| Unicorn Funds Performance | |
| Unicorn Funds (As Growth of $100, Net-of-Fees) 
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Unicorn Funds vs. S&P 500 vs. DJIA (As Growth of $100, Net-of-Fees) 
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| Unicorn Funds' performance is the combination of the performances of Unicorn Macro Fund and Unicorn Pairs Fund. | |
| Monthly Performance |
| Jan | Feb | Mar | Apr | May | Jun | July | Aug | Sept | Oct | Nov | Dec | YTD | |
| 2016 | -2.65 | 7.45 | 5.93 | 5.79 | -1.98 | 4.06 | 18.59 | ||||||
| 2015 | 10.70 | -2.92 | -4.37 | 9.15 | 3.55 | 0.95 | 5.36 | 0.41 | 6.69 | 4.79 | 10.99 | 0.41 | 45.71 |
| 2014 | -2.22 | 2.00 | 0.47 | 7.31 | 5.96 | 2.76 | -3.93 | -3.14 | 1.66 | 9.36 | 7.99 | 11.18 | 39.38 |
| 2013 | -0.30 | 13.96 | -0.87 | -1.78 | 11.01 | ||||||||
| Real-Time Proof-of-Concept | |
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"Real-Time Proof-of-Concept" is a simulation model Unicorn Capital Partners employs to test its portfolio managers. During this period, the portfolio manager uses time-stamped paper trades to test his or her Methodology and proprietary approach, in real-time market environments. It takes 12 months or longer before Unicorn Capital Partners can assess the portfolio manager's skills and the Methodology's profitability. The time spent in this process enables the Methodology and portfolio manager to be truly tested and made extraordinary. We believe our "Real-time Proof-of-Concept" results best reflect how the Fund will perform with real capital under various market conditions.
Real-time Proof-of-Concept is NOTHING like Backtesting. The hedge fund industry typically relies on backtesting to validate the legitimacy of a new fund's strategy. Many times these new funds even disclose the backtesting is curve fitting and hindsight trading. The reality is backtesting does not accurately reflect the performance of the portfolio manager or the strategy under real-time market conditions. All Unicorn Funds go through a "Real-time Proof-of-Concept" and time stamp each trade by sending a text-message when a trade is executed to a managing member of Unicorn Capital Partners. This insures both the strategy and portfolio manager are tested in real-time. Though this process can take years to complete, the results insure accuracy rather than fabrication. Only by doing "Real-time Proof-of-Concept", can we feel confident all Unicorn Funds will perform as expected. |
| Why 20%? | |
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+20% is a reasonable return to compensate investors' opportunity cost by investing with us, regardless of the strategy implemented in the different Unicorn Funds.
Given the average performance of the broad market and overall hedge fund industry for the past 5 years, we believe 20% is an appropriate benchmark for us. For all the funds, it is a challenging yet possible benchmark to achieve on a consistent basis. As alpha generators, all Unicorn Funds should perform in a +20% level regardless of broad market conditions. As Alpha funds, we set 20% as our benchmark instead of following a particular index. |
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