Tralucent launched the Tralucent Global Alternative (Long/Shot) Equity Fund (“the Fund”, ticker TGAF on the TSX) on March 31, 2020. Allow us to update you on our results:

	Mar 31, 2020 – Dec 31, 2020	2021	2022	2023	Jan 1, 2024- Mar 31, 2024	Total
Return from shorts	-0.07%	1.90%	7.95%	1.47%	-3.60%	7.46%
Return from long	40.73%	30.53%	-17.03%	24.50%	11.50%	103.66%
Total return of Tralucent Global Equity Fund (Class A)	38.18%	30.05%	-10.84%	23.85%	7.32%	112.66%
	Indices and popular ETFs
MSCI ACWI	32.67%	18.04%	-12.79%	19.33%	10.79%	89.39%
VSP: Vanguard S&P 500 ETF	44.56%	27.89%	-19.25%	24.89%	10.67%	105.32%
XIU: iShares S&P/TSX 60 ETF	29.34%	28.05%	-6.36%	11.29%	6.27%	84.04%

The above performance of the Fund is not a discrete event. It is a continuation of our solid performance over the past few decades.

Here is our composite performance from inception in September 2008:

Tralucent Composite to Mar 31, 2024, after ALL Fees
Last one year	25.22%
Last three years	12.62%
Last five years	13.00%
Last ten years	14.81%
Since Inception Sept 30, 2008	13.32%
$100,000 since Sept 2008 has grown to:	$666,685.50

Critique on Current Period

The Tralucent Global Alternative (Long/Short) Equity Fund (“the Fund”) has continued to enjoy solid performance over the past quarter and year. The Class A units of the fund saw a 7.32% return over the past quarter, and a 24.27% return over the past year. Comparatively, the global market benchmark returned 10.79%, and 23.31%, respectively.

This quarter, our fund did not return more than the global benchmark – this is due to our shorting activities. There was a perfect storm to work against us, of several different things happening at once. One, Bitcoin had stellar returns (it was up almost 60% in Q1 2024) which unfortunately negatively affected our COIN short position. Similarly, euphoria from Trump supporters helped rally Digital World Acquisition Corp (known as DWAC, now changed names to DJT) which we were shorting as well. Of course, we maintain a rigorously disciplined approach to maintain the health and relevance of our short positions and so while losses relating to these positions certainly affected the NAV over the course of the quarter, losses were nowhere near devastating. The silver lining is that we are now well positioned to benefit from what we expect, and hope is a near term decline in those stocks.

We attribute our outperformance in total return both our stock picks on the long side and on the short side (even though one side may not always generate positive returns in each period. We want to highlight that the Fund has generated a 7.46 % return from our shorting activities to date. Explicitly put – if you had $100,000, you would have realized $7,460 in gains from shorting alone.

Since the manager (Tralucent) takes a very long-term view of investing, the performance of the Fund is often determined by what the manager may have done years ago as opposed to the actions of the most recent years. Take the case of the performance of the long portfolio. As an example, Nvidia has performed very well in 2023 and 2024, but the Fund has held it since its inception almost four years ago. In addition, the manager has a focus on investing in companies that are competitive, innovative, and control their own destiny as opposed to companies that are driven by commodities. As such, the Fund’s overall performance was a function of individual companies as opposed to sector performance.

In general, the combination of long and short strategies has been very effective. This is best illustrated by the fact that the Fund was a top contender for two awards in October of 2023 in the equity focused category. The two awards were the best one-year return to Jun 30^th, 2023, and the second being the best three-year Sharpe ratio to June 30^th, 2023.  The second award is noteworthy in that it implies that not only did the Fund have robust returns, but they were also worth the volatility the Fund experienced.

Fundata provided us with 3-year information as of June 30, 2023, and rankings for the Fund against others in Canada and we have ranked spectacularly! The details are as follows:

3 YEAR BASIS	Performance Rank	Sharpe Ratio	Sharpe Rank	Standard Deviation
TGF110 (Class A)	13/100	1.0618	12/100	13.94%
TGF120 (Class M)	11/100	1.0889	11/100	13.95%

The first quarter of 2024 has continued the trend of being eventful. Overall, these first few years since the Fund has launched has been an incredible time to be in the market, and we are very excited to see what the next year has in store for Tralucent, for the Fund, and for all our money buddies!

Outlook

Although the prices of equity investments have risen handsomely in the last ten years, the earnings yield of the equity markets have shown to be vastly superior to the prevailing yields in the fixed income markets. This is especially true given the current climate of the bond markets in the face of the Fed raising interest rates. We expect the equity markets to yield 7%-8% per annum over the next ten to thirty years. This is superior to the approximate 4.7% yield available on long term Treasury Bonds. It is clear that currently, markets are not as attractive as they once were. But they are still certainly more attractive than the bond markets. We remind investors that over time, the equity markets significantly outperform other asset classes. Looking ahead to the next ten years, we have little reason to believe otherwise.

As is our firm belief that equity markets are highly unpredictable over the short-term, we decline to provide any short-term outlook.

We would urge investors to remember that equity markets are not black boxes. Instead, they represent businesses run by millions of human beings that are continuously striving to be better and provide positive returns to their shareholders. It is this human aspiration to succeed which results in higher earnings of the underlying businesses and stock prices.

Tralucent and you:

We would love to have you involved as our money buddy and or supporter. Please let us know if we can elaborate. We would love to chat more with you about money. We also request your permission to update you no more than once a quarter. We are way too busy making money to be writing any more frequently than that. Please let us know if it is not OK with you.

Disclaimers:

Prior to October 11, 2023, the Fund was offered via offering memorandum only and the Fund was not a reporting issuer during such prior period. The expenses of the Fund would have been higher during such prior period had the Fund been subject to the additional regulatory requirements applicable to a reporting issuer. Tralucent has obtained exemptive relief on behalf of the Fund to permit the disclosure of the prior performance data for the Fund for the period prior to it becoming a reporting issuer.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus of the Fund before investing. The indicated rates of return are the historical annual compounded total returns of the Fund including changes in unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.