The Shooter Multi Strategy Fund has been added to the Fimat Volatility Arbitrage Median (FVAM), which measures volatility arbitrage hedge fund strategies.
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.
FVAM is maintained by Fimat Alternative Investment Solutions and is, in part, designed to raise the profile of volatility arbitrage strategies.
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. 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.
Relative value strategies are producing returns in low volatility environments and put protection positions can provide high returns when volatility spikes. The Shooter fund has a significant track record in both low and high volatility environments and has not had a negative month since launch (Past performance, however, is not necessarily indicative of future performance.)
Fimat Alternative Investment Solutions is also coordinating 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.