Market activity remained elevated during the week as investors continued to evaluate geopolitical developments, oil market movement, and broader equity market performance.
Recent developments involving Israel and Iran remain relevant to energy markets and oil-related positioning. Oil prices continued to respond to changing geopolitical conditions, and market participants remain focused on how future developments may affect energy supply, inflation expectations, and broader market sentiment.
Broader equity markets experienced weakness during the period, with major indices declining over the past week. Market volatility remains an important area of focus as investors assess whether recent price movement reflects a temporary adjustment or a broader shift in market conditions.
Current portfolio positioning across strategies reflects ongoing management of volatility exposure, oil-related trades, covered call positions, and option roll activity.
MTD: -0.8% (before fees)
Preliminary month-to-date performance for the Low Volatility Fund is approximately -0.8% before fees. The month currently reflects approximately one week of activity and remains subject to change as additional trading activity occurs.
Prior Month: +4.66% (net of fees)
YTD: +6.4% (net of fees)
Recent trading activity included oil-related positions and option roll management. Covered call positions continued to contribute to portfolio activity during the period.
MTD: +1.0% (before fees)
Preliminary month-to-date performance for Low Volatility Fund II is approximately +1.0% before fees.
Prior Month: +6.2% (net of fees)
YTD: +7.94% (net of fees)
Performance remains subject to account activity, fees, and final month-end reporting.
MTD: Approximately -0.5% (before fees)
Preliminary month-to-date performance for the Synthetic Fund is approximately -0.5% before fees.
Prior Month: +5.1% (net of fees)
YTD: +9.0% (net of fees)
Recent positioning included volatility-related exposure, oil-related trades, and option roll activity. Current positioning continues to reflect ongoing management of market exposure and changing market conditions.
Across managed zero accounts, the average year-to-date return is approximately +9.8%. Individual account results may differ based on timing of investment, account structure, fees, and other account-specific factors.
MTD: 0.0% (before fees)
Preliminary month-to-date performance for the Volatility Advantage Fund is approximately flat before fees.
Prior Month: +8.87% (net of fees)
YTD: +18.8% (net of fees)
Current positioning includes exposure to volatility-related strategies and oil-related trades. Performance remains subject to ongoing market movement and portfolio adjustments.
The Insiders Fund made several portfolio adjustments during the past month, including a substantial reduction in its position in Alphabet (Google). The position generated gains for the fund, and those gains were realized with long-term capital gains tax treatment.
The decision to reduce the position was driven primarily by changes in capital allocation within the company. While Alphabet remains a significant participant in the AI ecosystem, increased investment in infrastructure, data centers, networking, and compute capacity has changed the nature of the business relative to periods when a larger share of free cash flow was available for other purposes.
A portion of the proceeds was redeployed into semiconductor-related investments. Following those purchases, the fund is approximately 3% lower month-to-date. The month remains in its early stages, and results remain subject to change.
Current market conditions continue to reflect significant investment throughout the AI ecosystem. Companies across multiple industries are committing substantial capital toward AI infrastructure and related technologies. While these investments may create opportunities across the supply chain, the ultimate returns on those investments remain uncertain.
The fund continues to focus on identifying businesses with strong fundamentals, attractive valuations, and favorable long-term risk-adjusted return characteristics while maintaining diversification across sectors and business models.
Recent rollover trades expiring on Wednesday and Friday have recovered approximately half of the prior trade amount as of this update. Current positioning continues to include exposure to volatility and oil-related trades.
During the week, certain put positions that had been used as a counterbalance while call positions were in the money were reduced following Friday's market decline. The impact of those positions remained limited relative to gains generated from other trading activity during the period.
Current oil-related positioning consists primarily of short call exposure. This positioning reflects current market conditions and ongoing management of risk associated with oil price movement and geopolitical developments. Positioning may change as market conditions evolve.
Across hedge fund accounts held at Interactive Brokers, aggregate gains are approximately $9 million. These figures are preliminary, subject to change, and should be reviewed in conjunction with applicable fee calculations and final 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.
