Monday, 22 December 2014
Last updated 41 sec ago
Jul 29 2008 | 2:00am ET
Boston- and San Francisco-based Bay Hill Capital Management this month launched its first hedge fund, a multi-strategy volatility offering with $25 million in initial assets.
According to Alec Petro, managing partner, the Bay Hill Fund has three sub-strategies: volatility arbitrage, which is a broad vega-neutral, high-frequency portfolio; dispersion, which trades different stock indices against the components that make up those indices; and relative value, which is more opportunistic and flow-driven.
“They’re not correlated so it produces a nice robust return stream, specifically in volatility,” said Petro. “It’s unique and I don’t know of any funds out there that think of volatility in different sub-strategies and combine them.”
Petro said the volatility in the market will present the fund with plenty of opportunities going forward but “we like to think that we will perform reasonably well in low volatility as well as high volatility environments.”
The fund charges a 2% management fee and a 20% incentive fee with a $1 million minimum investment requirement.
Petro, along with Doug Goldberg and Dominic Rugani, former partners at San Francisco-based Parallax Fund, are the co-principals of the firm.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.