Manager: Focal Point Management
Model: Volatility and Tactical Opportunity
In April, there was downward price action in the broad financial markets, and an uptick in volatility. Our volatility based portfolio was positioned to benefit from a more tranquil period, and our position in VelocityShares Daily Inverse Short Term ETN (XIV)-- an ETF which generally goes up when volatility declines--lost a little ground as our signals indicated flattish market volatility sentiment during the month.
Overall, 2012 has been a period marked by low volatility; at some point in time, this will change, and our model will be more active in trading spikes and oscillations in volatility when that time comes. For now, however, the model remains positioned to benefit from reduced to flattish volatility and will remain so until conditions change.
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