Pyramid Investing Fund

Pyramid Investing Fund (PI Fund or just “Fund”) is private investment fund, not open to the public.  Performance of the Fund presented on this page should be understood only as an example of possible returns that can be achieved by applying Pyramid Investing approach to the markets.

PI Fund’s inception date was June 9, 2009. Naturally, investing strategy that is applied in the Fund is Pyramid Investing. The objective is extracting profits by trading volatile investment instruments and achieving appreciation by holding solid, low-cost-basis core positions. Fund primarily invests in precious metals (Gold & Silver) and energy (Oil, Natural Gas & Uranium). Investment instruments span physical bullion ETF’s, individual mining companies and ETF’s, futures and certain derivatives (options). Fund is present on nearly all US exchanges, Toronto stock exchange (TSX) and Forex. Geographical diversification of core position companies assumes their operation around the globe or more specifically – every single continent.

PI Fund has almost two years of history:

• 2009 was a warm-up year with enviable annualized return of close to 30%
• 2010 has been extremely successful and Fund achieved almost doubling of its unit price, or close to 100% return!
• 2011 is still young, but with high likelihood of exceeding previous returns and becoming a new record high year

Feel free to enjoy PI Fund’s performance chart and table shown below.

Pyramid Investing Fund Performance Chart as of May-31-2011

Volatility that is seen in Fund’s unit price this year will eventually translate into steep uptrend. Recent drop was mainly caused by significant pullback in Silver prices as well as relative under-performance of  precious metals stocks versus bullion itself.

As the table below shows, annualized life-performance of the Fund for the previous three to six months was stable around 60%. It was only in May that it dropped to 47% which still corresponds to more than doubling of investment capital every two years! The drop in May will most likely turn out to be just a temporary blip in strong Fund’s performance, and invested capital will continue with fast pace of exponential growth. Please note that size of the Fund is many orders of magnitude smaller than great majority of well known mutual funds or hedge funds, thus allowing it to achieve levels of returns that other funds can only dream about.

Pyramid Investing Fund Performance Table as of May-31-2011

Although in the past some leverage has been used, currently Fund uses no leverage. Similarly, some shorting has been applied in the past, but as of this writing Fund is strictly long in all investment instruments it is invested in or trades on a regular basis.

As mentioned above Fund holds certain percentage of solid, low-cost-basis core positions. Those positions are all acquired in a pyramidal way. The expectation is that most of the core will experience multiple times growth in coming years. The following pie chart gives rough representation of split between core positions in the Fund and trading pyramids. Although percentages change as the Fund grows, core is always between 1/3 and 2/3 of the fund. Also, cash portion of the Fund is normally considered part of trading pyramids.

Pyramid Investing Fund - Core vs Trading

Due to the nature of Pyramid Investing and daily responding to price changes, Fund’s levels of cash widely (and wildly) fluctuate. Chart below shows one possible (or perhaps average) distribution of Fund’s assets by type.

Pyramid Investing Fund - Assets by Type