Dear Valued Investor,
Welcome to the inaugural investor note for Blue Creek Capital Management (BCCM from now on). Firstly I want to say a huge thank you to my business partner Bill Baruch, I sit here looking for edge to make you all money and he has the heavy lifting to do, dealing with all the FCM's, brokers, compliance, and platforms. Not to forget his endless TV appearances, but we secretly know he loves that.
The big thank-you though goes to all the investors who have placed their trust in us to deliver for them. The take up for the fund has been incredible. I am humbled by the trust placed in us.
My plan with these notes is to keep the communication going, you can press delete on arrival and collect your gains each year or you can follow along in what we are doing. The choice is yours.
I will keep the notes focused in the following format, Our Performance, Our Open Risk, Macro Themes, and Opportunity. You are all busy people and I don't want to take up too much of your time but as investors in a Macro and Energy Options Fund, we will assume you want to know something of your hard-earned money's journey with BCCM.
So 2020 has been a year that will form the bedrock of university textbooks for many years, we thought 2008 had that title in permanent marker, until 2020 said 'hold my beer'.
Unprecedented stimulus has suppressed yields even lower than the 2008 GFC managed too. What is also notable, this time central bankers are more than happy to just admit they are "not even thinking about thinking about raising rates" (makes me think of that Donald Rumsfeld quote, "There are known knowns!"). Inflation seems to have left the party early with no signs of coming back. So we all have to go big game hunting for some real yield. This can be a dangerous hunting trip for many as the cheap capital and endless drive for more and more returns eventually leaks into higher ambient volatility levels. This will catch and destroy anyone who's alpha, is really only hidden beta. At BCCM our role is not only to achieve sustainable capital growth but to diversify that growth to keep the portfolio non-correlated. It is this task, that occupies our mind and time. Protecting when everyone is protecting is not a complex task, remaining non-correlated across all conditions is why you selected us to manage your assets.
We take this task on with great pride and humility. In the next note, we will enlighten you on some of the strategy selections we have made.
Sincerely,
Adam Webb
President & CIO
Blue Creek Capital Management, LLC