We have become equity neutral because we expect the central banks to support the markets. We expect central bank intervention to stabilize the equity markets, strengthen the US$ while keeping interest rates low. Otherwise, if the equity markets are allowed to trade down further the negative loop created from deleveraging lower priced collateral has the possibility of getting out of hand. It has always been our premise that the central banks are in control and will change the rules if necessary. We are positioned neutral in US equities but our risk and money management will enable us to participate in the equity markets regardless of direction.

Tuesday, early morning we bought DJI futures at an equivalent index price of 15,950. We are long $Yen, the German 10yr bund, the DJI and in a synthetic option on the S&P and are 87% invested.

Modeled performance since inception, May 2012, net of all fees is +195.84%
In 2012 modeled performance (7 ½ mo.) net of all fees was +12.46% with a 10% Hurdle rate
In 2013, modeled performance net of all fees was +19.73% with a 10% Hurdle rate
In 2014, modeled performance net of all fees was +56.42% with a 10% Hurdle rate
In 2015, modeled performance net of all fees is 43.35% with an 8% Hurdle rate