2019 April CAD

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1.15% MTD
7.99% YTD

Dear Partners,

For the month of April, the Caravel Cad Fund Ltd. was up 1.15%.

Once again we were active traders across the market neutral spectrum. We generated positive returns in convertible bond arbitrage, trading our warrant book, risk arbitrage, and we even traded in some distressed securities. We define distressed securities as stock or bonds that trade at substantial discounts to their true liquidity value.

When market valuations become rich, long only clients look to market neutral managers like us to provide liquidity for their risky assets. We have the discipline and means to offset this risk. We employ institutional relationships and sophisticated hedging strategies to generate the kind of risk adjusted returns that our partners expect.

As we mentioned in our March letter, markets have risen above what we feel is fair value. At the time of writing we are seeing some of this euphoria evaporate as systematic risk once again increases. We have adjusted the complexion of the portfolio to generate positive returns while the markets adjust back to more rational valuations. This can be more of an art than a science, however we are very comfortable with the current portfolio given the turmoil caused by the ongoing international trade wars.

Since April 1st, the Caravel Capital Fund Ltd Ltd. has received commitments for $15 million in new capital from existing and new investors and is now closed to new investment. We welcome our new partners and look forward to a long and profitable relationship.

We thank you for your continued confidence and capital.

Jeff & Glen

Monthly Performance (net of all fees)

JanFebMarAprMayJunJulAugSepOctNovDec YTD

Risk vs. Return Comparisons Across Indexes

Month Return YTD Return Volatility Sharpe Sortino Beta Best Month Worst Month Annualized
S&P 5004.05%18.20%11.39%

Growth of $1000 since inception

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