The weaker US dollar has enabled US asset prices to rally with both the Japanese Nikkei and German Dax down for the year, the Nikkei is down over 10% and the Dax is down 4%, while the S&P is up 2%. While both the Bank of Japan and the European Central Bank are easing to stimulate their economy, there is not enough domestic demand to stimulate growth. Both Asia and the Eurozone need a weaker currency / stronger US dollar to stimulate global demand for their products. Though the US equity markets are best positioned for the year, a weaker global market will make it difficult for US equities to close positive. Therefore, we continue to believe a strong US dollar is best for the marketplace and protects the global economy from deflation.
On Thursday, April 14th, early morning on the close of the Japanese Nikkei we covered our short at an equivalent index price of 16,910. Currently, we are long the S&P and short the German 10yr bund and US 10yr note and are 75% 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 +18.96% 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.