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.
Today, October 1, Solimar turns three. What a ride.
Three years ago today, we began trading the Fund. It feels like a pretty momentous milestone.
Solimar returned +2.11% in September, bringing our net return since inception to +79.2%.
We're proud of that number. But perhaps more importantly, we're proud of what these three years represent.
Three years is long enough to experience very different markets. Long enough to see strategies work beautifully, struggle, recover, and surprise us. Long enough to test our assumptions and develop a much deeper understanding of what we're actually building.
And, perhaps most importantly, long enough to begin separating luck from process.
Three Years In
Three years of live trading has reinforced the fundamental idea behind Solimar’s algorithm: markets change.
We've experienced periods when momentum dominated, periods when mean reversion worked beautifully, and periods when the best decision was simply to take less risk.
No strategy works all the time. That's precisely why Solimar was built as a multi-strategy fund, combining different approaches designed to perform in different market environments.
Three years of live trading has reinforced our belief that the advantage isn't predicting which market comes next. It's having multiple ways to participate when it arrives, and the discipline to be patient when it doesn't.
That was the idea in 2023.
Three years later, we believe in it more than ever.
The Goal
When we launched Solimar, we set ourselves an extremely audacious goal: over a three-to-five-year period, we wanted to generate approximately twice the return of the S&P 500.
We've officially entered that window!
After three years, Solimar has returned +79.2% net, compared with +78.4% for SPY.
So we haven't achieved our goal. Not yet.
There is an interesting irony, though.
Historically, the S&P 500 has returned roughly 10% annually over the long run. Solimar has compounded at approximately 21.5% annually since inception, almost exactly the kind of absolute return we envisioned when we set out to double the market.
What we didn't anticipate was that our first three years would coincide with an extraordinary run for U.S. equities (top 3% of 3 year periods in history since 1928), with SPY itself returning more than 78%.
But that's investing.
We don't get to choose the environment in which we're measured, and we don't get to move the goalposts when the benchmark has an extraordinary run.
We're proud of what we've accomplished, but we're not satisfied.
We have two years left in that original window.
Game on.
Thank YOU
Finally, thank you.
Solimar began as an idea, some algorithms, a lot of research, and a belief that we could build something different.
Our investors entrusted us with something very real: their capital. We have never taken that responsibility lightly.
To those who invested with us when our live track record was measured in months rather than years, thank you for believing in what we were building. And to everyone who has joined us since, thank you for your trust and confidence in the process.
Three years in, we don't feel like we've arrived.
We feel like we're just getting started.
Three years. +79.2%. And a lot of road still ahead.
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 (10/1/23-9/30/26): 79.2% after fees.
SPY Performance (10/1/23-9/30/26): 78.4%
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.
