With Volatility Comes Opportunity

Maybe that isn’t exactly how the quote goes, but when you are talking about investing, you would rather talk about volatility than adversity. Adversity is usually associated with a setback and investment managers don’t like to think about setbacks, they would much rather talk about volatility.

Over the first ten days of 2015, the market had its fair share of volatility and unfortunately some hedge fund managers suffered substantial setbacks thanks to the rally by the Swiss Franc and some funds have even had to close their doors as a result.

So where is the opportunity? The opportunity is with HedgeCoVest. During the first ten days of the New Year, the HedgeCoVest platform and its group of hedge fund managers fared much better than the S&P 500 did.

Over the first ten days of trading, January 2 through January 15, the S&P lost 3.22% and that was the worst start to a new year since 2009. There is a big difference between the two market environments because in 2009 we were in a bear market and in 2015 we are in one of the greatest bullish periods in history.

Regardless of market conditions, hedge fund strategies are designed to deliver better returns and ideally positive returns even in a period of increased selling or higher volatility. In the first ten days of trading, the top five models on the HedgeCoVest platform delivered on their purpose: they provided a better return than the overall market. It wasn’t quite a positive return, but it was much closer to positive than what the S&P turned in.

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