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3D Bull & Bear Monthly Update – February 2024

The S&P 500 continued its historic run in February and finished the month at an all-time monthly closing high. February 2024 also marks the one year anniversary of 3D Capital combining 16 years of success into one program called 3D Bull/Bear.

3D Bull/Bear is a data-driven rules-based system that seeks profits from daily rallies and declines in the S&P 500 Index, and is designed to harness volatility, adapt to the daily narrative of the market, and make the S&P 500 a better long-term investment.

Preserving your capital, hedging your S&P 500 risk and providing stock market defense when you need it, not when you don’t is our expertise at 3D Capital. Below includes an S&P 500 chart and data dating back to March 2023. 3D Bull/Bear performance is consistent with 3D Capital’s actual performance and track records generating short side and long side alpha dating back to 2008.

3D_Bull_Bear_02_2024

February 2024 (net)

Monthly ROR
3D Bull/Bear (25% funded) -1.8%
3D Bull/Bear (50% funded) -0.9%
3D Bull/Bear (100% funded) -0.45%
S&P 500 TR 5.3%

March 2023 - February 2024 (net)

Total ROR
3D Bull/Bear (25% funded) 21.4%
3D Bull/Bear (50% funded) 10.7%
3D Bull/Bear (100% funded) 5.3%
S&P 500 TR 30.4%

3D Bull/Bear only invests in the S&P 500 Index and is negatively correlated to the S&P 500 Index.

In order to help remove emotion from the investment process and to help provide a reasonable expectation, we are able to provide 3D Bull/Bear performance through multiple market cycles and volatility regimes dating back to 2000.

3D Bull/Bear performance is consistent with 3D Capital’s actual performance and 16 years of success generating short-side alpha during the longest strongest bull-market in history. As seen below, 3D Bull/Bear performance is also consistent with decades of data dating back to 2000. Different funding levels are included to provide examples of how 3D Bull/Bear can be customized to help you meet your investment objectives.

January 2000 - February 2024 (net)

Actual results since Mar 2023 and simulated results of recent enhancements to 3D’s systems dating back to Jan 2000 through Feb 2023.

Total Return 628.8% 314.4% 157.2% 447.2%
Std Deviation 20.1% 10.1% 5.0% 15.4%
Sharpe Ratio 1.30 1.30 1.30 0.54
Sortino Ratio 3.72 3.86 3.93 0.67
Correlation to SP -0.19 -0.19 -0.19 1.00
Max Drawdown -23.4% -11.7% -5.8% -50.9%
Best Month 32.8% 16.4% 8.2% 12.8%
Worst Month -13.6% -6.8% -3.4% -16.8%

3D Capital has been providing a proven DIFFERENT solution and solving the problem of S&P 500 declines since 2008. We currently only offer SMAs, but in the coming months we will be offering fund structures for 3D Bull/Bear and Hedged Equity and Long/Short products that combine 3D Capital’s rules-based systems with long S&P 500 exposure. These products will be designed to continue to provide short side alpha and long side alpha, participate in S&P 500 rallies, and generate similar returns as the S&P 500 with less volatility.

 

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 value rather 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 this risk 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 you in light of your financial condition. An investor must read and understand the manager’s current disclosure statement before investing.

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