This was the opening of my last 2016 daily comment. For regulatory purposes I have edited out the performance reports. This is not marketing material or an offer to sell our products as it is public.  If you want to register to our newsletter and you are an accredited or permitted investor please send me an email.

-Pierre

 

This will be the last comment for this week, this month and this year. It has been an eventful year at Razorbill, we launched in 6 months 3 institutional mandates, but not one of these are alpha driven, all our mandates use our alpha to deploy beta strategies.

I think our engineering approach to beta is novel and has proven to be successful. Our prefs+ will close the year most probably  [] and will beat it’s benchmark by []. Our Bond+ will likely reach it’s yearly over performance to the benchmark within 6 months as we are already [] over the index as of yesterday with under 1bps of volatility per day. We are very happy with the results but we are even more happy with the process that generated these results. Our income+ might become our most successful product to date allying absolute returns to indexation deploying more of our CARV. It is a more heavily systemic risk reliant product (therefore can back up more in serious pull-backs) but we are confident we will manage this weakness well. Overall it’s been a good year, now our challenge for 2017 is to relaunch our CARV and to keep up our profitability on our beta mandates. We might launch a few more strategies in the future (we can handle it operationally as long as they are synergistic from an added value perspective) but the core of Razorbill product line is now completed.

When we come back from our winter holidays we have a 4 hours due diligence on the 10th of January 2017 for the CARV mandate. We are looking forward to this and are a bit nervous at the same time. It is a test, we would be fools not to be nervous, but we like to be tested. Come and visit us. Come and check out our processes. At best we leave you impressed with how we manage risks and rewards, at worse we learn, either way we win.

Have a merry holiday season. Drive safely. On this, I will leave you on a research we found on risk takers.

Sensation Seeking, Sports Cars, and Hedge Funds
We find that hedge fund managers who own powerful sports cars take on more investment risk.”

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2882983

For the record none of us at Razorbill Inc. drive a fast car. I personally, don’t like to drive at all. Why take the risk? How am I rewarded for this risk? I drive when I have to.

We have new capital to deploy that we will deploy and I will be watching the markets during the holidays, not very closely if they behave and more closely if they don’t. I am paid to worry so that you don’t but I will not be writing my daily comment. We’ll pick it up in the new year.