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January 2016 - May 2016

July 2015 - December 2015

Battle of Returns: MLB vs S&P (April 2015 - June 2016)

 

Date: July 4, 2016

June was a wild and crazy ride in many areas.

 

Cleveland, otherwise known as #TheLand, had one of the best sports months in its long history with the Cavs overcoming a 3-1 series deficit to win the NBA title.  After being written off by many, the Cavs were able to overcome great odds to capture their first franchise championship.

 

Add to that, the Indians closed June on a 13-game win streak and took over sole possession of 1st place in the AL Central. The Indians have risen to 4th in the latest ESPN MLB Power Index trailing only the Cubs, Giants and Rangers respectively. It's certainly a great time to be a sports fan in #TheLand.

 

The markets experienced a high-level of volatility late in the month mostly due to the United Kingdom's vote to withdraw from the European Union. Brexit, as it's termed, caused the Dow Jones Industrial Average (Symbol: DJIND) to fall by 611 points in a single trading day. After a follow up dip of 260 points, the DJIND reversed the short term trend and regained those losses with a rise of 789 points.

 

As we continue our comparison between investing in the MLB and the S&P, there's a similarity that we've noticed. In both, there is a strong tendency for market participants to over-react to short-term situations and variability. However, value is generally found when examining the long-term performance of a company, stock, team or player.

 

Below are the comparison results as of the end of June 2016.

 

Comparison timeframe: April 1, 2015 to June 30, 2016:

 

MLB Strategy 1: +65.68%*

 

MLB Strategy 2: +21.79%*

 

S&P 500: +1.5% (Comparison)

 

Regards,

 

Duane

 

6S Equals Success

 

High Roller Fund

6S Alternatives LLC

 

*Professional baseball returns only. Returns are calculated based on 1% bankroll risk per play.

 

 **S&P returns are calculated based on the opening price of 2,067 on April 1, 2015 to the closing price of 2,098 on June 30, 2016

 (source: Google finance).

When Six Sigma meets Alternative Investing , a multi-strategy alternative investment opportunity is born..

Investing involves risk. Investors should consider the objectives, risks, and expenses before participating in the High Roller Fund.