Derivatix Quarterly Report: Mid 2019-Q1 as of Feb. 14th, 2019
Happy international women’s day and happy the spring which is just around the corner.
If you had even a penny in the market in winter, you would well recall that US market massive drop late 2018 erasing the year-to-date gains and forcing to finish this year in negative. After the market is done freaking you out, it then reversed the course just after the Xmas and continued a sharp rally into 2019 until the middle of current quarter.
If you think this come-back is awesome, think again! Even though this rally helped to recoup most of the market losses in the previous quarter, this type of very high volatile behavior of the market in a short period of time is very disruptive for investors. The panic of sudden plunge would cause enormous anxiety for investors forcing them to exit their losing positions to prevent more losses. This would make them to sell at the bottommost of the market, take huge loss and then miss the winning leg when the market takes off fast.
The protections we use in Derivatix fund, help us to smooth out sharp market movements on the both sides. This stabilizes the volatility of the fund in such conditions. The benefit is having much less damage when market plummets hard and the cost is a reasonable profit when the market moves high.
Looking at the numbers, the S&P 500 grew 9.8% in 2019 till mid-February recouping a large portion of its 14% loss in the last quarter. That was a dip nose-dive and jump back up during these periods which as mentioned earlier wasn’t healthy at all for typical investors. At the same time, Derivatix experienced a 5.2% profit in early 2019 after only 6.2% loss in the last quarter of 2018. On a longer term since inception (Sep. 1st, 2015), Derivatix has made more than 90% net profit (after all fees) for the initial investors while S&P 500’s growth was less than 40% meanwhile. We are expecting a moderate market behavior in 2019 which would be an ideal condition for the type of unique sideway trading strategies we deploy inside the fund.
This is the time of the season that the fund is open to welcome new investors. Take advantage of this opportunity to join other individual and corporate investors in US, Canada and Europe and make 2019 a rewarding year on your investment. Please contact us for more information and terms of investment into join the fund.