Volanti is an Investment Club that is spearheaded by two former students (and now trusted friends), Jason Phillips and Lewis Powell.
Jason and Lewis are co-lead Managers. I am – if I may flatter myself – the “éminence grise” and the biggest single investor in the club, which if nothing else, demonstrates my trust in both Jason and Lewis.
There are several other members, all of whom are also former students of mine. Volanti will launch November 1, 2015 and there is a three-year lock-up period. Jason and Lewis will lead a team of young, eager analysts and the minimum goal is to double the initial capital over this three-year period of time, irrespective of how the underlying indices perform.
This fund is all about pure alpha.
Prior to launch on November 1, the beginning balance will be announced, then on a monthly basis, a report on both the trades that were executed, as well as the rationale behind them, with an ending monthly balance of cash and positions will be made available.
The purpose is to establish a track record in the public domain, with the intent to launch a Hedge Fund in the near future.
The fund seeks to add value where the price of a security has deviated far from what we feel is its intrinsic value. For our long positions, these would be stocks where the price is at least 30% below what we feel is its intrinsic value and for our short positions these would be stocks that have prices that we feel are at least 30% above their intrinsic value. By following a patient approach and allowing the price of a security to drift further away from its intrinsic value, not only does the fund minimize the chances of taking a loss but at the same time, the potential return of the trade is also greater.
We arrive at our estimate of intrinsic value by using a combination of discounted cash flow analysis, valuation metrics and an evaluation of the company’s respective position within the industry in which it operates as well as the structure of the industry itself.
After completing a full evaluation of the intrinsic value of a company’s shares the fund employs the use of various technical analysis strategies to help optimize the timing of its entry and exit strategy. Additionally, the fund holds the option of using sophisticated derivatives strategies to enhance returns while the same time minimizing the risks of open positions.
Beginning Balance (November 2, 2015): USD $150,000
November 30, 2017: $168,780
December 31, 2017: $173,175
January 31, 2018: $176,688
February 28, 2018: $172,240.80
March 31, 2018: $176,976
April 30, 2018: $181,884
May 31, 2018: $178,280.35
June 30, 2018: $182,692
July 31, 2018: $180,899
August 31, 2018: $197,180
Since Inception 34-Month Return: 31.5%
Annualized Since Inception Return: 10.1%