Sunday, 31 August 2014
Last updated 1 day ago
Mar 6 2012 | 1:21pm ET
The Gargoyle Group, a US options-trading hedge fund manager, has launched a fund it believes is a first: a market neutral fund hedged with a continually-monitored index options overlay.
Gargoyle says the fund employs many of the components of the proprietary methodology employed successfully by its flagship fund, the Gargoyle Hedged Value Fund, for the last 12 years.
The Gargoyle Group, in a statement announcing the fund launch, said it “seeks to produce alpha via both stock selection and cumulative excess premiums gained from the sale of overpriced call options.” The new fund’s underlying equity portfolio is chosen from the top 2,000 capitalized U.S.-listed companies while the options overlay portfolio “typically sells near-term call options on indexes highly correlated to the underlying stock portfolio.”
Gargoyle founders Josh Parker and Alan Salzbank say an index options-based hedge avoids the risk of individual equity positions being “called away” early before they have a chance to outperform and also eliminates many of the risks inherent in shorting “overvalued” equities as a hedge.
The Gargoyle Group specializes in sophisticated equity options strategies.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...