Paloma Equity Derivatives Vet Readies $10M Hedge Fund

Mar 13 2013 | 1:45pm ET

Pioneering equity-derivatives trader Mike Belbeck is set to launch a volatility arbitrage hedge fund next month.

Belbeck's Holworthy Capital's maiden, eponymous fund is set to debut on April 1 with about $10 million in initial capital, Hedge Fund Alert reports. Belbeck has told investors that the strategy is designed to profit in most market environments—even those with little turnover.

Belbeck's funds at Vicis Capital and Paloma Partners' Sunrise Partners unit enjoyed average annual returns of 9.8% from 2007 until 2011, when he left Paloma. He started his career at Citadel Investment Group as an intern, before helping set up Credit Suisse's equity-derivatives desk in the late 1990s. An early adopter of volatility swaps and other derivatives, he has worked on both the equity derivatives buyside and sellside. He worked at Deutsche Bank before joining Vicis, and then Paloma in 2010.

Holworthy, named for Belbeck's Harvard University dormitory, features two other investment professionals, chief operating and technology officers and a head of software development.

Holworthy investors can choose to pay a 1% management fee, in exchange for a one-year lockup and quarterly liquidity, or a 1.5% fee if they desire only a six-month lockup and monthly liquidity. The performance fee for both is 20%.


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

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.