U.K.-based quantitative hedge fund shop CQS has launched the CQS Global Volatility Fund with initial assets of US$160 million.
The fund, which focuses primarily on the volatility of equity market indices and of individual equities within the world’s major stock markets, is looking to profit from valuation anomalies in equity volatility and from dislocations in markets. It is targeting net annual returns in excess of 15%.
Andrew Song and Amir Kooros are the fund’s senior portfolio managers and will lead a team of nine derivative investment professionals.
“Volatility trading is a complementary skill set to CQS’ existing strengths in convertibles, credit and equities, and is supported by the infrastructure in risk management and trade processing required to successfully manage volatility strategies,” said CEO Michael Hintze.
CQS manages some US$9.6 billion in assets.