Recent market activity has remained elevated as investors continue to respond to geopolitical developments, oil market movement, and evolving expectations regarding potential U.S. involvement involving Iran. Intraday market movement has remained active, including notable swings in oil prices and changing sentiment throughout the trading day.
Despite elevated headline risk and periods of increased volatility, broader equity markets have remained relatively stable overall, with the VIX continuing to reflect that relative stability. Market participation also remains uneven, with continued investor focus on certain AI-related companies while other sectors and companies have seen more limited participation.
Current market conditions continue to reflect a mix of geopolitical uncertainty, sector concentration, and shifting investor sentiment. Portfolio positioning across strategies reflects these prevailing conditions and remains subject to ongoing adjustment as markets evolve.
MTD: +3.2% | YTD: +6.1% (before fees)
The Low Volatility Fund remains positive month-to-date and year-to-date before fees. Recent market conditions have included elevated intraday movement tied to geopolitical headlines, oil market volatility, and changing expectations around broader market conditions.
Across individual accounts, many “zero” accounts are currently showing approximate returns in the 5% to 7% range, though results varied materially during the day as markets reacted to evolving news flow.
MTD: +3.9% | YTD: +6.4% (before fees)
Low Volatility Fund II remains positive for the periods noted above. Current positioning reflects prevailing market conditions, including ongoing market volatility and active management around option exposure and short-term market movement.
MTD: +3.3% | YTD: +9.0% (before fees)
The Synthetic Fund remains positive month-to-date and year-to-date before fees. After estimated management and incentive fees, performance is approximately in line with, though modestly behind, the S&P 500 for the year to date.
The fund currently maintains approximately 3% exposure in sold options, including both upside and downside S&P 500 exposure, with a significant portion expiring over the next two weeks. Future results may vary depending on market movement and option roll decisions.
Synthetic Fund accounts and “100” accounts are generally showing approximate returns in the 10% to 12% range, while accounts with higher concentration levels may reflect higher year-to-date returns. These figures should be reviewed in the context of account positioning and concentration risk.
MTD: +5.6% | YTD: +17.8% (before fees)
The Volatility Advantage Fund remains positive month-to-date and year-to-date before fees. Current positioning reflects ongoing adjustments based on volatility levels, market movement, oil prices, and geopolitical developments.
As with prior periods, the strategy reflects broader exposure and may experience larger fluctuations relative to lower-volatility approaches.
MTD: Approximately +1.5%
Today: Approximately +0.75%
Recent market activity has remained elevated, though broader market levels have not changed significantly overall. The VIX has continued to reflect relative market stability despite ongoing geopolitical and macroeconomic uncertainty.
Recent insider buying activity has remained notable in select companies that may be less directly affected by geopolitical developments and more closely tied to AI-related business trends. Reported insider purchases have included LegalZoom and Figment, among others.
Market participation continues to vary across sectors. AI-related companies remain an area of investor focus, while other areas of the market have seen comparatively less attention. Alphabet has remained the portfolio’s largest position for an extended period and has contributed positively over that timeframe.
Current market conditions remain mixed, with ongoing uncertainty around geopolitical developments, macroeconomic conditions, and potential future equity issuance activity. These factors continue to influence overall market sentiment and positioning.
Recent intraday market movement has remained elevated, including notable swings in oil prices and changes in sentiment related to geopolitical headlines. Oil experienced an approximate 7% intraday trading range during the most recent session.
Some accounts may have received temporary warning notices during the trading day as markets moved intraday. As of the latest review, current weekly option positions remained out of the money.
Portfolio positioning continues to reflect exposure across multiple market scenarios, including volatility-related trades, sold option exposure, and active management around expiration cycles.
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.
