Σ1

I started Sigma1 with $35,000 in seed capital, a Linux workstation and a domain name I acquired in auction for $760.  The original plan was to create a revolutionary hedge fund with accredited investors as clients.  I started studying for the Series 65 exam and all went well until I started reading about securities laws and various [...]

Currently all-long, mostly-equity positions: 50 shares EFA 100 shares SCHB 100 shares VEA 100 shares JNK 200 shares PBP 100 shares VTI 100 shares SPY NAV: 36,604.55 USD.

Since May 10th the Sigma1 Fund is down over 1000 dollars, closing today at $37,856.48.  I’ve been thinking about reducing the leverage of the fund from its current 1.57X to closer to 1.2X.  I have been weighing the cost of realizing some short-term capital gains versus a desire to deleverage. On a separate note I’ve [...]

Unaudited total return of the Sigma1 Fund is 10.26%

I created the Σ1 Fund for several reasons. A proprietary fund in which to invest some of my LLC’s assets. A real-world investment vehicle in which to test, refine, and showcase  investing and trading strategies. A hedge fund where my LLC can also make revenue from fees. (Fees as low as reasonably possible.) A fund [...]

The PowerShares S&P 500 BuyWrite ETF (PBP) and iPath CBOE S&P 500 Buy/Write Index ETN (BWV) both seek to track the BXM Index.  Each advertises a 0.75% expense ratio/annual fee.  The BXM Index reports an “18 years [history], generating a return comparable to that of the S&P 500 with approximately two-thirds of the risk”.  Should [...]

I ask myself what value-adds will distinguish the Σ1 Fund from the numerous fund out there. Here are a few key distinguishing points:

1. Innovative, industry-leading transparency for a hedge fund.
2. Far lower overall expenses than typical for a hedge fund.
3. Far lower investment minimums, by far, than a typical hedge fund.