Fehu Capital, LP
Monthly Fund Performance Update for December 2023
Fehu Capital, LP
Monthly Investor Update – December 2023
December marks the year’s closing, and it’s time to look at the overall fund performance and objectively assess all the aspects of the business. I am glad to say that most of the goals we had envisioned for the Fehu Capital LP have been reached:
- Onboarded with two Crypto Exchanges: Flex Fills and Gemini.
- We developed and optimized our first automated trading strategy, HMM (Hermes Market Maker). I am happy to report that it has been consistently profitable since day one and has experienced significant performance improvements as optimization has progressed.
- Opened an Equities Trading Account with Trade Station.
- We have onboarded with NAV Consulting, the fund administrator. We are currently going through the reconciliation process, confirming and recalculating all the transactions from when we started trading.
- We still need to secure funding to fund additional exchanges where the HMM strategy and other strategies we have in the pipeline can take advantage of the extra liquidity.
Trade Station Account – Options Strategy: December was an excellent month for our Equities Options Writing Strategy performance. We started the month with an Account NAV of $101825.07 and ended it with a Net Value of $107,177.47 with a profit of $5,352.40, which translates to 5.256%. As I mentioned before, we achieved that return by being well-diversified across multiple equities and industries. Also, in December, we stated the accumulation of some of the securities we plan to hold for the long-term MicroStrategy (MSTR).
December Fund Performance: We are glad to report that we realized a gain of $2,138.07 in December, and our NAV rose to $603,154.27. Since we started actively managing the fund, we have had Net Realized Profits of $30,705.42. Our net annualized Realized Percent P&L is 6.118%. Considering 2023 is our first year in operation, with initial challenges and prudent risk parameters, this performance makes me very happy. I expect this performance to improve as we continue to build up our systems.
Crypto Options Strategy: I am pleased to report that our Crypto Options Strategy continued to perform in line with our expectations in December. It generated a profit of $868.42. With about $56,334.58 deployed, it delivered a monthly return of about 1.6%, which aligns with our plans and expectations. As I mentioned, once we automate this process in 2024, we anticipate much improvement in its performance and profitability.
Looking Ahead: As we transition from 2023, leaving behind a significant portion of our initial challenges, I am filled with optimism for the potential of enhanced performance in the coming year. The onset of 2024 marks a pivotal phase, providing us with the opportunity to further refine and automate our strategies. Although the journey ahead may present its own set of challenges and uncertainties, I assure you that we are exceptionally well-prepared to address them with confidence and efficiency. Moreover, observing the tangible results of our dedicated efforts is encouraging, positioning us favorably to seize the myriad of opportunities that are likely to emerge.
In conclusion, I wish to reiterate the critical importance of patience, diligence, and strategic planning as the cornerstones of our path to future success. The initial year in any venture is invariably the most challenging, yet our progress thus far gives me great confidence. There remains a considerable amount of work to be done, but the foundation we have laid positions us well for sustainable growth.
Looking ahead, our immediate focus is on completing our audit. This step is integral to our strategic goal of increasing the fund to $10 million by the end of the year. Reaching this target is not just a financial milestone; it will significantly enhance our profit potential and enable us to access broader markets through increased capital.
I am profoundly grateful for your trust and patience throughout this journey. Please know that I am always available for any queries or discussions. Your continued support is invaluable, and I look forward to navigating the path ahead together. Feel free to contact me directly if you have any questions.
Eugene Migirov / Managing Director, Fehu Capital, LP.
Fehu Capital | Managing Director
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