Hedge Fund News From HedgeCo.Net


Former Long-Term Capital Employee Shys Away from Leverage, Starts Own Fund

New York (HedgeCo.Net) – David Ko, a former quantum physicist and Long-Term Capital Management employee, has set up his own hedge fund according to a report by the Wall Street Journal.

Kurtosis Capital Partners will employ a global macro strategy and hopes to attract between $100 million and $250 million initially.   Ko has partnered with Stephen Cain, once the global head of currency trading at Deutsche Asset Management. 

"Our strategy is to buy options when we think a market is going to become volatile. The closer to the dislocation, the better. Then, at the moment of highest volatility, sell," he said.

Global macro funds generally look for tiny discrepancies in the market using complex equations and mathematical solutions.  They then capitalize on those discrepancies by betting on which way they will eventually regulate. 

Ko stresses that the fund won’t be using leverage, unlike Long-Term Capital Management, which used heavy amounts of leverage that only magnified the huge losses it suffered.  LTCM infamously ended up losing close to $5 billion of investor’s money.

Prior to his hedge fund career, Ko helped to author 10 academic papers on quantum physics while studying at Oxford University.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. For more information, visit www.hedgeconetworks.com

 

Related Posts Plugin for WordPress, Blogger...

About the HedgeCo News Team

The Hedge Fund News Team stays on top of breaking news in the Hedge Fund industry on an hourly basis. Signup to HedgeCo.Net to recieve Daily or Weekly news updates from our team.
This entry was posted in Hedge Fund Launches, HedgeCo News and tagged , , , , , , , , . Bookmark the permalink.

Comments are closed.