2018 September CAD
3.53%
MTD
19.97%
YTD
Monthly Performance (net of all fees)
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 6.36 | 4.81 | 0.95 | 0.71 | -0.85 | -1.07 | 2.50 | 1.69 | 3.53 | 19.97% | |||
| 2017 | 0.27 | 0.05 | 0.35 | 0.25 | 1.39 | 1.45 | 1.77 | 0.12 | 3.27 | 3.61 | 13.96 | 1.96 | 31.51% |
| 2016 | 1.59 | 3.30 | 1.53 | -0.82 | 5.67% |
Risk vs. Return Comparisons Across Indexes
| Month Return | YTD Return | Volatility | Sharpe | Sortino | Beta | Best Month | Worst Month | Annualized | |
|---|---|---|---|---|---|---|---|---|---|
| Caravel | 3.53% | 19.97% | 10.58% | 2.16 | 48.34 | 1.00 | 13.96% | -1.07% | 27.77% |
| S&P 500 | 0.57% | 10.56% | 7.25% | 1.94 | 4.3 | 0.22 | 5.72% | -3.69% | 17.47% | S&P/TSX | -0.89% | 1.34% | 5.15% | 1.02 | 1.64 | -0.54 | 3.12% | -3.02% | 7.83% |
Dear Partners,
For the Month of September the Caravel Capital Fund Ltd was up 3.53 %.
The Fund’s performance for the month primarily came from its warrant portfolio. Shorting shares against warrants (long dated call options) is one of the funds many strategies. Since the Fund’s inception we have strategically acquired a diversified warrant portfolio through corporate issuance and direct market purchases. For the month of September, we held warrants in several companies that saw their shares experience major moves to the upside. We used this opportunity to aggressively short these shares (locking in profits). By holding the short position it provided the fund a possible double win if the shares fell back below the strike price of the warrant. In simple terms, the Fund executed the tried and tested 3 step formula for making money in the stock market...
Step 1) Buy Low
Step 2) Sell High
Step 3) Repeat often
In last months letter we notified our partners the Caravel Capital Fund Ltd would accept new capital on Oct 1st, 2018. Caravel Capital restricted the amount of the new funds to approximately $15 million to maintain its targeted rate of return, as it got comfortable with the larger capital base. The Fund has reached this target through new and existing investors, new capital from the managing partners, and the reinvestment of 100% of performance fees. Since opening in 2016, the managing partners of the Caravel Capital Fund Ltd have maintained their position as the funds largest shareholders through the reinvestment of performance fees and adding new capital. When the last of the new capital arrives November 1st, the partners will hold in excess of 22% of the funds under management. Given this performance, we wish that number were much much higher.
To the new partners we say welcome and to all partners we say thank you for your confidence and capital.
Jeff and Glen