Trident Fund LP performance update for the month ended August 2021.
Q2 2021 hedge fund letters, conferences and more
The Trident Fund LP returned +1.0 percent in August, and the fund is +7.1 percent net for 2021.
A see-saw battle between inflation and the Covid-19 Delta variant kept Fed action on hold, pushing stocks higher while leaving the fixed income markets rudderless. The Trident Risk Regime model captured the strong appetite for stocks while minimizing fixed-income losses. Trident’s entire +1.0 percent August return was in the Risk Regime model.
The Engel model, which captures momentum, was break-even in August, as it performed well in Gold, Natural Gas, and Sugar while struggling in Copper, Crude Oil, and global fixed income markets. The Vega model, which “shorts” equities, did not trade.
The August positive performance was the seventh straight gross profitable month for Trident, which has been profitable 9 of the last 10 months and 71 percent of the months since inception. A key contributor to Trident’s consistency is its “Dynamic Scalar” risk management system, which determines the probability of a trading signal’s success and scales the risk accordingly. High probability signals get greater risk than normal probability signals.
Entering September, Trident is in a balanced Risk Regime model position with large exposures to stocks and bonds. It is long the dollar and short gold, while long the rest of its commodity exposure, expecting persistent inflation.
If you would like to learn more or require additional information, please contact ir@tcmff.com.
Sincerely,
Jay R. Feuerstein
Founder & CEO
Trident Capital Management
