The funds objective is to generate performance, irrespective of market conditions through the control of volatility. To achieve this aim, The 1.2 Fund combines actively managed short option positions and specific hedges designed to protect the portfolio and minimise negative drawdowns.

The aim of the managers is to maintain an average margin allocation of below 50% of the fund's assets. This will be allocated to the clearing house as required to cover the positions held by The 1.2 Fund.