Triple3 Volatility Advantage Fund
Asset Class: Alternatives
Description: Volatility Trading
- Triple3 is a volatility-focused strategy that aims to generate returns by trading volatility options.
- Triple3 is generally expected to perform best when markets are falling (specifically the S&P 500) which tends to be when volatility spikes. The strategy is not likely to perform well when markets are stable or increasing only steadily, as volatility tends to remain low and stable in those environments.
Triple3 has been included in the portfolio to provide some defensiveness in the portfolio. Traditionally, bonds have played the role of providing defensive exposure, however with bond rates so low and the duration of bonds increasing they might not be as defensive as they have been in the past. We believe that Triple3 provides another source of defensive exposure.