What Does An Active Long Volatility Strategy Look Like?
Simon Aninat, volatility portfolio manager at Seeyond, explains Seeyond’s approach to active long volatility strategies.
- For most investors, long volatility strategies are only used as a tactical bet to implement before market downturns. But since 2009, market crashes are almost impossible to anticipate.
- Active long volatility strategies are long term investments which need both quiet and volatile markets to fully implement their differentiating effect.
- Seeyond’s active long volatility strategy aim to deliver strong returns during volatile markets with a reduced cost of carry compared to passive long volatility strategies.
Main risks of the Seeyond volatility strategies : capital loss risk, volatility-linked risk, risk related to the underlying asset, model-based risk.
This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted. Actual results may vary.