APG-backed hedge fund incubator to invest in volatility expert Volvar
NETHERLANDS - IMQubator, the hedge fund platform backed by Dutch pension manager APG, has increased its investments in hedge fund start ups through a ninth €25m seeding of volatility expert Volvar Asset Mangement.
Led by the three founding partners, two of whom previously managed a volatility portfolio within Lehman Brothers' investment management division, Volvar employs a "systematic long-short volatility investment process, aimed at generating pure alpha with convex portfolio returns", IMQubator said.
"The niche strategy is designed to build returns on volatility dynamics, rather than on market forecast," it added.
Jeroen Tielman, chief executive and founder of IMQubator said: "The Volvar AM team has solid experience in volatility trading, and its strategy represents a small but fast growing niche in the hedge fund space."
"The new investment represents a diversifying and liquid addition to our portfolio," he added.
In his opinion, investors should now increase their exposure to hedge funds, as these "provide a better match to their 'real benchmark' than long only strategies".
"This is the best moment for investors to get closer to those with investment expertise and to decrease their exposure to traditional strategies," he added.
Nadejda Rakovska, Volvar's head of business development, said: "In light of market developments, we believe that sophisticated investors are ready for the volatility asset class, as it brings a very useful building block their their portfolio construction."
Funded in 2009 with €250m from the €272bn asset manager APG, IMQubator offers an institutional platform for professional investors can gain exposure to emerging managers through its multi-manager fund.
Tielman said he believes it is time for a new generation of hedge funds, that can offer transparency as well as a consistent investment strategy, delivering absolute returns to restore best practice in the hedge fund industry.