2021 July CAD
0.22%
MTD
16.46%
YTD
Monthly Performance (net of all fees)
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 3.40 | 3.99 | 3.75 | 1.27 | 1.30 | 1.54 | 0.22 | 16.46% | |||||
| 2020 | 0.41 | -.20 | -1.91 | .74 | 1.66 | 2.25 | 1.26 | 3.13 | 1.10 | 0.57 | 2.04 | 3.15 | 15.02% |
| 2019 | 1.72 | 1.79 | 3.13 | 1.15 | 1.35 | -0.75 | -1.54 | -1.34 | 0.04 | -1.45 | -2.57 | 1.39 | 2.76% |
| 2018 | 6.36 | 4.81 | 0.95 | 0.71 | -0.85 | -1.07 | 2.50 | 1.69 | 3.53 | 0.67 | 0.02 | -0.18 | 20.58% |
| 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 | 0.22% | 16.46% | 8.28% | 2.05 | 6.88 | 1.00 | 13.96% | -2.57% | 18.52% |
| S&P 500 | 2.38% | 18.75% | 15.07% | 1.13 | 1.34 | 0.11 | 12.82% | -12.35% | 17.62% | S&P/TSX | .80% | 18.24% | 13.66% | 0.75 | 0.71 | 0.08 | 10.79% | -17.38% | 10.21% |
Patience is not the ability to wait but the ability to keep a good attitude while waiting.
Dear Partners,
For the month of July, the Caravel Capital Fund Ltd was up 0.22 %.
The number above requires more than just a review of what we did in July. We believe it would be more valuable to provide you with a review of what we didn't do in the portfolio throughout the month.
We did not participate in any of the new issues that were priced to perfection or participate in the financing of companies with no clear earnings history. We didn't participate in new capital structure ideas that provided no ability to mitigate risk despite how hard investment banks tried to convince us otherwise. We didn't find any new alpha-long ideas (securities that outperform the market return) that provided the downside protection we require. We did not initiate any new SPAC transactions or convertible bond arbitrage positions. We didn't find any merger arbitrage ideas (that we didn't already own) that warranted a substantial position in our portfolio. We didn't cover any of our short positions in companies with poor earnings outlooks or weak balance sheets. We didn't cover any option hedges that would provide us overall protection from a pullback of 4.5% or more (they were originally set up to profit after a 3% pullback). We didn't find any valid reason to deploy our 45% cash position into anything substantial because we have been doing this long enough to know that if you keep doing what works over time and don't do what doesn't work, you will prosper.
A small note of what we did; We continued to hold the ideas that met our investment principles and sold the ones we felt had reached their terminal risk-adjusted value.
We run a small fund by institutional measures, which means we can put USD 100 million to work in less than a day when the right opportunities present themselves. As the largest investors in the Caravel Cad fund, we are transparent when we say, "Patience is not the ability to wait, but the ability to keep a good attitude while waiting." Joyce Mayer, Battlefield of the Mind.
In keeping with our disclosure policy, between July and August, after reinvesting 100% of the June performance fee, Jeff redeemed a net USD 900,000 in holdings towards paying for the build of his house to bring his total investment in the Caravel Cad Fund to just over USD 10.3 million. Glen, Jack, and Karina all reinvested 100% of their performance fees. When combined, the employees of Caravel represent the largest investor in the fund, as it should be.
We hope the climate calms down for our clients in Europe and Canada so they can enjoy the remainder of their summer. For the rest of our investors, please continue to enjoy the summer and take comfort in the knowledge that your capital is being managed the way your friends complain they wish their capital was managed.
We thank you for your continued confidence and capital.
Glen & Jeff - Caravel Capital