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.