Stadion Trilogy Alternative Return Fund Commentary November 2019

November took a page from the now familiar playbook of 2019 and domestic equities, once again riding a renewed wave of enthusiasm over potential trade war resolution, both rallied and tapped new all-time highs.

The S&P 500 Index Total Return finished the month +3.63% while fixed income remained mostly flat as rates rose a little bit especially across the front end of the curve. The Bloomberg Barclays US Aggregate Total Return Index finished the month mostly flat at -.05%.

Inside the Trilogy Alternative Return Fund, equities rose in tandem with broad equity indices but didn't keep pace. Sectors like technology led the way while utilities were a drag on the fund for the month.

Our S&P 500-based collar, which serves to help mitigate losses during prolonged drawdowns in equity markets, also weighed on the fund due to the upward move in equities. The contribution effect of this portion of the fund was +.06%.

The option income portion of the fund had negative performance for the month as the significant move higher in equities hurt options that we had sold for the month and our fixed income was roughly flat. The contribution effect of this portion of the fund was -.58%.

The bright spot for the month was our market movement portion of the fund where the continued trend higher helped the long portion of this strategy. The risk-mitigating put spreads employed in this portion of the fund were a drag given the market’s move upward but were more than offset by the gains in our long positions. The contribution effect of this portion of the fund was +.52%.

To view the most recent performance for the Stadion Trilogy Alternative Return Fund, click here.

Past performance is no guarantee of future results. Investments are subject to risk and any of Stadion’s investment strategies may lose money. The investment strategies presented are not appropriate for every investor and financial advisors should review the terms and conditions and risks involved. Stadion’s actively managed portfolios may underperform during bull markets. Some information contained herein was prepared by or obtained from sources Stadion believes to be reliable. There is no assurance that any of the target prices or other forward-looking statements mentioned will be attained. Any market prices are only indications of market values and are subject to change.

The S&P 500 Index is the Standard & Poor’s Composite Index of 500 stocks and is a widely recognized, unmanaged index of common stock prices.

The Bloomberg Barclays Global Aggregate Bond Index is a flagship measure of global investment grade debt from twenty-four local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers.

A collar is an option strategy that limits the range of possible positive or negative returns on an underlying security to a specific range.

A long (or long position, AKA exposure) is the buying of a security such as a stock, commodity or currency with the expectation that the asset will rise in value.

A put spread is an option spread strategy that is created when equal number of put options are bought and sold simultaneously. 

One cannot invest directly in an index.

The Report’s commentary, analysis, opinions, advice, and recommendations represent the personal and subjective views of the author and are subject to change at any time without notice.


There are additional costs and potential risks associated with investing in domestic and international Exchange Traded Funds (ETFs). Investment in the Fund is subjective to investment risks, including, without limitation, market risk, management style risk, risks related to “fund of funds” structure sector risk, fixed income risk, tracking risk, risks related to ETF net asset value and market price, foreign securities risk, risks related to portfolio turnover and small capitalization companies’ risk. Since each Stadion fund is a “fund of funds”, an investor will indirectly bear fees and expenses charged by the underlying ETFs and investment companies in which a Stadion Fund invests in addition to a Stadion Fund’s direct fees and expenses. More information about these risks and other risks can be found in the Fund’s prospectus.

There are risks associated with the potential investment of the Fund’s assets in fixed income investments which include credit risk, interest rate risk, and maturity risk among others. These risks could affect the value of investments of the Fund, possibly causing the Fund’s share price and total return to be reduced and fluctuate more than other types of investments. Additional information about fixed income risks can be found in the Fund’s statement of additional information (“SAI”). Investment Objective: Seek long-term capital appreciation.

The Fund’s foreign investments generally carry more risks than funds that invest strictly in U.S. Assets including currency risk, geographic risk, and emerging market risk. Risks can also result from varying stages of economic and political development, differing regulatory environments’ trading days and accounting standards, and higher transaction costs of non-U.S. markets.


An investor should consider the investment objectives, risks, and charges and expenses of the Stadion Funds carefully before investing. The prospectus contains this and other information about the Funds. A copy of the prospectus is available by calling Stadion Funds directly at (866) 383-7636 or Stadion Money Management, LLC., the investment advisor, at (800) 222-7636. The prospectus should be read carefully before investing.

The Stadion Funds are distributed by ALPS Distributors, Inc. An investment in the Funds involves risk, including loss of principal.