V-Alt is a liquid alternative investment strategy designed to capture the risk premium available to investors betting on range-bound to rising markets. To achieve this, V-Alt systematically trades options, benefiting from short and long-term inefficiencies in the pricing of equity market volatility.
Unlike the strategies in our flagship product, commonplace hedge fund strategies like equity long/short, event-driven, distressed credit, fixed income arbitrage and others, have often disappointed investors, providing too low returns during the good times and high correlation to traditional markets in the bad times. Why? Because of the nearly 8,000 hedge funds in the market, we believe that virtually all of them are short volatility, relying on convergence and normal market conditions to generate return. These strategies then correlate to each other and to the equity market during substantial and rapid market declines. V-Alt, a liquid, tax-efficient investment strategy that has consistently delivered higher returns (net of fees) than the hedge fund industry since its inception with similar volatility and drawdown risk, is intended as a replacement for these commonplace hedge fund strategies.