Crescat Capital Up 486 basis points net for the day

Updated on

Also see this good piece from Rachael Levy of Business Insider on how other hedge funds reacted.

Also before Crescat  – Whitney Tilson commented “For the first time, I feel homeless in America.”  Okay, I highly doubt he knows what its like to be homeless – I certainly don’t I am far less wealthy then Tilson and my grandparents were not only homeless but had every penny stolen (including their homes obviously) and their families murdered in Belarus circa 1942  – but not the first time he has said something dumb and offensive and I doubt it will be the last.

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Carl Icahn claims to be buying the dip probably HLF and HTZ and what not and more from Crescat below. We are curious how Russell Clack Crispin Odey and Hugh Hendry did as potential big winners but no stats so far.


The day after the surprise presidential election was a historic day for Crescat Capital. All 16 of Crescat’s macroeconomic themes delivered positive performance in the Crescat Global Macro Fund, a true first and a true surprise given the non-correlated mix of long and short related themes and highly diversified portfolio. The fund was up 486 basis points net for the day. We believe this is a strong sign that Crescat has again turned the corner from an infrequent but inevitable drawdown period in our hedge funds to return to our form of delivering persistent long term alpha through steadfast commitment to our investment process.

Our portfolios are designed to withstand and perform during market shocks based on our macro themes, our valuation model, and our risk discipline. Not one of our macro themes was related to trying to pick the outcome of the election, yet the election results served as a catalyst to validate our highly vetted themes. Based on the results of the election and confirming economic data, we exited one theme today, Maturing Expansion.

The best performing themes today in order were:

  • China Currency and Credit Bubble
  • Peak Deflation
  • Twilight in Utilities
  • Asian Contagion
  • Global Fiat Debasement
  • Security and Defense
  • Aging Population

We increased our exposure today to our Fed Moderation theme though long positions in financial sector equities across all three Crescat products supported by our fundamental model. US financials are the best scoring sector in our fundamental model and utilities remain the worst.

Please see below for performance estimates (net of fees), for the day, 11/09/2016, across all three strategies:

  • Crescat Global Macro: +4.86%
  • Crescat Long/Short: +2.83%
  • Crescat Large Cap: +1.53%

All three strategies are firmly in the black month to date through today. Mid-month performance estimates will be available next week with further commentary after the dust has settled. We remain committed to our investment discipline and are working hard to deliver a strong month-end and year-end finish. We truly appreciate your commitment to Crescat.


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