IMQubator Seeds Volatility Fund, Plans Acceleration Fundraising

Nov 30 2011 | 9:48am ET

Hedge fund seeder IMQubator has made Volvar Asset Management its ninth seedling, investing €25 million in the volatility fund.

Paris-based Volvar is set to launch its maiden Eurozone Volatility Fund in late January. The systematic long/short fund will invest in variance swaps, volatility futures and options.

"If 2012 is as volatile as 2011, we expect the returns to be great," Nadejda Rakovska, head of business development, told Hedge Funds Review.

Volvar was founded by Rakovska and Yves Coignard, formerly of Lehman Brothers Investment Management, where they managed a volatility portfolio, and Walid Hakim. With IMQubator's money in hand, the firm is offering early investors a "seed class" fee break, charging only 1% for management and 15% for performance for three months before boosting those levels to industry standard. The firm said it will add a U.S. dollar-denominated share class next year.

Volvar is the ninth fund seeded by IMQubator; the Amsterdam-based firm plans to seed one more fund this year to fully invest its €250 million. With that fund nearly finished with its work, IMQubator plans to raise another €150 million in acceleration capital for its seedlings.

"I think the market turmoil of the last one or two years has made some of these [institutional] investors aware that they feel uncomfortable with having such a large part of their portfolio in long-only exposure," IMQubator CEO Jeroen Tielman said. "In my opinion it's a moment for investors to re-evaluate this and it's an opportunity for hedge funds to get a larger allocation."

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