Fund Portfolio Commentary

Portfolio Commentary for the Absolute Strategies Fund is provided on a quarterly basis. 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.


2017 Portfolio Commentary

“…When valuation ratios reach levels similar to 2000 and 1929 peaks, is it an opportunity to stay fully invested in risky assets or an opportune time to hedge? Central banks are on the verge of removing an estimated $1 trillion in market liquidity over the next year. Eventually there will be a large reversion to the mean and we are positioned accordingly…

…From a long/short perspective, we tend to favor underpriced or out of favor long ideas vs a short portfolio of overpriced or crowded areas. Many of these positions are simply relative-value relationships that revert to the mean as assets begin to seek value once areas of perfection eventually turn out to be illusory. Volatility is used to help monetize these relationships over time. Year-to-date, our performance has been directly impacted by a lack of volatility, and an extreme turn of the market cycle that has punished out-of-favor longs while rewarding crowded, over-valued indexing. This has created a large spread between our long and short positions that has pushed our overall portfolio to opportunity levels we have not seen since 2009. We are now currently positioned for extensive mean reversion opportunities that have been stretched over several years and have recently reached historic levels. Details of these opportunities are outlined below…” [read all]