Asia waits patiently for volatility to spike
Fri Sep 21, 2012
Volatility arbitrage funds have struggled through the summer as volatility dwindled, but new players are attracting seeders and investors anticipating sharp volatility spikes in the not-so distant horizon
Volatility arbitrage funds have of late been making a mark on
the Asian hedge fund landscape. A classic case is Hong
Kong-based Voltex Asia Capital, which attracted at least $250
million from investors.
Its initial success on the capital-raising front is traced
to the pedigree of founder and principal trader, Jean Noel
Payer, who used to run volatility investments in Asia for
Citadel, one of the biggest hedge fund groups in the world. He
joined the firm in 2005 and managed its volatility investments
in the region, first from Tokyo and then in Hong Kong. He left
four years later to join Nomura, where he ran the volatility
strategy for star trader Benjamin Fuchs, who also launched his
own hedge fund this year.
A difficult summer
Voltex clearly benefited from its timing: it launched in late
August at a time when volatility levels have sunk...
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