Market activity during the week was influenced by continued developments related to Iran and global oil markets. Geopolitical headlines contributed to significant intraday price movement in both oil and volatility-related products, with market sentiment responding to commentary regarding potential escalation as well as possible diplomatic progress.
Recent reports indicate that discussions may continue later this week in Switzerland, though timing and outcomes remain uncertain. Oil prices moved sharply lower during portions of the week, while broader market sentiment appeared to improve as investors evaluated the possibility of further diplomatic engagement.
Current market conditions continue to reflect a combination of geopolitical uncertainty, changing expectations for energy markets, and ongoing volatility across asset classes.
MTD: +0.6%
YTD: +10.1% (before fees)
The Low Volatility Fund remains positive for the periods noted above. As of the latest review, the strategy has generated approximately $4.16 million in gains before fees, with an estimated $332,000 in pending incentive fees subject to final calculation and applicable fund terms.
Recent portfolio activity included adjustments to oil-related and volatility-related positions as market conditions evolved throughout the week.
MTD: +4.65%
YTD: +15.6% (before fees)
Low Volatility Fund II remains positive month-to-date and year-to-date before fees.
As of the latest review, the strategy has generated approximately $174,000 in gains before fees, with an estimated $35,000 in pending incentive fees subject to final calculation and applicable fund terms.
MTD: +2.5%
YTD: +16.0% (before fees)
The Synthetic Fund remains positive for the periods noted above. As of the latest review, the strategy has generated approximately $5.84 million in gains before fees, with an estimated $1.168 million in pending incentive fees subject to final calculation and applicable fund terms.
Synthetic accounts are generally up approximately 16% to 20% year-to-date before fees, though results may vary based on account structure, allocation, timing, and account-specific activity.
Performance during the period reflected both equity market exposure and option-related time value captured through portfolio activity.
MTD: +4.66%
YTD: +29.6% (before fees)
The Volatility Advantage Fund remains positive month-to-date and year-to-date before fees.
As of the latest review, the strategy has generated approximately $1.21 million in gains before fees, with an estimated $242,000 in pending incentive fees subject to final calculation and applicable fund terms.
Performance during the period reflected active management of volatility-related positioning and changing market conditions.
YTD: Approximately +0.5% (before fees, if applicable)
The Insiders Fund remains positive year-to-date.
Current market leadership continues to appear concentrated within semiconductor and semiconductor-related companies. Increased capital spending by large technology companies, including major hyperscalers, has contributed to demand across portions of the semiconductor ecosystem.
The fund has previously held positions in several companies benefiting from these trends and is currently evaluating semiconductor-related opportunities where demand trends, capital spending activity, and valuation remain relevant considerations.
While portions of the market have experienced significant appreciation, participation has remained uneven across sectors. We continue to evaluate opportunities where fundamentals and valuation appear attractive within the context of current market conditions.
Recent adjustments to portfolio positioning included changes to both oil-related and volatility-related trades. Following changes in oil prices, portions of the option structure were shifted from puts to calls, and a new volatility position with a July 10 expiration was established.
One longer-duration volatility position was closed after reaching its risk parameters. Similar exposure within the hedge funds was maintained.
Across the relevant accounts, these adjustments contributed approximately $1.2 million in gains during a single trading day. Recent activity also included management of covered call positions and ongoing review of option exposure following market declines and subsequent recoveries.
The oil-related trade structure that has been utilized over the past two months has contributed positively during the period. Current market conditions may affect future strike selection, option pricing, and trade structure decisions. Positioning may be adjusted as market conditions, volatility levels, and risk parameters evolve.
Zero accounts are generally up approximately 10% to 12% year-to-date before fees, where applicable. The Interactive Brokers account value reached approximately $163.3 million as of the latest review, with additional transfers expected and approximately $10 million held externally.
Rolling one-year performance metrics reported by Interactive Brokers were approximately 25% to 26.4%. These figures should be verified against final account reporting.
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.
