Fimat Group has added the Shooter Multi Strategy Fund to the Fimat Volatility Arbitrage Median (FVAM).
FVAM is a measure of performance for the Volatility Arbitrage hedge fund strategy maintained by Fimat Alternative Investment Solutions.
The addition of the Shooter Multi Strategy Fund brings the total funds in FVAM to seven. FVAM is an equally weighted portfolio of funds where performance is collected from the independent administrators in the funds’ base currency and supplied as a percentage (net) return or as Net Asset Value per share.
FVAM was launched in December 2003 and contains back-tracked data from January 2003 onwards.
Fimat says current market conditions have proved difficult for Volatility Arbitrage managers but interest in this strategy, which fundamentally aims to treat volatility as an asset class of its own, continues to grow rapidly.
The Shooter Multi Strategy Fund is managed out of London, by options trader Mark Shooter, who heads his own team of traders and quantitative analysts. The fund focuses on exchange-traded, front month derivatives to reduce risk, while increasing transparency and liquidity in its investment universe. The fund uses a multi strategy approach to volatility trading. Relative value strategies are producing returns in low volatility environments and put protection positions can provide high returns when volatility spikes. Fimat says the fund has an excellent track record in both low and high volatility environments and has not had a negative month since launch.
Fimat Alternative Investment Solutions is also co-ordinating a research project surrounding FVAM, involving academics and other hedge fund specialists. The objective of the research is to develop a better understanding of the return characteristics of Volatility Arbitrage investments.