The Long-Term View on Monthly Returns

Solimar Fund achieved a net return of 17.5% in July, surpassing the S&P 500 (SPY) return of 1.2%. Our net Year To Date return is an impressive 36.15%, compared to the S&P 500’s (SPY) YTD return of 15.88%.

The conclusion of July marks an important milestone for us, the Fund has once again regained it's Alpha since inception leading the SPY by 14% since October 1, 2023, for a total net return of 42.8% in our first ten months.

We are thrilled with our strong performance so far and are committed to sustaining this positive trajectory into the future.

July 2024: Reaching New Heights

Solimar Fund achieved a new maximum in July even with the volatile backdrop in the equity markets. The Nasdaq (QQQ) ended the month down while the S&P 500 (SPY) and Dow (DIA) finished up by a small %.

July was an epic month for us no doubt. Even so, it is just another data point in the monthly fluctuations of a fund striving to provide exceptional annual returns.

As we enter the perfect storm of recessionary clouds over an election cycle and end-of-year seasonality, monthly volatility in the market and Solimar performance will likely increase. Our end goal remains the same: we aim to double market returns annually with half the risk over five years.

Our strong performance thus far underscores the effectiveness of our systematic strategy in delivering superior returns. Since inception, our ability to consistently generate Alpha highlights the robustness of our approach and the strategic advantage we maintain over the market.

Why Solimar Fund?

In a word: Alpha. If Solimar Fund doesn’t beat the market in risk adjusted performance, we recommend using an index fund instead.

Why pay our fees if we don’t perform?

We believe resolutely in a win-win scenario for our investors as evidenced by our fee structure. If we don’t perform, it’s difficult to keep the lights on. Our fixed fee is only 0.5%, much less than the typical hedge fund (2%) and most likely better than your local RIA. Read on to learn more about why we have the confidence to structure the Fund this way.

Zoom Out and Reflect to Gain Perspective

Investing often involves navigating through a sea of short-term fluctuations, with monthly returns oscillating between gains and losses. While these monthly variations can be significant, they should not detract from the broader perspective that long-term investors must maintain.

At Solimar Fund we understand that focusing too intently on monthly performance can obscure the true measure of our success: sustained annual returns. By zooming out and keeping our eyes on the long-term horizon, we embrace the natural ebb and flow of the markets. Volatility, oddly enough, allows our robust investment strategy to demonstrate its full potential over time.

A long term perspective not only provides stability but also underscores our commitment to delivering consistent, superior returns for those who commit to the Solimar strategy for 3 to 5 years.

October 2023: A Challenging Start

We launched Solimar Fund in October 2023 and were immediately faced with a challenging first month. Starting with a down month created a tough scenario to overcome in achieving positive returns.

We remained confident knowing 72% of months have been positive since 2007 in our hypothetical backtested performance. We will inevitably experience down days, weeks, and months.

The strategy's inherent strength provides a significant statistical edge towards ensuring long-term success regardless of the bumps along the way. The Fund quickly rebounded the following month to get us back to positive.

April 2024: A Temporary Setback

April brought a series of market challenges that temporarily bested our strategy after a solid 5 month stretch. These moments can be unsettling. However, down months are anticipated as part of the natural fluctuations in the Fund’s upward climb towards exceptional annual returns.

It’s clear now that maintaining perspective is crucial. What some considered a 'scary' month has proven to be merely a brief pause in our ongoing growth trajectory. In a few short months we are excited to say that we reached a new all-time high in July.

The Power of Alpha

At Solimar Fund, we aim to deliver superior Alpha – the measure of returns generated beyond the benchmark (SPY). Our strategy’s ability to identify and capitalize on market trends, coupled with rigorous risk management, has allowed us to consistently outperform expectations. Alpha generation is the cornerstone of our strategy. 

Performance Comparison: Solimar Fund vs. SPY

Since October 1, 2023, our fund has consistently outperformed the SPY, a commonly used benchmark representing the S&P 500 ETF. This comparative analysis underscores our fund’s ability to deliver strong returns irrespective of broader market trends:

• Solimar Fund Performance since 10/1/23: 42.8% (net returns)

• SPY Performance since 10/1/23: 28.8%

This comparison not only highlights our superior performance but also reinforces our commitment to achieving absolute returns for our investors.

Building Momentum Into The Storm

As we navigate the remainder of 2024, we encourage our investors to maintain a broad perspective. Temporary market fluctuations are inevitable. As we near a potential recession coupled with the U.S. Presidential Elections, we want to remind you that our long-term strategy and disciplined approach are designed to take advantage of these periods and emerge the clear choice for any accredited investor’s portfolio. Our focus is on above market annual returns.

Thank you for your continued trust and support. We look forward to sharing more successes (and down months 30% of the time) with you in the months ahead.

Warm regards,

Geoffrey & Tyler

_{2by2 Capital LLC | [email protected] | www.2by2Capital.com}

_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.}