Sunday, 21 September 2014
Last updated 1 day ago
Jul 8 2013 | 10:18am ET
A group of former Société Générale traders are planning a hedge fund to invest in dividend futures.
Paris-based Melanion Capital is believed to be among the first firms to focus on the burgeoning market, Financial News reports, which was created five years ago. That's also when the Melanion group, Jad Comair, Antoine Iskandar, Erwan Tigreat and Big Zhou, began trading them at SocGen. Comair told FN that the strategy has averaged 20% annual returns before fees since its inception.
"Dividend futures have evolved from a hedging tool to an asset class, similar to what happened to the market for credit default swaps," he said. "We think the dividend futures market has the potential to be the next big thing." Comair said that open interest for the market has grown to US$10 billion, and that Melanion's fund has a capacity of about €500 million.
Melanion, which will employ quantitative and fundamental approaches to the dividend futures market, has won authorization from French regulators.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.