We’re very excited to share the progress we’ve made over the last few months! With our developments on our live deployment to our outlook for 2023, we give you the inside scoop! Subscribe to stay in tune with all future updates!
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Executive Summary
We’re Live – Getting our strategy live has been an intense challenge. But, with hard work comes great results.
EOY Performance – From going live mid-December, here’s how we’ve done over the past month.
Outlook for 2023 – With our opportunities in funding for Squirl and our joint venture Ultima Insights on the rise, we expect this year to be the busiest and most exciting year yet!
We’re Live!
Throughout this past quarter, we’ve made significant progress in developing a live deployment of our key strategy. We’re very excited to share that as of December 7th, we have gone live with our core strategy! It is surreal to think that everything over the course of the last 3 years has led to this point in time. All of our successes and failures (opportunities for improvement) have happened for good reason and have played a crucial role in the fundamental development of where we are today.
Even though we are now live, our work with this current strategy isn’t finished – we plan on working tenaciously to make continuous optimizations, iterations, and updates to improve our performance. We are excited to share quarterly improvements and results in our future newsletters.
Our initial approach to being live, is to operate the strategy through our proprietary fund. Where we manage the capital and take the risk with our own capital. This was to ensure that we were in a state where we can confidently open up investment opportunities to friends and family. As we’ve been live for the past month, we’re feeling very confident that the strategy is ready to manage a friends and family fund.
As we continue with our live strategy. We will continue to post our performance quarterly in our future newsletters.
EOY Performance
The market has presented many opportunities for our strategy to thrive. The volatile behavior has left us with big moves in a short period of time. This created an opportunity for us to capitalize on a high-return trade, in a short period of time. Since its inception on 12/7/2022, Squirl’s automated portfolio is up 2.38%, while SPY is -2.73%.
While we continue to establish ourselves as a fund, it’s important that we compare our results with benchmarks that make sense. We don’t mean that comparing ourselves against SPY isn’t helpful. Doing this shows us how we’re doing vs. the minimum standard. However, A much more relevant and comparable benchmark would be Eureka AI Hedge Fund Index, which tracks the performance of 10 quantitative funds. This gives us insight into how we’re doing compared to other quant funds. Since our inception on 12/7/2022, Squirl’s portfolio is up 2.38%, while Eureka Index is down 4.59% YTD.
YTD is being provided as they haven’t completed the calculation for December currently.*
Outlook for 2023
As we head into 2023, we want to really focus on improving our current strategy while also efficiently creating new ones.
Goals that we plan to execute this year:
Iterative updates to our current strategy
Diversifying asset classes – through options and crypto
Creation of new strategies
Focusing on relationship management
Improving internal technical workflows
As a quantitative hedge fund, our core focus is to have a series of strategies working for us. We want to be able to defend ourselves on all fronts and diversify our risk simultaneously. We like to take advantage of volatility, and an asset class that’s no stranger to it is options. We’re personally very excited to move into this asset class, not only because of the presence of opportunity in the options market; but because of the fact that our initial approach to automated trading when we first started, was trading options! Our experience with discretionary options trading will be a major guiding factor toward how we plan on using options in both existing and new quantitative strategies.
Over the past couple of months, we have also been taking a hard look at crypto to see how we can take a data-driven approach toward capitalizing on its daily large movements. We are proud to share that we are actively working on building a strategy that uses novel data analysis techniques to make swing trades on both BTC and ETH.
Another major focus of ours for this year is to create more meaningful relationships with other organizations we interact with. We realize how vital relationship management is, an it will therefore be a key focus for us this year and every year moving forward.
We are so happy to be able to share all of this exciting information with you and are looking forward to updating you all on our progress. It’s going to be a very busy year for us, but simultaneously, a monumental one. Cheers to 2023! Catch you in the next newsletter.
-The Squirl Team