RESULT & STANDING (MONTH 07) – AS OF MAR. 31, 2016
I know some of you who still invest into traditional mutual funds or stocks relieved as the market made a very good recovery in March after a large drop since December to mid-February. The 5 indices in our study made a nice 6% to 8% growth in this month. But looking a bit long term, 3 of them are still negative in 2016!
How did we perform? We made a 0.5% loss (yes loss) in March, 10% gain in 2016 and 29% gain since inception (all net after the fees) while the market major index, S&P500 made 4%, 1% and 6% in March, 2016 and since inception respectively. (Inception: Sep. 1st, 2015)
How that can happen that our performance is not in line with the market at all? Well our trading strategy is fundamentally different from other traditional ones since it is not correlated to the market direction. Although we only trade Option on indices (SPX, RUT and NDX), our profit function is designed to basically be uncorrelated to the market movement. To add more to the confusion, we hate very large market movement (up or down) like this March!
Enough of confusions; we proudly added new investors from Florida for the second quarter of 2016. Our growth and their generous contribution expanded the asset under management into more than double again. The fund is still small yet it is going forward steady. We are committed to preserve our investors’ capital first, risk it when the risk worth the reward and always think long term.
Enjoy your spring while we work hard here!