Tourlite Fund Reports 4.5% Return in Q3 2024 – Beat S&P 500 Performance

New York, NY – Tourlite Fund, LP based in New York, NY, reported a return of 4.5% for the Third Quarter of 2024 and a year-to-date return of 13.8% for the same year. Since its inception, the fund has shown annualized returns of 11.0%, slightly lower than the S&P 500’s 11.8% and significantly higher than the Russell 2000’s 4.5%.

Market analysts have taken note of the fund’s performance, particularly in comparison to major market indices. The Federal Reserve’s recent decision to cut interest rates by 50 basis points in response to signs of a weakening labor market has raised concerns about reaccelerating inflation in the future. The upcoming election adds an element of uncertainty to market conditions, with potential for increased volatility regardless of the outcome. Both candidates are expected to drive inflation higher through increased fiscal spending and a growing budget deficit, potentially impacting the economy in the long term.

A recent report from Goldman Sachs projected a 3% annualized return for the S&P 500 over the next decade, signaling a lower overall market return compared to previous years. With expectations of lower market returns, there is an opportunity for long/short equity stock pickers to thrive in an environment where individual company fundamentals drive performance rather than broad market tailwinds.

During the quarter, Tourlite Fund maintained a net beta adjusted exposure within +/-10% range, with the average exposure at 2%. Gross exposure fluctuated between 155% and 200%, averaging at 178%. Sector concentration in the portfolio was primarily focused on consumer, industrials, technology, and other sectors. The fund remains optimistic about maintaining a net exposure between 20-30% for optimal portfolio construction.

In terms of performance, the fund demonstrated strong gains in July driven by outperformance in the long book, while facing challenges in August due to macro factors and earnings pressures. The fund continues to focus on capturing positive spreads between long and short positions, believing that the current market environment is conducive to their long/short stock-picking strategy.

In closing, Tourlite Fund emphasizes its commitment to delivering above-market returns while maintaining a low correlation to equity markets in order to reduce market-driven volatility. As the fund approaches its third year since launch, it aims to continue outperforming market indices while keeping a negative correlation to them, showcasing the strength of its strategy. Interested investors can reach out to the fund for new subscriptions and inquiries.

By Jeffrey G. Cherkin, the Fund aims to keep investors updated on its strategies and performance in the market.

The information provided in the article is a confidential update from Tourlite Capital Management, LP and should not be considered as investment advice. Investors are advised to consult their financial advisors before making any investment decisions. For more details, refer to the official letter from Tourlite Capital Management, LP available for download.