WELCOME TO S&V CAPITAL
AUM - 200k
S&V Capital Overview
S&V Fund Management LLC specializes in volatility arbitrage, using a proprietary algorithm to systematically short market volatility. The fund's quantitative approach allows for dynamic exposure adjustments. Operating as a Delaware Series LLC through Fundviews, S&V Fund Management LLC is co-owned and managed by its partners, with S&V Capital as the investment arm.
Investment Objective
Outperform the S&P 500 on a risk-adjusted basis, while also targeting superior returns compared to the average short volatility hedge fund, as measured by the Eurekahedge Short Volatility Hedge Fund Index (Bloomberg Ticker: EHFI450).
Investment Strategy
Centered around systematically shorting volatility through the VIX. Exposure is dynamically adjusted according to the fund's allocation model. The fund will also maintain a reserve of "dry powder," strategically invested in low-volatility assets that target returns marginally above the risk-free rate.
Selling Volatility When Volatility is High
When volatility in the market is high, the cost of options, or premiums, increases because investors perceive greater risk and are willing to pay more for protection. However, with heightened premiums also comes heightened risk. ​
Selling Volatility When Volatility is Low
During periods of low volatility, tail risk is infrequent but extremely consequential. Option contract premiums are inexpensive disincentivizing sellers during these periods.
Our
Solution
We sell vol during periods of moderate volatility. Low vol options contracts do not provide enough premium, and high vol contracts are extremely risky.