This trades executes our synthetic option on the US 10yr making us short. We continue to be long the S&P, the Japanese Nikkei and $Yen. However, a close below 112.75 on $Yen would cause to sell our position.

We have the benefit of writing this email a day after our 10yr trade, and consequently writing after the Bank of Japan announced leaving interest rates unchanged. After the European Central Bank’s move on interest rates and the BOJ staying unchanged, we see the central banks recognizing the diminishing marginal impact of driving interest rates further negative. More importantly, we think the ECB recognizes the need to move the Eurosystem’s main refinancing operations to 0.00%. Because the impact of monetary policy is nonlinear, the maximum amount of capital the ECB can generate is at 0%. We see this move as having the maximum impact against deflation. Consequently, we expect asset prices to rise, long term interest rates to drift higher as economic growth is generated at 0% short-term interest rates.

Monday, March 14th, we sold our long position in US 10yrs at 1.96% at a small loss leaving us short from 1.575%, yields move in opposite direction to price. Consequently, we are long S&P, Japanese Nikkei and $Yen and short the US 10yrs making us 100% invested.

In 2012 modeled performance (7 ˝ 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 +72.68% with an 8% Hurdle rate
In 2016, modeled performance net of all fees is +14.72% with a Graduated 10% Hurdle Rate


The Unicorn Macro Fund, LP (“Fund”) operates under the SEC rules of 506(c) of Regulation D. This rule allows general solicitation as long as all purchasers of the Fund are accredited investors and the Fund takes reasonable steps to verify that purchasers are accredited investors. The 506(c) rule benefits funds that perform better than their peers, because for the first time, Regulation D funds can post their results publicly.

The Fund trades both long and short positions in a variety of global markets and its performance is not correlated to any one market. Performance of the model of the Fund is measured by Net Asset Value (NAV) which is net of all fees, is unaudited, and may include the use of estimates. Individual results will vary based on the timing of an investment and past performance is no guarantee of future results and there is a possibility of loss.

The modeled results are based only on capital appreciation from macro style trades. The results do not include dividend reinvestment or any other form of cash flow and are taxed as ordinary income. All trades have a risk/reward objective of at least 3 to 1 and each full position risks no more than 2% of assets. There will be times when market conditions may alter these objectives. Since the inception of the model our trading of the methodology has become more precise.