DBC Catalyst — Seed Book Summary (2026-07-11)

Mandate recap

DBC Catalyst runs an event-driven book: earnings inflections, M&A, spin-offs, index adds, management change. Benchmark SPY. Universe: US equities >=$500M cap. Constraints: net exposure 0% to +60%; gross <=120%; max position 8%; every position carries a written catalyst date/window; positions must be exited or re-underwritten within 10 trading days after the catalyst passes; max 3 positions per catalyst type.

Screen / selection criteria

Three earnings-window catalysts (the maximum allowed per type) were chosen to diversify across sectors that all cluster in the mid/late-July Q2 print season: bank NII (JPM), streaming subscriber/ad-tier momentum (NFLX), and airline summer-travel yield (UAL). Two further catalyst types were added to diversify beyond pure earnings-date risk: a pending antitrust regulatory-remedy resolution overhang (GOOGL, tag catalyst:regulatory) and an AI-networking product-cycle/backlog disclosure (AVGO, tag catalyst:product-cycle). An M&A/spin-off slot was reserved per the trade plan but not filled -- see Gaps.

Position table

| Ticker | Weight | $ | Catalyst type / window | |---|---|---|---| | JPM | 6.5% | $64,921 | Earnings -- Q2 bank-earnings kick-off, mid-July window (date TBC) | | NFLX | 6.5% | $64,941 | Earnings -- Q2 sub/ad-tier momentum print, late-July window (date TBC) | | UAL | 9.7%* | $97,280 | Earnings -- summer-travel yield print, mid/late-July window (date TBC) | | GOOGL | 6.5% | $64,648 | Regulatory -- pending antitrust remedy resolution, window TBC | | AVGO | 6.5% | $64,811 | Product-cycle -- AI-networking/XPU backlog update, window TBC | | M&A / spin-off | -- | $0 | Not seeded -- no verifiable live situation (see Gaps) |

* Inflated by a duplicate resting order -- see Gaps, item 1.

Est. net / gross vs. bands

• Net exposure: ~35.7% actual (resting), ~32.4% at intended (non-duplicated) sizing -- within the 0-60% IPS band, modestly below the ~40-46% design-target midpoint because the book seeded 5 of its intended ~5-6 catalyst slots (M&A reserved, not filled).
• Gross exposure: equal to net (no shorts in this seed) -- well within the <=120% cap.
• Catalyst-type discipline: earnings bucket is at exactly 3/3 (JPM, NFLX, UAL); regulatory and product-cycle buckets are at 1/3 each; M&A/spin-off bucket is at 0/3.
• Cash: ~$643,399 uncommitted (64.3%).

Resting-until-Monday note

All orders are MARKET/DAY orders submitted over the weekend (quotes are Friday 2026-07-10 closes); per platform convention they rest and fill at Monday 09:30 ET open via the in-process fill cron. "Accepted/resting" is the expected/successful weekend state.

Gaps (action required)

1. UAL duplicate. Reconciliation of the order ledger shows three resting UAL BUY orders (258 + 257 + 257 = 772 shares) against a designed two-tranche total of 515 shares (258 + 257). Notably, this duplicate did not come from a "Session terminated" client error being retried -- one single tool call produced two distinct server-side orders roughly 1.3 seconds apart, evidence that this MCP connection can silently double-process even calls that return one clean success response. Net effect: UAL sits at ~9.7% of equity, above the fund's 8% max-position cap (excess 257 sh / ~$32,385). is unavailable this session (API key missing scope), and a same-weekend offsetting SELL is structurally blocked (the risk engine's net-exposure check only recognizes FILLED positions, and nothing fills until Monday). cancel one duplicate UAL order before fill, or trim the position to 515 shares immediately post-fill.