Currently, we are short the DJI questioning how much to discount the post election inflation trade in the US markets. Admittedly, we expected the American Health Care Act vote to take place to pressure the Freedom Caucus to support the bill. We are surprised Speaker Paul Ryan could not deliver a victory on legislation the Republicans have wanted to repeal and replace for over 7 years. It is clear, the Trump administration needs to pivot and govern from the center and the President needs to find his inner democratic side to deliver on the promises he has made to the American people. Health care, infrastructure, tax reduction and the debt ceiling all will need the support of the democrats. How willing and successful the President is in getting democratic support will determine how much to discount the inflation trade after the election.

We acknowledge that lately it has not been profitable to accept the narrative from the Federal Reserve. We mistakenly took for granted that the Federal Open Market Committee saw greater economic growth and inflation warranting a tightening. The risk is the FOMC has slowed down the economy so much by paying interest on excess reserves (IOER) that the long end, distorted by quantitative easing, will flatten the yield curve further reflecting slower economic growth and reducing bank profits.

On Friday, March 24th we sold our long in the S&P at an equivalent index price of 2347.50 for a loss. We are currently short the DJI.

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 +52.12% with a Graduated 10% Hurdle Rate
In 2017, Fund performance net of all fees is -4.23% 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.