2019 October CAD
Dear Partners, For the Month of October, the Caravel Capital Fund Ltd generated a -1.45% return. The negative performance in October was primarily attributable to the portfolio’s Merger Arbitrage allocation. This strategy has been a core contributor to Caravel’s low volatility returns since inception. What we encountered in October is not typical for merger arbitrage. […]
2019 September CAD
Dear Partners, For the month of September, the fund was up marginally at 0.04%. We continued to rotate the Fund’s capital away from strategies that carried excessively high securities lending costs. As we have mentioned in the past, these charges have reached as high as $1 million dollars a month. We have realized this is […]
2019 August CAD
Dear Partners, The Caravel Capital Fund Ltd was –1.34% for the month of August. Typically, we write about what we we’re doing over the month. We tell you we’ve exited some positions and have found some new ones to replace them. Then we tell you about how these decisions have affected the value of your […]
2019 July CAD
Dear Partners, The Caravel Capital Fund Ltd was -1.54% for the month of June. The past month was the most challenging in the brief history of the Caravel Cad Fund. We seemed to be in the wrong spot regardless of what we tried to do. As a result of capricious trade policy in Washington, we […]
2019 June CAD
2019 May CAD
Dear Partners, The Caravel Cad Fund was up 1.35 % for the month of May. We’ve all heard the expression, “put your money where your mouth is.” After last month’s North American market return (US drops 6% and Canada 3%), we assure you, we did. From Caravel Capital’s March 2019 Partners letter dated April 6, […]
2019 April CAD
Dear Partners, For the month of April, the Caravel Cad Fund Ltd. was up 1.15%. Once again we were active traders across the market neutral spectrum. We generated positive returns in convertible bond arbitrage, trading our warrant book, risk arbitrage, and we even traded in some distressed securities. We define distressed securities as stock or […]
2019 March CAD
Dear Partners, For the month of March, the Caravel Cad Fund was up 3.13%. The Fund generated the returns in its core strategies: merger arbitrage, long vs. short, warrant and convertible bond arbitrage. The fund continued to actively turn over its capital by exiting positions that had reached full value, while identifying and redeploying into […]
2019 February CAD
Dear Partners, For the month of February the Caravel Capital Fund Ltd was up 1.79%. The fund was very active during the month identifying new ideas and exiting those that reached our targets. Returns were generated in convertible arbitrage, risk arbitrage, warrant arbitrage and relative value spread trades. We estimate the portfolio turned over 100% […]
2019 January CAD
Dear Partners, For the month of January the Caravel Capital Fund Ltd was up 1.72%. Coming into December, the Caravel Cad Fund was nearly 70% cash. We began adding new positions in mid- December as the market looked for a bottom. By the middle of January, the Fund had reduced its cash position to only […]