Vulpes suffers losses as vol slides to historic lows


Lava Fund, the long/short volatility fund run by Singapore-based manager Vulpes Investment Management, has lost nearly a fifth of its value since it was launched in May last year.

The fund, which currently manages around $30 million in assets, incurred a 6.54% loss in September. That stretched its loss year-to-date to 22.13% after short dated volatility wrought havoc on the portfolio through the period. During the year short-dated volatility sharply declined and in September reached its previous all time low back in 2005.

The fund recorded a 3.97% gain in its first eight months of operation, which means loss since