Asia waits patiently for volatility to spike

Fri Sep 21, 2012

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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


Jay Suresh
Scott Reinhart
Govert Heijboer
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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