Phalanx gains on events in Japan


Volatility fund Phalanx was presented with several opportunities to make gains in August including sideways markets; equities upsets in Japan; a reluctance by global investors to sell implied volatility as an expected period of volatility in September and October approaches; and markets that were good for credit and convertibles.

The fund added 3.68% and year to date is up 35.97%. A disappointing earnings announcement from Nikon on 5 August, leading to a 10% collapse in the share price the next day, was just the kind of ‘fat tail’ statistical event that favours a volatility fund like Phalanx, explains