The stock market year ended with relatively calm markets and falling concerns. US stocks barely moved at all in December, while volatility continued to decline. That sounds safe, but for a hedge fund like Protect, it creates a special challenge.

Our task is to provide the opportunity for good returns when the stock market rises, but at the same time have robust protection if the market suddenly falls sharply. In December, we therefore chose not to sell new call options when the remuneration was low. This made the protection more expensive relative to the return that particular month, but contributed to maintaining a strong risk profile into 2026.

For the saver, this means that Protect can lose less than traditional mixed funds in a major stock market fall. Today, protection levels are on average around 15 % down from current market levels, and in an assumed fall of 30 %, the fund is expected to lose around 12 %.