Ex-MF Global Exec. Readies Quant. Volatility Hedge Fund

Sep 19 2012 | 1:59pm ET

Daniel Bystrom has been mulling a hedge fund launch for five years. But it took his employer's collapse to make him take the plunge.

Bystrom, formerly head of equity derivatives trading at MF Global, and his partner, Neil Boyarsky, will launch a quantitative volatility hedge fund by the end of the month, with between $10 million and $20 million in initial capital from themselves, their families and friends. But it might not have happened were it not for MF Global's bankruptcy in October.

"It was an ongoing dialogue and it was something I knew I would always do at some point," Bystrom, whose résumé also boasts stints at AM Investment Partners, Merrill Lynch, BNP Paribas and Susquehanna International Group, told Bloomberg News. "When MF Global did go bankrupt, it presented me with the right opportunity to do it."

New York-based Hawksfield Capital's maiden Volatility Opportunities Fund will use quantitative models to analyze volatility and value options, it said in a marketing presentation. "The fund will deliver returns that are uncorrelated and often negatively correlated to the returns of the typical hedge-fund strategy," Bystrom said. "The opportunity set expands dramatically in times of higher volatility, when most other asset classes are not performing well."

Bystrom will serve as chief investment officer of the new firm, with Boyarsky, formerly executive vice president of actuarial consultancy Improved Funding Techniques, as CEO.

Goldman Sachs has been engaged as Hawksfield's prime broker.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Why Is The Shipping Industry Underwater?

Jul 31 2014 | 7:31am ET

Anyone who’s taken a look at the global shipping industry recently probably knows...

 

Publisher's Note