February 2017 Update
Bayou City Capital returned +0.99% during February, raising 2017 performance to +2.82%. The
S&P 500 had an impressive month, rising 3.7% during the same period. The market’s
uninterrupted climb has diminished the demand for options on the S&P 500 significantly. The
implied volatility of options expiring in the near-term has reached its lowest point in more than
a decade. As such, some prudence is required as the Fund implements its strategy. It will only
take a modest downward move in the S&P to cause a shift in the options landscape. That being
said, extremely bullish events such as this post-election rally may subsist for months before any
market pullback occurs. The Fund will be continue under a light risk allocation in the months
The annual financial audit is in process and should be completed by the end of March and will
be posted to our website. The 2016 tax return and related K-1’s are also in process and should
be available within the next few days of this writing. We thank you for your support and please
let us know if you have any questions.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.