The Freedom Factory

The Fund lost 2.05% this week, closing out a terrible month with a total loss of 25% for August. Despite increased precautions in our risk management approach, we suffered severe losses driven by currency markets. Unprecedented appreciation in US dollar hit us hard on multiple euro bets, and also took a toll on our commodities positions. Overall, the Fund is down 4.59% since inception. Continue Reading

The Fund took its largest one-week loss since inception, losing 11.44% last week. The reversal comes as the result of a “massive repositioning in the foreign-exchnage market,” in which the euro dropped 3.4% against the US dollar. To put this into perspective, 95% of weekly euro returns over the last 2.5 yrs have fallen within the 0.04% to 0.41% range. Consequently, commodities prices are dropping, particularly for oil, agricultural businesses, and for commodity-dependent economies, such as Brazil.

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The Fund closed out the week with a 2.57% gain,  bringing July performance up to 11.98%. Overall, the Fund is up 27% since inception in March. Higher than normal volatility across all asset classes made for a tough month, but the Fund pulled out well ahead of our benchmark. Our portfolio is currently 85% invested with a 15% cash reserve. All positions remain well within acceptable risk parameters, leaving the porftfolio in a strong position going into August options expiration on the 15th.    

The Fund lost ground this week, with a slight loss of 0.82%. This is attributed largely to reallocation of the bulk of our assets into new positions, along with renewed volatility in the financial and energy sectors. We currently hold roughly 25% of assets in cash, of which 10% is targeted for allocation this coming week. We are following an incremental reinvestment approach to offset wild asset price fluctuations over this last month. For the month of July, we are up 9.12%, and for the year we are up 23.72%.

June contracts expired today after a tumultuous run, with the Fund earning 8.82% for the week. Overall, the Fund is up 10% since inception in March, with a 19.3% gain since the expiration of May contracts. Those patient enough to suffer through March and early April losses have been rewarded with a 47.4% gain since our low.

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