Article by RCM Alternatives
What exactly happened last week? Did equities sell off spark a spike in the VIX and blow out the billions of dollars shorting the VIX? Did the over weighted short volatility traders lead to a further sell off in equities? Or is this a standard 10% correction in the markets; something that’s not that uncommon.
Qualivian Investment Partners performance update for the month ended July 31, 2022. Q2 2022 hedge fund letters, conferences and more Dear Friends of the Fund, Please find our July 2022 performance report below for your review. Qualivian reached its four year track record in December 2021. We are actively weighing investment proposals. Starting in November Read More
We’re no experts in VIX and volatility trading, but we did ask those that trade millions in VIX Futures to give us some insight. We reached out to Tim Jacobson, manager of the Pearl Capital Advisors -HEDGED VIX (QEP) program, capturing a +30% performance last week to get some answers. Where did Pearl go right, where so many went wrong?
Here is our conversation with Tim:
1) Is VIX spike an example of the tail wagging the dog? How much do you think VIX ETPs blowing up had to do with the moves in equities?
Tim: On the back of the release of the wage inflation data, markets processed the expectation that increased wages