The Good: Och-Ziff, Asian Volatility Funds

Aug 10 2011 | 12:23pm ET

Not every hedge fund manager is weeping over the market rout that has taken hold of global stocks this month. Some are doing quite well by it.

Among the larger funds not joining the summer swoon is Och-Ziff Capital Management. The New York-based firm, which manages some $30 billion, rose 1% last week, Bloomberg News reports.

The firm's flagship macro fund is up 1.2% this year. Och-Ziff gobbled up billions in options during the first quarter, which has helped it ride out, and even profit, from the volatile markets.

On the other side of the world, things look even better. Singapore-based Vulpes Investment Management, founded by former Artradis Capital Management chief Stephen Diggle in May, is riding out its first market crisis nicely, adding 4% in the first six trading days of the month, Reuters reports. Fellow Asian hedge fund Tantallon Capital did as well or better, rising 4.15% last week.

"Everyone is just trying to reduce their exposure to equities principally in a very thin August market and that has caused very significant volatility," Diggle, who specializes in volatility arbitrage, told Reuters. "We are basically long risk and that's going higher."

Vulpes and Tantallon are not alone in the region: Macquarie Group's Asian Alpha Fund added 0.4% last week.

Other top hedge funds have had to settle for not losing ground this month. Citadel Investment Group's flagship Kensington and Wellington funds are little changed this month, according to Bloomberg, which JAT Capital Management is also roughly flat. Both firms are no doubt breathing a sigh of relief that August's troubles haven't put a dent in their impressive returns for the year; JAT is up 32% and Citadel's fund 14%.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.