Over the past 24 hours, geopolitical tensions in the Middle East have increased. Reports indicate that Iran launched missiles targeting oil infrastructure in the UAE, including routes associated with bypassing the Strait of Hormuz. There are also indications that the UAE may respond, which could contribute to additional regional uncertainty.
Following these developments, oil prices have moved higher. At the same time, broader equity markets have remained near recent highs, and volatility, as measured by the VIX, has remained relatively low. Historically, rising oil prices and geopolitical risk have at times created pressure on equities, though that relationship has not been reflected broadly in current market behavior.
This divergence between oil prices, equity levels, and volatility is something we are monitoring closely. Current market conditions reflect a combination of elevated geopolitical risk and relatively stable equity performance, which may continue to influence trading conditions in the near term.
MTD: +1.0% | YTD: +3.8% (before fees)
The Low Volatility Fund is positive month-to-date and year-to-date before fees. Net performance will be lower after applicable fees.
Recent positioning has included adjustments around near-term expirations, along with balancing exposure between calls and puts. Current positioning reflects prevailing market conditions, including changes in oil prices, volatility levels, and broader market activity.
MTD: +1.3% | Since Inception (April): +3.8%
Low Volatility Fund II is positive month-to-date and since inception. Performance reflects similar positioning and market influences as the broader Low Volatility strategy.
MTD: +0.4% | YTD: +5.9%
The Synthetic Fund remains positive for the periods noted above. Recent market activity, including changes in oil prices and volatility levels, has influenced positioning and short-term results.
Strategies have included rolling contracts forward, managing near-term expirations, and balancing exposure across different market scenarios.
MTD: +0.9% | YTD: +12.5%
The Volatility Advantage Fund remains positive month-to-date and year-to-date. As with prior periods, the strategy reflects broader exposure and may experience larger performance fluctuations relative to lower-volatility approaches.
Current positioning reflects ongoing adjustments based on volatility levels, oil market movements, and geopolitical developments.
April: +8.5% (before fees)
The Insiders Fund was up approximately 8.5% in April before fees. While we do not seek to predict market direction, current conditions are presenting a range of investment opportunities.
Recent positioning has focused on actively managing exposure around oil volatility and near-term option expirations. This has included rolling contracts forward, balancing call and put exposure, and adjusting positions as market conditions evolve.
Across accounts, recent fluctuations have moderated. Certain strategies, including synthetic and zero accounts, have moved back into positive territory following prior short-term drawdowns.
Current positioning reflects an approach centered on managing exposure to controlled volatility and market movement without extreme price changes. If underlying assets, including the United States Oil Fund (USO), remain within a relatively stable range, current positioning may support income generation over shorter timeframes. This outcome is not assured and remains dependent on 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.
