Investment Approach & Philosophy
Magma Total Return Fund leverages a systematic strategy designed to respond to volatility by tactically allocating capital between asset classes. The Fund strives to produce above average returns over the long term, regardless of economic environment, while limiting downside capture.
Responding as Volatility increases & Decreases
When volatility is low, Magma’s portfolio is primarily invested in the S&P 500, the Dow industrials, and the NASDAQ indices. As volatility rises, equity exposure is balanced with US government backed Treasuries, which have historically exhibited lower returns and volatility relative to stocks. In a high volatility environment, the model shifts capital to both the 10-year and 30-year Treasury and shorts equity indices.
SEE How Volatility is Brilliant
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