Monday, 3 August 2015
Last updated 2 days ago
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%.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…