can navigate a wide range of market environments while protecting capital when conditions become unfavorable. Always be improving.
We'll stay systematic, keep moving, and let the process do the heavy lifting.
Lifetime Performance Comparison: Solimar Fund vs. SPY
Solimar Fund Net Lifetime Performance (10/1/23-5/31/26): 84.9% after fees.
SPY Performance (10/1/23-5/31/26): 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.
*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.
