INVESTMENT STRATEGY · RISK MANAGEMENT · PERFORMANCE
How Red Shield LP
Thinks, Builds, and
Protects.
A complete picture of the investment strategy, portfolio construction, risk management framework, operational infrastructure, audited performance, and return objectives that define Red Shield LP.
57.19%+
Inception-to-Date Return
Oct 2025 – June 2026 · Audited
$550k
Current AUM
16.29%+
2025 audited returns
35.19%+
2026 Audited YTD
Annual target: 20–25%
3.1
Sharpe Ratio
Institutional benchmark: >2.0
221
sortino ratio
<8%
Max Drawdown
Since inception
51%
Inception Return
3.1
sharpe ratio
<10%
maximum drawdown
$540K
current AUM
▬ INVESTMENT PHILOSOPHY ▬
Mr. Market Misbehaves.
We
Wait for It.
Red Shield LP is a value-investing focused hedge fund with selective growth overlays — grounded in Benjamin Graham’s discipline of capitalizing on market mispricing and emotional dislocations.
Patience and pattern recognition guide every position. Growth opportunities are evaluated case by case, held to the same rigorous standard as every value entry.
The fund does not chase. It does not speculate. It waits for the right business, at the right price, confirmed by process — then acts with conviction.
▬ HOW THE PORTFOLIO IS STRUCTURED ▬
20-25 concentrated positions | U.S. equities only | No short selling
60%
LARGE-CAP TECHNOLOGY
The primary allocation reflects the dominant role of technology in U.S. corporate earnings growth, capital efficiency, and competitive durability
Primary names
- NVDA
- GOOGL
- META
- AMZN
- AAPL
- ORCL
- TSLA
- AMD
- SNOW
- MSFT
- PLTR
- TSM
- AVGO
- MU
20%
DIVERSIFIED SECTOR ALLOCATION
Five sectors provide portfolio balance and reduce single-sector concentration risk
- Financials. V. JPM. BX
- Communications: NFLX DIS
- Consumer Staples: WMT, MCD, Costco, STZ
- Energy: Exxon Mobil, Halliburton
- Industrials: Northrop Grumman, Lockheed Martin
20%
CASH & U.S. TREASURY BILLS
Held in readiness for opportunistic deployment, put-selling and VIX call positioning, and as protection against forced liquidation during drawdowns.
▬ THE INVESTMENT Strategy▬
Three Layers. No Exceptions. No Sentiment.
Strong earnings quality, free cash flow, competitive moat, and valuation — every transcript read, every filing reviewed. This layer determines what the fund owns.
RSI, VWAP, Fibonacci, MACD, chart patterns, and moving averages. A sound business at the wrong entry is a bad trade. This layer determines when the fund enters.
Seven years of pattern recognition — bell curve modeling, standard deviation analysis, and VIX cross-referencing. This layer confirms both.
▬ RISK MANAGEMENT ▬
Eight Protocols.
Zero Discretionary Exceptions.
A 15% Stop Loss
15%-20% in T-Bills.
Dollar cost averaging.
60/20/20 maintained at all times.
Exit at yield target.
VIX calls and selling puts during high implied volatility.
Monthly psychologist.
No short selling, no metals, no commodities, no forex, no crypto. No ETFs.
INCEPTION PERFORMANCE
Audited cumulative return since inception
| Metric | Figure | Context |
|---|
Inception-to-Date Return
| Metric | Figure | Context |
|---|---|---|
| 2025 Audited Returns | 16.29% | Oct – Dec 2025 |
| 2026 Audited YTD | 35.19% | Through June 2026 |
| Inception-to-Date Return | 57.19% | Oct 2025 – June 2026 |
| Sharpe Ratio | 3.1 | Benchmark: >2.0 Outstanding |
| Max Drawdown | <8% | Since Inception |
| Peak-to-Valley Ratio | <8% | Since Inception |
| Current AUM | $550,300 | AUM |
| Metric | Figure | Context |
|---|---|---|
| 2025 Audited Returns | 16.29% | Oct – Dec 2025 |
| 2026 Audited YTD | 35.19% | Through June 2026 |
| Inception-to-Date Return | 57.19% | Oct 2025 – June 2026 |
| Sharpe Ratio | 3.1 | Benchmark: >2.0 Outstanding |
| Max Drawdown | <8% | Since Inception |
| Peak-to-Valley Ratio | <8% | Since Inception |
| Current AUM | $550,300 | AUM |
▬ track record ▬
Audited Performance Snapshot
24% annualized. Exceeded every period since inception.
Management fee is 1.5% per annum and performance fee is 20%. High-water mark.
Minimum Investment — $100,000.
24% annualized — achieved through 4–6 positions per year at 4–5% per position. Exceeded every period since inception.
Management Fee — 1.5% per annum Incentive Allocation — 20% of net profits only High-Water Mark — Yes Sales Load — None
Minimum Investment — $100,000 Lock-Up — 90 days Withdrawals — Quarterly LP Capacity — 100 LPs · Permanent cap · No waitlist
The best time to join a disciplined fund is before everyone else discovers it.
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