From 2014 to Today.
Full Transparent Historical Results.
The initial thesis of the fund started from the observation that the United States has been the dominant military and economic force in the world since the post WW2 era and the US Dollar is the international reserve currency or ‘safe haven’ currency through which trade is conducted around the world. We sought to build out a model that would assist in identifying opportunities in the currency market that could identify short term discrepancies in price.
Updated on August 31st, 2022
We chose to focus exclusively on the EUR/USD pair initially and throughout the year took several aggressive short positions against the Euro.
The Euro slid significantly from 1.39 down to 1.20 against the USD, which allowed us to make very strong gains of 73.96% for the year.
In 2015, the Euro slid further dropping to all the way to a previously unthinkable level of 1.04 against the US Dollar before recovering.
We gained more confidence in our approach and took even stronger and more concentrated positions which resulted in our best performing year to date with gains of 154.87%.
We expanded our currency positions, adding exposure to USD/CAD.
After the massive gains the fund experienced in 2015, we decided to begin implementing more sophisticated risk management techniques to protect our clients.
The most significant event of the year from an economic standpoint was the Brexit referendum and its fallout as well as the election of Donald Trump as US President.
Prior to the vote, the Euro saw a sizable run up through the spring and then sunk after the vote to leave by the UK.
The Euro had largely stabilized by the fall before sinking again to a new low of 1.03 against the US Dollar after the surprise election of Donald Trump in the US.
The Euro rebounded strongly and staged one of its largest rallies, rising to 1.20 by year end as many of Trump’s America first policies favored a weaker US Dollar and worldwide economic growth took off.
We ended the year with a solid 42% gain.
We saw both the worst performing quarter in fund history (2018 Q4 at 0%) as well as the worst year overall for the fund as a result of further tightening of our risk parameters.
Trading conditions were very challenging, and we completely overhauled our assumptions and modeling to enable future success.
Despite the challenges we still gained 27.2%, very close to our yearly stretch goal.
We were able to quickly pivot into 2019 by diversifying away from the EUR/USD pairing and adding more concentrated positions in the USD/CAD pairing as well as adding EUR/GBP pairing in preparation for the UK Election, which ended up being one of our most significant and profitable trades of the year, leading to a gain of 30.94% for the year.
The focus on the markets was quickly shifted to the pandemic created by COVID-19 and filled the currency market with a trader’s best friend – fear, uncertainty, and doubt.
This created massive swings in all the G20 currency pairings and allowed the fund to expand and diversify quickly and profitably with the AUD/USD, USD/SGD, and USD/JPY pairings.
Joe Biden overtook Donald Trump in the US Election in November, which began a massive run up in commodity prices and the fund ended the year with an impressive gain of nearly 47%.
Hopes for a quick end to the COVID-19 pandemic were dashed as the pandemic raged on even stronger and created multiple new deadly variants. We saw on-again off-again lockdowns and restrictions in various forms through out the world in an attempt to contain the virus.
Continued record stimulus efforts on behalf of central banks throughout the world created an asset price boom, with asset classes across the board from stocks to real estate seeing record gains as inflation surged to near forty-year highs. This also created more significant swings in currency pairs and created great opportunities in major pairings such as EUR/USD, USD/JPY, AUD/USD, and USD/CAD. The fund had another strong year, seeing an increase of just over 41%
Every asset class has its pros and cons, ups and down, and volatile moments. How do we compare against some of the more well-known investments over time?
(Based on a $20,000 USD Investment)
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Discretionary money management is both art and science. We combine our extensive experience and judgement, alongside complex investment algorithms and formulas to give you the best of both. It takes years of patience, analyzing wins and losses, and constant adjustment to an ever-changing market. No two days are the same.
We cannot guarantee results, but we strive to hit our yearly goals for our clients – no matter what the world may throw at us (i.e Debt crisis, COVID, market bubbles, etc.). We’ll do our best to adjust with those goals, and you, in mind!