Q2 ’20 Update
Published 6/7/2020

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Several quick notes before updating you on Tarpon:

• The topics I was hoping to cover in this year’s Annual Investor Meeting will be delivered via a series of emails later this summer.
  
  
• Goldman Sachs is buying FOLIO. Stay tuned for what, if anything, that may mean for us.
  
  
• Here are some recent resources we have published related to COVID and the last few months in the market...
  
  Emails:

  Historic Unemployment and the Months Ahead (originally sent out May 13)

  An Economy in Recession (April 30)

  Negative Oil Prices?!?! (April 22)

  Coronavirus Versus the Fed (March 19)

  Thoughts on Thursday’s Market Drop (March 13)

  Thoughts on the Coronavirus (March 4)

  
  Downloadable checklists:

  COVID Relief Checklist for Individuals

  COVID Relief Checklist for Small Business Owners

Now, on to Tarpon.

Below is the intro to this quarter's letter, followed by a link to download the full PDF.

To those of you who have not looked at your account performance for a few months:

Congratulations. Good call.

The spring of 2020 was brutal for the energy sector in particular. An oil price war started during the arrival of the coronavirus pandemic was exacerbated by a technical anomaly in a popular oil trading product. On April 20th, those events culminated in the price of WTI oil hitting negative $38 a barrel.

Energy stocks got crushed. Tarpon was not spared.

The good news, however, is this:

Through last Friday, the Tarpon Folio, on an unaudited basis, is now up 0.63% on the year, compared to the S&P 500, which is down 0.3%.

We’ve had a significant rally off the lows of late March. I am particularly pleased with the changes made to Tarpon during the spring chaos. We appear to be through the worst of it, finally, and have a long runway in front of us – though it’s going to take time.

Please let me know if you have any questions.

Yours in Quarantine,

- Cale

The Tarpon Folio is an innovative, investor-friendly alternative to the traditional actively managed mutual fund. It's built on a model we call a Spoke Fund®.

Spoke Fund® is a group of separate investor accounts linked to a portfolio containing a significant portion of the net worth of the portfolio manager. Cale Smith at IIM is the creator and owner of this trademarked and proprietary approach to better transparency and integrity in investing other people’s money.

Fees for Tarpon are 1.25% of assets annually, assessed on a monthly basis. Turnover, taxes and trading are minimized in the fund, which uses a long-term value investing strategy.

For more information, visit our website.

Here is our privacy policy, our Form ADV and our Fiduciary Oath.

Historical performance data above represents performance results as reported by the portfolio identified. Performance results are for illustration purposes only. Historical results are not indicative of future performance. Positive returns are not guaranteed.

Individual results will vary depending on market conditions and timing of initial investment. Investing may cause capital loss. The S&P 500, used for comparison purposes, is significantly less volatile than the holdings of the funds listed. The performance data is net of all fees reflecting the deduction of advisory fees, brokerage commissions and any other client-paid expenses. The performance data includes the reinvestment of capital gains and dividends.

The publication of this performance data is in no way a solicitation or offer to sell securities or investment advisory services.