Highlighted Trade of the Month

Performance & Exit Rationale:

As of June 17, 2025, we exited the position with a 48.5% gain, translating to a 25.4% annualized return—significantly outperforming the 20% maximum annualized return expected at the time of purchase. With SLV up 49.5% at market close, the note’s return structure meant SLV could have fallen 19.73% from current levels and the note still would have returned its full 100% gain at maturity.

Despite that built-in cushion, our decision to exit was driven by opportunity risk—not the fear of losing what we had made, but the recognition that better risk-adjusted returns could be found elsewhere. Holding the note to maturity would have meant realizing only 16.63% annualized from June 17 to maturity, while simultaneously tying up capital.

Why We Loved It:

This trade demonstrates the upside power of structured notes when built and timed correctly. The combination of accelerated exposure and defined risk worked exactly as designed. More critically, our active management—exiting when the opportunity cost outweighed the benefit—transformed a good trade into a great one.

Lesson Learned:

Optimal investing isn’t always about hitting the cap—it’s about reallocating capital when the return profile plateaus. This trade highlights our focus on dynamic capital allocation and maximizing risk-adjusted returns over the full life cycle of an investment.