Dipsea Capital Fund LP
December 2016 Fund LP Commentary:
The post-election rally in the U.S. equity markets continued through December. The continued rise in the indexes was propelled by optimism that the new administration would aggressively support new spending initiatives, thereby boosting economic growth. The market also believed that a professed focus on cutting the regulatory burdens for banks would encourage risk taking, thus freeing up more capital and accelerating business activity.
The Dipsea Capital Fund’s methodology, which focuses on generating consistent, uncorrelated returns, produced its 5th consecutive profitable month, earning .76%, after fees.
For 2016, we generated 3.54% for our investors. We were profitable 10 of 12 months, maintaining the consistency we’ve achieved through the fund’s 18 month tenure. We also maintained our record of generating a positive, annual return for investors, as we have done for the proceeding 9 consecutive years; (includes our audited returns for managed accounts, pre fund launch).
As we’ve shared previously, because sentiment is so skewed towards the investment strategy of passive index investing, we believe dynamic fund management will outperform this year. Clearly lack of predictability has entered the political landscape, which should increase volatility and enhance our active strategy.
For 2017 our team is focusing on three specific areas:
Continue to deliver consistent returns to our investors regardless of market environment.
Increase our monthly returns with the objective of returning to our historical average of one percent per month.
Articulate a belief in our team, our process, and our continued ability to offer a unique financial product, to a wider audience.
Please accept the appreciation of our whole team, Gregg, Eddy, Kurt, Austin and myself for the trust you place in us as a steward of your capital.