In 2012 the Net Asset Value of the Red Acre Partners L.P. Micro-Cap Value Fund's public equity trading accounts increased by 699.91%. Below is a graph of the Fund's Net Asset Value based on the month-end statements for our trading accounts normalized to starting capital.
(click to enlarge)
Note:
- For the first 4 months of the year, the fund was 100% cash.
- No capital was added to the fund throughout the year - all changes in NAV are due to trading.
- Leverage (<1X) was employed during certain portions of the year.
- The graph above appears smooth because it only reflects month-end balances. While we are not day traders, our investment style is inherently volatile and a chart with daily balances would reflect more noise than a month-end chart displays.
Every $10,000 invested in the fund grew to $69,991
Based on the fact that the Fund's year-end normalized NAV was 6.9991, a $10,000 investment made in the beginning of the year would have grown to $69,991. This represents a 699.91% change, (a 599.91% return on investment). We achieved this return through primarily long positions in both stocks and options, but without particular attention to short-term market timing (no day-trading). In other words, our returns are quite scalable.
How You Can Acheive Similar Results
2012 was an exceptionally good year for our fund and we've had lots of people ask us how they can achieve similar returns.
First of all, let's remember that past performance does not guarantee future results. We will surely have years where our performance is not nearly as good as 2012 - it's just how the investing game works.
Second, our fund is closed to new investors and we are not currently in the business of handling separately managed accounts (contact us if you'd like to be informed if either of these statuses change).
Our 2012 performance does demonstrate how investors can benefit from a membership at redacre.com. We share all of our investment ideas with our members from early thesis development right through to positions we initiate and exit. By learning why we trade the way we do, you can decide whether or not a particular trade makes sense for your own portfolio. Please note we are not suggesting that Membership at redacre.com will guarantee success or profitable trading for anyone. Investors are responsible for their own trading, the value of site membership lies in the education provided by the discussions both public and members-only that inform members of our viewpoints.
If you are serious about increasing the returns from the speculative portion of your portfolio, and if you'd like the help of world-class researchers that work full-time hunting for profitable trades in biotech (and beyond), then a membership at redacre.com can help you Get Ahead of the Curve.
