Fortress Unveils Asia Volatility Hedge Fund

May 30 2012 | 1:29pm ET

Fortress Investment Group has launched an Asia-focused volatility hedge fund helmed by a pair of former Artradis Fund Management hands.

The Fortress Convex Asia Fund debuted on May 1 with US$55 million in initial assets. The new fund invests in stock, interest rate and currency options, as well as Asian volatility instruments, Fortress said in a document obtained by Dow Jones Newswires. It will seek "to deliver non-correlated returns in normal markets and out-sized returns in stressed or dislocated markets, providing 'Tail Risk' protection," Fortress said.

"Specifically, a general state of negative real interest rates across the region is fueling asset prices and inflation in Asia. These same low interest rates are highly destructive to the largest pool of savings in the world today, and are prompting Asian savers to take additional risks in order to generate satisfactory rates of return," it added. "We believe this imbalance of risk and return may present interesting opportunities on a sustained basis for a volatility-based investment strategy."

Convex Asia is managed by David Dredge and Andrew Wong. The two formerly worked at Artradis Fund Management, once Singapore's largest hedge fund, which closed last year. Dredge and Wong remain based in the city-state.

The fund charges 1.5% for management and 20% for performance. Like other funds at publicly-listed Fortress, it will publicly report its monthly returns beginning next month.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    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…

 

Futures Magazine

July/August 2014 Cover

The time was right

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 ...

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.