About The UZZ Fund
What if you could have your cake and eat it too? In the investing world that is a rare thing! What am I talking about? Gaining high returns and being safe! The two just don't go together!! High returns imply (in professional investor speak) high beta and that means that if it goes up quickly, it'll go down just as fast. What if we could change that? What if we could have only gains and no interim losses (or downdrafts)?
Welcome to UZZ Fund! We take a different approach that is highly active and focused on safe gains. Our methods are not what Wall Street or CNBC bobble heads talk about. We don't care about what stocks are hot or when the next downturn will occur or what news will change things or what the market is doing over the long haul. Yes, we have a short term (3 days!!) orientation. And yes - we use options rather than stocks. And we like cash a lot! But our approach has delivered an average of 60% annual return to our shareholders since 2013 with no more than 2% weekly downdraft in that period. That's high return with safety!
The UZZ Fund is not like other mutual funds or even hedge funds that you may have seen. Instead, the UZZ Fund utilizes a proven proprietary algorithmic trading approach to maximize short term upside potential while actively controlling for risk. Among the features of this approach are:
- Remaining in cash when trading opportunities are not clear and confirmed.
- Using no more than 50% of total Net Asset Value in any one trading period, and usually less than 30%.
- Focusing on being paid in options premium (selling credit spreads) rather than in capital gains from equity trading or long term investing.
- Limiting trades to no more than three day duration.
- Using stops on all active option trades for automatic exit should conditions change.
- Limiting trading in any one options trade to no more than 12.5% of Net Asset Value.
- Targeting a minimum annual return of 20% inclusive of all trading fees, management fees, taxes and other costs. The Fund Manager will subsidize this rate of return by returning a portion of quarterly Management Fees should the rolling annual return in any quarter be less than 20%.
- The Fund has an average annual return of 60% from its inception as a real time model in 2013 and then continuing to real time operations in 2019 (as compared to the historical average annual return for the S&P 500 of 8%).
- The Fund pays no interim dividends or capital gains.
- The Fund calculates the Net Asset Value of each Shareholder on a weekly basis and reports these monthly.
- The Fund charges a 5% redemption fee for any withdrawals prior to a one year initial holding period.
The following table shows key performance data for the Fund from 2013 to present. The investor return performance shown is inclusive of all trading expenses, management fees, and taxes paid by the Fund. The Shareholder may be responsible for taxes on received disbursements - please contact your tax advisor.
Notes for Table
- Raw Return - This is the rate of return not including taxes, management fees or non-trading expenses. The raw return is inclusive of trading expenses.
- Expense Ratio - the ratio of trading expenses to realized gains (raw return). Trading expenses are commissions and contract fees associated with option trading activities of the Fund.
- % of year no trade - This is the number of days of the year (year to date), stated as a percentage, in which all assets of the Fund were in cash. This includes non-trading days (weekends and holidays).
- Avg Trades per week - This is the average number of trades in a week in which trades occurred. This does not include no trade weeks. It is possible to calculate average portfolio allocation from Average Trades per week by multiplying by 12.5%. For example, the minimum allocation is 0% (0 trades) and the maximum allocation is 50% (4 trades). An average of 2.4 trades per week would be a 30% allocation. Allocation represents at risk assets. The remainder is in cash.
- % Adjustments - The percent of trades that did not expire worthless as expected. Such trades were closed before expiration via automated stop order limiting gain on the trade or causing a loss on the trade.
- Investor Return - This is the realized Shareholder annual rate of return. The data here represents worst case (highest) level of taxes and management fees for assets under management (lowest). None of the results here required subsidy from the Manager to attain 20% minimum return on a rolling annual basis.
- About the Data Here - The Fund has been in operation since April 2019. All previous data here represents real time algorithmic trading on the actual historical real time market and options data as it occurred in respective time frames. The statistical variance of runs from 2013 to present is less than 5%. Thus, there is a high probability that had the Fund been in operation from January 2013 to present that the summary presented above would represent its actual results. Model results and actual results from April 2019 to present are within a 2% variance.
FAQs - More about how the fund operates and general information.
Recent Activity - Recent trading and performance updates.
Methodology - For more information on the UZZ Fund trading Methodology.
For more information, including a prospectus, contact Robert Usner at Bob@transform-services.com
The UZZ Fund operates as a hedge fund under SEC and State guidelines and regulations and does not comply with the Investment Company Act of 1933. Historical performance is no guarantee of future results. This page is not a solicitation for investment.