Month: September 2021

ThumbTack Fund Report 9 – “You Should’ve Gone For The Head”

YEAR TO DATE (2021):

SPY: +21.98%

VT: +17.15%

STI: +8.44%

TTF: +53.82%

SINCE INCEPTION (FEB 2020):

SPY: +26.15%

VT: +22.99%

STI: -1.41%

TTF: +82.40%

For reference, last TTF report: https://thumbtackinvestor.wordpress.com/2021/04/18/thumbtack-fund-report-8-what-are-these-bots-doing/

Note: Returns are MWRs, all figures in USD

TTF’s NAV: USD 1,199,086.20

Deposits/Withdrawals: USD 774,276.48

Nett capital gains since inception: USD 424,809.72

As you can see, I don’t typically like to use leverage. But in the past few months, particularly in July, TTF took on the most leverage it has ever done, in a very short time frame. Basically I had a high conviction opportunity and wanted to build some crazy ass positions, yet was reluctant to liquidate existing positions, and didn’t want to suddenly flood the fund with fresh capital injections either, hence the sudden increase in leverage.

Leverage in July 2021 sat at USD 462,690.24

Since hitting close to a high sometime in April 2021, TTF’s cumulative returns (since inception) plummeted the next 3 months, from May till July, largely due to Xi’s aggressive crackdown on chinese tech companies, which has now expanded to errrrr, like almost every chinese company.

Being heavily exposed to Alibaba (US and HK listed), as well as Tencent (HK listed only), TTF was not spared. The drop was so relentless that for a very brief moment… SPY and VT finally caught up with TTF. No chance for STI though, STI can’t touch TTF, even with Xi’s help. Hahaha.

Like every good Hollywood movie though, the hero always wins in the end. Heh.

YTD, STI has actually done acceptably well, coming in at +8.44%.

But longer term, like the EPL, the table doesn’t lie. The difference is stark.

If looking at numbers and words isn’t your thing, here’s a comic book visual representation of what transpired:

TTI DOING DUE DILIGENCE
TTI COMPLETING DUE DILIGENCE AND BUILDING POSITIONS QUIETLY
TTI TAKING ON LEVERAGE
MAXIMUM LEVERAGE
TTI: “I AM INEVITABLE”
ARRIVAL OF XI!
“UNDERVALUED!”
“XI: HAHAHAHAHAHA!”
CHINA TECH, CHINESE ADRs, EDUCATION SECTORS, FINANCIAL PAYMENT SECTORS, TRANSPORT SECTORS BLAH BLAH BLAH
ATTACK!
“HOLY COW! THIS LOOKS MORE SERIOUS THAN I FIRST THOUGHT!”
OH SHIT.
OUCH OUCH OUCH!
ARGH! XI… YOU………….
“你死定了!!!”
“I TOLD YOU TO GIVE TO COMMON PROSPERITY FUND RIGHT, DIDN’T I?!”
BUY MORE BABA AND TENCENT LA!
TTF -5% MORE IN A DAY
“5 YEAR PLAN!”
S&P AND VT FINALLY CATCHING UP WITH TTF
“YOU SHOULD’VE…. SHOULD’VE…. GONE FOR THE HEAD”
XI: “UH OH. SIAO LIAO”
TTI: “SPRT”
!!!!!!