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Core Alternative ETF - CCOR

I find the Core Alternative ETF (CCOR) to be one of the more interesting defensive funds: https://corealtfunds.com/assets/pdfs/Core_Alternative-Presentation.pdf It is one of the few to have been profitable during the first quarter of 2020.

Comments

  • It is an options-trading/overlay fund with 90% equities holdings and 10% devoted to options. No alternatives beyond options.
  • The difference is it's actively managed on both the equity and options side unlike most of the options funds out there, and it's proven more defensive than most of them.
  • Curious @LewisBraham....do you personally feel there is/can be a mostly succesful "all-weather" fund?

    Marketing hyperbole? Can someone make it work in most market environments, can they beat a 50/50 SPY/Cash allocation to make the fee worth it? Wouldn't they have multiple billions in assets under mgmt?

    Makes me think, question, if there deploy proprietary algorithm, models etc...most of them work until the don't as the saying goes about most quant funds.

    Best,

    Baseball Fan
  • edited January 25
    It's a difficult question to answer, and the most honest one I could give is I don't know. But it's worth noting the goal of many alternative funds is not to beat a 50/50 SPY/Cash allocation. It's to deliver positive absolute performance beating 100% cash or T-bills while not being correlated with stocks or bonds. This fund seems to have done that at least with stocks so far. (I haven't seen its correlation with bonds, but given its different construction I would assume it isn't high.) But that doesn't mean it will do this in the future. I just find its lack of correlation, its actively managed style and the fact it delivered positive results during the first quarter of 2020 while also delivering in 2021 interesting. As for having multiple billions of assets under management, such defensive funds usually only get that kind of money when markets are poor and they, hopefully, hold up well. During a strong bull market, most investors won't even notice they exist.
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