Elizaville Partners Monthly Letter
May 5, 2015
To: Limited Partners in Elizaville Partners LP
From: Max G. Ansbacher, President, Ansbacher Investment Management, Inc., the General Partner
Subject: April 2015 Performance
Elizaville Partners had an average net estimated gain in April of 3.9%. This brought its average year-to-date gain to 16.99%.
Elizaville Lite had an average net estimate gain in April of 1.4%. This brought its average year-to-date gain to 3.89%.
Elizaville Plus had an average net estimate gain in April of 12%. This brought its average year-to-date gain to 21.36%.
The S&P 500 Stock Index gained 0.85% in Apil for a year-to-date gain of 1.29%.
As we enter the month of May it may be instructive to understand where the famous Wall Street saying, “Sell in May and go away” comes from. It turns out that this proverb is grounded on solid fact; not just for the month of May but for the entire six-month period that begins in May and ends on October 31. Here are the statistics: if one investor decided that he would be in the market each year from May 1 to October 31 and be in cash the rest of the time and if he started in 1960 with $10,000 invested in the S&P 500 Index with dividends reinvested, his account would now be worth $29,053. If another decided to invest for the opposite periods from November 1 to April 30 in the exact same way, his investment today would be worth an amazing $647,344!
Clearly a discrepancy this large over so many years cannot be regarded as a statistical fluke but must be taken into consideration by any investor. Note, however, that the summertime investor did make a small amount of money, suggesting that the market doesn’t necessarily go down during that period. As disheartening as these facts may be, we should keep in mind that a period of no growth in the stock market is not necessarily a losing period for us. On the contrary, if the market just ambles along without any clear direction and stays range bound as it has been doing recently, our results confirm that we can do quite well indeed. So we will continue with our strategy, including our full array of risk management tools, in the belief that our program can continue to prosper in a wide variety of markets.