| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7.6% | 1.6% | 11.9% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 11.9% | 17.4% | 14.6% | -2.8% | 11.3% | 7.3% |
The Easterly Hedged Equity Fund delivered a 1.56% return for Q4 2025 and 11.87% for the full year, capturing over 66% of the S&P 500's upside with only 48% of its volatility. The Fund navigated a market environment characterized by resilience amid growing underlying risks, including elevated AI valuations, government shutdown concerns, and Fed policy shifts. The Fund's systematic, shorter-dated put spread collar approach enabled dynamic hedge management and beta adjustment as volatility regimes shifted. Key risks include elevated market valuations requiring continued earnings growth and potential complacency reflected in compressed volatility levels. The Fund successfully monetized volatility spikes from atypical events like tariff developments and Liberation Day, repositioning exposure as conditions normalized. Looking forward, the Fund believes its disciplined approach provides durable beta management in an environment defined by elevated valuations, policy uncertainty, and changing volatility dynamics, supporting long-term participation while enhancing portfolio resilience across market cycles.
The Easterly Hedged Equity Fund employs a systematic hedging strategy to reduce equity beta while maintaining meaningful market participation, delivering risk-adjusted returns through active volatility management.
In an environment defined by elevated valuations, policy uncertainty, and changing volatility dynamics, the Fund believes its disciplined approach provides a durable source of beta management – supporting long-term participation while enhancing portfolio resilience across market cycles.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 22 2026 | 2025 Q4 | - | Beta, Hedged Equity, Options, risk management, S&P 500, volatility | - | The Fund employs a systematic, shorter-dated, closer-to-the-money put spread collar approach to actively manage hedges and dynamically adjust exposure. Volatility compression was observed as the Cboe Volatility Index moved toward relatively low levels around 15, though this may reflect complacency toward valuation risk. Sharp volatility spikes during atypical events created opportunities for active risk management. The Fund maintained structurally lower equity beta while participating meaningfully in market gains, capturing over 66% of the market's upside with only about 48% of the index's volatility. Positioning stayed relatively light as much of the equity market rally was viewed skeptically, supporting continued inflows and steady decline in volatility. |
| Oct 15 2025 | 2025 Q3 | - | Beta Control, downside protection, Hedged Equity, market breadth, Volatility Management | - | The commentary describes a market rally driven by narrow leadership in mega-cap technology and AI despite the Federal Reserves first rate cut. Easterly emphasizes the value of its hedged structure, capturing upside participation while maintaining materially lower volatility amid weak market breadth and elevated valuations. The outlook favors active volatility management and dynamic beta control as policy uncertainty, labor market softness, and concentration risk increase downside asymmetry. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Risk AppetiteManager emphasizes disciplined risk management through cycle awareness rather than market timing. Fund maintains cash cushion during high-risk periods and deploys capital countercyclically. Approach focuses on behavioral edge by having cash available when fear creates best entry points and avoiding leverage that leads to forced selling. |
Leverage Cash Volatility Positioning Discipline |
VolatilityMarket volatility in spring 2025 triggered by trade tariff uncertainty led to a broad sell-off, with strategies down over 23% year-to-date at the trough. The manager used this volatility to add exposure at attractive prices during the decline. |
Market volatility Sell-off Opportunity Exposure Timing | |
| 2025 Q3 |
Breadth |
|
Hedging |
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VolatilityManager emphasizes volatility as a structural feature of markets, noting that rare events occur far more frequently than expected. April's volatility event validated their convexity approach, with systematic monetization during stress periods. December saw compressed volatility with VIX hitting year lows, creating buying opportunities despite short-term costs. |
VIX Implied Volatility Realized Volatility Convexity Options |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| No ticker commentary found. | |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
