March 2025 Investor Letter

BWC Founders Fund - March 2025 Investor Update

To our valued investors and friends,

I am very excited to be writing the first Investor Update on behalf of the BWC Founders Fund! It has been an incredible journey up to this point in getting the fund going and I am grateful for all the help in getting here. I’d like to thank the fund administrator, RePool, who did an outstanding job of working with us to get the fund launched, thank you, I could not have done this without your help.

Fund Performance In its first month of trading, the BWC Founders Fund delivered a -0.3% return (net of management fees and expenses), outperforming the broader market with the SPXTR (S&P500 Total Return Index) declining by -4.0% over the same period. This result highlights the benefits of a systematic approach which was resilient and tactical amid elevated market volatility. Although we were able to outperform our benchmark during the month; I would have greatly preferred a calmer period to launch the fund but that is not how investing works, the market doesn’t always cooperate and our strategies need to be designed to perform well in any market conditions; March certainly tested the strategies ability to handle increased volatility and changing dynamics and I am pleased with how they performed.

Market Overview March 2025 was a volatile month for global equity markets, driven by concerns over proposed tariffs, geopolitical tensions, and economic uncertainty. The Federal Reserve remained on pause with the current cycle of rate reductions, leading to a perception of hawkishness in the face of increasing weakness in leading economic indicators putting pressure on risk assets. VIX spiked above 25 during the month, reflecting heightened market uncertainty and volatility in the markets continues to remain elevated.

The main source of volatility during the month was due to the new U.S. administration announcing proposed tariffs across the economy on almost all imported goods. This sparked concerns over potential trade wars with key trading partners, leading to sharp declines and increased volatility in both US and International equities during the month. The uncertainty surrounding the actual scope and scale of tariffs to be implemented, the impact to the profitability of U.S. companies, impacts to U.S. consumers, as well as the potential retaliatory measures from trading partners contributed to risk-off sentiment. We will continue to evaluate the impact of these tariffs on the markets and assess any impacts to the funds strategies.

Strategy Insights

• Mean Reversion & Volatility-Based Strategies: These strategies were key contributors to performance during the month, capitalizing on short-term dislocations in equities and increasing volatility.

• Hedging Framework: Our hedge components in the core strategies also helped mitigate losses in periods of sharp market sell-offs.

• Multi-Asset Exposure: Diversification into commodities, bonds, and currencies contributed positively, reducing correlation to equities and reducing overall portfolio volatility.

• Breakdown in Momentum Strategies: The month saw a reversal of the prior years outperformance of momentum based strategies and was the lagging strategy factor for the month.

Performance Metrics

There are various key metrics that the fund tracks to evaluate overall performance of the funds strategies and to be able to benchmark our performance, not only against the market, but also against similar hedge funds. The key metrics that we track are the Sharpe Ratio, Sortino Ratio, Information Ratio, Alpha, Beta, and Correlation against our primary benchmark, SPXTR (S&P500 Total Return Index). We have selected this benchmark due to its general breadth in holdings, common knowledge of the S&P500 index in the market, and it’s similar expected volatility to the funds strategies. We will track and report these metrics on a cumulative basis as well as on a rolling basis that will be established in the future as the fund generates more history. These metrics will be tracked on a Gross Basis, prior to management fees and expenses which we believe provides the best information as to the daily performance of the funds strategies. We will report cumulative monthly and annual returns on a Net Basis.

Cumulative Performance Metrics as of March 31, 2025:

Risk & Volatility The fund exhibited realized volatility generally in line with broad equities, with annualized volatility of 22.4% compared to SPXTR at 20.4%. The goal of the fund is to maintain an annualized volatility level in line with the broader market, while delivering higher total returns and lower overall drawdown and we accomplished this during the month of March. Maximum drawdown of the fund in March was -4.0%, in contrast to the S&P 500’s -5.6% peak-to-trough decline during the month. The funds strategies recovered more quickly from this drawdown and outperformed the broader markets throughout the month.

Outlook for the remainder of 2025 Given persistent macroeconomic and political uncertainty, we anticipate continued volatility across asset classes in April and for the foreseeable future until the full impact of the proposed tariffs is better understood by the markets. Our systematic approach remains well-positioned to reduce volatility and generate Alpha during times such as these and we are optimistic about the remainder of the year despite the challenging current market conditions.

We thank you for your trust with your capital and look forward to another productive month.

BWC Founders Fund, LLC

Important Disclosures: Blackworks Capital LLC manages hedge funds through its wholly owned subsidiary, Blackworks Capital Management LLC, an Exempt Reporting Advisor registered in the State of Colorado.

Performance: Performance data represents past performance and is no guarantee of future results. The returns presented reflect the performance of an investor who invested from inception. Gross Returns represent the performance of the funds applicable strategies including the reinvestment of dividends but prior to any fees or expenses. Net Returns reflect the reinvestment of dividends and earnings and the deduction of all expenses and fees (including the highest management fee and incentive allocation charged, where applicable). The Performance Statistics are based on the Gross Returns of the strategies on a daily basis and do not accrue for Management or Performance Fees and is solely intended to provide information related to the performance of the strategies of the fund and not the fund itself. An actual client's results will vary due to the timing of capital transactions, high watermarks, and performance. Performance should not be indicative of the skill of Blackworks Capital and clients may experience a loss. The BWC Founders Fund follows a systematic trading strategy with actively managed systems and strategies. The strategy employs the use of leveraged ETFs, inverse ETFs, and Volatility ETFs and can experience significant volatility and loss of capital.

Private Securities Offering Legend: Only Qualified Clients will be admitted to the Fund. For natural persons, investors must meet applicable Securities and Exchange Commission (“SEC”) and Fund requirements including minimum net worth thresholds. Blackworks Capital funds are being offered in reliance on an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”) and are not required to comply with specific disclosure requirements that apply to registration under the Securities Act. The SEC has not passed upon the merits of or given its approval to Blackworks Capital funds, the terms of the offerings, or the accuracy or completeness of any offering materials. A registration statement has not been filed for any Blackworks Capital fund with the SEC. Membership interests in Blackworks Capital funds are subject to legal restrictions on transfer and resale. Investors should not assume they will be able to resell their securities. Investing in securities involves risk. Investors should be able to bear the loss of their investment. Investments in Blackworks Capital funds are not subject to the protections of the Investment Company Act of 1940, as amended. Performance data represents past performance, and past performance does not guarantee future results. Past performance is subject to revision following each monthly reconciliation and annual audit. Current performance may be lower or higher than the performance data presented. Blackworks Capital is not required by law to follow any standard methodology when calculating and representing performance data. The performance of Blackworks Capital funds may not be directly comparable to the performance of other private or registered funds.