The Big Fish Missed in Absolute Return

At a Sotheby’s auction in New York, a corporate agreement initially expected to sell for $100,000–$150,000 was ultimately purchased by a collector for $1.6 million.

What made this contract so valuable were the signatures at the bottom—those of Stephen (Steve) P. Jobs, Stephen G. Wozniak, and Ronald (Ron) G. Wayne, the three co-founders of Apple.

While Jobs and Wozniak are widely known, Ron Wayne remains the "unlucky" third co-founder of the legendary tech company, Apple.

Wayne handled the legal formalities of Apple’s founding, drafted the company’s partnership agreement, and even designed the first Apple logo—depicting Newton under a tree, waiting for an apple to fall. He held a 10% share in the company. However, just 12 days after the company was established, he sold his stake to his two younger partners for $800 and returned to his old salaried job.

It wouldn’t be wrong to say Wayne walked away from an unimaginable return, given that today, Apple is worth well over $2 trillion.

Understanding Absolute Return Funds

Absolute return funds aim to generate positive returns over a specific time period, regardless of overall market performance. These funds employ a range of strategies and tools, setting them apart from traditional benchmark-driven funds.

Focusing on capital preservation and risk minimization, they may use long/short positions, derivatives, arbitrage strategies, and diversify across multiple asset classes. Their performance is measured not against an index, but in absolute terms.

For investors seeking returns independent of market direction, those looking to minimize losses, or diversify their portfolio using non-traditional strategies, these funds are a solid option. They are often referred to as “target return funds.”

BVZ: Our Own Absolute Return Strategy

At this point, it’s worth highlighting BVZ – our Statistical Arbitrage Free Fund (TRY).

BVZ leverages AI-driven algorithms to track investor behavior in the markets and identifies arbitrage opportunities in spot and futures markets using ultra-high-speed trading technology, aiming to generate returns above deposit rates.

Because the fund does not carry open positions overnight, it minimizes exposure to price risks in spot and futures markets. As an absolute return fund, BVZ serves as a financial product alternative to deposits, offering higher returns than traditional deposit equivalents, with a risk level generally lower than liquid funds. It is suitable for all investors seeking short-term returns above deposit rates.

Back to the Story…

Revisiting the story at the beginning: you might think Ron Wayne received some sort of "consolation prize" when the Apple contract fetched $1.6 million at auction.

But no.

Ron Wayne had already sold the same Apple founding contract—bearing the signatures of the two legendary Steves—to a collector in the mid-1990s for just a few thousand dollars.