We hope this quarterly report finds you well. As we move through the latter half of 2024, we’re pleased to share with you the latest insights and performance of Derivatix Capital.

Market Summary

The US markets continued their robust performance in the third quarter of 2024, building on the strong momentum from earlier in the year. The S&P 500 maintained its upward trajectory, setting new record highs throughout the quarter.

This bullish trend was fueled by several factors, including sustained economic growth, positive corporate earnings reports, and a more dovish stance from the Federal Reserve regarding future interest rate policies. Technology and healthcare sectors were particularly strong performers, driven by advancements in artificial intelligence and breakthroughs in biotechnology. However, concerns about global trade tensions and inflationary pressures created some volatility, especially in the latter part of the quarter.

 

Derivatix Performance

Derivatix Capital continues to deliver solid returns for our investors, with a focus on long-term performance and capital preservation.

While our short-term returns are slightly below the S&P 500, our long-term performance demonstrates the effectiveness of our strategy. Since inception, we’ve significantly outperformed the market with a total return of 280.8% compared to the S&P 500’s 190.5%.

Our focus on capital preservation and downside protection, through options-based hedging and dynamic asset allocation, has resulted in a superior average annual return of 15.7% versus the S&P 500’s 12.3%. This approach may lead to slightly lower returns in strong bull markets but excels in preserving capital during market downturns, ultimately providing more stable and superior long-term returns for our investors.

We remain committed to our disciplined investment process, balancing long-term value creation with robust risk management practices.