Elizaville Partners Monthly Letter
October 6, 2015
To: Limited Partners in Elizaville Partners LP
From: Max G. Ansbacher, President, Ansbacher Investment Management, Inc., the General Partner
Subject: September 2015 Performance
Elizaville Partners had an average net estimated gain in September of 2.0%. This brought its average year-to-date gain to 10.55%.
The S&P 500 Stock Index lost 2.64% in September for a year-to-date loss of 6.74%.
“Stock Market Ends Worst Quarter in Years” screamed the headlines as all three major U.S. indexes posted their biggest quarterly losses since 2011. It was a terrible quarter not only because the market went down so far, but even more because of the way it did it. September was spent careening from rally to plunge which, as often as not, would then immediately turn into another sharp rally. The result was that anyone taking part in the market had absolutely no idea of where it was headed next–only the presumption that it wasn’t going to stay where it was for very long. Considering this, we are quite pleased to have a positive result, albeit a small one, for September.
The statistics tell the story. As of mid-September there were twice as many 1% daily moves as last year, and five times as many 2% daily moves as last year. No wonder investors were nervous and distraught. Just why all this volatility should erupt now is open to question, but as we often tell ourselves here on the trading side of Wall Street, our job is to focus on what is happening, and leave the reasons why to the analysts and commentators.
Where does this leave us for the future? It is certainly likely that this extreme volatility will eventually work itself out, but whether the market will move higher or lower in the meantime is almost impossible to predict. Until recently it seemed that the international news was negative and the domestic news was somewhat more positive, but the recent September jobs report has even brought the U.S. statistics into question, so the puzzle is more of a quandary than before.
On a different note, our firm had the good fortune of being profiled in this month’s issue of Modern Trader, which can be found on the Futures Magazine website. It is an excellent write up on both our history and strategy, and it was an honor to be featured in those pages.