Okay, we finally got these tech issues sorted out with the blog distribution.  It’s amazing how a firm implements new technologies to solve problems and assists in one’s growth only adds more tech problems along the way.  Strange and quite annoying how that all works.  Anyways – moving on!

We finished the month fairly strong +1.88% giving us a cumulative return for Q1 +2.57%.  Decent but still not quite satisfied.  Surprisingly, volatility was quite suppressed most of the month despite the spike higher on the back of the collapse of Silicon Valley Bank.  I cannot tell you how many calls/emails I got regarding this issue – which represents an idiosyncratic one off event.  I don’t care to get into the nitty gritty details of it but basically the bank mismanaged their cash/treasury exposures.  It’s called duration risk and the bank failed to manage it properly.  In other words, this is not a hallmark of a potential systemic banking issue which is why volatility dropped significantly post event.  So, good for the broader economy and banking system but I personally would have liked to see volatility remain elevated for a tad longer.  Can’t have it all unfortunately.

Switching gears a bit – I have mentioned in the recent past that we hit a major milestone with our infrastructure build out.  We slowly implemented some of these new features over the course of the month.  The last thing we care to deal with is more tech issues, especially when it comes to actual trading so we are slowly but surely easing our feet into the water.  The primary feature here is machine assisted trading as opposed to 100% human trading, which is prone to judgement errors, etc.  So instead of our signal processing algorithms providing a human trader orders to act upon – we now have execution algorithms that will act upon those signals which are purely statistical based.  Given the amount of growth we’ve had over the recent years, this will allow us to accomplish two things.  1) greater returns by removing human elemental errors and 2) scalability.  I started Stroot Investment LLC exactly 10 years ago in which most of the time I’ve been wearing all the hats.  This infrastructure implementation is now allowing me to delegate a majority of the middle/back-office tasks to my growing team members so I can focus on bigger picture items.  Onward and upward.