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K1t Capital is an Appointed Representative of Linear Investments Limited, w hich is Authorised and Regulated by the Financial Conduct
Authority (FCA) FRN: 537389
TRADING SUMMARY FOR AUGUST 2016
In the eye of the storm…
In August we were ready to
place large
positions shorting
the US market,
but despite
several close calls,
the required
target levels were
not hit, leaving us
on the sidelines.
In fact, the range bound trading
noted in our July report continued,
with the S&P Mid (the 400 largest
stocks after the S&P 500) reading
in its tightest
30-day range on
record. We
recorded a slight
loss on the
month of 75bps.
Analysis of
historical data
shows that
volatility often follows periods of
calm, which we will take advantage
of in the months ahead.
K1T FUND BENCHMARK PERFORMANCE
In our first year (ending June 2016) the K1T
fund made a compound return of 24.25%. In
the first two months of Year 2 we’re showing a
compound % return of 6.59%.
PRODUCED 06 SEPTEMBER 2016
K1T APPROACH
We’re an algorithmic,
systematic hedge fund trading
in the US listed securities. Our
premise is the existence of
cycles at all degrees of scale.
We take short term and longer
term positions, and are
constantly developing and
enhancing our strategy, while
staying faithful to our
proprietary K1T algo. Net risk
never exceeds 3.5x AUM and
we typically have a long bias.
“Market volatility often
follows periods of calm,
which we hope to take
advantage of in the
months ahead” said
Simon Wajcenberg, CEO
K1TCapital
K1T CAPITAL QUANT FUND 1 SP
FACT SHEET FOR AUGUST 2016

K1t Capital is an Appointed Representative of Linear Investments Limited, which is Authorised and Regulated by
the Financial Conduct Authority (FCA) FRN: 537389
Produced 06 september 2016
ABOUT K1TCAPITAL
The team, key partnerships and regulatory environment
Based in London, K1T Capital Limited as an Alternative Investment Manager that manages the K1T Capital
Quant Fund 1 SP The fund itself is listed in the Cayman Islands. Our fund administrator is Apex Fund Services
London. Our management team includes Simon Wajcenberg CEO (former E&Y Entrepreneur of the year), Ben
Heaton (CIO), David Furse-Roberts FCA (CTO) and Peter Coveney FCA (CFO). K1t’s advisory board is made up of
Craig Morgan (ex Morgan Stanley), James Hogbin (ex Royal Bank of Scotland) and Kapil Khandelwal (MD of
EquNev Capital India).
K1T’S PERFORMANCE VS THE SP500
The yellow line in the chart to
the left shows the cumulative
performance of K1T since launch
on July 21st
2015, and compares
with the SP500 over same period
(red line).
These are compound returns.

ABOUT THE K1T SHARPE RATIO
Using the month end price of
the K1T Fund the Sharpe Ratio for
the first 14 months of trading is
1.18. We expect the ratio to move
back towards 2.0 over the longer
term. Our historical backtest for the
last 20 years generated a Sharpe
Ratio from monthly data of 2.0.
What kind of performance does
a Sharpe Ratio of 2 imply? One
way to think about it is in terms of
the probability of positive %
returns in the next month. A
Sharpe ratio of 2.0 says there is a
72% chance of next month being
positive.
It’s worth noting that the
Sharpe ratio of the SP500 for the
last 20 years is 0.47.
The Sharpe ratio of 0.47 means
that we can calculate (with the help
of the normal distribution) that the
probability of a negative year for
the SP500 is 31%.
K1T Capital Limited is an appointed representative of Linear Investments Limited, which is authorised and
regulated by the Financial Conduct Authority (‘FCA’) FRN: 537389.
This material is for the exclusive use of the person to whom it has been delivered, is confidential, and may n ot be
copied, distributed, or otherwise given or disclosed to any person. This material was prepared exclusively for
information and discussion purposes only and to indicate preliminarily the feasibility of a possible investment
opportunity. This material is not meant to be, nor shall it be construed as, an attempt to define all terms and
conditions of any transaction or to contain all information that is, or maybe, material to an investor.
K1T Capital Limited is not soliciting any action based upon this material, and this material is not meant to be, nor
shall it be construed as, an offer or solicitation of an offer for the purchase or sale of any security or advisory or
other service. If in the future any security or services is offered or sold,
such offer or sale shall occur only pursuant to, and a decision to invest
therein should be made solely on the basis of, a definitive disclosure
document, and shall be made exclusively to qualified investors in a
private offering exempt from registration under all applicable securities
and other laws. Any such disclosure document shall contain material
information not contained herein, and shall supplement, amend, and/or
supersede in its entirety the information referred to herein. This document
Wikipedia: “…the Sharpe ratio
characterizes how well the return
of an asset compensates the
investor for the risk taken. When
comparing two assets versus a
common benchmark, the one with
a higher Sharpe ratio provides
better return for the same risk...”

is made available to persons who would fall within the definition of a Professional Client or Eligible Counterparty in
accordance with the rules of the Financial Conduct Authority.

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K1T_Aug_2016_Report_V1

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