Market activity remained elevated during the week as investors continued to respond to geopolitical developments, movements in oil prices, and ongoing activity across AI-related and software sectors.
Geopolitical headlines involving Iran, Israel, Hezbollah, and Lebanon contributed to fluctuations in oil prices, with market sentiment changing as new information emerged regarding potential ceasefire discussions and broader regional developments. Conditions remained fluid, and market reactions appeared sensitive to changing headlines.
At the same time, several AI-related and software companies experienced notable price appreciation, including ServiceNow, Palantir, Nvidia, CoreWeave, Microsoft, Salesforce, and Adobe. While investor interest in AI-related companies remained evident, market participation continued to vary across sectors and individual holdings. Recent market movement appeared influenced by a combination of factors, including earnings results, investor sentiment, and IPO-related activity.
Overall, recent results were positive across several strategies, though uncertainty remains regarding both geopolitical developments and broader market drivers.
MTD: +6.4% | YTD: +9.4% (before fees)
The Low Volatility Fund remained positive for the periods noted above. Performance reflects recent market conditions and the contribution of option expirations during the period.
As of the latest review, the fund had generated approximately $3.9 million in gains year-to-date before fees, with approximately $780,000 in pending incentive fees subject to applicable fund terms and final calculations.
MTD: +8.2% | YTD: +10.7% (before fees)
Low Volatility Fund II remained positive month-to-date and year-to-date before fees.
The fund had generated approximately $1.0 million in gains year-to-date before fees. Results remain subject to final month-end reporting and applicable fund expenses.
MTD: +7.3% | YTD: +13.2% (before fees)
The Synthetic Fund remained positive for the periods noted above. Performance reflects current market conditions, option-related activity, and recent expirations.
Year-to-date gains were approximately $4.5 million before fees, with approximately $900,000 in pending incentive fees before final calculations and applicable fund terms.
Synthetic accounts generally participated in recent gains. Retirement synthetic accounts may differ due to covered call positions that require rolling and account restrictions that limit participation in certain margin-based volatility and oil-related strategies.
MTD: +10.95% | YTD: +23.8% (before fees)
The Volatility Advantage Fund remained positive month-to-date and year-to-date before fees.
Year-to-date gains were approximately $1.0 million before fees. Performance reflects the fund’s exposure to volatility-related strategies and active management around market conditions and option expirations.
MTD: +1.0% | YTD: +1.7%**
Performance figures are presented for the stated periods and should be reviewed in the context of the fund’s investment objectives and applicable fee terms.
Recent performance has been affected by several holdings that traded within a narrower range or declined modestly. One example is Alphabet (Google), which remains a significant portfolio position. The position has recently detracted modestly from performance, while portfolio management decisions have also considered tax implications associated with realizing gains.
Covered call activity resulted in some appreciated positions being called away. While this limited participation in subsequent upside in those holdings, the activity remained consistent with the fund’s income-generation and risk-management objectives.
Market participation remained uneven across sectors and individual securities. Some software and SaaS-related companies experienced positive price movement, while other holdings, including Abbott Laboratories, did not participate to the same extent despite reported insider buying activity. Current portfolio management continues to emphasize diversification, tax considerations, income generation, and risk controls.
Recent option expirations contributed positively to performance across several strategies. Across the Low Volatility Fund, Low Volatility Fund II, Synthetic Fund, and Volatility Advantage Fund, aggregate gains totaled approximately $9.5 million year-to-date before fees.
Zero accounts and synthetic accounts generally participated in recent gains, though results may vary based on account structure, timing, allocation decisions, covered call activity, margin availability, and applicable account restrictions.
Current positioning continues to reflect active management across option exposures, volatility-related strategies, and covered call positions. Positioning may continue to evolve as market conditions, geopolitical developments, and volatility levels change.
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.
