Trident Fund LP performance update for the month ended May 31, 2020.
Q1 2020 hedge fund letters, conferences and more
The Trident Fund LP returned -0.2 percent net in May, and the fund is +7.2 percent net year to date.
While stock markets continued their powerful rally, the Trident portfolio remained systematically hedged for the month. The portfolio was long equity indices, and earned nearly +3.0 percent on its stock position, but remained in “Risk Off” positions in the other markets.
Global bond positions lost -0.5 percent, but the difficulty came mostly in commodities, which lost -1.9 percent because the portfolio remained short oil amid the rally. Currency trading had a slight loss, at -0.2 percent.
The models also showed a hedged position. The Risk Regime model earned +3.0 percent, while the Engle model lost -3.3 percent. The Vega model, whose only job is to “short” equity Indices, did not have any signals, so it did not trade.
Heading into May, the portfolio has shifted into a “Risk On” position in all markets and will benefit from a continued stock market and commodity rally.
