Wednesday, 23 July 2014
Last updated 1 hour ago
Jul 14 2008 | 11:25am ET
Matthew Kratter, former head trader at Clarium Capital, last month launched a long/short equity hedge fund seeded by Clarium founder Peter Thiel and hedge fund seeder Borton Hermeneutics.
Kratter described the fund as a hybrid vehicle hybrid encompassing value investing, macro and options trading.
“We're looking for companies where the options market is saying they're more risky than what the fundamentals are saying; and then we arbitrage that difference,” said Kratter. “So we don’t have to be bullish on a stock; we just have to be sure it doesn’t go down a whole lot.”
He added the current market conditions are ideal for the fund because “we like seeing a lot of volatility and valuations come down. We’ve basically gotten both in the last few months where valuations are much more reasonable and implied volatility is still high.”
The $8.6 million fund was down 0.83% in its first month of trading.
It charges a 2% management fee and 20% performance fee. Its minimum investment requirement is $1 million.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…