Hyperion posted a modest +0.58% positive return for November. The broad stock indices rallied strongly in November following the US presidential election results early in the month.
Contributing Factors:
Reduced Political Uncertainty: Clear election results and unified Republican control in Congress potentially eased investor concerns about policy gridlock and increased the likelihood of certain legislative priorities.
Stronger-Than-Expected Economic Data: Positive economic data releases, such as retail sales and manufacturing activity, boosted confidence.
Improved Corporate Earnings: Strong earnings reports from U.S. companies provided further support for the market rally.
Easing Inflation Concerns: While inflation remains a concern, some signs of moderating price pressures may have contributed to the positive market sentiment.
Hyperion Fund entered November with a strong unrealized profit after the S&P 500’s 1.85% decline on October 31, driven by gains from bought put options in the portfolio. However, as the S&P 500 rallied sharply following the election, long volatility gains from strategies like Active Range were given back.
The re-election of Donald Trump sparked the strongest election rally in U.S. history, with the S&P 500 achieving unprecedented growth in the first six trading days of November. Despite the rally limiting downside protection returns, Hyperion’s market-neutral strategies contributed positively, ensuring a strong risk/return profile for the portfolio.
Key Highlights:
November saw the S&P 500 post its best trading month of 2024 and its 53rd new all-time high this year—a record for a calendar year.
If the S&P 500 ends the year with gains exceeding 20%, it will mark only the 4th time in 150 years of consecutive 20%+ annual increases, following the record set in 1995-1996.
While these exceptional rallies are notable, history suggests that extended periods of above-average stock market performance often lead to corrections, creating opportunities for Hyperion to outperform.
As we position the portfolio for year-end, our focus remains on capturing long-term value while balancing risks.
Looking Ahead:
The Hyperion Fund is well-prepared to take advantage of any corrections that may arise, with strategies aligned to deliver returns above annual targets in the months ahead.
Happy Holidays!
Thank you for your continued trust and partnership. We wish you and your loved ones a joyous holiday season and a prosperous New Year.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
Hyperion Fund continues to outperform the bond market. In November, Hyperion was +0.58%, bringing the fund to +9.01% YTD. In contrast, Vanguard’s Total Bond Market ETF sits at +0.07% YTD.
Why Consider Hyperion Fund in Today’s Market?
As the economy adapts to both rising inflationary pressures and moderating growth, Hyperion’s multi-strategy structure offers unique advantages:
– Diversified Alpha: With exposure across futures options and seven distinct strategies, Hyperion delivers a balanced, non-correlated approach.
– Flexibility and Liquidity: Hyperion’s lack of a lock-up period provides investors flexibility, a rare benefit in the alternative investment space.
– Tax-Efficient Structure: With 1256 tax treatment (60% of net profit as long-term capital gains and 40% as short-term), investors benefit from favorable tax treatment, enhancing after-tax returns.
Hyperion Fund continues to stand out as a low-volatility alternative investment option for investors seeking consistency without the constraints of traditional equity or bond exposures.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY INTEREST TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS. IN SOME CASES, MANAGED COMMODITY ACCOUNTS ARE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT AND ADVISORY FEES. IT MAY BE NECESSARY FOR THOSE ACCOUNTS THAT ARE SUBJECT TO THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS.
