Our thesis is, the central banks will begin to gravitate to 0% short term interest rates and quantitative easing will lessen to lower the risk of a bloated central bank balance sheet being challenged by the market. A move to 0% short term interest rates is stimulative for both Europe and Japan, as well for the US. The distortion in the markets are due to the artificially low long term interest rates which are supporting equities on a relative value basis rather than through economic growth. We expect the European Central Bank and the Bank of Japan to reserve quantitative easing for moments of crisis rather than a form of stimulus and we can only hope the Fed begins to normalize their balance sheet. Therefore, we expect the central banks to remain dovish this week with the Fed dialing back their tightening talk and the BOJ not adding stimulus.
Friday, July 21st on the close we sold the S&P at an equivalent index price of 2175. We are currently short the Japanese Nikkei, German Dax, DJI and S&P.
In 2012 modeled performance (7 ˝ mo.) net of all fees was +12.46% with a 10% Hurdle rate
In 2013, modeled performance net of all fees was +19.73% with a 10% Hurdle rate
In 2014, modeled performance net of all fees was +56.42% with a 10% Hurdle rate
In 2015, modeled performance net of all fees is +72.68% with an 8% Hurdle rate
In 2016, modeled performance net of all fees is +27.73% with a Graduated 10% Hurdle Rate
The Unicorn Macro Fund, LP (“Fund”) operates under the SEC rules of 506(c) of Regulation D. This rule allows general solicitation as long as all purchasers of the Fund are accredited investors and the Fund takes reasonable steps to verify that purchasers are accredited investors. The 506(c) rule benefits funds that perform better than their peers, because for the first time, Regulation D funds can post their results publicly.
The Fund trades both long and short positions in a variety of global markets and its performance is not correlated to any one market. Performance of the model of the Fund is measured by Net Asset Value (NAV) which is net of all fees, is unaudited, and may include the use of estimates. Individual results will vary based on the timing of an investment and past performance is no guarantee of future results and there is a possibility of loss.
The modeled results are based only on capital appreciation from macro style trades. The results do not include dividend reinvestment or any other form of cash flow and are taxed as ordinary income. All trades have a risk/reward objective of at least 3 to 1 and each full position risks no more than 2% of assets. There will be times when market conditions may alter these objectives. Since the inception of the model our trading of the methodology has become more precise.