Roubaix Fund Composite performance update for the month ended May 31, 2022.
During May the Roubaix Fund Composite generated a net return of -1.65% relative to a total returns of 0.15% for the Russell 2000 Index and a loss of -0.47% for the HFRI Equity Hedge (Total) Index. On a year to date basis, the Composite generated a net return of -15.34% relative to losses of -16.56% for the Russell 2000 Index and -8.02% for the HFRI Equity Hedge (Total) Index. End of period net exposure was 41.59% compared to a 43.50% average since inception in January 2010.
Q1 2022 hedge fund letters, conferences and more
Markets were volatile in May but finished the month roughly flat. First quarter corporate earnings were largely in line with expectations until retailers such as Walmart and Target reported disappointing results that called into question the resilience of the U.S. consumer. Similarly, U.S. housing market trends softened as mortgage rates rose over 5%. Internationally, China continued its zero-Covid strategy slowing global growth and disrupting supply chains while the war in Ukraine kept upward pressure on food and energy prices. Altogether, signs are building for a broad economic slowdown for which the Fund has increased short investments in consumer facing companies. On the long side, we continue to deploy capital to some of our highest conviction investments that should see little change in end market demand even in a recession scenario.
Regards,
Greg Parcella
Roubaix Capital, LLC
