$1 Billion Hedge Fund Shuttering Due To Collapse In Volatility

Posted on March 14, 2019 11:41 am

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URL https://www.zerohedge.com/news/2019-03-14/1-billion-hedge-fund-shuttering-due-collapse-volatility 

The Fed’s active vol suppression (or, to paraphrase Fed Chair Powell circa 2012, the Fed’s “short volatility position”) has claimed its latest casualty: Argentiere Capital’s flagship $940 million fund is returning capital to investors after years of failed bets on rising market volatility.

The fund, which was founded by former JPMorgan top trader Deepak Gulati in 2013, will continue to manage a modest $250 million in other strategies. What is odd is that the Zug, Switzerland-based investment firm actually outperformed most hedge funds and the broader market in 2018, when it returned 2.5%, however it posted single-digit losses in the prior