What if your portfolio could generate predictable income, without depending on stocks going up?
For accredited investors: discover the volatility-based strategy behind Vixy's contractual fixed-yield offering.
Chapter one
It started with a trade that should have worked.
- 2014David Meyers called the collapse in oil prices before it happened.
- The reboundWhen oil began to recover, he bought an oil ETF to ride it back up.
- The surpriseOil climbed. His ETF hardly moved. He had been right about the market and still didn't get paid.
- The questionHe set out to learn why. The answer ran through futures contracts, the cost of rolling them forward, and a pricing pattern called contango.
- The discoveryThe same leak existed in volatility products, only bigger and more consistent. He has worked that one narrow corner of the market ever since.
He was right about oil. The product he used to act on that view was working against him the whole time.
That lesson is the foundation of Vixy. Some investment products lose value because of how they're built, not because of what the market does. If you understand the structure, the loss on one side can become a return on the other.
Chapter two
You can't buy fear directly. So Wall Street built a ladder.
To see where Vixy's return comes from, you only need to follow four rungs, each built on top of the one below it.
S&P 500 options
The foundation
Options work like insurance on the stock market. When investors get nervous they buy more protection, and the price of that protection rises.
The VIX
Built from those options
The VIX turns option prices into one number: how much the market expects stocks to swing over the next 30 days. It's the fear gauge. But it's only a number. You can't own it.
VIX futures
A bet on where the VIX will be
Because the VIX jumps when stocks fall, investors want it as crash protection. Futures let them hold it indirectly, through cash-settled contracts priced on where traders think the VIX will be later.
UVXY
A fund of those futures
UVXY packages VIX futures into something that trades like a stock. It's easy to buy. It's also four steps away from the market it's meant to follow.
Option prices move the VIX. Traders price VIX futures off it. UVXY holds those futures and keeps replacing them as they expire. Every step adds friction.
Chapter three
Same market. Very different ending.
UVXY is designed to follow volatility. Over any single day it does a reasonable job. Over a year, the gap is hard to believe.
VIX vs UVXY, trailing twelve months
Indexed to the same starting point. Ending values from Yahoo Finance; the path between them is simplified for clarity.
Both lines are tied to the same market. The 71-point gap between them comes from the structure alone.
Chapter four
Where the 71% went.
No single cause explains it. Four forces work on UVXY at the same time, and they all push in the same direction: down.
Roll decay
Investors pay extra for protection further out in time, so later futures usually cost more than nearer ones. That pattern is contango. UVXY's futures keep expiring, so it keeps selling the cheaper contract and buying the pricier one.
Volatility drag
The VIX spikes when fear hits, then drifts back toward normal. That constant swinging costs money, because a percentage loss and an equal percentage gain don't cancel out.
Leverage reset daily
UVXY runs at 1.5x. For every $100 in the fund it holds about $150 of VIX futures, and it resets that exposure every evening. Bigger daily swings mean a bigger drag.
Cost of carry
Holding a leveraged futures position isn't free. Margin, financing, fund expenses and idle capital all take a small bite, every day.
None of this depends on predicting the market. It's built into the product.
Prefer to watch? David explains the decay in a short overview.
Chapter five
Turning someone else's decay into your return.
If a product is structurally built to lose value, the way to benefit is to take the other side. That's called shorting: you borrow shares, sell them at today's price, and buy them back later, hopefully for less.
That is the engine. It's also where the real risk lives, because a short loses money when the price goes up, and volatility can go up very fast.
Illustration only, before costs.
Chapter six
The hedge goes on before the short. Every time.
When markets panic, the four rungs of the ladder don't move at the same speed. That gap in timing is what Vixy's protection is built around.
Because the VIX reacts first, Vixy buys VIX call options before it opens any UVXY short. In calm markets those calls are simply the cost of insurance. In a sharp shock they can gain value faster than the short loses it.
A typical hedge
- Main position
- −$100
- Hedge
- +$70
- Net
- −$30
How Vixy's hedge is designed to behave
- UVXY short
- −$100
- VIX call hedge
- +$130
- Net
- +$30
Figures are illustrative. In a large enough volatility event, the hedge can become the more profitable side of the portfolio. That is not assured in every event.
No acceptable hedge. No new short.
The one rule the strategy never breaks
The deeper danger isn't a spike. It's a long stretch of stress where near-term futures become more expensive than later ones. That's called backwardation, and it temporarily reverses the advantage the short relies on.
But a spike can happen in an afternoon, while full backwardation usually takes weeks to set in. That lag gives David time to act. Depending on conditions, he can:
- Sell calls that have gained value
- Shrink the UVXY short
- Close the short completely
- Rebuild the hedge at new strikes
- Move the portfolio to cash
The six weeks we sat in cash.
During one volatility event, Vixy's calls had grown substantially. David sold them for a profit. But buying new protection had become too expensive to justify.
Rather than open new shorts without a proper hedge, the strategy stayed mostly in cash for about six weeks. When protection was reasonably priced again, trading resumed.
Capital being available is never a reason to be invested. Temporary drawdowns can occur during major volatility events, and past performance does not guarantee future results.
Questions about drawdowns, backwardation or the hedge? Ask David directly.
Book a private briefingChapter seven
Most portfolios are more connected than they look.
Stocks, bonds, real estate, private equity and commodities look different on a statement. Then one slowdown arrives and reaches all of them at once.
Companies are worth less, so public and private equity fall together.
Stocks and private equity fall
Borrowing costs more and buyers can afford less.
Real estate falls
Existing lower-rate bonds become less attractive.
Bond prices fall
Demand weakens across risk assets.
Commodities can fall too
Vixy's return comes from how volatility products are built, not from which way the economy turns.
Chapter eight
One strategy. Two ways to participate.
Both options run on the same underlying strategy. The difference is whether you want a set rate or a share of the full performance.
Chapter nine
This strategy has a ceiling. It won't stay open forever.
Shorting UVXY requires shares that can actually be borrowed, and there are only so many. As Vixy grows, the supply of reasonably priced borrow runs out.
Vixy expects to reach capacity at roughly $100–125 million, depending on conditions. At that point the fund closes to new capital, and 80/20 investors may need to take profits as distributions instead of reinvesting them.
For the 80/20 Fund, the question isn't only whether you get in. It's how many years you get to compound before the door closes.
Ask whether there is still room for your allocation.
Check current capacityChapter ten
Don't take our word for it. Check the work.
Qualified investors can review everything below during due diligence, before a single dollar moves.
The market
10+ years of historical dataHow volatility products behaved across full market cycles.
The model
Historical backtestingWhether the structural pattern held in earlier market environments.
The fund
Third-party audited resultsIndependently audited results from actual fund operations.
The investors
Actual investor reportingWhat invested capital actually experienced.
The public record
SEC filing and BrokerCheckVixy Hedge LP's SEC Form D filing, plus David's FINRA BrokerCheck record.
The infrastructure
Brokerage, custody, administrationThe firms behind the fund, disclosed in the offering documents.
The private investor briefing
Want to review the third-party audited results?
Qualified investors review the audit, historical performance and supporting data during Vixy's due-diligence process.
Vixy Hedge LP filed a Form D notice of exempt offering with the SEC on February 4, 2025. A Form D is a notice filing and does not mean the SEC has approved or endorsed the offering.
David's long-form interview on Futures Edge.
Is it a fit?
Vixy isn't built for everyone.
We would rather tell you now than halfway through due diligence.
Likely a fit if you
- Are an accredited investor
- Have meaningful investable capital
- Want a return source that doesn't track your other holdings
- Value steady income or long-term compounding
- Are comfortable with investment risk
- Are investing money you won't need soon
Probably not a fit if you
- Need your principal guaranteed
- Want a substitute for a bank account
- Need immediate access to all of your capital
- Expect every month to be profitable
- Would exit at the first temporary drawdown
The process
Six steps, all before you invest.
The briefing opens the due-diligence process. It doesn't replace it.
- Investor briefing
Learn how the strategy works, the structures available, and whether there's an initial fit.
- Legal disclosures
Review the key risks, liquidity terms and eligibility requirements.
- Meet David
Go deeper on the strategy and get your legal and financial questions answered.
- Performance and audit review
See the audited results, historical data, backtests and actual investor performance.
- Qualification
Complete accredited-investor verification and custodian onboarding.
- Funding
If both sides want to proceed, fund the account and get started.
No capital is committed until every step is complete.
FAQ
Questions investors ask.
Is the 14.9–19.9% fixed yield guaranteed?
SEC rules don't allow us to call investment returns guaranteed. What the Fixed Yield structure does provide is a contractual annual rate written into your agreement, so it doesn't rise and fall with fund performance. Your rate is set before you invest and is subject to the terms, risks and obligations in that agreement.
How is my fixed-yield rate set?
Your rate depends on the size of your investment, remaining program capacity, your goals, how you want to be paid and the terms of your account. It's agreed before you invest and documented in your agreement.
Can I lose money?
Yes. Every investment can lose money, and temporary drawdowns do happen. Historically, Vixy's annual net performance has been positive, including through periods of heavy volatility. Past performance does not guarantee future results.
What happens in a market crash?
Crashes usually send volatility higher, which works against the short positions for a time. That's why the hedge is always in place first. VIX calls can gain value quickly in these events, and David can reduce positions, sell the hedge for a profit, reposition or move to cash. If the risk isn't worth it, Vixy doesn't trade.
What's the difference between Fixed Yield and the 80/20 Fund?
Fixed Yield is for investors who want steady income and more liquidity, at a contractual rate currently between 14.9% and 19.9%. The 80/20 Fund is for investors who want to share directly in fund performance and compound over time: you keep 80% of profits and Vixy earns 20%. Both run on the same strategy.
How liquid is my investment?
Fixed Yield has a 60-day initial lock-up, with withdrawal terms set out in your agreement. The 80/20 Fund has a 12-month lock-up and is designed for capital you plan to leave invested.
Can I review the audit and real performance?
Yes. During due diligence, qualified investors can review third-party audited results, actual investor performance, and historical and backtested data, and go through it all with David.
Who holds investor assets?
Vixy uses independent institutional firms for brokerage, custody, fund administration and reporting. Each firm and its role is disclosed during review and in the offering documents.
Why is capacity limited?
The strategy needs borrowable UVXY shares, and the supply is finite. As the fund grows, borrow availability and cost cap how much capital can be put to work efficiently.
Why does capacity matter if I'm already invested?
In the 80/20 Fund, profits can stay invested and compound. As the fund nears capacity, reinvestment may be limited and profits paid out instead. Joining earlier can mean more years of compounding.
Who can invest?
Current offerings are for accredited investors who meet the qualification requirements. Eligibility is verified during onboarding.
What will I review before investing?
Depending on the offering: legal disclosures, offering documents, the private placement memorandum, subscription documents, historical performance, audited results and other relevant materials, all before funding.
Do I have to decide during the briefing?
No. The briefing is the first step in qualification and due diligence. It's a chance to understand the offering and decide whether it's worth continuing.
Private investor briefing
You don't need to decide today. Only whether it's worth a closer look.
A private briefing is a conversation, not a commitment.
Book your private investor briefing
For accredited investors only.