February 2017 Update

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 ahead. 

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.


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