Recent performance across the funds and managed accounts reflected contributions from both volatility-related positioning and oil-related trades. Market conditions continue to be influenced by developments in global energy markets, geopolitical events, and broader equity market activity.
Oil-related positioning remained a contributor to results during the period. At the same time, uncertainty remains regarding developments involving Iran, international oil markets, and related policy discussions. As a result, oil markets and the United States Oil Fund (USO) remain areas of focus for ongoing trade management.
On the equity side, the S&P 500 has moved lower from recent highs. Many managed accounts continue to maintain longer-dated covered call positions, while volatility-related positioning remains part of the overall portfolio management process where appropriate. Future trading decisions will continue to be evaluated based on market conditions, risk management considerations, and account objectives.
MTD: +0.3%
YTD: +9.77% (before fees)
The Low Volatility Fund remains positive year-to-date before fees. As of the latest review, the fund has generated approximately $4.0 million in gains, with approximately $800,000 in pending incentive fees subject to applicable fund terms and final calculations.
Recent results reflect contributions from current portfolio positioning, including volatility-related and oil-related strategies.
MTD: +6.0%
YTD: +17.4% (before fees)
Low Volatility Fund II remains positive for the periods noted above.
As of the latest review, the fund has generated approximately $190,000 in gains, with approximately $38,000 in pending incentive fees subject to applicable fund terms and final calculations.
MTD: +3.5%
YTD: +17.16% (before fees)
The Synthetic Fund remains positive month-to-date and year-to-date before fees.
As of the latest review, the fund has generated approximately $6.34 million in gains, with approximately $1.268 million in pending incentive fees subject to applicable fund terms and final calculations.
Performance during the period reflects a combination of equity market exposure and option-related time value captured through portfolio activity.
MTD: +6.5%
YTD: +31.9% (before fees)
The Volatility Advantage Fund remains positive for the periods noted above before fees.
As of the latest review, the fund has generated approximately $1.32 million in gains, with approximately $264,000 in pending incentive fees subject to applicable fund terms and final calculations.
Performance reflects the fund's volatility-related positioning and active management of market exposure during the period.
MTD: -2.5%
YTD: Approximately flat to -0.5%
The Insiders Fund experienced modest negative performance during the period.
Insider buying activity remains active across the market, though recent purchases have not broadly translated into positive near-term performance. Semiconductor-related companies have remained an area of relative market support; however, recent insider buying activity within that segment has been limited.
Current positioning reflects ongoing evaluation of market conditions, sector leadership, and company-specific opportunities.
Zero accounts are up approximately 11.75% year-to-date and approximately 25.5% over the trailing one-year period. Results vary based on account structure, timing of contributions and withdrawals, and account-specific activity.
100 and Synthetic accounts are generally up approximately 23% to 24% year-to-date and approximately 49.75% over the trailing one-year period. These accounts include both equity exposure and option-related time-value components.
Across the four hedge funds held at Interactive Brokers, aggregate gains are approximately $12 million before fees, with approximately $2.4 million in pending incentive fees subject to applicable fund terms and final calculations.
Recent account performance has differed from broader equity market performance over the past two months. Accounts without direct S&P 500 exposure have also generated positive results during that period, while accounts with equity exposure have received additional contribution from underlying market performance.
For context, the S&P 500 is down approximately 1.3% month-to-date, up approximately 10% year-to-date, and up approximately 27% over the trailing one-year period. These figures are provided for market context only and are not intended as direct benchmarks.
Clients holding long put contracts purchased during recent months have generally benefited from changing market conditions. Future results remain dependent on oil prices, volatility levels, and broader 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.
