Gibson Volatility Management Introduces GVM Managed Volatility Fund That Seeks To Proactively Manage Risk In Times Of Stress

Share Article

Gibson Volatility Management, LLC (“GVM”) announced today the launch of GVM Managed Volatility Fund (A Class: GVMAX, Advisor Class: GVMVX, Institutional Class: GVMIX), a new mutual fund that attempts to capture most of the positive returns of the equity market with less risk and volatility than other equity investments.

News Image

Gibson Volatility Management (“GVM”) announced today the launch of GVM Managed Volatility Fund(A Class: GVMAX, Advisor Class: GVMVX, Institutional Class: GVMIX), a new mutual fund that attempts to capture most of the positive returns of the equity market with less risk and volatility than other equity investments. The Fund will use conservative hedging strategies to mitigate risk in downward trending markets while attempting to enhance total return in upward trending markets.

Designed to complement traditional long-only equity mutual funds, the GVM Managed Volatility Fund employs a disciplined proprietary process called the Dynamic Delta Program to determine the appropriate portfolio hedge, if any, to utilize based on prevailing market conditions. The goal of the program is to optimize the balance between portfolio appreciation potential, risk management, and hedging costs by limiting the use of hedging strategies to times when the market is in a negative trend.

“The costs of hedging equity risk can be extremely high,” said Shawn Gibson, Portfolio Manager of the Fund. “While these costs are justified in periods of market stress, the systematic purchase of downside protection creates a significant drag on returns in a positive equity environment. We are not market timers, and instead rely on our program to help us better determine when the protection cost is justified. We would rather be a little too late to pay for portfolio protection than way too early.”

GVM believes that the demand for a strategy like that offered by the Fund, especially given GVM’s unique approach to hedging, is significant given the expected market volatility over the coming years. Beyond potential performance benefits, GVM is committed to creating a unique client experience where professional investment advisors are given direct access to the portfolio management team with full transparency and frequent communication. “We are committed to offering a level of access and service that large fund companies could not possibly offer,” said Chris White, Co-Portfolio Manager to the Fund and Director of Client Relations.

Gibson Volatility Management was formed in October 2009 by Shawn Gibson, the former Director of Alternative Investments for BB&T Asset Management. Shawn formed GVM to focus exclusively on developing strategies that are designed to allow investors to capture more equity upside than downside with the goal of generating attractive absolute and risk-adjusted returns relative to traditional equity strategies. It is expected that the principals of GVM will have significant portions of their personal investment capital in the Fund.

Important Disclosures

The Fund's prospectus contains important information about the Fund's investment objectives, potential risks, management fees, charges and expenses, and other information and should be read and considered carefully before investing. The Fund's past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. You may obtain a current copy of the Fund's prospectus by calling 1-800-673-0550. Distributed by First Dominion Capital Corporation, Richmond, VA. Member FINRA. The S&P 500 Index is a free-float capitalization-weighted index of 500 large-cap common stocks actively traded in the United States.

Disclosures about Risk

Domestic economic growth and market conditions, interest rate levels, and political events are among the factors affecting the securities markets of the Fund’s investments. There is the risk that these and other factors may adversely affect the Fund’s performance. The loss of money is a risk of investing in the Fund. Investment in the Fund is also subject to the following risks: market risk, ETF risk, options risk, non-diversification risk, U.S. governmental obligations risk, REITs risk and foreign risk. More information about these risks and other risks can be found in the Fund’s prospectus.

For more information, contact:                
Chris White
Gibson Volatility Management, LLC
Richmond, VA 23219        

Gibson Volatility Management
GVM Managed Volatility Fund


Share article on social media or email:

View article via:

Pdf Print

Contact Author

Visit website