Hyperion Fund End-of-Year Webinar Recap
The webinar began with a recap of 2024 and a comprehensive overview of the Hyperion Fund, its strategies, and its purpose. Tyler Resch, the host, introduced three portfolio managers to discuss their approaches and performance, providing insights into the fund’s mechanics and strategy diversification.
Key Highlights – Overview of the Hyperion Fund
- Objective: Generate returns with low volatility and maintain a low correlation to the S&P 500.
- Core Strategies: The fund primarily trades options on the E-mini S&P futures, balancing market-neutral and long-volatility strategies.
- Purpose: Designed for high-net-worth individuals, families, and registered investment advisors to preserve wealth and achieve long-term growth.
2024 Performance Recap
- The portfolio had standout months, including a strong July (+) and a challenging August (-), demonstrating the fund’s ability to perform in diverse market conditions.
- A rare negative month (August) in an otherwise consistent 4-year record highlighted the fund’s commitment to minimizing drawdowns.
- December performance suggested a ~10% annual return, with a Sharpe ratio over 3 and a negative correlation to the S&P 500.
Portfolio Manager Insights
Mike Kaminski – Active Range Strategy
- Focus: Profit from market pullbacks of 4–7%, with robust risk management for sharper declines.
- 2024 Results: Challenging year due to minimal pullbacks in a strong bull market, but the strategy maintained modest gains.
- Historical Performance: Strong in volatile or bearish markets, with a 28% return over 3.5 years and a negative 0.7 correlation to the S&P 500.
Jiangtao Du – Directional Spread Strategy
- Focus: Short-term (1-day expiration) options with hedged positions to capitalize on 1–2% market drops.
- Edge: Combines positive carry with positive convexity, providing returns in flat or modestly declining markets.
- Track Record: 10+ years of high Sharpe ratio performance, with only one negative month since inception.
Mark Adams – Tactical & Strategic Strategies
- Tactical Strategy: A steady, premium-collecting approach with a slight positive carry.
- Strategic Strategy: A “Gray Swan” approach, thriving in moderate market declines with a slight negative carry.
- Philosophy: Active risk management with precise hedging, benefiting from diverse expiration options.
Q&A Highlights
- Liquidity: Monthly
- Tax Benefits: The fund’s returns benefit from 1256 tax treatment (60% long-term, 40% short-term gains).
- Strategy Count: Eight strategies, weighted to balance risk and volatility.
- Third-Party Verification: Performance audited by Ryan and Juraska; daily fund oversight by Formidium.
- Broker Access: Available on Fidelity’s alternatives platform, with expansion to others upon request.
