Coyote-Prime Large Cap Strategies Receives Significant Ranking Award, March 2023

Updated June 30,  2023

Dear Friends and Investors,

As we navigate through the midpoint of 2023, we are pleased to share some exciting news and updates about our journey at Prime Opps/ Coyote-Prime. Prime Opps SPC has been ranked March 31, 2023, as the #1 Long/Short Hedge Fund in the world by Barclay Hedge since Prime’s inception 14.5 years ago.

This acknowledgement from BarclayHedge confirms our disciplined approach to risk management. Unlike many global funds that collapse within 5 to 7 years due to high-risk ventures, Prime Opps has consistently placed an unwavering emphasis on managing risk, delivering robust returns without wavering from our foundational principles.

Our strategic thesis is more evident when comparing our methodologies to the funds ranked #2 through #5 on the same BarclayHedge list:

    #2- Anson Investments Master Fund is noteworthy for its performance, yet its unrestricted approach involving private equity, commodities, and PIPE deals introduces significant long-term risk due to a lack of clarity and exposure to various market fluctuations.

    #3- Horizon Kinetics Equity Opp LP adopts a concentrated approach with over half of its fund invested in gas extraction and a single holding that accounts for over 48% of its portfolio. Reducing diversification can potentially lead to instability.
#4- Regal Tasman Market Neutral Fund is heavily invested in smaller Australian companies, leading to a geographic concentration that is in stark contrast to our global, diversified approach.

   #5-  TCW Sepulveda L/S Equity Fund II LP embraces volatility by venturing into smaller companies and high-risk investments such as high yield, mortgage-backed securities, and asset-backed securities.

These funds do not seem to adhere to the disciplined and risk-averse approach we follow at Coyote Prime.

Our guidelines are:

  1. We only invest in publicly traded companies with a minimum market cap of $500 million, ensuring portfolio liquidity.
  2. Our portfolio maintains precise leverage ratios, with monthly rebalancing.
  3. Our positions have strict size limits to reduce risk from any single holding. Currently, our largest position is 8.5% (maximum limits 15% long, 10% short).
  4. We avoid risky assets such as naked options and derivatives, instead focusing on portfolio stability.
  5. We maintain a diverse portfolio covering 5+ sectors, with a balanced mix of long and short positions.
  6. Our performance numbers are verified, GIPS-compliant, and audited by KPMG.
  7. Reflecting on the first half of 2023, our historical performance and recovery post-market downturns of more than 15%, yields an average return of 185%. We consistently provide superior value for our investors.

Furthermore, our 5-year price projections promise a bright future, where we aim for an annualized return of 63.96%, suggesting potential growth of each invested dollar to $11.85, USD.

Q2 2023 Performance Summary:

  1. Prime Traditional Long/Short Portfolio vs. Benchmark: HFRX Equity Hedge
  2. YTD: 19.14% net, versus 3.61% with the Benchmark
  3. Average Annual Return: 16.13% net, (20.14% gross), versus 2.78% to Benchmark
  4. Overall Gain from 01/2009 to 06/2023: 785.03% net, 1351.97% gross, versus 49.21% to the Benchmark