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

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of