Making Money in a Market Storm

Location Date: 
August 8, 2011

As volatility spikes and markets sink around us, a well-run market neutral fund is something that everyone should take a close look at. One great example is the Curvature Fund run by James Hodgins and Geoff Phipps, which invests in the small-mid-cap North American market. Curvature often benefits from both rising volatility and negative correlation as we are experiencing now.

For example, on the day of the flash crash last May 6, 2010, the Curvature Fund was up approximately 45 bps gross. Last Friday, August 5, was no different – the Curvature Fund was up approximately 55 bps gross. As of 2:20pm today, they are up approximately 85 bps gross.

James Hodgins has been featured on BNN several times over the last few months, and was featured on Market Call last Friday night. As you can see in the replay, James discusses how he has been bearish since April, and how they have managed the portfolio to achieve positive monthly returns each month since then. James also discusses how he thinks that the realities of the U.S. situation is not yet priced into the market.

Part one:

Part two:

Part three:

For more information, please contact your regional Arrow representative, or visit our advisor site at:

Jim McGovern


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