Shopping Cart -

Your cart is currently empty.
Continue Shopping
This website use cookies and similar technologies to improve the site and to provide customised content and advertising. By using this site, you agree to this use. To learn more, including how to change your cookie settings, please view our Cookie Policy
Pocketmags Digital Magazines
Pocketmags Digital Magazines
   You are currently viewing the Germany version of the site.
Would you like to switch to your local site?
Digital Subscriptions > The Hedge Fund Journal > Issue 133 – Jun 2018 > Arbitrage in the Age of Machine-Made Volatility

Arbitrage in the Age of Machine-Made Volatility

Event-driven opportunities powered by rise of machines



Investors are entering a brave new world. The machine-made crash we saw in the early part of the year was illustrative – one market misstep can create a vortex of selling. As herding in ‘smart beta’ ETFs drives increasing correlations, we could witness another snap back in a market showing signs of diminishing support. After a decade of directionality, allocators are now looking to strategies with uncorrelated sources of return – of which, some will find their diversification claims tested in potentially ultra-bearish conditions.

Against this backdrop, the scene is set for the return of relative value arbitrage strategies. The rise of the machines, combined with the decline of investment banking trading, has led to an unprecedented level of event-driven opportunities. From mispricing around new capital raises to regulatory change, shareholder buy backs, security issuance and capital restructuring, there has never been more fertile ground to unearth sources of uncorrelated alpha.

Purchase options below
Find the complete article and many more in this issue of The Hedge Fund Journal - Issue 133 – Jun 2018
If you own the issue, Login to read the full article now.
Single Issue - Issue 133 – Jun 2018
Or 12999 points
6 Month Digital Subscription
Only € 140,00 per issue
Or 69999 points

View Issues

About The Hedge Fund Journal

Informing the Hedge Fund Community. With access to some of the industry’s biggest names and an astute and talented group of writers and contributors, The Hedge Fund Journal has established itself as a trusted source of information on the hedge fund industry.