As long as the markets expect a possible rate hike from the Fed and the Bank of Japan and European Central Bank are able to keep interest rates low, we expect the US$ to continue to strengthen. A strong US$ enables the US to attract foreign capital to fund additional spending by the Trump administration while supporting the exporting nations with a weaker currency. The Fed believes a stronger US$ is affecting manufacturing but the Trump administration recognizes manufacturing has been depleted by poor trade agreements such as NAFTA not a strong US$.
As we mentioned in our last email, "a close below 1.0620 on the Euro$ would cause us to be short" which we did on Friday, November 18th at 105.90. On Tuesday, November 22nd we bought back our DJI short at an equivalent index price of 19,025. Currently, we are long the German Dax and $Yen and short the Euro$.
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 +47.07% 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.