Livermore Up 38% In 2019 As Gains On Gold And Shorts In WTW & GS Pay Off

Livermore 2019 Q1 letter to LPs

I’LL TAKE THE FED PIVOT FOR $200 ALEX”.
Federal Reserve in abrupt policy reversal.
Livermore gains 38% to start Q1 2019.

April 9th, 2019 To Partners:
First Quarter and YTD performance is off to an extremely strong start, adding to our solid 2018 gains. The Federal Reserve, after implementing nine consecutive interest rate rises and suggesting even more lie ahead, executed a complete pivot in February. Suddenly, new Chairman Jay Powell sees a slowing global economy and slams the brakes on the up-trending dot plot.

The FED has essentially and unequivocally stopped dead in its tracks and threw gasoline to the markets historic run ever since hitting the December low. This dovish move typically suggests risk assets should be bought and defensive names sold off. But for Livermore Partners and our value-based approach, we maintain a disciplined strategy and adhere to the viewpoint that we are nearing an ‘end-game” to the long-running bull market. Thus, squeezing out that extra gain will ultimately be ill-timed. Our focus as always is to invest in special situations where investment themes and mispriced securities can meet one day and profit from our timing, opportunistic nature, and sometimes very proactive approach.