Capital joins the evidence — not the other way around
Verimont's path to accepting outside capital in 2027 is a sequence of gates, not dates. Each phase must produce the evidence the next one stands on; targets are research objectives, never projections.
A higher perspective.
The phases
Four stages, each earned by the last
Dates may move — the base rate of honest research says some will. The sequence and the exit criteria do not.
Phase 0Now — Q4 2026Underway
The evidence engine: the paper grid
Since 16 September 2026 the firm runs a paper grid: fifteen isolated $100,000 broker-simulator accounts, four rules-based engines on three ten-name buckets of US large and mid caps, plus three controls. All long-only; no short exposure anywhere. Every cell is judged monthly against a band written down before it launched. Nothing runs in shadow any longer, and no model of any kind runs on the firm's schedule — the AI analyst bench was retired in September, half of it on its own calibration, and the AI-attribution study planned for October was cancelled with it. Thirty-seven strategy arms were retired on 15 and 16 September after failing their own replays on clean point-in-time history. Nothing trades capital; nothing advances on a near-miss.
Advances only when
An engine sits inside or above its pre-registered band and ahead of its own controls for twelve months on the grid
It then passes all five pre-registered gate criteria, including a 95% confidence interval whose lower bound clears zero after costs
Explicit owner approval — the review proposes, a human disposes
Phase 1Q4 2026 — Q2 2027Next
Paper, priced with broker truth
Paper execution already runs at grid scale, so this phase is not about reaching it — it is about surviving it. Each cell's implementation shortfall is measured from the very first fill, kill rules stay armed, and a pre-registered cost tripwire pauses any cell whose real fills contradict its recorded decisions. What a gate pass would grant is eligibility for owner review of a funded allocation, and nothing else.
Advances only when
Two or more strategies sustain cost-adjusted paper records consistent with their gates for two quarters
Risk rails demonstrated under fire — at least one drawdown handled entirely by rules
Administration, audit, and reconciliation rehearsed on the paper book before any subscription
Phase 2Target mid-2027Planned
First outside capital — a private fund
A limited partnership for accredited investors at founding scale. The LP structure is deliberate: sophisticated partners, contractual clarity for the higher-risk sleeve, flexible terms, and an audited record that starts the multi-year clock institutional wrappers later require.
Advances only when
Phase 1 criteria held for a further full quarter
Independent administration and audit live before the first dollar
A pre-registered capacity cap per sleeve, fixed before subscriptions open
Phase 32028+Evaluated, not assumed
Scale structures — SMA, then ETF evaluation
Separately managed accounts extend the same engine to investors who prefer holding their own positions. An ETF wrapper is evaluated — not promised — once a strategy has a multi-year verifiable record, proven capacity headroom, and economics that clear the structure's real running costs.
Advances only when
Roughly three years of verifiable record for any strategy considered for a public wrapper
Capacity analysis showing the strategy scales without consuming its own edge
Credible line of sight to break-even assets for the wrapper's cost structure
The products
Two sleeves, one engine, stated honestly
Both sleeves run the same research machinery. They differ only in throttle — and the documents say exactly what that costs.
Verimont Core
Research objective: 9–12% net annually across a market cycle
Shaped equity exposure: rules-based engines on liquid US large and mid caps, volatility-managed to a target, with strict rule-based exits and portfolio-level risk governance. The sector and relative-momentum families this sleeve was originally built on were retired in September 2026 after failing their own replays. What is being tested now is whether any engine beats the index held volatility-managed — a question the firm has not answered in its favour. No exotic instruments, no hidden leverage, no short exposure.
Liquid large- and mid-cap universe — capacity is not the constraint at fund scale
Every position sized by rule; drawdown and kill policies always armed
Verimont Opportunistic
Research objective: 20%+ with materially higher risk
The same engine with the throttle open: concentrated positions and modest leverage, applied only to strategies whose own records support it, capped as a share of the fund, and offered only to partners who explicitly opt in. Higher targets are a risk trade — concentration and leverage amplify drawdowns exactly as they amplify returns, and the documents lead with that symmetry.
Hard cap on fund-level allocation from day one
Opt-in only; its own kill policy, separate from Core
What our own research says about those two numbers
We have not found anything that beats simply holding the index with its volatility managed. In September 2026 our strategy lab swept every signal the free data can compute over fifteen years of point-in-time US equity history. After costs, nothing it produced beat holding the index volatility-targeted to 10%. Thirty-seven strategy arms were retired on the strength of that sweep and their own replays. The objectives above are the returns we are trying to earn; this is the evidence we currently have, and it does not yet support them. We would rather you read both numbers together than one of them alone.
How the returns are pursued
The return engine is equity exposure, shaped. Liquid US large and mid caps supply the long-run base; the research program tests, on paper and against its own controls, whether rules-based selection adds anything to holding that base with its volatility managed. Costs are measured, never assumed — recorded decisions carry a pre-registered cost haircut, and paper execution measures implementation shortfall from the first fill. Higher objectives come only from concentration and modest leverage, which amplify losses exactly as they amplify gains. Nothing in this program manufactures return without a stated, measured risk, and no result on this page comes from money that was ever at risk.
The structures
Wrappers are earned in order
Each structure inherits the record the previous one produced — and improves how efficiently the same engine is delivered to investors, including after tax.
Private LP
2027 · first capital
Accredited partners, flow-through taxation, contractual flexibility for the Opportunistic sleeve, and an audited record from day one. The right first wrapper because it fits sophisticated capital at founding scale.
Managed accounts
2028+ · by demand
The engine's decision stream can drive multiple accounts with per-account reconciliation — investors hold their own positions, keep their own tax lots, and see the same discipline applied identically.
ETF — evaluated
At record + capacity
Exchange-traded structures carry powerful tax efficiency: redemptions in kind rather than in cash defer gains until an investor's own exit. A wrapper worth earning — after the record, the story, and the capacity all exist.
Governance
The rails that never come off
Pre-registered tests
Promotion criteria are written and committed before any record exists to flatter, and never amended near a threshold.
Risk before return
Per-trade risk limits, exposure caps, drawdown halts, and kill policies govern every mandate at every stage.
No model in the loop at all
The AI analyst bench and the news classifier were retired on 16 September 2026 — two of four roles on their own calibration. No model of any kind now runs on the firm's schedule. Statistics decide, rules execute, humans approve capital.
Reconciled to the broker — and the broker is a simulator
Every ledger row is reconciled against the account its order was placed in, and a disagreement halts that cell. Those accounts are paper accounts: the fills are simulated and nothing here has been confirmed by an independent administrator, auditor or custodian. That arrives before the first outside dollar, not before.
Research program
Verimont currently trades no outside capital. All present results come from research simulations and dedicated paper accounts and may differ materially from live execution.
Objectives, not projections
Return figures on this page are research objectives that gate our own decisions. They are not forecasts, projections, or promises, and no outcome is assured.
Not an offer
Nothing on this page is an offer to sell or a solicitation of any security. Any future fund interests would be offered privately, to eligible investors, through formal documents.
