3D Bull & Bear Monthly Update: May 2024

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This post was originally published on Trademakers

The last two months in the S&P 500 have been textbook examples and reminders that RISK HAPPENS FAST (in both directions). After dropping -4% in April and having the five worst days of the year last month, the S&P 500 rebounded to new all-time highs and finished the month of May up nearly 5%.

Knowing that the biggest up days in the S&P 500 happen in down and bear markets, we were not surprised to see one of the biggest up days of 2024 happen in May.

 

3D Bull/Bear is our absolute return, hedging, and uncorrelated long/short S&P 500 strategy that is designed to profit from S&P 500 volatility, rallies and declines like we’ve seen the last two months (and last year). As can be seen in the charts below both the S&P 500 and 3D Bull/Bear both made new all-time highs in May 2024. 3D Bull/Bear is a rules-based system designed to accumulate and preserve wealth in bull and bear markets, and only invests in the S&P 500 because the best way to manage stock market risk is with the stock market itself.

Actual Gross Daily Performance (25% Funded) Since Inception (March 2023 – May 2024)

3D Bull/Bear

+32.6%

Long Side Alpha +15.6%
Short Side Alpha

+17.6%

BTOP 50 (CTA Index) +7.7%

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May 2024 (net of fees)

Monthly ROR 3.40% 1.70% 0.85% -1.96%

S&P 500: May 2024

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3D Capital Management “3D” is a uniquely different and data-driven CTA with a short-term, global-macro, systematic, and evolutionary approach to investing in the S&P 500. 3D’s rules-based S&P 500 programs have been solving the problem of S&P 500 declines since 2008 and have a long history of success generating long side and short side alpha in Bull and Bear markets in the S&P 500. This includes being profitable in the only 3 down years in the S&P 500 in the last 16 years and beating the S&P 500 in 2023.

 

We are excited to share for the first time in 3D’s history we are now offering two sources of alpha in a relative return S&P 500 product for those seeking higher risk adjusted returns than the S&P 500 over the long-term. Our 3D Alpha S&P 500 Program actively manages S&P 500 rallies and declines and combines 3D Bull/Bear and passive investing in one turnkey solution. If you are interested in seeing additional information and data, please contact JPFS.

 

Risk happens fast (and we can help you prepare).

Sincerely, Eric Dugan
Chief Investment Officer at 3D Capital Management

Risk Disclaimer

3D Bull/Bear returns are calculated based on an assumed funding level of 25% and 50% of Trading Level and are intended to show the impact that 75% and 50% notional funding respectively has on returns (when those returns are expressed as a percentage of account valuerather than Trading Level). The returns are net of the Advisor’s 1.25% management fee and 15% incentive fee. Fees are charged on the Trading Level of the account. Returns do not include interest income. 3D Capital Management is a unit-based CTA. Per NFA requirements, the addition method is used to calculate annual rates of return because the trading level of the accounts managed did not fluctuate with prior month’s profits or losses. The CFTC has not passed on the merits of participating in any of 3D’s programs nor on the adequacy or accuracy of the disclosure documents. Other disclosure statements are required to be provided to you before an account may be opened for you.

Hypothetical Performance Risk Disclosure: One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. The risk of trading commodity futures, options, and foreign exchange (“forex”) is substantial. The high degree of leverage associated with commodity futures, options, and forex can work against you as well as for you. The high degree of leverage can result in substantial losses as well as gains. You should carefully consider whether commodity futures, options, and forex are suitable for you in light of your financial condition. If you are unsure, you should seek professional advice. Past performance does not guarantee future success. In some cases, managed accounts are charged substantial commissions and advisory fees. Those accounts subject to these charges may need to make substantial trading profits just to avoid depletion of their assets. Each Commodity Trading Advisor (“CTA”) is required by the Commodity Futures Trading Commission (“CFTC”) to issue the prospective clients a risk disclosure outlining these fees, conflict of interest, and other associated risks. A hard copy of these risk disclosure documents is immediately available upon request. The full risk of commodity futures, options, and forex trading cannot be addressed in thisrisk disclosure statement. No consideration to invest should be made without thoroughly reading the risk disclosure document. The CFTC has not passed on the merits of participating in any of the preceding programs nor on the adequacy or accuracy of the disclosure documents. Other disclosure statements are required to be provided to you before an account may be opened for you. Past performance is not necessarily indicative of future results. Trading futures and options involves substantial risk of loss and is not suitable for all investors. There are no guarantees of profit no matter who is managing your money. You should carefully consider whether commodity futures are suitable for youin light of your financial condition. An investor must read and understand the manager’s current disclosure statement before investing.

The post 3D Bull & Bear Monthly Update: May 2024 first appeared on JP Fund Services.

The post 3D Bull & Bear Monthly Update: May 2024 appeared first on JP Fund Services.

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