2024 June CAD
Caravel Capital June 2024 Partner Letter Dear Partners, For the month of June, Caravel returned +0.26% vs. +1.09% for the benchmark (S&P 500 +3.59%; SPTSX -1.42%). June brings Caravel’s Q2 and YTD performance to +1.45% and +0.18%, respectively. While these levels remain modest and well below our targeted returns, we are pleased with the turnaround […]
2024 May CAD
Caravel Capital May 2024 Investor Letter Dear Partners, For the month of May, Caravel returned +0.24% vs. +3.87% for the benchmark (S&P 500 +4.96%; SPTSX +2.77%). As the performance suggests, May was a mixed bag for the fund. Strong gains in our commodity-related positions, fixed income, merger arbitrage, convertible arbitrage, relative value arbitrage, and warrant […]
2024 April CAD
Caravel Capital April 2024 Partner Letter Dear Partners, For the month of April, Caravel returned +0.93% compared to -2.95% for the benchmark (-4.08% for the S&P 500 & -1.81% for the SPTSX).[1] This brings year to date total net return to -0.33% for the fund and 5.38% for the benchmark, respectively. While we are an […]
2024 March CAD
Dear Partners, In March, the Caravel Capital Fund was down -1.26%. March’s loss was primarily driven by fair value adjustments to two of the fund’s illiquid investments. We review such positions at a minimum quarterly and more often every month. We feel extremely comfortable with the marks of these illiquid holdings, which in aggregate represent […]
2024 February CAD
Dear Partners, In February, the Caravel Capital Fund returned -1.70%. The fund’s performance can be attributed to several factors: These losses were partially offset by gains in the fund’s relative value, convertible arbitrage, merger arbitrage, high yield debt, preferred share, and alpha long/short strategies. These positions collectively contributed approximately +200bps to gross returns for February. […]
2024 January CAD
Dear Partners, In January, the Caravel Capital Fund returned +1.74%. Overall, the fund had a solid month thanks to multiple positive contributors. Returns were negatively impacted by a merger arbitrage deal that broke (and has since been exited), as well as the cost of systematic portfolio hedges that were put in place prior to the […]
2023 December CAD
Dear Partners, In December, the Caravel Capital Fund returned +1.18%, rounding off the year up +0.32%. Despite the market’s ebbs and flows and Caravel being down just over 7% for the first five months of the year, our strategic course adjustments allowed us to conclude the year on a positive note and in the black. […]
2023 November CAD
Dear Partners, For the month of November, the Caravel Capital Fund was up 2.21%, the S&P500 was up 9.13%, and the TSX was up 7.49%. In our last letter, we pointed out how the North American indexes had performed since July. “From Jul 31 to Oct 31, 2023, the SP 500 fell 8.25%, and the […]
2023 October CAD
“Know WHAT You Own, and Know WHY You Own It.” Peter Lynch Dear Partners, For the month of October, the Caravel Capital Fund was -0.76%. October was another volatile month for both equity and debt markets, particularly with major stock indices emerging worse for wear. For reference, from Jul 14 to Oct 31, 2023, the […]
2023 September CAD
Opportunities in the Fog of Rising Rates Dear Partners, For the month of Sept, the Caravel Capital Fund was up 2.06%, bringing the total net return for 2023 to -2.25%. Most of the return in September was generated from an investment we shared with our readers in the May 2023 letter, in which we highlighted […]