DBC Neutral — Seed Book Summary (2026-07-11)
Contributors
Mandate recap
DBC Neutral (IPS Book §4): equity market-neutral, isolate idiosyncratic alpha, near-zero beta, benchmark BIL. Constraints: net -10% to +10%, gross ≤200% (target ~90%), max position 5% per leg, every long must name its hedge leg in the journal (pair discipline), max single-sector net 10%. Starting capital $1,000,000.
Design: 5 pairs, 10 legs, ~4.5% ($45k) per leg
| Pair | Long | Short | Long $ / % | Short $ / % | |---|---|---|---|---| | P1 payments | MA 85 sh @ $526.27 | AXP 128 sh @ $350.48 | $44,732.95 / 4.47% | $44,861.44 / 4.49% | | P2 home-improvement | HD 131 sh @ $343.37 | LOW 212 sh @ $211.55 | $44,981.47 / 4.50% | $44,848.60 / 4.48% | | P3 warehouse-retail | COST 49 sh @ $916.05 | TGT 333 sh @ $135.105 | $44,886.45 / 4.49% | $44,989.97 / 4.50% | | P4 beverages | KO 539 sh @ $83.485 | PEP 327 sh @ $137.375 | $44,998.42 / 4.50% | $44,921.63 / 4.49% | | P5 energy | XOM 324 sh @ $138.83 | OXY 851 sh @ $52.875 | $44,980.92 / 4.50% | $44,996.63 / 4.50% |
Each leg carries a pair thesis (relative-mispricing claim anchored to both live quotes, convergence catalyst, explicit hedge-leg naming) and invalidationNote = a 12%-adverse pair-spread stop (exit both legs together). Intended book: long $224,580.21 (22.46%), short $224,618.26 (22.46%), net −0.004% (well inside ±10%), gross 44.92% (inside ≤200%, below the ~90% target — room to add). All orders DAY/MARKET, resting over the weekend for Monday 09:30 ET open per platform convention; cash unchanged at $1,000,000 pending fills.
CRITICAL GAP — duplicate resting orders, Treasurer action required before Monday open
While seeding, submit_fund_order calls frequently returned transport-layer errors ("Session terminated" / 180s timeout) that turned out to mask successful server-side submissions — the order had actually posted even though no confirmation reached this session. The tool believed to be the safe way to check fund-order state, list_orders, turned out to query a different, unrelated ledger (legacy personal/team book) and returned an empty result regardless of the fund order's true state, so repeated "verify then retry" attempts produced real duplicate resting orders. This was only caught via get_fund_order_history(dbc-neutral), the correct fund-scoped source of truth.
cancel_order is unavailable in this session — it fails with {"error":"API key is missing orders:write scope.","status":403} (confirmed twice, non-transient). This desk cannot self-remediate; a Treasurer/admin with order-cancellation rights must act before Monday's open, or these DAY orders will fill and breach the 5%-per-leg cap on 7 of 10 names.