Industry Analysis

Asia waits patiently for volatility to spike


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