In the first half of 2018, the US market experienced fairly large turbulences starting early February. That was an unexpected wake up call for investors making easy money for the last few years. Thanks to the protection in place, we suffered less than the overall market in the first quarter and even ended up with a moderate gain. We continued the same approach in the second quarter and kept giving up part of our profit to add required protections just in case needed. Better to be safe than sorry.

What does that mean in an easy language? Well, it means currently, we are mainly focusing on controlling the fund’s volatility risk as our key goal rather than making large profits. There is not a free lunch: If we want stability, we have to pay for it. That’s the life.

Now, let’s talk in numbers: Derivatix lost 1.1% in May and gained 2.4% in June and as such ended the second quarter of 2018 at 2.8% net profit- just behind S&P 500 with 3.1% growth. Even though, Derivatix didn’t beat the market during this quarter, on a larger scale, it is stands at 3 times larger net profit compare to S&P 500 for the entire 2018 year to date. The fund has made 5.2% net gain after all fees in the first half of 2018 while S&P 500 grew only 1.7%. 

​Looking at a bigger picture since inception, Derivatix has made about 84% net profit while an investment on S&P 500 would result in 37% gain at the same time. Long story short, the fund is structured to be the winner in the long run and won’t mind not beating the market in a quarter or two. That’s our strategy plan to achieve long-term gains and increase stability.