Nearwater Capital Markets, Ltd — 13F Portfolio

Nearwater Capital Markets, Ltd appears in U.S. regulatory filings as an institutional investment manager under CIK 0001915842. The entity is associated with a specialist trading and investment platform focused on equity-linked financing and derivatives, operating out of Greenwich, Connecticut. It functions more like a capital markets and structured-products firm than a traditional long-only asset manager, working with institutional counterparties and sophisticated investors. As a 13F reporting person (rather than a traditional mutual fund adviser), Nearwater Capital Markets, Ltd discloses only its reportable long positions in U.S.-listed equities and certain equity-linked instruments. These positions typically represent hedges, facilitation inventory, or balance-sheet exposures linked to derivative and financing transactions, rather than a single, benchmarked long-only portfolio. Short positions, swaps, many options, and other derivatives that are central to the firm’s business are not captured by Form 13F. From a regulatory perspective, the CIK 0001915842 filings provide a partial but instructive view into how the firm’s activities translate into outright equity holdings. Within a 13F analytics platform, those filings can be organized into a continuous 13F History, enabling detailed analysis of the firm’s 13F Portfolio Composition over time—by issuer, sector, and instrument type—and the construction of a normalized capital series for a notional long-equity sleeve.

Nearwater Capital Markets, Ltd’s strategy is driven by equity-linked trading, financing, and relative-value opportunities rather than by traditional bottom-up stock selection. Public disclosures and the structure of the reportable book suggest a focus on: - Equity-linked financing and structured solutions, where the firm intermediates between institutional clients and the listed markets using combinations of cash equities, swaps, and options. - Relative-value and basis trades that exploit pricing differences between derivatives and underlying cash instruments, indices versus constituents, or different capitalization tiers and sectors. - Highly liquid large-cap equities and ETFs as primary underlyings, chosen for depth, tight spreads, and ease of hedging rather than for idiosyncratic business narratives. At the 13F level, the resulting long book tends to be diversified across sectors but concentrated in terms of implementation: a finite roster of large, index-heavy names and broad ETFs that serve as hedging assets for more complex structures. Sector weights may, in aggregate, approximate broad benchmarks, but individual positions can be sizable, reflecting the firm’s role as a dealer or structurer rather than a diversified retail asset manager. Turnover in the reportable holdings is typically high. Exposures are actively managed around changes in client flows, derivative mark-to-market, corporate events, and funding conditions. Positions can change meaningfully from one quarter to the next as trades roll off, new structures are initiated, and hedges are rebalanced. For that reason, 13F snapshots should be interpreted as time-stamped views of an evolving trading book rather than as a slow-moving, strategic asset allocation. For allocators and researchers, feeding the sequence of quarter-end holdings into a Portfolio Simulator or Backtesting Service allows rules-based historical replication of the disclosed long-equity sleeve. This can help clarify how the notional long book’s capital trajectory would have behaved in isolation over time, even though it omits the critical short and derivative legs of Nearwater’s strategies.

Viewed through its SEC filings, Nearwater Capital Markets, Ltd is best understood as a Greenwich-based institutional trading and structured-products firm whose 13F record captures the long-equity side of equity-linked and financing strategies rather than a conventional, benchmarked fund. The observable book is diversified by sector but concentrated in liquid, index-heavy names and ETFs, with high turnover reflecting the rolling nature of client structures and hedging activity. For allocators and researchers, structuring the firm’s 13F History for CIK 0001915842 into a coherent dataset enables granular analysis of how its 13F Portfolio Composition has evolved around market events, volatility regimes, and funding conditions. A normalized reconstruction of the disclosed holdings supports an indicative Historical Track Record for the long sleeve, which can be compared with broad benchmarks to understand how the gross long book’s capital trajectory would have looked absent the unobserved hedges. Within a Portfolio Simulator, users can run Performance Backtests Online that estimate the reconstructed sleeve’s notional Sharpe Ratio and Max Drawdown Depth, using a Backtesting Service grounded in historical replication of the reported positions. These analytics provide a disciplined but incomplete lens on Nearwater’s activity, illuminating the behavior of the long-equity component while leaving the net, derivative-adjusted exposure outside the scope of 13F-based tools. Given these limitations, the central diagnostic question for allocators is how sensitive Nearwater’s reconstructed long-equity sleeve appears to be to shifts in equity volatility, correlation structures, and financing conditions—and, by extension, how a strategy reliant on equity-linked relative value and financing trades might behave if market regimes were to change sharply, for example through sustained higher volatility, altered equity-derivative pricing, or structural changes in securities lending and prime brokerage markets.

The risk profile implied by Nearwater Capital Markets, Ltd’s 13F disclosures is nuanced. On the surface, a reconstructed long-only portfolio built from the filings can appear to carry significant broad equity and sector exposure, given its concentration in large-cap stocks and ETFs. However, in the context of the firm’s overall trading and financing activities, these long positions are likely paired with derivatives and short exposures that materially alter net risk. Key risk features of the 13F-visible sleeve include: - Apparent equity beta: Aggregating the reported long positions into a notional portfolio produces exposure that moves with broad U.S. equity markets, especially when dominated by index-linked ETFs and mega-cap constituents. - Sector and factor sensitivities: Because the book often tracks major benchmarks in its choice of underlyings, sector-factor risk (technology, financials, consumer, etc.) is a primary driver of path behavior for the long sleeve, even if net firm-wide risk is more neutral. - Position concentration: Individual holdings can be large in dollar terms, reflecting hedges or facilitation positions related to specific transactions. This raises the apparent idiosyncratic risk of the long sleeve, absent knowledge of offsetting exposures. Using a 13F-only lens therefore tends to overstate the directional equity risk that Nearwater may actually be running when all legs of its strategies are considered. Nonetheless, from a purely long-book perspective, quarter-end holdings can be chained into a normalized time series to estimate an indicative volatility pattern and downside path. Within a 13F-driven analytics framework, this makes it possible to approximate portfolio-level Max Drawdown Depth for the reconstructed long sleeve and to compute a notional Sharpe Ratio, recognizing that these metrics describe the gross long U.S. equity component only. Because Form 13F omits short positions, swaps, options sold, and many other derivatives, as well as funding and collateral arrangements, any risk assessment based solely on the filings must be interpreted with caution. For a firm like Nearwater, where derivative structures and financing trades are central, the 13F snapshot is a partial cross-section of a much more complex exposure profile.