From the AFR:
Asymmetric Return Capital is a dynamic volatility investor that is far from “traditional”. ARC’s partners have recruited Australian Steve Keen as their economist, best known here for a calling a crash in the local property market.
…“Now what happens is when something’s very volatile there’s no-one there to take the other side. We want to capture that movement. In the meantime, who’s doing it? A lot of people in vol who had the expertise, it’s kind of gone the way of the dodo. In these big shops there’s not many people left.”
…“We look at full market cycles and how you manage volatility over that,” says Sherman. “A lot of times what happens is these vol funds do really well one year, and this was the case in ’08 and ’09, and over time it’s like a balloon – they slowly deflate.”
And below find Professor Keen’s take on today’s volatility:
