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

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

How To Generate 6% Yield In A Volatile World

May 22 2015 | 6:41am ET

Private credit comes in many different flavors, all with the common themes of over...

 

Editor's Note