For September 2016, Unicorn Macro Fund generated 1.00% modeled performance net of all fees and expenses, and for the year 34.61%. The relative value of stocks to bonds was disrupted by the misunderstanding of Federal Reserve policy and the Department of Justice threatening to impose a $14 billion fine on Deutsche Bank. Currently, we are long the S&P and the Euro$.

Janet Yellen’s speech at Jackson Hole was transparent in how the Fed was using the interest earned on their $4 trillion balance sheet to pay interest on bank reserves to push fed funds above 0%. The media communicates Fed policy as keeping interest rates artificially low, where in fact, Janet Yellen is saying the opposite. The debate within the Fed is when inflation will hit 2% and some feel the artificially high interest rates are justified. In a global economy, the economic model that predicts inflation are scarce bank reserves rather than full employment.

The fragility of the banking system is being tested by the punitive powers of the DOJ. Deutsche Bank should be held accountable to misconduct in the US mortgage market but should not be punished in response to punitive actions against Apple. For global markets to remain stable, policy makers need to appreciate their impact they have on markets. We expect the DOJ to impose a far less and more realistic fine than $14 trillion.

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 +34.61% with a Graduated 10% Hurdle Rate

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Disclaimer:

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.