Bayou City Capital June Update
Bayou City Capital returned an estimated +0.60% in June, raising YTD performance to +7.75%. Since the Brexit event last June, this marks the 12th consecutive positive month for the Fund. This month, the strategy resisted a late swoon in the S&P 500, highlighted by an intra-day 50% pop in the VIX on June 29th. With a similar VIX spike occurring on May 17th, the market has experienced a few recent apparent breaking points and recovered. In the short-term, the S&P 500 has carved out a narrow range between 2440 to 2420 where a decisive break above or below could signal a sustained directional move. Tech stocks, which have been a bellwether sector this year, pulled back considerably the last few weeks. These factors demand a nimble approach, though an injection of market volatility would be a welcome development, as it would increase the Fund's performance potential for the duration of the year.