Bayou City Capital returned +2.36% after fees and expenses in October. The Fund experienced relative outperformance compared to the S&P 500, which fell -1.82% during the same period. The S&P braced for the November election in a methodical, predictable manner that benefited the Fund's position. Given the uncertainty broadcasted in the S&P options market, the Fund entered November with a light risk allocation.
The Funds cautious stance proved prescient as election night unfolded with dramatic volatility in the S&P futures and global markets. As of the time of this writing (Nov. 14th), Bayou City Capital has flat performance to date in November. Now, various U.S. economic sectors exhibit remarkable strength following the election, illustrating their apparent benefit to a change in the political regime. If any of the President-elect's rhetoric turns acerbic in the near-term, however, that may put the current stock rally on hold.
With the election behind us, the market may soon turn attention to a potential Fed rate hike approaching in December. The Fund's goal is improve 2016 performance over the remaining balance of the year. We thank you for your support.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS