Portfolio Commentary

Portfolio Commentary for the Absolute Capital Opportunities Fund is provided on a quarterly basis and can be found below along with other “discussion” articles that are relevant to the Fund. Additional information can be found within the shareholder letters in the Annual and Semi-Annual Reports. If you are a financial adviser and would like to be added to our e-mail distribution list, contact us by e-mail.

 

“Our investment approach is to be flexible with net exposures over time. The Fund’s positioning is adjusted based on an ongoing assessment of favorable returns relative to the amount of risk assumed. In this regard, the Fund has been running with net exposure closely resembling a market neutral strategy for the past several years… …In terms of the Fund’s risk structure, the persistence of an environment defined by low interest rates and low implied volatility continues to provide attractive, cost-effective opportunities to hedge against both downside risk and upside risk.”   [read all]

 

“We believe the discrepancy between CAPOX and its peer group comes down to a fundamental difference in our process. We believe the most effective way to protect downside is by actively hedging, by combining that process with our bottom up research, and by structuring the Fund to potentially have an attractive payoff profile in market movement both up and down. The Fund can earn a return either via stock selection, relative stock selection, changes in volatility, or direct hedges based on broad based market movement. In other words, having multiple opportunities for gains.”   [read all]