“But when markets are down,” O’Malley noted, “you’re glad to have the downside protection.”
Kenneth Tropin, another Franklin-Templeton partner and the founder of Graham Capital Management, said he finds the most opportunities in markets headed up or down quickly. “There’s advantages in not having alpha that is correlated with markets,” Tropin said.
The fund is part of Franklin Templeton Solutions, which managed approximately $40 billion in assets as of September 30.