Derivatix Quarterly Report: Mid 2019-Q4 as of Oct. 15th, 2019
It is the Thanksgiving weekend in the US where most of our clients live yet we would like to say happy thanksgiving to every one of you. Wherever you go and whatever you do this Thanksgiving, we wish you the best. Being able to work with you is something we’re truly grateful for.
Mid 2019 Q3 Market Summary:
The US economy is on pace to finish the year still in a record economic expansion. Q3 economic data brought the lowest unemployment rate in 50 years, strong retail sales, and higher monthly wages. GDP growth, now estimated at 2.3% for the year (down from 2.9% in 2018), is steady but not stellar. Trade disputes with China are an economic wild card, as they have been for nearly 18 months. Recent headlines notwithstanding, expect trade disputes to simmer down and presidential election uncertainty to bubble up over the next year.
If you have considered IPOs this year, 2019 has been a hard row to IPOs. 2019’s high profile offerings, Peleton (-21%), Uber (-34%), and Lyft (-45%), have each seen huge post-IPO declines. But the failed WeWork IPO was the highest-profile capital markets stumble this year.
Mid 2019 Q3 Market and Derivatix Performance:
Despite a sharp drop on the early days of this quarter, the US market experienced a noticeably large rally for the rest of the first half of Q4, making a new all-time high in the mid-quarter. S&P 500 and Dow Jones grew 5% and 4% on overall in the meantime and stayed up more than 24% and 20% YTD respectively.
Derivatix also stayed competitive with the US market rally making 4.5% net profit in mid-quarter and more than 18% for YTD (all net after all fees). On a longer-term, Derivatix has yielded 19.8% net average annual return since inception while the annual return for S&P 500 and Dow Jones have been only 11.5% and 13.4% meanwhile at the same period.
This is the time of the year we are welcoming new investors (also known as partners) into the fund for the new year. If you are interested to join a very innovative and competitive hedge fund and enjoy the ride with us, please don’t hesitate to contact us. We are more than happy to provide you with more information in this regard.