DragonBack to launch volatility hedge fund
The new fund from Hong Kong manager DragonBack Capital will take a much broader approach to volatility trading and offer greater flexibility across equity-based products and indices.
Hong Kong hedge fund manager DragonBack Capital will launch a second hedge fund in September 2008. The new fund will be named the DragonBack VolAsia Fund. The fund follows in the footsteps of the DragonBack Asia Pacific Equity Multi-Strategy Fund, which was established in 2007 by the three co-founders of the firm, CEO Rob Lance, CIO Matt Barnett and COO Philip Tye.
The firm has since grown to 18 staff members, including an eight-person investment team, all of whom will have a level of involvement in the new fund under Matt Barnett. Volatility trading has played an important role as one of the three components of the original fund, along with the equity long/short and relative value sub-strategies. While the core ethos of strategic portfolio building and gamma trading will transition across to the VolAsia fund, it will also take on a much broader approach to volatility trading and a greater flexibility across equity-based products and indices.
The DragonBack Asia Pacific Equity Multi-Strategy Fund has now hard closed with $565 million under management. The new fund will come out with a soft close target of $250 million.
The VolAsia fund will always be long gamma and square to long vega. No target figures for return or fund volatility have been disclosed.
Fees will be a 2% management fee and a 20% performance fee. Redemptions will be monthly with 90-days notice and there will be a 10% gate at the fund level.
Service providers are Credit Suisse and Goldman Sachs as prime brokers and HSBC as administrators.
The firm has since grown to 18 staff members, including an eight-person investment team, all of whom will have a level of involvement in the new fund under Matt Barnett. Volatility trading has played an important role as one of the three components of the original fund, along with the equity long/short and relative value sub-strategies. While the core ethos of strategic portfolio building and gamma trading will transition across to the VolAsia fund, it will also take on a much broader approach to volatility trading and a greater flexibility across equity-based products and indices.
The DragonBack Asia Pacific Equity Multi-Strategy Fund has now hard closed with $565 million under management. The new fund will come out with a soft close target of $250 million.
The VolAsia fund will always be long gamma and square to long vega. No target figures for return or fund volatility have been disclosed.
Fees will be a 2% management fee and a 20% performance fee. Redemptions will be monthly with 90-days notice and there will be a 10% gate at the fund level.
Service providers are Credit Suisse and Goldman Sachs as prime brokers and HSBC as administrators.
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