As of tonight, the Sigma1 private-equity fund is up 6.44% since its inception less than 4 months ago.  I’ve used this time to begin putting several of my investing ideas into practice.  I started out cautiously the first couple of weeks, making sure I knew enough about the new trading platform I was using.  I’ve learned that it is a superb trading platform, and well-worth the learning curving.

I’ve put together an investing strategy and portfolio that I believe is well-positioned to benefit from the current economic and investing climate.  If I force myself to pin down the current strategy with words, I’d call it a USD-focused, long-short, equity-dominated strategy with global exposure and significant currency-risk hedging.  The current Sigma1 investing strategy is also macro-focused and sector neutral.  As mentioned in a previous post, I’m also using options to re-shape the portfolio risk-profile, but only modestly.

One thing that is becoming clear to me is that I value the flexibility to change tactics and strategies as my analysis and judgment sees fit.  For example I have currently hedged the majority of Sigma1′s foreign currency exposure, but some day I may wish to seek foreign currency exposure rather than avoid it.   Similarly I may wish to step away from a sector-neutral stance and go long some sectors and short others.

I believe I will employ an evolving strategy with Sigma1 that seeks to avoid sharp discontinuities, but evolves with changes in market and economic conditions in the US and around the globe.