Ben Rabizadeh

June marked a significant turning point for our hedge fund, as our Ascending Capital Model (ACM) strategy continued to deliver strong performance. Since its inception, the strategy has yielded an impressive 9% return, outperforming the S&P 500, which achieved 6.6% during the same period. As of the July 14th close, our core strategy has surged 13%, while the S&P 500 is up by 8%.

To maximize our focus on what we do best, we have made the decision to discontinue all non-core strategies. This will allow us to concentrate our efforts on leveraging our core competency and implementing carefully crafted risk-management approaches to optimize the risk-reward balance for our clients.

In light of current market conditions, we are particularly optimistic about the outlook for our strategy, which revolves around predicting imminent price re-ratings often following or preceding key catalysts. Our approach thrives in stable and bullish markets, as individual stocks tend to react more predictably to catalysts when macro-economic concerns take a backseat. We believe the market is currently bullish for the intermediate to long-term due to a moderation of inflation, bringing it closer to the Federal Reserve’s 2% goal, and the fact that all indices are currently trading above key moving averages. In fact, our technical analysis review indicates that the Nasdaq and S&P 500 are poised to reach new all-time highs. Moreover, the breaking of Cathy Wood’s ARKK fund above the crucial 50-week moving average in Q2, and its ability to maintain that position, serves as a strong signal for an increase in risk appetite. As earnings season kicks into high gear next week, we will closely monitor any developments that could challenge our thesis. However, for now, we view Friday’s pullback as a mere correction and remain optimistic about further upward trends.

Bottom line, our ACM model continues to improve daily, thriving in this bullish market environment. We firmly believe that now is the opportune time to be invested in the markets. If you are interested in investing in our fund or have any inquiries, please feel free to reach out to us. We look forward to exploring potential opportunities with you.

Our first month as a hedge fund has been a success!

Despite the learning curve associated with launching our new business, we are pleased to report that we have significantly outperformed the S&P 500 (+5% vs +0.5%). We approached the month with caution, maintaining high cash positions, small allocations per trade idea, and a diversified portfolio. Throughout the month, we made significant changes to our workflows and risk-management strategies, setting the stage for even greater success in the future.

Comprehensive performance details are available for prospective investors in our monthly newsletter which you can request by contacting us here.

June is already off to a great start. We are already up +5% as of the time of this writing and roughly +10% since May 1st fund inception. We are now accepting applications for July 1st investments. It takes a few days to setup your account and wire your funds in, so be sure to get started early. Contact us now if you’d like to request our PPM documents and begin the onboarding process.

Looking forward to sharing further updates with you soon!

You can plan all you want, but sometimes you just gotta get started because things are often quite different when you get into the thick of things. 

We launched our fund two weeks ago on May 1st, 2023. And boy, did we have a sharp learning curve! We planned and planned and planned with a detailed list of risk management strategies and work flows we thought would be ideal for us. We quickly saw that we needed to adjust. The first several days turned out to be daunting getting accustomed to the new trading platform and we made every logistical error you can imagine including a couple fat finger errors! Thankfully, those days are largely behind us. 

We have gone on to make substantial changes to our work process and risk management strategies, the two most important things which will lead us to consistent returns and scalability. In the midst of week three now, we are starting to see the fruits of our labor. After a rough start, we climbed to break even by the start of week three and are now modestly in the green. Most importantly, we have finally settled into a groove with our work process and risk management strategies. 

Our investors will receive specific updates on our risk-management and allocation strategies at month-end based on our early experience. They are all geared towards better risk-adjusted and cost-effective returns. 

We look forward to scaling our business and sharing our story with you in the coming weeks and months. Stay tuned!

Ben Rabizadeh & Joseph Levy

ps: yeah, we can also see that annoying orange dash in the middle of the screen. To be addressed later!