Trident Fund LP commentary for the month ended December 2020.
Trident Fund LP December 2020 Efficiency
The Trident Fund LP returned +1.6 % in December, and the fund is +15.0 % internet for 2020.
ADW Capital had an unimaginable 2020 with a 119.2% internet return for the complete yr. At a time when most different funds have struggled with comparatively low returns, ADW posted double-digit returns in a number of months of 2020. In December, the fund returned 19.91%, whereas in November, it posted a return of 39.63%. For the fourth Read More
In December, the International Central Financial institution lodging fueled record-setting costs in stocks, commodities, and metals that led Trident to a powerful end to 2020. The Danger Regime Mannequin and the Engle mannequin contributed equally to the month’s returns, whereas the Vega mannequin didn’t commerce.
Within the fourth quarter and December, market efficiency mirrored what occurred for the second half of the yr when robust inventory and commodities markets and a weak greenback mixed for constant and balanced portfolio returns. The largest drag on portfolio efficiency got here from European mounted earnings, which was in stark distinction to 2019 when the majority of the Trident returns got here from European mounted earnings.
Returns Throughout All Fashions
In 2020 all three of Trident’s fashions traded, and all three made cash. Within the robust bull inventory market of 2019, the Vega mannequin didn’t commerce. In 2019, seventy-five % of the returns got here from the Danger Regime mannequin, because it accurately took “risk-on” positions in equities and stuck earnings. In 2020, returns throughout fashions have been extra balanced. The Danger Regime Mannequin earned about forty % of the returns, whereas the Engle mannequin contributed half, and the Vega mannequin contributed a couple of tenth of the return.
2019 and 2020 have been dramatically totally different years, “Euphoria” and “Misery,” each years the Trident Systematic International Macro technique hit its longer-term goal return of +15% internet, volatility goal of 13%, and no correlation to the S&P 500, MSCI, Barclay Mixture Bond Index, and Commodities. The technique has outperformed its benchmark by over one thousand foundation factors per yr and stays within the high decile of the universe and towards the foremost opponents.
In the direction of the tip of 2019, we predicted the S&P 500 would have a powerful run to thirty-eight hundred “Unsinkable Stock Market.” Waiting for 2021, Trident fashions predict a powerful marketplace for commodities, a flat marketplace for equities, a weak marketplace for the greenback, and the primary sustained enhance in world bond yields since 2015.