Elizaville Partners Monthly Letter
January 12, 2016
To: Limited Partners in Elizaville Partners LP
From: Max G. Ansbacher, President,
Ansbacher Investment Management, Inc., the General Partner
Subject: December 2015 Performance
Elizaville Partners had an average loss in December of 14.04%. Despite this, our year to date results are an estimated gain of 3.21%. The Standard & Poors’ 500 Stock Index, on the other hand, had a loss of 1.75% for the month and finished the year down 0.73%.
Our loss in December was larger than could have been expected. However, the tumult in the market, which centered on uncertainty about energy and other commodity prices, coupled with the chilling effect of higher interest rates, buffeted the market as follows: The market moved up or down 1% or more on 12 of the 22 trading days of the month; in the first nine days, the market fell almost 5%. This was followed by a 3.6% gain in the days preceding the Federal Reserve’s first rate raise in seven years. Then the market fell 3.2% in the next three days.
It is important to understand that these persistent, erratic moves are the most difficult conditions for our strategy. Looking back at December it is easy to say, with the benefit of hindsight, that the best thing to do would have been to just close down our trading, but at the time, it appeared to us that our positions were poised to be profitable. We did not anticipate the extraordinarily large moves in the market, which occurred far more frequently than is normal.
Summarizing 2015, we are pleased to have beaten the market, but it is frustrating that our otherwise stellar year was punctuated by two very disappointing months.
Therefore in 2016, we are proceeding with caution, and working to avoid repeating the losses we saw in August and December.
All the best for the New Year.
Max G. Ansbacher