Dear Limited Partners,
The Fund returned 46.78% since inception (Jan. 7, 2013) through Dec 31, 2013. Over this period the S&P 500 returned 26.44% and the equity hedge index returned 9.79%. HIT Capital outperformed each benchmark by 20.34% & 36.99% respectively. This was accomplished through our primary and secondary strategies, Beta Slippage and Contango.
Going forward I do not see any changes to our primary and secondary strategies in the short term. In the long term we will continue to invest in our primary and secondary strategies while searching for new structural inefficiencies and value derived equity inefficiencies. A value derived U.S. equity strategy is currently being tested and may be ready to implement as soon as Q2, 2014.
As we move forward into the 1st quarter of 2014 you should expect the following:
· Tax Form K-1 (The only taxable event the Fund experienced in 2013 was interest on cash equivalents)
· Notification of an updated ADV 2
· Letter to confirm your 2013 contribution(s).
Performance December 31, 2013
Allocations December 31, 2013
This report is intended to assist limited partners in understanding how HIT Capital LLLP performed during the period ended December 31, 2013 and reflects the views of the general partner at the time of this writing. These views may change and do not guarantee the future performance of the Fund or the markets. Portfolio composition is subject to change. The current and future holdings of the Fund are subject to investment risk.
Hedge fund investing involves risks, including possible loss of principal. An investor should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The Offering Documents contain this and are available by contacting Stephen Read @ 309.253.7887 or Stephen.Read@HITInvestmentsLLC.com. The Offering Documents should be read and understood before investing.
The comparison of the Partnership’s performance to a single market index is imperfect because the Partnership’s portfolio may contain options and other derivative securities, may include margin trading and other leverage and is not as diversified as the Standard and Poor’s 500 Index or other indices. Due to the differences between the Partnership’s investment strategy and the methodology used to compute most indices, HIT Investments cautions potential investors that no indices are directly comparable to the results of the Partnership.
S&P 500 data provided by Yahoo Finance
Hedge Fund Index data provided by BarclayHedge