The former trading chief at Capstone Investment Advisors is set to launch his own volatility arbitrage hedge fund.
Stephen Yashar has founded Cosyne Capital Management along with Frank Erven, also formerly of Capstone, and Hamid Zanganeh, who formerly worked at Gladius Investment Group and Pardus Capital Management. The Stamford, Conn.-based firm will trade options for its main volatility strategy, but will also have a statistical arbitrage portfolio, Bloomberg News reports.
Cosyne’s maiden fund is set to debut next month.
“There are a lot of idiosyncratic opportunities in the single-stock space, especially with the increase in activity in corporate mergers and acquisitions and special situations,” Yashar told Bloomberg.
Yashar spent three years at Capstone after stints at Nomura Holdings and Bankers Trust. He left Capstone in May.