The Low Volatility Fund remains in positive territory both month-to-date and year-to-date, which I believe is a positive result given the level of uncertainty still present in the market. While conditions have improved from last week’s lows and volatility has come down, the market has not fully broken higher, and volatility remains above its longer-term average. In other words, we are in a better position than we were, but conditions remain uncertain. Over the next 24 hours, markets will likely be focused on developments surrounding Iran and the Strait of Hormuz, which could play a major role in shaping near-term market direction. Even with that uncertainty, the fund has held up well and remains positioned in line with current market conditions.
The Synthetic Fund continues to hold up well in what remains a very uncertain market environment. We have seen improvement from last week’s lower lows, and volatility has started to come down, but it has not yet broken below its longer-term average, and the broader market has not fully confirmed a breakout higher. That suggests we are in a stronger position than we were a week ago, but there is still caution warranted here. The next major catalyst is likely to come from headlines around Iran and the Strait of Hormuz, as markets wait for clarity on whether the situation escalates or begins to move toward resolution. For now, the fund remains positive and positioned consistently with current market conditions.
The Volatility Advantage Fund has continued to perform well and remains one of our stronger performers in this recovery phase. Although volatility has eased from last week’s stress levels, it is still elevated relative to its longer-term average, and the market has not yet fully broken higher. That means the environment has improved, but uncertainty remains elevated. The next 24 hours could be especially important as markets look for direction from developments involving Iran and the Strait of Hormuz. If conditions improve further, I believe the market could continue to strengthen which may support current strategy conditions. Even in the current environment, the fund remains in positive territory and continues to show strength relative to recent market conditions.
The views expressed herein reflect current market commentary and portfolio observations as of the date published and are subject to change without notice. Statements made by portfolio managers represent current opinions based on prevailing market conditions and should not be interpreted as guarantees, forecasts, or assurances of future performance or market direction.
Any performance information shown is preliminary, unaudited, and may reflect results before applicable fees, expenses, or final administrator reporting where noted. Actual investor results may differ based on fee structure, timing of contributions or withdrawals, and other account-specific factors.
This material is provided for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security, fund, or investment strategy. Past performance is not indicative of future results. All investments involve risk, including possible loss of principal.
