A dandy way to start the year
We're excited to bring you the first monthly newsletter update on the Solimar Fund's performance, and it’s with great pleasure that we share our January 2024 returns—a robust 3.23% net of fees. This accomplishment aligns seamlessly with our overarching goal of doubling the market returns with only half the risk. The S&P 500, a benchmark of market performance, posted returns of 1.59% during the same period. It's a promising start to 2024 and a testament to the effectiveness of our active investment system.
It’s all noise!
Even with that great news, we want to underscore the importance of a long term perspective. While hitting our target on a monthly basis is gratifying and a bit serendipitous on our inaugural monthly update, we remain realistic about the volatility inherent in the market. Hence our oft-repeated saying that it’s all noise.
Some days or weeks or months may be up, others may be down, but it’s the next 1000 trades that count. Our true objective is to double the market returns over a more substantial timeframe—3 to 5 years. Our belief is reinforced through backtesting our algorithm with market data since 1985 and live trading matching that performance over shorter timeframes. We are confident that over an extended period, the Solimar Fund should consistently deliver on our goal—twice the market returns with only half the risk.
A great first four months.
We launched the Solimar Fund in September 2023 and seamlessly transitioned into trading investor funds on October 1st, marking a pivotal moment in our journey. Despite being in the nascent stages, our commitment to delivering value was evident in the fourth quarter of 2023. The fund notched an impressive 4.89% return net of fees during this period, showcasing a resilient performance even in the early stages of operation.
It's noteworthy that this modest achievement unfolded amidst the backdrop of the S&P 500's substantial return of 11.7%. What a year for Buy & Hold! But as a good friend of ours has pointed out, just because buying and holding the S&P500 would have returned 24% in 2023 does not mean that most folks were successful at buying and holding.
Or, as we like to say “buy and hope”. Yes, the market over a long-enough period has historically gone up, but it’s those long dips that get ya. So we built a long-short algo that aims to profit from the ups AND the downs!
Thank you for following along. As we share these updates, we invite you to engage with us, ask questions, and join the conversation. Your trust and understanding are integral to our journey. We look forward to walking this path together.
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.
