Weekly Performance Update: Week of 12/16/24
- Acrux Capital
- Dec 21, 2024
- 2 min read
Market Recap
Pretty wild week for the markets with the FOMC news. Basically the market interpreted that there will be fewer rate cuts in 2025 and that the Powell and crew are totally out of touch and the target rate is all but a pipe dream if they are to fulfill their dual mandate.
Small caps took it the worst with IWM dropping over 4% on the week. VIX was up 75% on Wednesday but cooled its jets a bit into the end of the week and was 'only' up 32% for the week.
(Click to enlarge)
Our Overall Performance - Big Picture
Our Performance this Week
We were positioned in Pure Alpha to the bullish side, but with ample hedges on (and a few Core Put Trades) to mitigate Wednesday's harsh selloff. As I conveyed to several clients this week, when out thesis is wrong as we were this week, I don't attempt to get fancy with the hedges and try to catch absolute bottoms on the puts we had on, but we were able to cost average out and get the strategy basically breakeven for the week.
Hedge Fusion and Futures Focus had zero exposure into the FOMC but had some modest losses booked earlier in the week, but we put some exposure on for next week on Friday in Hedge Fusion.
For more detailed performance check the following: Strategy Performance Page
The Week Ahead/Outlook
Short week this coming week with a half day on Tuesday and Wednesday closed. Given the market conditions we are in I do expect we may have some additional exposure on, but will see what our algos produce and simply follow the process as always. Might result in somewhat smaller position sizes with the time decay aspect mid week.
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