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Barton Bigg`s Traxis fund was down -3.73% in November and -0.60% December, but still achieved its best results (+17.24%) for a full year of trading, according to an investor communication obtained by Opalesque. The fund was launched in June 2003 and had a strong start that year (up 16.21%); in 2007 the fund returned 9.70%. Since inception the fund returned 11.46% annualized. (All return information represents the Net return on Traxis Fund Offshore LP after 1.5% management fee and 20% incentive fee (for investments of $5 million and above), the fund charges 2.0% management fee for investments under $5m.)

Biggs say that "after a five year bull market in equities it appears that we are entering a significant growth pause that should lead to a “regime shift” in how equities behave. So far, it has been right to buy the dips and to not get shaken out of a bullish bias. This made sense as economic growth (and consequently profit growth), the key driver of market cycles, was never really in doubt. Valuation, sentiment and shorter-term policy noise created the volatility rather than a material change in growth expectations. For the first time in this cycle, growth is under threat. Less sanguine than some bulls, we don’t think that lower rates will be enough to instantly re-ignite growth and jumpstart the bull market.

Our bet is that we are moving into a trading range in equities until growth decisively bottoms. In this range, declines will be driven by increasing r......................

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