Bayou City Capital April Update
Bayou City Capital returned an estimated +1.7% in April, improving 2017 performance to +6.6%. Following the calming results of the French election's initial round, risk premium in the U.S. stock market has been summarily removed. The VIX, a barometer of S&P option prices, hit a 10-year low yesterday and is approaching the rarely witnessed single-digit mark. Prices for long-dated options (representing insurance demand for the 2nd half of 2017 and beyond) have also been falling. These recent developments imply that 2017 will be lacking for volatility. Implications can change in a day, however, the Fund will be cautious given the skewed scenario at hand.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.